2. The Wonderful World of Financial Aid Elizabethtown College Financial Aid Office

3. Presentation Objectives Introduce Terminology Outline Application Process Describe Aid Applications List Resources Available Reduce Your Anxiety

4. Remember: This Valuable Piece Of Advice! In the beginning of your student’s college search, DO NOT rule out any school based solely on the cost. The elimination of a college occurs at the end of the process once eligibility of financial aid is known and affordability is determined!

5. First Steps Campus Visits Personal Interviews with Admissions and Financial Aid Organize College Spreadsheet Complete Admissions Application by December of Senior Year Note Financial Aid Deadlines Complete Federal Taxes Early

6. The Financial Aid Office Resource For Family Resource For Family Responsible To Federal Government Responsible To Federal Government Administer State Funding Administer State Funding Steward of College Funds Steward of College Funds Student Advocate Student Advocate

7. Basic Premise Students and parents are the primary source of funds for postsecondary education and are expected to contribute to the extent they are able.

8. Financial Aid If you want to be considered for financial aid you must APPLY FOR IT – on time! If you want to be considered for financial aid you must APPLY FOR IT – on time!

9. Primary Sources Federal Government State Government Postsecondary Institutions Private Agencies

10. Who Can We Talk With? ALL information submitted on these financial aid forms is protected under the Family Educational Rights and Privacy Act (FERPA). The data is treated as strictly confidential, maintained in a secure area, and only released to a third party upon obtaining student’s signature.

11. Application Possibilities Free Application for Federal Student Aid (FAFSA) Free Application for Federal Student Aid (FAFSA) Institutional Application Institutional Application CSS PROFILE Form CSS PROFILE Form Civic, Religious, Service Scholarship Applications Civic, Religious, Service Scholarship Applications

12. When Do You Apply For Financial Aid? The earliest that you may submit the FAFSA is January 1 st of the senior year. The earliest that you may submit the FAFSA is January 1 st of the senior year. May 1 st is the deadline to apply for a PHEAA State Grant. May 1 st is the deadline to apply for a PHEAA State Grant. Check with each institution to determine their own financial aid deadline. Check with each institution to determine their own financial aid deadline. Review private sources for their deadlines. Review private sources for their deadlines.

13. FAFSA – Web or Paper? FAFSA on the Web  www.fafsa.gov  Obtain a PIN (www.pin.ed.gov) Paper Application

14. Why get a PIN? Improves speed of application process Improves speed of application process Used as “signature” on current and future FAFSA and loan applications Used as “signature” on current and future FAFSA and loan applications Used to make faster and easier corrections to the FAFSA Used to make faster and easier corrections to the FAFSA Student/parents should apply for their own PIN Student/parents should apply for their own PIN Families may apply in the student’s senior year Families may apply in the student’s senior year (www.pin.ed.gov) (www.pin.ed.gov)

15. The Application Process FAFSA Web or paper Federal Government (data entry, analysis, matches) StudentColleges State (grant award) $ $ $ $ $ SAR $ $ $

16. Who Completes the Application? Student Parents  Natural/adoptive  Single: divorced, separated, widowed  Remarried: Natural and step (who you live with)

17. Application Suggestions Schedule time to do it together! Schedule time to do it together!  Read materials for deadlines.  Complete federal tax return & schedules ASAP!  May also complete “draft” copy. If owe money, don’t send it until tax deadline.  Complete all items-DON’T LEAVE BLANK ITEMS.  Submit FAFSA via the web (speed & accuracy).

18. Parent Contribution +Student Contribution Expected Family Contribution Expected Family Contribution (EFC)

19. EFC Determining Factors Parental Income (Taxed and Untaxed) Parental Income (Taxed and Untaxed) Parental Assets (Excluding Primary Home & Tax-Sheltered Retirement Plans) Parental Assets (Excluding Primary Home & Tax-Sheltered Retirement Plans) Student Income Student Income Student Assets Student Assets Family Size/Number in College Family Size/Number in College Age of the Older Parent Age of the Older Parent

20. Allowances Included in Formula Federal and State Taxes Federal and State Taxes Two Employed Parents Two Employed Parents Asset Protection for Retirement Asset Protection for Retirement Standard Guidelines per Family Size Standard Guidelines per Family Size

21. Allowances Not Permitted In Federal Formula Consumer Debt Consumer Debt Prior Educational Debt Prior Educational Debt Auto Expenses Auto Expenses Permitted With Professional Judgment Permitted With Professional Judgment Parent in College Expenses Parent in College Expenses Elementary/Secondary Tuition for Siblings Elementary/Secondary Tuition for Siblings Medical & Dental Expenses Medical & Dental Expenses

22. Verification FAFSA data checked against source FAFSA data checked against source of data for accuracy of data for accuracy Common documents requested include: Common documents requested include:  2011 Federal Tax Returns  W-2 Forms  Verification Worksheets Review performed by the Financial Aid Officer Review performed by the Financial Aid Officer

23. Institutional Methodology EFC Used by some private colleges Used by some private colleges Additional information used in formula Additional information used in formula Different allowances and calculations Different allowances and calculations Additional applications required Additional applications required IM EFC used only for institutional funds, not federal funds IM EFC used only for institutional funds, not federal funds

24. Cost of Education Direct Costs Direct Costs  Tuition  Fees  Room  Meals Indirect Costs  Books & Supplies  Transportation  Personal Expenses

25. Financial Aid Eligibility Cost of Education - EFC Student’s Financial Need

26. Types of Financial Aid Gift Aid Gift Aid  Scholarships  Grants Self-Help Self-Help  Employment  Loans

27. How Gift Aid is Awarded Merit-based aid (Scholarships) Merit-based aid (Scholarships)  Academic ability  Special talent/achievement  Program of study Need-based aid (Grants) Need-based aid (Grants)  Financial need  Largest source of gift aid funds

28. Federal Grants “Floor” of Financial Aid Package “Floor” of Financial Aid Package Maximum Award: $5,550 Maximum Award: $5,550 EFC determines eligibility ($5,273 or less) EFC determines eligibility ($5,273 or less) PELL SEOG “Priority to Pell Grant recipients “Priority to Pell Grant recipients Award Range $100 to $4000 based on school’s funding Award Range $100 to $4000 based on school’s funding Determined by Financial Aid Officer Determined by Financial Aid Officer

29. PHEAA State Grant Initial Application = FAFSA Initial Application = FAFSA PHEAA Online Application Notice Sent PHEAA Online Application Notice Sent Must Be a PA Resident Must Be a PA Resident Award Value up to $4,348 Award Value up to $4,348  Correlates to cost of college  Out of state award significantly less

30. Money Earned as Payment for a Part-time Job (6-10 hours a week) Employment Spending money - minimum wage or higher Spending money - minimum wage or higher Time management Time management Better grades Better grades Support group Support group Job references Job references

31. Types of Employment Federal Work Study (FWS) Federal Work Study (FWS)  Part-time employment on or off campus  Partially subsidized by federal government Institutional Employment Institutional Employment  Part-time employment on campus  Fully subsidized by college

32. Student Loans Borrowed money to be paid back with interest. Borrowed money to be paid back with interest. An investment of students in themselves. An investment of students in themselves. Return of $1,000,000 over lifetime in earnings compared to high school graduate. Return of $1,000,000 over lifetime in earnings compared to high school graduate.

33. Federal Perkins Loan Students with exceptional need Students with exceptional need Loan amount determined by Financial Aid Officer Loan amount determined by Financial Aid Officer Interest rate: 5% Interest rate: 5% Loan maximums: $5,500 per year Loan maximums: $5,500 per year 9-month grace period 9-month grace period Deferment/cancellation provisions Deferment/cancellation provisions

34. Federal Student Loan For 2012-2013, new loans have a fixed interest rate of 6.8 % Annual eligibility based on student’s grade level

35. Federal Student Loan Up to 1% of amount borrowed can be charged in fees. Up to 1% of amount borrowed can be charged in fees. Principal deferred while enrolled at least half-time. Principal deferred while enrolled at least half-time. Six-month grace period followed by 10- year repayment term. Six-month grace period followed by 10- year repayment term.

36. Philosophies of Meeting Need Dependent upon: Dependent upon:  Funds available to meet applicants’ need  Specific goals of enrollment  Amount of federal campus-based funds  Institutional EFC may be used for school funds  Special circumstances

37. Student’s Possible Resources Grants Work Loans FederalStateInstitutional Pell SEOG FWS PHEAA OVR/OVH Summer FWS Merit Scholarship Need Grants Perkins Direct Stafford Short-term Self-help employment

38. Factors Which May Influence the Financial Aid Package Academics Academics SAT’s SAT’s Class Rank Class Rank H.S. Attended H.S. Attended AP Courses AP Courses Predicted G.P.A. Predicted G.P.A. Academic Track in High School Academic Track in High School Diversity- Gender/Ethnicity Athletic Ability Talent- Theater, Art Activities- Yearbook, Government Geographic Diversity Legacies

39. Private Scholarship Searches You don’t have to pay! You don’t have to pay!  Guidance Office  Financial Aid Office  World Wide Web Sites http://www.finaid.comhttp://www.fastweb.comhttp://www.collegeboard.org

40. Treatment of Outside Scholarships Must be reported Must be reported Individual institutions treat differently Individual institutions treat differently  100% reduction of work/loans  50% reduction of grants and 50% reduction of work/loans  100% reduction of grants  Check policy of each institution

41. Other Options to Families with Financial Aid Package 10-month interest-free payment plans Assortment of bank plans Institutional plans Federal PLUS loans (7.9%) Home equity loans (Pursue these options after college choice is made.)

42. Professional Judgment The law provides the Financial Aid Officer the flexibility to deal with special circumstances and conditions which are applied on a case-by- case basis after the original application has been filed.

43. Types of Professional Judgment Separation or divorce Separation or divorce Death of one parent Death of one parent Loss of employment income Loss of employment income Loss of non-taxable income Loss of non-taxable income Unusual medical expenses Unusual medical expenses Other unusual circumstances Other unusual circumstances

44. Must I Reapply? Yes! Annually Yes! Annually  Every year a new financial “snapshot”  Family circumstances may change IncomeAssets Number in college Number in household Special circumstances

45. Foundation: Base-Year Income 2011 Federal 2011 Federal Tax Return 2012 Federal 2012 Federal Tax Return 2013 Federal 2013 Federal Tax Return 2014 Federal Tax Return 2014 Federal Tax Return 2012-2013 Academic Year 2013-2014 Academic Year 2014-2015 Academic Year 2015-2016 Academic Year

46. Best Sources of Help College Financial Aid Officers PHEAA Regional Office Local Lenders Local Civic, Religious, Service Organizations High School Guidance Counselor

47. Presentation Review Terminology Application Process Aid Applications Resources Available Anxiety Reduced

48. Good Luck and Best Wishes! Elizabethtown College Financial Aid Office 717-361-1404