1. Financial Aid 101 Presented by Palisades High School Counseling Office

2. Projected College Cost Projected Average Costs for four years of tuition, room, board, and fees at Public Universities Source: Wells Fargo

3. Calculating College Costs Tuition Fees (health, activity, lab, computer access) Room Board Books Supplies Personal expenses Transportation

4. Examples of College Costs BCCCBloomsburgLehigh Tuition & fees Room & board* Books & supplies* Personal Expenses Transportation Total Costs $ 1,350$ 1,200$ 2,010 $ 4,004$ 7,456$ 39,780 $ 1,500$ 10,520$ 6,890 $ 1,350$ 3,000$ 2,500 $ 2,600$ 500$ 1,602 $10,804$ 55,310$ 20,148

5. Paying for Higher Education Where the money comes from Family Student Federal government State government (PHEAA) Institutional Aid (college) Private sources (employer, fraternal organizations)

6. The Trends The trend in financial aid has been a growing reliance on borrowing for college. During the last 25 years, financial aid has changed from grant-based to loan-based.

7. How to Calculate Financial Need Cost of school – EFC = Financial Need Demonstration of financial need does not guarantee that all of the need will be met through financial aid.

8. EFC EFC is determined through a federal formula It does not take into account credit card debt, mortgage, car loans, disposable income Considered as a reasonable expectation of what a family should pay toward a child’s educational expenses An online tool is available to help you estimate the EFC FAFSA4caster available at www.FederalStudentAid.ed.gov FAFSA4caster

9. Types of Financial Aid Gift Aid (does not have to be paid back) Scholarships Grants Self – Help Loans Work Study A Financial Aid Package may include both types

10. Scholarships Contact Colleges Check parent & student clubs, organizations, unions, employers Check our websiteour website Check other internet sites: www.fastweb.com www.collegeboard.com www.finaid.org

11. Need Based vs. Merit Based Aid NEED BASED AID Eligibility is determined by evaluation of family’s finances Done by application (FAFSA) May require additional forms (CSS profile) MERIT BASED AID Awarded by colleges and private sources Include academic, leadership, artistic, music, single parent and returning adult student awards

12. Gift-aid vs. Self-help

13. General Eligibility Requirements for Federal Aid Submit a FAFSA form by deadline Have a high school diploma Be enrolled as a regular student in an eligible degree program at an eligible institution at least half-time US Citizen Valid Social Security number Make satisfactory academic progress Sign a certifying statement that funds will be used appropriately Not be in default of any previous educational loan Be registered with the Selective Service

14. Federal Grants Federal Pell Grant Academic Competitiveness Grant (ACG) or SMART Grant Teach Grant GI Bill for post 9/11 Yellow Ribbon Program American Opportunity Tax Credit Loan Forgiveness Program

15. State & Institutional Grants State PHEAA Grant PHEAA Summer State Grant New Economy Technology Scholarship (NETS) Educational Assistance Program (Nat’l Guard) Robert C. Byrd Honors Scholarship Post-secondary Education Gratuity Program Private Institutional Grants

16. Work Study Employment on or off-campus Rate of pay determined by College’s Financial Aid Office Student gets a paycheck. Student must decide whether to put toward tuition or spend This amount is not calculated as student income in next year’s FAFSA

17. Student Loans Federal Direct Stafford Loans Subsidized Unsubsidized State Alternative Direct PLUS Home Equity

18. Examples of Financial Aid Example #1School A School B School CSchool D Cost$8,500 $18,000 $23,000$34,000 -EFC 2,000 2,000 2,000 2,000 --------------------------------------------------------------------------------------------------------------- = Need$6,500 $16,000 $21,000$32,000 Pell Grant$2,360 $ 2,360 $ 2,360$ 2,360 PHEAA Grant$1,300 $ 4,000 $ 4,300$ 4,700 SEOG Grant -0- -0- -0-$ 2,000 Scholarships -0- $ 500 $ 2,000$17,950 Perkins Loan -0- $ 1,300 $ 2,000 -0- Stafford Loan – Sub$2,240 $ 3,500 $ 3,500 $ 2,990 Stafford Loan - Unsub$1,260 -0- -0-$ 510 Work Study -0- $ 1,200 $ 1,500$ 2,000 --------------------------------------------------------------------------------------------------------------- Total Aid$7,760 $12,860 $15,660$32,510 Remaining Need - $ 740 $ 5,140 $ 7,340$ 1,490 (Unmet need + EFC)

19. Applying for Financial Aid Institutional Applications Check institution’s publications/website Some deadlines will be different than FAFSA CSS Profile www.collegeboard.comwww.collegeboard.com Only available online $9 application fee, $16 for each college Only send to schools that require it FAFSA Online application is preferred Must get a pin for student and parents www.pin.ed.gov Paper will be available in limited quantities Can not file until after Jan 1 Deadline is May 1, but recommend filing by February 15

20. FAFSA – After you apply PHEAA Status Notice Sent to all first time applicants Student/parent completes only the items requested – mandatory SAR (Student Aid Report) SAR(Student Aid Report) If done by paper, will be via paper; if done via web, will be sent via e-mail Review for accuracy

21. Summary The cost of higher education is primarily the responsibility of the student and family Financial Aid supplements the Expected Family Contribution – It does not provide it. Ability to pay vs. willingness to pay Lifestyle vs. Affordability