Reviewing Award Letters

1. Reviewing Award Letters Show me the money !

2. Your presenter: Diona Brown dbrown1@pheaa.org 717-678-9681 Higher Education Access Partner / PHEAA

3. The process …. • Apply to post secondary schools • Complete the FAFSA, State Grant and School Financial Aid forms • You receive an Acceptance Letter • Financial Aid Award Packages are sent to Accepted Students • You compare and make Smart Decisions

4. What is a Financial Aid Award Package?The process of combining different types of Aid from various sources after the student’s eligibility is established by the Financial Aid Office, called Packaging. • An official notification from schools about financial aid, terms, and conditions • Lists the type and amount of each award to be received in that Academic Year from that school • Based on FAFSA and other Financial Aid form calculations, called Need Analysis • Describes what must be done to accept or reject any award • Discloses students rights, responsibilities, and academic requirements • May arrive via postal mail or email

5. What’s on the Award Letter …The Cost of Attendance based on your Need Analysis • Direct College Costs • Internal School Scholarships • Eligible Federal Grants • Federal Student Loans • Work Study Awards • Balances of costs to attend

6. Direct College CostsThe school determines standard student aid budgets and the appropriate budget is selected for a particular student based on the FAFSA calculations and other financial information to determine Cost of Attendance (COA) for that Academic Year (AY) • Tuition for that AY year • Required Fees • Room • Meals (Board) • Books and Supplies • NOT Indirect Costs

7. Grants and Scholarships(free money) Gift Aid for the Academic Year Based on FAFSA EFC and Costs of School • Federal Grants - Based on Need Pell Grants, FSEOG • Internal School Scholarships Based on Need and/or Merit • PA State Grant - Based on Need & COA • Not always listed - see pheaa.org

8. Internal School Scholarships/AidBased on Need and Merit - School Determines Amounts NEED: FAFSA ; CSS Profile (if requested); Internal School Aid Forms MERIT: Determined by the School Grades; Activities; Clubs Community Involvement; Choice of Major Combination of Need & Merit Varies …. Check Financial Aid and Admission Websites

9. Grant Amounts Need: FAFSA and Aid forms School: Cost of Attendance CURRENT Grant Programs, based on NEED and School: FederalPell Grant ----- ----up to $6195. (19/20AY) Federal SEOG Grant ----- up to $4000. PA State Grants - up to $4,123 In State, out of state - up to $512 in DE, MA, OH, RI, VT, WV and DC All other states - $ -0- Other Federal & State Grants based on specific situations ref: www.pheaa.org and www.studentaid.ed.gov

10. Federal Programs Student Loans and Work Study Self Help Aid for the AY • Federal Direct Loans • MUST BE REPAID; NOT based on need • Subsidized / Unsubsidized per FAFSA • Federal Work Study - based on need • REIMBURSED Money earned with a job on campus

11. Federal Loan & Work Study Work Study - work a job on campus* School determines participation and amounts earned NOT money upfront - MUST work a job on campus first and receive a paycheck Federal Direct Loan Program: Federal Direct Loans- in student’s name $5,500 1st year, increases as student progresses in next AY’s Payments begin 6 months after leaving school or graduating No Credit or Debt requirements - all students are awarded Other Federal Loan Program* PLUS Loans - in Parent(s) name only Up to the Cost of Attendance (COA) Only based on credit rating - no debt to income If denied - student receives an additional $4,000 unsubsidized loan *Caution: May be included on Award Package - but NOT provided until criteria is met

12. Compare Balances • Compare Apples to Apples • Type of School: private, public, state, community, proprietary • Special Circumstances • To discuss extenuating issues that affect FAFSA/Aid reporting • Understand the REAL Cost of Attendance • One Year’s costs, Struggling now could lead to losing $ later • Use tools to make sense of decisions: My Smart Borrowing.org • Have a PLAN B • Acceptance letters often arrive before the Aid Package

13. Reviewing the Award LetterIt’s the school’s Marketing Tool, read carefully • No current regulations on letter format Some schools will use the suggested Financial Aid Shopping Sheet • Will the Merit Gift Aid continue, or is it just for THIS AY • Do Institutional Awards increase as tuition increases • Will you need to ‘do something’ to keep the Aid GPA, Join a club, community involvement, athletics, keep your major • Is Work Study factored into the Award Listed due to being a federal program - money received AFTER working a job Add amounts back into your balance • Are PLUS loans factored into the Award • Must apply and be approved first • How are OUTSIDE SCHOLARSHIPS handled • Some schools will reduce balances, others replace internal Gift Aid

14. Reviewing the Award Letter…continued • You may choose to decline all or part of a loan, based on your resources • This won’t affect loan availability in upcoming AYs • Payment Plans may be available directly through the school • Are the balances affordable for the family • Are there Special Circumstances to discuss with FA Offices • Will additional loans be needed • Private Education Loans - from financial institutions • Equity Loans or other sources • Understand the repayment criteria • Note DEADLINES to respond • Funds may be withdrawn if you miss Deadlines • IF you are not sure about something - ASK!

15. Financial Aid Shopping SheetGeneral infosuggested, not required Elements of cost of attendance appropriate for the specific student  Grant aid (free money)  Net price after grants  Work Study options  Federal Direct Loans  General listing of other types of funding that can be used to meet net costs  (including family contribution)

16. Compare costs but don’t forget the bottom line Gift Aid - not repaid Self Help Aid - meet the requirements and Loans are repaid Cost - Total Aid = GAP (out of pocket balance) The GAP is not the Actual Cost

17. Comparing Packages

18. Page 9 PA Student Aid Guide Net Price Calculators The Higher Education and Opportunity Act (HEOA) of October 2011 requires schools to offer a Net Price Calculator on their websites • Enables current and prospective students, families and consumers to determine an estimate of an individual net price at a particular institution. • ESTIMATED data must be provided by each institution: • Total price of attendance • Tuition, Fees, Room and Board • Expenses (i.e., personal, transportation) • Estimated total merit and need-based grant aid • Estimated net price (attendance minus grant aid) • May not include scholarships

19. How Much Should I Borrow? • Estimate your full cost of school • Borrow only what you need • Research your earning potential • Don’t borrow more to get your education than you believe you can earn your first year in the workforce • Think long-term • Keep a healthy mindset about debt

20. How to Cover Unmet Financial Need • Savings – Family • 529 Plans – Family • Scholarships – Various Sources • Grants – Federal and State • Tuition Payment Plans – School • Federal Student Loans – Department of Education • Institutional Loans – School • Private Education Loans – Bank • Home Equity Loans – Bank

21. Scholarship search: Don’t miss out on FREE Money • Start early – and KEEP LOOKING • Note requirements and Deadlines • Only provide what is asked for • Recycle Essays - but answer the questions • Outside scholarships - look everywhere • Google Interests, products, companies • Don’t PAY for information • If you’re asked to pay, it’s not free money - (scam..) • School Scholarships • Check Fin Aid and Admission websites • Community Scholarships • Check at HS Guidance office - there’s many! • Create a profile for more matching opportunities • What’s not on the HS transcript • Small Scholarships ADD UP • Don’t disqualify yourself until IT disqualified YOU • Don’t forget to continue studies! www.fastweb.com www.educationplanner.org www.fastaid.com www.finaid.org www.scholarshipexperts.com www.scholarships.com www.scholarship-page.com www.zinch.com www.dosomething.org www.collegeprowler.com www.studentscholarships.org www.collegeboard.com www.collegeanswer.com www.collegenet.com MORE….

22. Making Decisions When cost is part of the decision factor Buy the EDUCATION, not the SCHOOL • Attend where you can Afford • There are many paths to the same career • Review what’s required for your major • Match your abilities to the career • Research your Career Outlook • www.EducationPlanner.org • Be a Smart Borrower • www.SmartBorrower.org

23. Begin with the End in Mind RESEARCH the EXPECTED SALARY in your FUTURE CAREER, find an affordable school, and borrow realistically • Research every option, including community colleges and commuting • Only borrow what you absolutely need to attend • Approach education from a Consumer Standpoint • Is there a CAREER SERVICES Dept • Much depends on You and Your Choices

24. MySmartBorrowing.com

25. An interactive tool for making smart decisions about career choices and paying for College What can I afford to borrow?

26. Reduce the Dependency on Financial Aid • Graduate on Time • 4 year for Bachelors Degree / 2 year Associates Degree • Research and find the right school and major • Minimize transfer and change of major • Earn college credits while in high school • AP courses, Vo-Tech, and Dual Enrollment • Consider options for cutting costs • Commute, take summer classes, buy used books make smart meal plan choices • 2 + 2 Strategy • 2 years at a Community College then transfer credits to a 4 year school

27. Wrap-Up • Narrow down career choices • Work hard on scholarship search • Compare estimated financial aid award letters • Be a smart consumer • Make the tough choices • Think of the future • Finish on time

28. Resources & Questions • Pheaa.org • EducationPlanner.org & MySmartBorrowing.org • Youcandealwithit.com • Myfedloan.org • PHEAA toll free: 1-800-692-7392 • Federal Student Aid Info Center – 1-800-433-3243 • www.fafsa.gov • www.studentaid.gov – general financial aid info • www.studentloans.gov – information on federal loans • www.finaid.org