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2020-2021 FINANCIAL AID Facts

Learn how to complete the FAFSA, use the IRS Data Retrieval Tool, and maximize your financial aid. Get insights and tricks to make the process easier.

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2020-2021 FINANCIAL AID Facts

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  1. 2020-2021 FINANCIAL AID Facts Kelly Fox Financial Planning Coordinator Central Penn College

  2. Where to begin:FSA ID and Password • Student and Parent both need to have an FSA ID and Password • https://fsaid.ed.gov • Create a Username and Password • Need an email address and preferably a cell phone number • Answer 4 challenge questions • FSA will both email and text you a code to ensure your information is correct • It takes 1-3 business days to validate your information with the Social Security Administration

  3. FAFSA • www.fafsa.gov or • Download the MyStudentAid app • NEVER PAY TO COMPLETE THE FAFSA!!!!!!! • Complete the 2020-2021 FAFSA to begin school after July 1, 2020

  4. What information is on the FAFSA? • The FAFSA will use the parent who the student lives with 2018 tax information • If there is joint custody, the parent who supports the child more then 50% • Only if the following criteria are met, can a student be independent: • 24 years of age • Veteran of the U.S. Armed Forces • Enrolled in a graduate or professional program • Married • Orphan or ward of the court until age 18 • Have legal dependents that student provides at least 50% support for

  5. What information goes on the FAFSA? • Student demographics • School selection • Students can list up to 10 schools! • Dependency Status • Parent Demographics • List who is in the household that you support more then 50% • Financial information

  6. IRS DATA RETRIEVAL TOOL • Have you already completed your IRS income tax return for 2018? • What is your filing status? • Did you file a Puerto Rican Return for 2018? • LINK TO THE IRS • Students will automatically link since they logged in with their FSA ID and Password • Parents will need to enter their FSA ID and Password word to use the IRS Tool

  7. BENEFITS of the IRS TOOL • If your FAFSA is one of the randomly selected 30% of applications selected for verification through the federal government, you won’t be required to submit your tax transcripts from the IRS • The financial aid is able to be processed quicker since the data is automatically assumed correct since it is from the IRS and not manually entered by the family • You will not need to scan your entire tax return to find all the answers!

  8. TRICKS of the TRADE! • Answer EVERY question, even if you think it is insignificant • Make sure you enter your high school name, city and state – this helps PHEAA process your eligibility faster • When it asks about your first bachelor degree, the student DOES NOT have it yet, please mark that NO even if they are working on a bachelor’s degree • Parents don’t count in the number in college, even if they are taking full time classes • Read each question, even if FAFSA pre completed the question with $0 • Students do NOT need to be accepted to college to submit the FAFSA

  9. Grant amounts, 2019-2020 • PELL Amounts • EFC range from $0 – $5,400 • PELL Award amount between $657 - $6,195 • PHEAA Amounts • $3771 is maximum • PHEAA determines the amounts, not the schools • FSEOG • Each school has their own funding amounts • Must be PELL Eligible • Funds are typically limited so apply early

  10. PHEAA • May 1 deadline • Additional paperwork to verify Pennsylvania Residency at www.aessuccess.org • Make sure you list an email on the FAFSA you will be checking as this is how they communicate with families • Student must successfully complete a percentage of their courses to receive this fund each year • A student may not take more than 50% of their classes in an online format and receive the grant 

  11. Student Loans • www.studentloans.gov • Student signs in with STUDENT FSA ID and PASSWORD • Entrance Counseling • A “test” to make sure the student understands they are borrowing money and the ramifications of not paying federal student loans back • Master Promissory Note • Student signs to actually borrow the money • Student does not have to be 18 to sign the Master Promissory Note

  12. Student Loans • Subsidized - Based on financial need - Govt. pays interest on loan while student is enrolled • Unsubsidized - Available to ALL students, regardless of need - Interest paid either quarterly or capitalized upon repayment • Stafford amount capped by grade level - $5,500 freshmen year / $9,500 - $6,500 sophomore year / $10,500 - $7,500 junior/senior year / $12,500

  13. Parent Loans • Direct Plus Loan (Parent Loan for Undergraduate Students) - Loan in parent’s name - Interest rate cap - Repayment begins 60 days after final disbursement - Credit check involved - Borrow up to cost of attendance minus other financial aid student is receiving - Additional unsubsidized available to students whose parent(s) are denied on PLUS Loan due to poor credit

  14. PARENT PLUS Loans • www.studentloans.gov • Parent logs in with PARENT FSA ID and Password • Parent submits the PLUS Application • The application is where you list if you want to defer payments while student is enrolled and the amount you want to borrow • If approved, the Parent then submits the PLUS Master Promissory Note • Approval or Denial is IMMEDIATE

  15. Private Loans • Student can borrow with any credit worthy cosigner, does not have to be a parent • Watch interest rates • Check fee structure • Ask the college for guidance on who they recommend • Usually requires additional documentation, W2’s, driver’s license • Applications are processed within 24 hours • NOTIFY the school if you plan to use a private loan so they can watch for it to come through and process

  16. Work Study • Financial aid based • How are students paid? • Typically, minimum wage with limited hours each week • Part time jobs on campus

  17. Scholarships • Check the college website for how to apply and deadlines • NEVER PAY FOR A SCHOLARSHIP SEARCH • Apply early! • Many scholarships can be combined AND MATCHED! • Check with student and parent employer, guidance office, community

  18. Award Letters • List Grants, Scholarships and Loans • Make sure you understand the total cost of the school when looking at the award letter • Call the school with questions • Comparing award letters helps families make educated decisions

  19. Call the financial aid office !

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