WELCOME TO

1. WELCOME TO INDIANA HIGH SCHOOL FINANCIAL AID NIGHT January 15, 2009

2. What is Financial Aid? • Grants • Loans • Employment Opportunities • Scholarships

3. Sources of Financial Aid • Federal • State • Institutional Funds • Private

4. Federal Pell Grant Program • Awarded to eligible undergraduates pursuing first baccalaureate degree and certain students enrolled in post-baccalaureate teacher certification or licensing programs • Portable • Annual award amounts • $890 minimum • $4,731 maximum • Deadline – June 30, 2010

5. Federal Supplemental Educational Opportunity Grant (FSEOG) • Eligible students • Undergraduates pursuing first baccalaureate degree • Awarded first to students with exceptional financial need (i.e., students with the lowest EFCs at that school) • Priority to Federal Pell Grant recipients • Annual award amounts • $100 minimum • $4,000 maximum • Deadline established by school

6. Academic Competitiveness Grant (ACG) • First and second year undergraduate students • Federal Pell Grant recipient • U.S. citizen or Eligible Non-Citizen • At least half-time enrollment • Completed rigorous secondary school program • Award amounts: • $750 first year students • $1300 second year students

7. National Science and Mathematics Access to Retain Talent (SMART) Grant • Third and fourth year undergraduate students • Federal Pell Grant recipient • U.S. citizen or Eligible Non-Citizen • At least half-time enrollment • Eligible major • 3.0 GPA • Award amount: • $4,000 for third and fourth year of study

8. Teacher Education Assistance for College and Higher Education (TEACH) Grant • 3.25 GPA or qualifying score on admissions test • Agree to teach full time for at least 4 years within 8 years of graduation at a school serving a high percentage of lower income students (Title I schools) in specific subjects • $4,000 annual maximum, up to a $16,000 undergraduate aggregate • Will convert to unsubsidized Direct Stafford Loan if teaching requirements not fulfilled

9. Pennsylvania State Grant • Administered by Pennsylvania Higher Education Assistance Agency (PHEAA) 1-800-692-7392 • PHEAA-approved program must be at least two academic years in length • Maximum award for 2008-09 • $4,300 - based on institution’s total allowable education costs • For undergraduates only • Non-portable with MD, NJ, NY

10. Federal Work-Study • Based on financial need • Employment may be on or off campus • Deadline established by school • Paid @ least once a month -@ least min. wage • Eligible employers • School • Federal, state, or local public agency • Private non-profit organization • For-profit organization

11. Federal Perkins Loan • Eligible students • Undergraduate or graduate students • Priority to exceptional need • Maximum annual loan • $4,000 undergraduate students • Interest rate: 5%

12. Federal Perkins Loan (continued) • Deadline established by school • Nine-month grace period • Repayment period may be up to 10 years • Deferment and cancellation provisions available

13. Federal Stafford Loan Program • Available under: • Federal Family Education Loan Program (FFEL Program) with funds provided by lender (e.g., bank or credit union) • William D. Ford Federal Direct Loan Program (Direct Loan Program) with funds provided directly by the federal government

14. Federal Stafford Loan (Subsidized and Unsubsidized) • Subsidized Stafford: Must demonstrate “need” • Unsubsidized Stafford: Need is not a consideration • Base annual loan limits (combined subsidized and unsubsidized) • $5,500 for 1st year undergraduates • $6,500 for 2nd year undergraduates • $7,500 for each remaining undergraduate year • $8,500 for each year of graduate/professional study

15. Additional Eligibility for Unsubsidized Federal Stafford Additional unsubsidized loan eligibility for independent undergraduates, graduate students, and dependent students whose parents are unable to borrow under the PLUS Program: • $4,000 per year for first and second years of undergraduate study • $5,000 per year for remaining years of undergraduate study • $12,000 per year for graduate and professional students

16. Independent Student Definition • Born before January 1, 1986 • Student is married • Working on Master’s or Doctorate Program • Currently serving on active duty or is an active duty veteran of Armed Forces (not reserves) • Student has children or dependents (other than a spouse) that receive more than half of their financial support from student • At any time since age 13: • Both parents are deceased • Was in foster care or dependent/ward of court

17. Independent Student Definition • Emancipated minor before 18th birthday • In legal guardianship before 18th birthday • Determined to be an unaccompanied youth who was homeless on or after July 1, 2008 by: • student’s high school/school district homeless liaison • director of an emergency shelter/transitional housing program • director of a runaway/homeless youth basic center

18. Costs of Borrowing Federal Stafford Loan • Interest rates • Subsidized – 5.6% • Unsubsidized – 6.8% • Loan fees – up to 4% of principal • Grace period and deferment provisions

19. Federal PLUS and Federal Direct PLUS • Borrowers are parents of dependent undergraduate students • Annual loan limit: cost of attendance minus other aid • Interest rate • FFEL – 8.5% • Direct Loan – 7.9% • Loan fees - up to 4% of principal

20. Federal PLUS and Federal Direct PLUS (continued) • Repayment begins 60 days after loan is fully disbursed for that term • Deferment provisions; only principal is deferred, but interest may be capitalized

21. Alternative Loans • Educational loans through private lending institutions • Loan is generally in student’s name and requires a credit-worthy cosigner • Many lenders use credit scoring to determine eligibility • Repayment can be deferred until education is completed

22. Private Scholarship Search • Local library resources • Local businesses and civic organizations • Parents’ places of employment

23. Private Scholarship Search • Internet: • College Board’s Scholarship Search www.collegeboard.com • FastWeb Scholarship Search www.fastweb.com • Education Planner www.educationplanner.org

24. The FTC cautions students to look for tell tale lines: ●“The scholarship is guaranteed or your money back.” ● “You can’t get this information anywhere else.” ● “I just need your credit card or bank account number to hold this scholarship.” ● “We’ll do all the work.” ● “The scholarship will cost some money.” ● “You’ve been selected by a ‘national foundation’ to receive a scholarship” or “You’re a finalist” in a contest you never entered. www.ftc.gov

25. Definition of Need Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need

26. COSTS • Tuition and fees • Room and board • Books and supplies • Transportation • Personal expenses • Childcare (for students with dependents) • Special expenses for handicapped students • Loan-related fees

27. Definition of Need Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need

28. FAMILY CONTRIBUTION MAIN FACTORS • Parental Income • Parental Assets (excluding primary home) • Student Income • Student Assets • Family Size / Number in College • Age of the Older Parents

29. Financial Aid Packages • Schools may or may not be able to meet 100% of need • Packages may be comprised of various types of aid (grants, loans, employment, etc.) • Packages can be very different from one school to another

30. FASFA on the Web • Web site: www.fafsa.ed.gov • Pre-Application Worksheet & built-in edits to help prevent costly errors

31. PIN Registration • Web site: www.pin.ed.gov • Used as an electronic signature on FAFSA • Speeds up FAFSA processing • May be used to make FAFSA corrections

32. FAFSA on the Web Worksheet

33. Application Tips • Contact school for required forms and deadlines • Do NOT wait to be admitted before filing for aid • Respond quickly to requests • Keep copies of all applications/documents • FAFSA and other applications must be completed each year • Contact school and PHEAA if family has any special circumstances, such as loss of employment

34. Application Process Avoid ERRORS! Errors made in completing the FAFSA and/or supplemental forms may delay application processing and result in the loss of financial aid funds. Please complete all forms carefully!

35. Frequent FAFSA Errors • Social Security Number • Divorced/remarried parent information • Income earned by parents/stepparents • Untaxed income • U.S. income taxes paid • Household size • Number in postsecondary education • Real estate and investment net worth • Signatures

36. What Paperwork to Expect? • Student Aid Report • PHEAA Grant notification of aid • School notification of aid • Master Promissory Note • Disclosure statement from lender • Verification Forms • Special Consideration

37. Contact Information • PHEAA Loan and Grant Divisions • 1-800-692-7392 (or 717-720-2860) • Federal Student Aid Information • 1-800-433-3243 (or 319-337-5665) • Important websites • www.finaid.org • www.pheaa.org (or www.aessuccess.org) • www.fafsa.ed.gov • www.pin.ed.gov • Specific school’s Admissions and Financial Aid websites

38. Good Luck! Better yet, call your Financial Aid Administrator (that’s better than luck!)