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martena-burnett

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  1. WELCOME TO INDIANA HIGH SCHOOL FINANCIAL AID NIGHT January 14, 2010

  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 (for 2009-10) • $976 minimum • $5,350 maximum • Deadline – June 30, 2011

  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. 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

  7. 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 2009-10 • $4,700 - based on institution’s total allowable education costs • For undergraduates only • Non-portable with MD, NJ, NY

  8. 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

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

  10. 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

  11. 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

  12. Federal Stafford Loan (Subsidized and Unsubsidized) • Subsidized Stafford: Must demonstrate “need” • Unsubsidized Stafford: Not based on “need” • Base annual loan limits • $3,500 sub / $2,000 unsub for 1st year undergraduates • $4,500 sub / $2,000 unsub for 2nd year undergraduates • $5,500 / $2,000 unsub for each remaining undergraduate year

  13. 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

  14. Independent Student Definition • Born before January 1, 1987 • Student is married • Working on Master’s or Doctorate Program • Veteran of the U.S. Armed Forces or currently serving on active duty (not reserves) • Student has children or dependents (other than a spouse) that receive more than half of their financial support from student

  15. Independent Student Definition • At any time since age 13: • Both parents are deceased • Was in foster care of dependent/ward of court • Emancipated minor before 18th birthday • In legal guardianship before 18th birthday • Determined to be an unaccompanied youth who was homeless • Determined to be independent by the financial aid administrator

  16. Costs of Borrowing Federal Stafford Loan • Interest rates • Subsidized – 4.5% for 2010-11 • Unsubsidized – 6.8% • Loan fees – up to 4% of principal • Grace period and deferment provisions

  17. 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

  18. 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

  19. 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

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

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

  22. 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

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

  24. 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

  25. 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

  26. 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

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

  28. 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

  29. Paper FAFSA www.studentaid.ed.gov

  30. FAFSA on the Web Worksheet

  31. 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

  32. 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

  33. 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

  34. 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

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