Financial Aid consists of funds provided to
students and families to help pay for postsecondary educational expenses
Students and parents have the primary
Federal Government –10%
State Government - 34%
Family – 50%
Direct Costs
Indirect Costs
Direct and indirect costs = Cost of
Dear Mom and Dad,
$chool i$ really great. I am making lot$ of friend$ and $tudying very hard. With all my
$tuff, I $imply can’t think of anything I need,
$o if you would like, you can ju$t $end me a card, a$ I would love to hear from you.
Love,
Dear Son,
We kNOw that astroNOmy, ecoNOmics, and oceaNOgraphy are eNOugh to keep even an hoNOr student busy. Do NOt forget that the pursuit of kNOwledge is NOble task, and you can never study eNOugh.
Love,
Money that does not have to be paid back
Awarded on the basis of merit, skill or unique
characteristic
Foundations, businesses, charitable
organizations
Begin researching early and research what is
available in the community
Pay attention to deadlines and application
Companies may have scholarships available
to children of employees
Companies may have educational benefits for
One fourth of scholarship donors look up an
applicants online presence
◦ You Tube
One Third of donors denied application based
on an applicants online presence!
A standard form that collects demographic
and financial information about the student and family
Available in English and Spanish
Amount family can reasonably be expected to
contribute
Stays the same regardless of college
Calculated from data provided on FAFSA
Penn State filing deadline – MARCH 1
www.fafsa.ed.gov
Sign FAFSA with a Federal PIN number
www.pin.ed.gov
PIN number stays the same
What if I’m not sure I’ll attend college?
Will I need to complete my tax return before
completing the FAFSA?
What if I don’t have a Social Security number
or don’t want to report it on the FAFSA?
While completing FOTW, applicant may
submit real-time request to IRS for tax data
IRS will authenticate taxpayer’s identity
If match found, IRS sends real-time results to
applicant in new browser window
Applicant chooses whether or not to transfer
Social Security Numbers
Divorced/remarried parental information ◦ Who provides more than ½ support
Untaxed income
U.S. Income tax paid
Results sent to schools listed
Results emailed to student if email address
provided – SAR Acknowledgement
◦ Review your results for accuracy
◦ Update estimated information
Schools may require additional
documentation
Change in employment status
Medical expenses not covered by insurance Change in parent marital status
Unusual dependent care expenses
Lists the sources of aid you are eligible to
receive based on the info from the FAFSA
Estimated award amounts and
Scholarships Grants
Loans
Money that does not have to be paid back
Usually awarded on the basis of financial
Federal PELL Grant
Federal Supplemental Educational
Opportunity Grant (FSEOG)
Teacher Education Assistance for College and
Higher Education Grant (TEACH)
State Grant ◦ Status notice
◦ Account Access
CHAFEE Education and Training Grant
Get a job on campus or in the community Hourly rate must be at least minimum wage Can be Federal, State or sponsored by
Money students and parents borrow to help
pay college expenses
Repayment usually begins after education is
finished
Only borrow what is really needed
The median four-year college graduate who
enrolls at age 18 and graduates in four years can expect to earn enough by age 36 to
compensate for being out of the labor force for four years and for borrowing the full
tuition and fee amount without any grant aid
Education Pays,
Federal Loans
◦ Available to students
◦ Borrowed from the government
◦ Offer low fixed interest rates
◦ Offer different repayment plans including deferment and forbearance
◦ Repayment does not begin until after a student leaves school
Subsidized vs. Unsubsidized ◦ 3.86%
◦ Bipartisan Student Loan Certainty Act of 2013
◦ Rate is based on the US Treasury bill
Parent PLUS loan 6.41%
Private loans
◦ Available to students
◦ Borrowed from a bank
◦ Interest rates are variable
Know what you are getting into ◦ Do your research
Understand the types of student loans ◦ Do not borrow more than you need
Make a plan for repayment
◦ Consider paying interest while in school
Federal Direct Stafford Loan and Parent PLUS
Loan
◦ Must complete Master Promissory Note
◦ Must complete Entrance Counseling
Students only
Filling the gap that financial aid does not
cover
◦ Parent PLUS Loan
◦ Private Loan
Financial Aid – payments from outside
sources
Bursar’s Office
◦ Payments out of pocket
◦ PA 529 plans
