Junior Jumpstart March 2018

The Path to Paying for College

Presenter Information Marian Hargrave Higher Education Access Partner Pennsylvania Higher Education Assistance Agency (PHEAA)

mhargrav@pheaa.org 724.614.3823

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Plan Ahead

Admission Applications • • • • •

Usually start by September of senior year in HS Visit!

Understand the meaning of costs at this point “The Honeymoon” Application fees, deposits » Fee waivers for applications?

• Talk to high school counselor for advice, alumni, students

Think about it…

• • • • •

Affordability Research Costs Job Availability in Field of Study Expected Salary ROI: Return on Investment?

CollegeCost.ed.gov

Consider All Options

PACollegeTransfer.com

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Scholarships

Seek Scholarships Now (And Later!)

• • • •

Start early and keep looking Check with school counselor about local opportunities Activities, Athletics, Family, Hobbies, Participation, Attributes – Do your research!

Don’t miss deadlines!

Types of Scholarships • Postsecondary (in-house) scholarships • Local and regional scholarships • National scholarships • Employers, affiliations

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FAFSA

Types of Aid / Sources of Aid •Gift Aid •Self -Help •Need-Based Aid v. Merit-Based Aid

•Federal Government •State •Schools/Colleges •Scholarships

Forms • Free Application for Federal Student Aid – FAFSA » Available on October 1 of student’s senior year Federal application for need-based student aid Application for federal direct student loan Used by approved post secondary institutions to award student aid

• Pennsylvania State Grant Form • CSS Profile – College Scholarship Service • Other?

(College Board)

Free Application for Federal Student Aid • • • • • •

FAFSA.gov – Available October 1 of senior year Complete the correct academic year application: 2019-2020 Parent & Student sections List up to 10 school choices Assets – not home, not retirement, not life insurance values Use 2017 income information » Changes in income

• Make corrections if needed • Renew promptly every year » Easier process

FAFSA.gov • Student section • Parent section • Skip Logic • Start, Stop & Return • Help is Available

Student is ‘Dependent’ Unless:     

24 or older on Jan 1st of award year Veteran (includes active duty personnel) Working on graduate level degree Emancipated minor or in legal guardianship Orphan, in foster care, or ward of the court at anytime when student was age 13 or older  Have legal dependents other than spouse  Student deemed homeless by proper authority

Who’s Information is Reported on the FAFSA? • • • •

Student Divorced or separated parents - YES Stepparents – YES Adoptive parents – YES

• Foster parents - NO • Legal guardians - NO • Anyone else the student is living with - NO

FAFSA.gov •

2019-20 will use 2016 income & tax information

•

Assets reported as of the date the FAFSA is submitted

•

IRS Data Retrieval Tool

•

Keep all passwords secure and create your own!

fsaid.ed.gov • Allows students and parents to sign the FAFSA • Create your own FSAID • Create ahead of submitting the FAFSA – ideal • Secure your FSA ID information including username and passwords, security question-answers • The FSA ID is required for using federal websites

• PA State Grant Form • Link is on Confirmation Page • Can also access at pheaa.org • Account Access @ PHEAA.org

Deadlines Federal Deadlines – Seniors: On or after Oct 1st School Deadlines – What are the recommended filing dates?

PA State Grant Deadlines for FAFSA May 1 – First-time and renewal students attending colleges, universities & college transferrable programs (excluding community colleges) August 1 – First-time students attending community college; business, trade or technical schools, hospital school of nursing; Open Admissions Institutions or a 2-year non-transferrable degree program at a Jr or 4-year college.

What Happens Next?

• Expected Family Contribution (EFC) is determined • Student is notified about Student Aid Report (SAR) • FAFSA information is communicated to: » Schools listed » PHEAA

• Schools proceed with aid award process (for accepted applicants who listed school on the FAFSA)

Expected Family Contribution - EFC • The EFC is a number derived from a federal formula which considers a family’s income, assets and other factors.

• In theory, the EFC is the amount a family can reasonably be expected to pay toward college expenses each year.

• Is the same amount for EVERY school, but every school awards funds uniquely

Expected Family Contribution • Parent contribution + student contribution = EFC • Bulk of EFC comes from income • Home, personal property, qualified retirement funds, and value of life insurance excluded from assets • Asset protection allowance (based on age of older parent, or the parent if single parent household) • Parent asset contribution usually = roughly 6% • Student income contribution = 50% of amount over $6,410 • Student asset contribution = 20% of assets • Parent contribution divided by number of children in college at the same time

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Award Letters

Federal Need-Based Aid • Pell Grant (Current Max Award $5,775)* • Campus-based aid – amounts determined

by Financial Aid Officer(s) – Varies by School: » FSEOG………………… up to $4,000 » Federal Work-Study…… FAO determines • For most programs, student must be enrolled at least half-time.

PA State Grant • In-state (PA) - Full-time up to $4,340 (2019-2020 TBD) • In-state (PA) – Part-time 1/2 of the FT award • Out-of-state - Up to $600 in DC, DE, MA, OH, RI, VT, WV • Amount determined in part by the cost of the school * Must be at least half-time to be eligible

PA Special Programs • State Work-Study - job related to major • Educational Assistance Grant (EAP) – National Guard • Chafee Education and Training Grant – co-administered with the PA Department of Human Services • Blind or Deaf Beneficiary Grant • Postsecondary Educational Gratuity Program (PEGP) • Partnerships for Access to Higher Education (PATH) • Pennsylvania Targeted Industry Program (PA –TIP) • Ready to Succeed Scholarship (RTSS) • For details, see the PA Student Aid Guide, or visit PHEAA.org.

Direct Stafford Loans • StudentLoans.gov • Subsidized v. Unsubsidized • Interest is currently 4.29%; capped at 8.25% • Fee is currently 1.068% » (if you borrow $5500, $5441.26 is applied to the bill) • Should try to pay interest on unsubsidized loans

Direct Stafford Loans

Parent Loan for Undergraduate Students (PLUS)

• Parent borrows a loan for the student » » » » »

6.84% interest rate; interest capped at 10.50% Up-front fee of 4.292% deducted at disbursement May borrow full cost of education minus any aid Credit Check is required Can defer repayment while the student is enrolled, but as with Unsubsidized loans, the interest does accrue.

Interest payments are encouraged.

» StudentLoans.gov to apply

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Decide

Review All of Your Options .

Sometimes the best fit is not your first choice.

Consider All Options

PACollegeTransfer.com

Think of Ways to Save

Apply for Scholarships EVERY Year

Other Ways to Save • Americorps » F/T or P/T Service periods – 10-12months in length Maximum award: $4,725

• Military options • Tax Credits » American Opportunity Tax Credit » Lifetime Learning Credit

Students! Pay Attention!

Students! Pay Attention!

• Satisfactory Academic Progress • Pell Grant Limit • State Grant Limit • Student Loan “Refunds”

Don’t let one mistake ruin your career aspirations.

Employers do background checks and credit checks.

Pennsylvania Liquor Control Board (PLCB) brochure

Resources • FAFSA.gov » Questions about FAFSA or FSA ID • 800.433.3243

• StudentAid.gov • StudentLoans.gov • PHEAA.org » Questions about the State Grant Form • 800.692.7392

Resources • EducationPlanner.org

• MySmartBorrowing.org

Contact Information Marian Hargrave Higher Education Access Partner Pennsylvania Higher Education Assistance Agency (PHEAA)

mhargrav@pheaa.org 724.614.3823