Welcome!

Financial Aid 101

Your Presenter

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Ronald Felder

Higher Education Access Partner

Philadelphia Region

PA Higher Education Assistance Agency (PHEAA)

267-294-8204

Ronald.Felder@pheaa.org

Meet the Team�Western Pennsylvania

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William Lindsey

Manager

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Wendy Dunlap

wendy.dunlap@pheaa.org

Armstrong, Beaver, Butler, Clarion, and Lawrence Counties

Amy Sloan

amy.sloan@pheaa.org

Crawford, Erie, McKean, Mercer, Potter, and Warren Counties

Kurt Deutsch

kurt.deutsch@pheaa.org

Cameron, Centre, Clearfield, Clinton, Elk, Forest, Jefferson, and Venango Counties

Amy Sawdey

amy.sawdey@pheaa.org

Allegheny County

Jonathan Warner

jonathan.warner@pheaa.org

Fayette, Greene, Washington and Westmoreland Counties

Julie Fontana

julie.fontana@pheaa.org

Bedford, Blair, Cambria, Huntingdon, Indiana, and Somerset Counties

Meet the Team�Eastern Pennsylvania

4

William Lindsey

Manager

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Diona Brown

diona.brown@pheaa.org

Adams, Cumberland, Franklin, Fulton, and York Counties

Frances McKeown

frances.mckeown@pheaa.org

Bucks, Delaware and Montgomery Counties

Ron Felder

ronald.felder@pheaa.org

Philadelphia County

Sonya Mann-McFarlane

sonya.mann-mcfarlane@pheaa.org

Berks, Chester, Lancaster, and Lebanon Counties

Tiffanie DeVan

tiffanie.devan@pheaa.org

Dauphin, Juniata, Mifflin, Northumberland, Perry, Schuylkill, Snyder, and Union Counties

Michael Burke

michael.burke@pheaa.org

Carbon, Lehigh, �Monroe, Montgomery, Northampton, and Pike Counties

Nancy Harvey

nancy.harvey@pheaa.org

Bradford, Columbia, Lackawanna, Luzerne, Lycoming, Montour, Sullivan, Susquehanna, Tioga, Wayne, and Wyoming Counties

Topics

• Necessary Things to Consider
• Financial Aid Made Simple – 5 Steps
• Scholarships
• The Free Application for Federal Student Aid (FAFSA^®)
• Federal and Pennsylvania State Aid
• Student and Parent Loans
• Financial Aid Notifications
• Tips and Strategies
• Web Resources

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Basic Principles, Federal Aid

• Paying is the joint responsibility of the student and parent(s), to the extent possible.
• Need-based financial aid is subject to a federal formula to determine financial aid.
• Not all families qualify for need-based aid. There is no guarantee that you will get any free money to pay for higher education.

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What Is Financial Aid?

Financial aid consists of funds provided �to students and families to help pay for postsecondary educational expenses.

• Gift Aid – Grants/Scholarships
• Self-Help – Work-Study
• Loans

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Financial Aid Basics

Financial Aid: funds to help students and families pay the cost of an education at a post-secondary school.

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Keep in mind:

• Eligibility criteria may apply in order to receive/maintain aid
• Criteria varies based on type/source of aid
• May not qualify for all forms of aid
• Must apply every year to be considered

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• Students should play an active role in the process
• Research: careers, required training & various schools
• Take advantage of college fairs & school visits (ask about cost and available aid)
• Share goals/plans and ask for assistance, if necessary

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Financial Aid Basics

Cost of Attendance(COA):

Costs that the student can expect to incur during a specific school year

• Direct costs: billed by the school
• Indirect costs: not included in bill but may be incurred

Student Aid Index (SAI)

• Used to determine eligibility for need-based aid.
• Based on federal formula using information collected from the Free Application From Federal Student Aid (FAFSA)

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Financial Need

• Schools will determine need after reviewing financial aid applications
• Schools determine aid based on need, eligibility & available funding at their schools

School costs include:

• Tuition and fees
• Housing & Food
• Books and supplies
• Transportation
• Miscellaneous living expenses
• Childcare, if necessary

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Types of Financial Aid

• GIFT AID: Free Money
• Scholarships: based on merit, unique characteristics and/or need
• Grants: usually based on financial need

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• SELF HELP AID: Loans, Work Programs, Savings
• Work Study: Student obtains job, often coordinated through the campus and/or State.
• wages earned help cover cost of attendance
• Not offered at all school
• Loans: Borrowed money that must be repaid

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Additional sources: 529 plans, tuition payment plans, savings, etc.

Page 14; PA Student Aid Guide

�Sources of Aid�

Scholarships

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Scholarship Search

• Start early and search often
• Use FREE scholarship search sites
• Don’t ignore scholarships with �smaller award amounts
• Search for scholarships every year
• Pay attention to deadlines!

• FastWeb.com
• Www.sacfoundation.com
• Www.tfec.org
• Chegg.com
• FinAid.org
• ScholarshipExperts.com
• Scholarships.com
• Scholarship-Page.com
• DoSomething.org/Scholarships
• Colleges.Niche.com
• StudentScholarships.org
• BigFuture.Collegeboard.org
• CollegeAnswer.com
• CollegeNet.com
• MeritAid.com
• MORE….

Federal Student Aid Programs

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MUST SUBMIT FAFSA FORM

Additional details: Studentaid.gov & SAG p11

Pennsylvania State Grant

PA State Grant: 2023-24 max award $5,750

• Awarded to eligible PA residents who demonstrate financial need
• Required: approved school/ approved program of study
• Out of State schools in DE, MA, OH, WV, VT & DC: max $600
• Veterans: up to $800

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MUST SUBMIT FAFSA & PA STATE GRANT FORMS

Student Aid Guide- pgs. 7-8

PA State Administered Programs

• PA Blind or Deaf Higher Education Beneficiary Grant
• Chafee Education and Training Grant Program– co-administered with the PA Department of Human Services
• PA Fostering Independence Tuition Waiver Program (FosterEd)
• PA National Guard Educational Assistance Grant (EAP)
• PA National Guard Military Family Education Program (MFEP)

Visit pheaa.org & PA SAG pgs. 9-11 for details

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• PA Postsecondary Educational Gratuity Program (PEGP)
• PA Partnerships for Access to Higher Education (PATH)
• PA State Work-Study - job related to major
• PA Student Loan Relief for Nurses (SLRN) Program
• PA Targeted Industry Program (PA –TIP)
• PA Ready to Succeed Scholarship (RTSS)

Federal Direct Loans

• Loan is in student’s name

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• Max. borrowing limits

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• May receive a Direct Subsidized and/or Direct Unsubsidized loan

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• Fixed rate: set July 1^st for 1^st time borrowers

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• Origination fee

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• Deferred payments

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• Must complete the FAFSA

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• Must complete entrance counseling & MPN

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Additional Student Loans

Federal PLUS Loans

• Loan is in the parent’s name

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• Must meet credit requirements
• May apply with a credit worthy cosigner

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• If denied, student may borrow additional unsubsidized amount

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• May borrower up to the COA minus any other aid

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• Fixed interest rate: set July 1 for 1^st time borrowers

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• Origination fee

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• Payments may be deferred

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• Student must complete the FAFSA

• Loan is in the student’s name (cosigner is generally required)

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• Student or Cosigner must meet income & credit requirements

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• May borrower up to the COA minus any other aid

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• Variable or fixed interest rate

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• May have cosigner release clauses

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• Terms vary by lender
• Do your research
• Read the fine print

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Private Loans

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1) Annual Percentage Rate (APR) Calculations – The lowest APR is based on the following assumptions: a loan of $10,000 made in a single disbursement, a student borrower who selected an Immediate Repayment Plan and a repayment term of 120 months, monthly payments of $100.87 and a final payment $78.29, a fixed periodic interest rate of 4.17%, and a total amount financed of $11,980.40. The student borrower in this sample qualified for a 0.25% Direct Debit benefit for the entirety of the repayment period and a 0.50% graduation benefit was applied 47 months into repayment. The highest APR is based on the following assumptions: a loan of $10,000 made in a single disbursement, a student borrower who selected a Fully Deferred Repayment Plan and a repayment term of 180 months, monthly payments of $117.93, a fixed periodic interest rate of 7.07%, and a total amount financed of $21,227.72. The student borrower received an in-school deferment of 46 months and a grace period of 6 months. The student borrower in this sample did not qualify for any interest rate discounts. These APRs are estimates and may differ from the actual rates received. 

2) The provided rate range includes Undergraduate, Graduate, and Parent loans and may change based on loan type, loan term, repayment plan, and applicable discounts (not all discounts apply to all loan products). See individual loan programs for more specific information. PHEAA uses applicant credit scores to determine eligibility and interest rates. Higher credit scores may mean an applicant is offered a lower interest rate.

Applicants, including co-signers, are subject to credit qualifications, completion of an application and credit agreement, and verification of application information. PHEAA uses applicant(s) FICO score(s) to determine eligibility and interest rates. Higher credit scores may mean an applicant is offered a lower interest rate.

PHEAA reserves the right to discontinue all programs or benefits without prior notice. 

Learn more at PHEAA.org/PAForward

PA’s Low-Cost Way�to Pay for College!

Low, Fixed Rates

Be a Smart Borrower

• Exhaust all free financial aid options before borrowing student loans
• Seek federal student loans before private student loans
• Only borrower the amount needed (loans must be repaid)
• Do your research!

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• MySmartBorrowing.org: An interactive, online tool created by PHEAA that helps students and families:
• Estimate career, salaries & college tuition
• View the impact of savings on overall cost
• Calculate loan repayment
• Avoid borrowing too much money

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The Application Process

Financial Aid 101

Financial Aid Forms

Know which forms are required by each school

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All Schools Require:

• Free Application for Federal Student Aid (FAFSA)
• Required by PHEAA, and some scholarship organizations as well

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• PA State Grant Form (SGF) through PHEAA
• Required for first -year students
• Link from the FAFSA form or apply at www.pheaa.org

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Some Schools Require:

• CSS Profile (College Scholarship Service)
• https://student.collegeboard.org/css-financial-aid-profile

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• Institutional Financial Aid Forms
• Internal forms specific to each school
• Required by some schools

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Free Application for Federal Student Aid (FAFSA^®)

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2024-25 FAFSA^® is New & Improved!

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• New redesigned form available December 2023

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• FAFSA has less questions & more user friendly than previous version

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• IRS Direct Data Exchange (DDX) replaces the IRS Data retrieval tool:
• Import Federal Tax Information (FTI) from the IRS or
• Confirm non-filing status (if not required to file taxes)

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• Student & required contributors must:
• Have their own Federal Student Aid Accounts (FSA ID)
• Provide consent for FSA to retrieve & disclose federal tax information

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• Student Aid Index (SAI) replaces the Expected Family Contribution (EFC)

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• Students can list more colleges & career schools on the form

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• Family size Is based number of exemptions on tax return (may be modified if number has changed)

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Free Application for Federal Student Aid: FAFSA

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• All students who wish to be considered for financial aid & plan to attend an approved post-secondary school must complete the form.

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• Complete the correct FAFSA (2024-25 AY)

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• Federal, state & school deadlines exist: File BEFORE the earliest deadline

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• Check the Student Aid Guide p.20 for PA State deadlines

Important!

Federal Student Aid Accounts (FSA ID)

The student applying and all required contributors to the FAFSA must create an FSA ID.

• Create account at FSA ID at studentaid.gov/fsa-id.
• Create 3 - 4 days prior to completing the FAFSA.
• Student & all required contributors need FSA IDs
• Legal signature on FAFSA & PA State Grant forms.
• Requires a valid email account for each user
• Users without an SSN will be able to acquire an FSA ID

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Information Needed for 2024-25 FAFSA

Free Application for Federal Student Aid (FAFSA^®)

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FAFSA^® - primary form to apply for aid

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• used to determine student eligibility for:
• Federal & state programs
• Some school programs
• Some scholarship programs

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• File annually (beginning Sr. year in high school)

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• File online at studentaid.gov

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• Free to file

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Information Needed for 2024-25 FAFSA

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Social Security Numbers

2022 Federal Tax Returns and W-2’s

Current bank statements and records of other investment accounts (as of the FAFSA filing date including farm value and value of small business)

Current Records of any stocks, bonds and other investments, including 529 for student for whom the FAFSA is being completed

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Email Addresses (Not high school email address)

Student & Contributor(s)

Federal Student Aid

Account FSA ID

Total child support received from the most recently complete calendar year

Student Aid Guide- p. 18

Roles Within the 2024-25 FAFSA

• Answers on FAFSA determine which contributors will be required to provide information
• Student invites contributors to complete their portion of the form
• Required: Name, date of birth, SSN and email address
• Contributors are not financially responsible for student’s education costs

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FAFSA Steps

5 key sections on the 24-25 FAFSA

• Student & contributors complete their own sections using their respective FSA ID accounts
• Student completes all sections
• Contributors (parents) completes (demographics, financials & signature)
• Onboarding steps, wizards and help tools to guide students & contributors
• Form is not complete until all required signatures are submitted

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FAFSA – Colleges Section

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NOTE: Once your Final Decision is made, Update your PA Grant Information with the school you WILL attend.

• Only schools listed will receive results of FAFSA

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• Don’t have to have applied/been accepted to list school

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• Can list up to 20 schools at a time

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• May go back and add schools later

Whose Information is reported on the 2024-25 FAFSA?

• Dependent student & legal parent(s)
• Biological/adoptive parents living together (married/unmarried)

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• Divorced or separated parents
• The parent that provided the most financial support to student over the past 12 months (if remarried, spouse)
• If equal, the parent with the higher income
• Independent student- student’s information only (and spouse, if married)

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Do NOT include:

• Foster Parents
• Legal Guardians
• By court order
• Anyone else living with the student

Who Is Independent?

• Born before January 1, 2001
• Married (and not separated)
• Veteran (includes active-duty personnel)
• Working on graduate level degree

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• Emancipated minor
• Legal guardianship
• Anytime since the age of 13 has been either:
• An orphan,
• In foster care
• Ward of the court
• Have legal dependents other than spouse
• Student unaccompanied and homeless or self-supporting and at risk of being homeless

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Parent’s information is not required

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Provisional Independent Status

Provisional independent status is granted to students with unusual circumstances & as a result:

• student can complete FAFSA without providing parental information
• Student will receive an estimate of their federal student aid eligibility
• Financial aid administrator will make the final determination of the unusual circumstances
• Based on documentation received from student
• Personal assessment of the financial aid administrator
• If approved, student’s unusual circumstances remain as long as student remains at that school and circumstances do not change.

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Financial Information:�

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Income: 2022 Income information is required for the 2024-25 FAFSA form.

• DDX may not work for everyone: enter information manually if cannot use it

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Assets: If required to report assets:

• Report the net value of assets, as of the day you are completing the FAFSA.
• Balance of checking & savings accounts, records of stocks, bonds, bitcoins, etc.
• Value of 529 accounts for the student owned by the parent(s) of a dependent applicant or owned by the student applicant
• Child support received for the most recently completed calendar year
• Net Worth of your businesses or for-profit agricultural operations.

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• Do not report the value of:
• Primary home
• Qualified retirement funds
• Life insurance policies

Student Aid Guide- p. 18

Signing with the FSA ID

• FAFSA must be signed by Student & all required contributors before it is considered complete.
• If parent submits the FAFSA, then student will receive an email and can access the detailed confirmation page.

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PA State Grant Form & PHEAA Access

Create an account at pheaa.org to:

• Complete State Grant Form, if you missed the link at the end of the FAFSA
• Check your PA State Grant eligibility
• Update your school of choice listed on the PA State Grant Form

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Special Circumstances

If things change…

• Divorce or separation
• Recent death or disability
• Reduced income/Unemployment
• Excessive medical expenses

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• Contact schools listed on FAFSA: Only a school can change a FAFSA based on your circumstances

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• Contact PHEAA for the PA State grant

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**not the same as “unusual circumstances”

Forms are Filed – Now What?

Financial Aid 101

The Process Continues

After the FAFSA is filed:

Monitor emails & respond to requests from Federal Student Aid, PHEAA & schools.

• Student receives FAFSA Submission Summary
• Student Aid Index (SAI) is included on the FAFSA Submission Summary
• Schools use SAI to create financial aid offers
• FAFSA describes next steps

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Need Analysis

Cost of Attendance

- EFC

= Financial Need

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Cost of Attendance…………………..........… $29,000

- Student Aid Index (SAI)…….……………... - $4,000

• Other Financial Aid (OFA).......................... -$3, 000
• = FINANCIAL NEED ……………………...... = $22,000

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• FAO “awards” students based on financial need and available funding (varies by school)

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• Financial Aid Notification is sent to the student after they have applied & been accepted.
• Lists types, sources and amount of aid
• Describes what must be done to accept or reject
• Review carefully!

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Compare & Understand Financial Aid Offers

• Do you understand your actual costs?
• Cost of Attendance
• Out of pocket costs
• Do you have other children’s education costs to consider?
• If necessary, are you willing to commit to loans for your student’s education?
• Have you made an affordable choice of school?
• Students and parents should talk about what they can afford to pay.

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Resources

• Federal Student Aid Information Center
• Email, call or chat with customer service agents
• Phone: 800-433-3242 (800-4-FED AID)
• Websites: Studentaid.gov & collegecost.ed.gov

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• PHEAA
• Email: granthelp@pheaa.org
• Phone: 800-692.7392
• Website: PHEAA.org
• MySmartBorrowing.org
• Educationplanner.org

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• Financial Aid Offices

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Resources

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Higher Education Access Corner provides candid conversations around higher education access and affordability. Tune in to hear a variety of engaging discussions with industry professionals, as well as how PHEAA helps create affordable access to higher education.

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Subscribe and listen on your favorite podcast app or streaming platform.

• Available on Spotify, Google Podcasts, iHeartRadio, Amazon Music and more
• Available on PHEAA’s YouTube channel (PHEAA Financial Aid).

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Higher Education Access Corner

PHEAA Publications

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QUESTIONS?

Your Presenter

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Ronald Felder

Higher Education Access Partner

Philadelphia Region

PA Higher Education Assistance Agency (PHEAA)

267-294-8204

Ronald.Felder@pheaa.org