When Selecting a College/�University: Research!

• What is the graduation rate?
• What is the average debt of graduates?
• What is the repayment rate and default rate of the school’s borrowers?
• What is the employment outcome for recent graduates?
• What is the net price that you will pay?

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Net Price Calculators

Colleges/Universities are required to provide

a Net Price Calculator on their websites

• Enables current and prospective students, families and consumers to determine an estimate of an individual net price at a particular institution.

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• ESTIMATED data must be provided by each institution:
• Total price of attendance
• Tuition, Fees, Room and Board
• Expenses (i.e., personal, transportation)
• Estimated total merit and need-based grant aid
• Estimated net price (attendance minus grant aid)
• Does not include scholarships

Page 9 PA Student Aid Guide

Ways to Reduce �the Need for Financial Aid

• Research and find the right school and major for you
• Use Xello
• Earn college credits while in high school through AP courses and/or Concurrent enrollment
• Consider options for cutting costs (commute, take summer classes, buy used books, meal plan choices)
• Graduate on Time
• 4 year for bachelor’s degree / 2 year for associate’s degree
• 2 + 2 Strategy (2 years at a community college then transfer credits to a 4-year school)
• 3 + 2 (master’s degree)

MySmartBorrowing.org

• An interactive, online tool that helps students and families:

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• Select a career
• Select a school
• Factor in savings
• Get the results

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MySmartBorrowing.org

View the Results

Once you input your selections, you can:

• View your potential�salary in your �new career
• Add & compare up to �four colleges
• See if you’re �borrowing too much

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What Is Financial Aid?

• Financial aid consists of funds provided to students to help pay for postsecondary educational expenses:

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• Grants/Scholarships
• Work-study
• Loans

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https://youtu.be/H_iS7gmQd9o

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FAFSA - Free Application for Federal Student Aid

• The FAFSA is the primary federal form for financial assistance to attend postsecondary school
• It determines:
• Expected family contribution (EFC)
• Eligibility for most aid programs
• Must file a FAFSA each year a student attends school to be eligible

FAFSA.gov

THE FSA ID & PASSWORD

• Student and one parent will sign the FAFSA electronically - each needs a SEPARATE email address and ID/password
• A FAFSA IS NOT COMPLETE UNTIL SIGNED!

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Page 10 PA Student Aid Guide

fsaid.ed.gov

https://studentaid.ed.gov/sa/fafsa/filling-out/fsaid

Financial Aid Forms

ALL Schools Require:

• FAFSA (Free Application for Federal Student Aid)
• Required by all schools and some scholarship organizations
• Student and Guardian need unique FSA IDs
• FAFSA application opens October 1, 2019
• Use income tax data from 2018

SOME Schools also Require:

• CSS Profile
• Required by some postsecondary schools and scholarship organizations
• Institutional financial aid forms
• Internal school forms

Know what financial aid forms each school requires

Info You May Need for the FAFSA

• Social Security Numbers
• Driver’s license (student only; this information is optional)
• 2018 federal income tax return (1040, 1040A or 1040EZ)
• W-2 forms from all employers
• Current bank statements (checking and savings)
• Current business and farm records (if >100 employees / if you don’t live on the farm)
• Records of any stocks, bonds and other investments, including 529 accounts (Net amounts)
• Additional untaxed income, tax records may be needed such as: Veteran’s non-educational benefits, child support paid/received, workers’ compensation, disability payments
• Immigrant registration or permanent resident card (if not a U.S. citizen)

Whose Info Goes on the FAFSA?

• Divorced or separated parents - The parent the student lived with the most over the past 12 months. If equal, then the parent who provided more than 50% of student’s support
• Stepparents - YES
• Adoptive parents - YES
• Foster parents - NO
• Legal guardians - NO
• Anyone else the student is living with - NO

Who Is Independent?

• 24 or older on Jan 1^st of award year �(born before January 1, 1997)
• Married
• Veteran (includes active duty personnel)
• Working on graduate level degree
• Emancipated minor 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

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STUDENT SECTION:

Dark Blue

PARENT SECTION:

Purple

School Selection

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• Schools will only be allowed to see your financial information when you list them on the FAFSA
• You can add up to �10 colleges

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Signing the FAFSA Electronically

• Student and parent sign electronically with a �FSA ID
• Apply for a FSA ID at fsaid.ed.gov
• Can use for future FAFSA filing and parent can use �for other children’s FAFSAs
• Use to sign Federal Direct Student Loan application and Parent PLUS Loan application
• Can retrieve your username and/or password, if �you forget

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Special Circumstances

• Recent death or disability
• Reduced income
• Recent separation or divorce

Contact the school and ask for a special consideration

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.
• In reality, it is not the amount a family is required to pay and it is rarely the amount a family actually pays.

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The Process Continues

Department of Education’s Central Processing System uses the information to calculate and create your Need Analysis

• EFC is calculated
• SAR/ISIR - reports your eligibility for aid to you and your school choices
• Grant eligibility is calculated
• Identified schools receive your results
• Once accepted - schools produce Award Letters (aid packages)
• You compare Award Letters
• Determine true costs of school and make choices

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Financial Aid Award Letter

• Official notification from school about financial aid, terms and conditions
• Lists the type and amount of each award to be received
• Describes what must be done to accept or �reject any award
• Discloses students rights, responsibilities and academic requirements

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Reviewing the Financial Aid Package

• After reviewing their packages, students should be sure they know and understand the following:

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• How much of the financial aid is free money?
• Which awards are based on need, and which are based on merit?
• Are there any conditions on the free money; in particular, �is there a GPA requirement?
• Will awards change from year to year?
• Will institutional awards increase as tuition increases?
• Will loans be needed? If so, how much?

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¹ Must be an independent student OR a dependent student whose parents were denied the PLUS Loan.

² Students may need to contact the financial aid office to request the additional amount.

NOTE: “Year in College” is determined based on how many credits you have completed, not on the number of years you have attended school.

Scholarship Sources

• Institutional Scholarships
• Merit Aid/Scholarship
• Criteria varies by schools w/in University
• Community scholarships
• Complete Financial Aid Selector in Career Cruising
• Local Scholarship Packet - December
• Local Organizations
• Utilize Scholarship Search Engines
• Going Merry

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Increase Your Scholarship Options

Organize important information that can increase �your chances of obtaining scholarships!

Create a Profile �or Resume

• Send with your application

Document your information!

• Personal/Performance – sports, music,�art, achievements
• Extracurricular Activities – jobs, hobbies
• Volunteerism, Community Activities, Employment

What makes �you stand out? �Who are you?

• Besides grades, class rank, test scores

Recommendations:

• Faculty
• Coaches
• Employers
• Community
• Leaders