FINANCIAL AID Accepted Student Day

April 10, 2010

AGENDA Frequently Asked Questions

General Financial AidFederal Student EmploymentFederal Pell Grant/SEOGState GrantsStafford LoansPLUS (Parent Loan for Undergraduate

Students)Perkins LoanAlternative Loans

HOW DO I APPLY FOR FINANCIAL AID? Complete 2010-11 FAFSA Apply on-line at www.fafsa.ed.gov Student and parent both need a PIN to

sign FAFSA electronically (www.pin.ed.gov) If estimates are used parents must correct

once taxes are filed Corrections may change the aid award

WHAT IS A PIN NUMBER? Used to sign FAFSA electronically PIN Site: www.pin.ed.gov Results much faster Real-Time PIN Parents must also apply for a PIN Secured link is only valid for 14 days

WHAT IS A STUDENT AID REPORT? Summary of information reported on the

FAFSA Should be reviewed for any errors or

necessary corrections Will be sent via e-mail if a valid e-mail

address is provided on the FAFSA

WHAT IS AN EFC? Expected Family Contribution Methodology developed by Congress Formula = Parent contribution from income and

assets + Student contribution from available income and assets.

WHY DOES THE FINANCIAL AID OFFICE NEED TAX INFORMATION? 33% of all students who complete a

FAFSA are selected for Verification by the Federal Processor

Required to verify the tax information with the FAFSA information

If there are discrepancies the student will then be selected

WHAT IS MEANT BY COST OF ATTENDANCE? Tuition and fees Room and board Books and supplies, equipment,

transportation, and miscellaneous personal expenses

Loan fees Health Insurance HP Tablets

FEDERAL STUDENT EMPLOYMENT Employment may be on or off campus Eligible employers

School Federal, state, or local public agency Private nonprofit organization For-profit organization

FEDERAL STUDENT EMPLOYMENT Have to work to receive the money Students have the option to sign their

employment checks over to Chatham They should not subtract their award from

their balance, if they are not going to sign their checks over

On campus positions are also available for students who are not eligible for federal work study

FEDERAL PELL GRANT Students with EFC’s ranging from 0 to 5273 are

eligible (2010-11) Awards range from $976 to $5550 Awarded to eligible undergraduates pursuing

first bachelor’s or professional degree and Actual award amount based on Cost of

Attendance, Expected Family Contribution (EFC), and enrollment status

ACG – ACADEMIC COMPETITIVENESS GRANTS Awarded to students who have completed a

rigorous high school curriculum Must be Pell eligible FY student – eligible for $750 per year Need a 3.0 cumulative GPA for the grant to be

renewed for their second year Need final high school transcript to determine

requirements have been met

SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT (SEOG) Eligible students

Undergraduates pursuing first bachelor’s or professional 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 Chatham’s maximum is $1500 per year (based on

approved funding)

STATE GRANTS Pennsylvania State Grant (PHEAA) – current

maximum award is $4120 Deadline is May 1, 2010 Eligibility criteria established by PHEAA In most cases – FAFSA is the only form that

students’ from other states need to complete, unless there is an exception by that state.

If student is from out of state and is told that we do not participate in their state grant program – we can complete the necessary paperwork to comply

FEDERAL DIRECT LOAN PROGRAM Subsidized Stafford: Must demonstrate “need” Unsubsidized Stafford: Need is not a

consideration Base annual loan limits (combined subsidized

and unsubsidized)$3,500 for 1st year undergraduates$4,500 for 2nd year undergraduates$5,500 for each remaining undergraduate year$8,500 for each year of graduate/professional

study

DIRECT LOAN PROGRAM 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 studyAll undergraduate students who complete the

FAFSA are now eligible for $2000 in an Unsubsidized Stafford loan

CUMULATIVE DIRECT LOAN LIMITS. Undergraduate

Dependent—$23,000 between subsidized and unsubsidized Stafford loans

Independent—$57,500 (up to $23,000 may be in subsidized Stafford loans)

COSTS OF BORROWING DIRECT LOANS Fixed interest rate – 6.8% - Unsubsidized Loan Fixed interest rate – 4.5% - Subsidized Loan Loan fees based on principal amount of each loan:

After rebate are .5%

REPAYMENT OF DIRECT LOANS Six-month grace period

Maximum repayment period between 10 and 20 years depending on repayment plan chosen

Deferment and cancellation provisions available

HOW DO I APPLY FOR A DIRECT LOAN? Student completes a Master Promissory Note

(MPN) once when they first borrow Complete on-line at www.studentloans.gov

FEDERAL PLUS LOAN FOR UNDERGRADUATE STUDENTS Borrowers are parents of dependent

undergraduate students Must be credit-approved Annual loan limit: cost of attendance minus

other aid Fixed interest rate: 7.9% Loan fees based on principal amount of each

loan:2.5% in fees – after rebate

WHEN DOES THE PLUS GO INTO REPAYMENT? Repayment begins 60 days after loan is fully

disbursed

Deferment provisions available – parents must complete paperwork on an annual basis

PERKINS LOAN PROGRAM

Eligible studentsUndergraduate studentsPriority to students who show exceptional need

Loan amount varies Maximum annual loan

$5,500 undergraduate students – our maximum is $2200

PERKINS LOAN PROGRAM Interest rate: 5% Nine-month grace period Repayment period may be up to 10 years Deferment and cancellation provisions

available Perkins MPN – administered through Student

Accounts

WHAT IS AN ALTERNATIVE/PRIVATE LOAN? Loan used to cover educational expenses Student can borrow up to the cost of

attendance – minus other aid Dependent students must have a co-signer

because they do not have an established credit history

Loan is deferred until six months after graduation

Loan accrues interest while they are in school – interest rate changes quarterly

Student may make interest only payment while they are in school

CHATHAM PAYMENT PLAN 4 monthly payments each term No enrollment fees Late fees will be applied monthly if payment

missed

ELECTRONIC AWARDS Student will receive award letter with secured

e-mail link Award will be sent to e-mail address listed on

Admissions application Can make changes on the website and they

will be sent to our office automatically Students will be able to complete the entire

financial aid process on-line

PLUS/ALTERNATIVE LOAN Listed on all dependent student award letters Amount listed is up to cost (this is what the

student/parent can borrow) Student and parent must choose to borrow PLUS

or alternative loan PLUS is more of a cost-savings if parent does not

mind that the loan is in their name This is not an actual loan until it has been

approved

IMPORTANCE OF GOOD CREDIT Review credit report at least once per year www.annualcreditreport.com Free of charge – once every 12 months FICO score available for a nominal fee 80% of credit scores contain an error

IMPORTANCE OF GOOD CREDIT Payment History

Pay on time Amounts Owed

Installment better than revolving Length of Credit History

Keep oldest account open New Credit

Ok to check credit Types of Credit

Apply only for what you need

CHATHAM SCHOLARSHIPS Students are required to maintain a 2.0

cumulative grade point average in order for scholarships to be renewed

Scholarships are available for right terms of full-time study

Students are reviewed once they have been here for two terms of full time study

After two terms if they do not have a 2.0 cumulative GPA, then they will have one probationary term in which they will still receive the award

SATISFACTORY ACADEMIC PROGRESS Full-time students are required to complete at

least 12 new credits each term and maintain a 2.0 cumulative grade point average

If a student does not make progress they will be on financial aid probation

Students may be on financial aid probation for up to two terms and still receive financial

After two terms of probation if a student does not make up the deficiencies they will be on financial aid suspension

FINANCIAL AID CONTACT INFORMATION Hours: Monday through Friday: 8 to 5 E-mail: financialaid@chatham.edu Phone: 412-365-2781 Fax: 412-365-1643 Address:

Woodland Road; Braun Hall; Pittsburgh, PA 15232

LINK FOR FINANCIAL AID PRESENTATION

http://www.chatham.edu/admissions/aid/undergraduate/types.cfm