the road map to higher learning 11
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Navigating The Financial Aid ProcessTRANSCRIPT
The Road Map To Higher The Road Map To Higher LearningLearning
What is financial aid
Cost of attendance (COA)
Expected Family Contribution (EFC)
What is financial need
Categories, types, and sources of financial aid
Topics We Will Discuss
What is Financial Aid
Financial aid is funds provided to students and families to help pay for postsecondary educational expenses.
What is Cost of Attendance (COA)
• Direct costs– (Tuition, Fees, Room & Board)
• Indirect costs – (Books, Transportation, Supplies)
• Varies widely from college to college
What is the Expected Family Contribution (EFC)
Is the number that is used to determine your eligibility for federal student financial aid. (Amount family can reasonably be expected to contribute>)
Calculated using data from the Free Application for Federal Student Aid (FAFSA) and a federal formula
Two components – Parent contribution– Student contribution
Stays the same regardless of college
What is Financial Need?
Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need
Example:
$20,000 (COA) 2,000 (EFC)$18,000 (Financial Need)
Categories of Financial Aid
Need-based Non-need-based
Types of Financial Aid
Scholarships Grants Loans Employment
Scholarships
Money that does not have to be paid back
Awarded on the basis of merit, skill, or unique characteristic
Grants
Money that does not have to be paid back
Usually awarded on the basis of financial need
Loans
Money students and parents borrow to help pay college expenses
Repayment usually begins after education is finished\ Only borrow what is really needed
Employment
Allows student to earn money to help pay educational costs
A paycheck; or Non-monetary compensation, such as room and board
Sources of Financial Aid
• Federal Government
• Private Sources
• Civic/Social Organizations and Churches
• Employers
Federal Government
• Largest source of financial aid
• Aid awarded primarily on the basis of financial need
• Must apply every year using the Free Application for Federal Student Aid (FAFSA)
Common Federal Aid Programs
Federal Pell Grant
Teacher Education Assistance for College and Higher Education Grant (TEACH Grant)
Federal Supplemental Educational Opportunity Grant (FSEOG)
Federal Perkins Loan
Federal Work-Study
Stafford Loans
Plus Loans
Common Federal Aid Programs
Example: first-year student in 2011-12 (Maximum amounts allowed) Federal Pell Grant: $5,500
Academic Competitiveness Grant: $750
TEACH Grant: $4,000
Federal Stafford Loan: $5,500
Federal Perkins Loan: $5,500
Federal Supplemental Educational Opportunity Grant: (FSEOG) $4,000
Federal Work-Study: depends on funds available at school
Federal PLUS Loan (for parents): COA minus other aid received
Pennsylvania Higher Education Assistance Agency (PHEAA) Requires Pennsylvania Residency
Award aid on the basis of both financial need and merit
Use information from the FAFSA
Deadline for PA State Grant Application is May 1st for State Grant recipients and all non 2011-12 grant recipients in degree programs. All other applicants August 1st.
Private Sources
Foundations, businesses, charitable organizations
Civic/Social Organizations and Churches
Employers
o Deadlines and application procedures will varyo Begin researching private aid sources earlyo Research what is available in the communityo Companies may have scholarships available to the
children of employees
Federal Programso www.studentaid.ed.govo www.fafsa.govo www.fafsa4caster.ed.gov
PA State Programso www.pheaa.orgo www.educationplanner.org
Private o www.mystudentedge.como www.blackexcel.org/100minority.htm
Web Resources
Thank you !
Anthony R. Johnson, M.S.