Please silence your cell phones! Thank you for being considerate to - PowerPoint PPT Presentation

Please silence your cell phones! Thank you for being considerate to the people around you.

Welcome

Your Pr our Presente esenter Amy Sloan Higher Education Access Partner Northwest Region PA Higher Education Assistance Agency (PHEAA) 724-977-3662 asloan@pheaa.org

Today’s Agenda  Applying for Financial Aid  Identify what is needed  What aid sources are available  What happens next  Making smart decisions

LATEST HEADLINES & TRENDS

Unfinished Bus Unfinished Business iness • The National Student Clearinghouse reports: Education » Over the past 20 years, more loans HAVE to than 31 million Americans started a postsecondary be repaid, education, but did not finish. EVEN IF YOU » The more institutions attended DO NOT and the older the student, the FINISH your less chance there was of education. completion. » More than 10 million of these completed less than one semester.

Posts ostsecondar econdary y Educa Education is tion is Still W Still Wor orth it th it • 75% of today’s jobs require education beyond high school • According to U.S. Census Bureau data, the average college graduate from a 4-year degree program earns almost $1,000,000 more over a lifetime than a high school graduate.

BE A BE A SMAR SMART T CONS CONSUMER UMER

Be a Smar Be a Smart Consumer t Consumer • Do your research. • What is the net price that you will pay? » Use the Net Price Calculator at schools you are interested in attending to get an estimate of your “net price” to attend » Net Price Calculator available on each school’s website • What is the graduation rate? • What is the average debt of graduates? • What is the employment outcome for recent graduates? • What will be your Return on Investment???

MySmartBor MySmar tBorrowing.or wing.org • An interactive, online tool created MySmartBorrowing.org by PHEAA that helps students and families: » Estimate career salaries & college tuition » View the impact of savings on overall cost » Calculate loan repayment » Avoid over borrowing

Ho How it W w it Wor orks ks MySmartBorrowing guides students and families through four easy sections: Factor in Select a Savings Career Select a Get Results School

View the R iew the Results esults 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

The R he Rule ule • Don’t borrow more to get your education than you can reasonably expect to make during your very first year in the workforce. »This keeps your loan payment <12% of gross earnings »(Recommendation from the National Endowment for Financial Education, nefe.org)

Smar Smart Bor t Borrowing wing Tip/R Tip/Retur eturn on In on Investment estment • Research your expected salary in your future career, find an affordable school, and borrow realistically. » There are many paths to the same degree. » Research every option, including community colleges and commuting. » Only attend a school you can reasonably afford. » Only borrow what you absolutely need.

FIN FINANCIAL ANCIAL AID AID BASICS ASICS

Wha hat Is Financial Aid? t Is Financial Aid? • Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses. • Grants/Scholarships (free money) • Self-Help (work, savings, etc.) • Loans

Funding Sour Funding Sources ces • Federal Government • State Government • School/Colleges • Private Scholarship Sources: »HS counselors »Clubs and organizations »Employers »Internet scholarship searches

SCHO SCHOLARSHIPS LARSHIPS

Sc Scholar holarship ship Sear Search Don’t miss out on FREE money!  FastWeb.com • Start early – and KEEP LOOKING  EducationPlanner.org • Don’t forget to continue studies!  Chegg.com  FinAid.org • GOOGLE your interests  ScholarshipExperts.com • Don’t PAY for information  Scholarships.com • Criteria varies by school  Scholarship-Page.com » If you’re asked to pay, it’s not free money (SCAM)  DoSomething.org/Scholars • Don’t disqualify yourself until IT disqualifies YOU hips  Colleges.Niche.com • Don’t fear ESSAYS  StudentScholarships.org • Provide what is asked  BigFuture.Collegeboard.org • Small scholarships ADD UP  CollegeAnswer.com • Activities, Athletics, Family, Hobbies, Participation,  CollegeNet.com Attributes – DO YOUR RESEARCH  MeritAid.com • Don’t miss DEADLINES  MORE… . • Write it down!

Scholarship Search Tips • Start searching early • Use FREE scholarship search sites • Don’t ignore scholarships with smaller award amounts • Don’t miss deadlines • Search for scholarships every year • Check corporate websites such as Target, Walmart, Kentucky Fried Chicken: » All have scholarship programs and you don't have to work there to get them

fastw astweb.com b.com • Excellent site to use for FastWeb.com searching as it is a database that pulls specific scholarships for students based on their input. It also sends email alerts when a scholarship matches the student. • Largest, most accurate and most frequently updated scholarship database.

FEDE FEDERAL RAL & & ST STATE TE AID AID

Feder ederal Pr al Prog ograms ams • Pell Grant (2018-19 max award $5,280) * • Campus-based aid – amounts determined by FAO » FSEOG………………up to $4,000 » Perkins Loan….……..up to $5,500 (undergraduate) » Federal Work- Study…FAO determines • For most programs, student must be enrolled at least half-time. * Goes to most financially needy students

Pennsy ennsylvania S lvania Sta tate Gr te Grant ant * • In-state (PA) - Full-time up to $4318 • In-state (PA) – Part-time 1/2 of the FT award • Out-of-state - Up to $600 in DC, DE, MA, OH, VT, WV • Amount determined in part by the cost of the school * Must be at least half-time to be eligible

Other S Other Sta tate Pr te Prog ograms ams • State Work-Study - job related to major • Blind or Deaf Beneficiary Grant • Educational Assistance Grant (EAP) – National Guard • Chafee Education and Training Grant – co-administered with the PA Department of Human Services • 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 .

FEDE FEDERAL RAL LOANS ANS

Feder ederal Dir al Direct ect Based on FAFSA, Loan Prog Loan Pr ogram am students have a combination of: • Available to ALL students REGARDLESS of need • • Subsidized: Additional unsubsidized funds available for Independent & Parent PLUS denials govt pays » 4.45% interest rate (AY 17-18), 1.066% fee interest in school Rates set every July 1st for the life of that year’s » loan; fees are deducted from disbursement and grace status • AWARDED to every eligible undergraduate student • Unsubsidized: • In student’s name, no collateral or credit check, must sign MPN interest accrues • Available loan amounts increase in subsequent years in school and • No payments required while attending school & six- month grace period grace StudentLoans.gov & school’s website!

Feder ederal Student Loans al Student Loans • No credit check • Annual and aggregate borrowing limits • Fixed interest rate • Rate for new loans is reset every July 1st • Rate is based on 10-year Treasury note (+2.05%) • 6-month grace period • 10-year standard repayment • Flexible repayment options

Feder ederal Dir al Direct S ect Staf taffor ord d Loan Loan Borrowing L Bor wing Limits imits Undergraduate Students Graduate Students Independent or dependent students Graduate or Annual Limits Dependent Students whose parents are unable to borrow a Professional Studies PLUS Loan $5,500 Total $9,500 Total No more than 1 st Year No more than $3,500 may $3,500 may be be subsidized subsidized $6,500 Total $20,500 each academic year $10,500 Total No more than Graduate / Professional 2 nd Year No more than $4,500 may $4,500 may be students are no longer be subsidized subsidized eligible for subsidized loans $7,500 Total $12,500 Total 3 rd Year No more than No more than $5,500 may and beyond $5,500 may be be subsidized subsidized $31,000 Total $57,500 Total $138,500 Total Aggregate No more than No more than $23,000 No more than $65,000 Limits $23,000 may be may be subsidized may be subsidized subsidized

Feder ederal Dir al Direct P ect PLUS Loan US Loan • No Debt-to-Income test, • For parents of only lenient credit check dependent » Can have an endorser (co- undergrad or graduate signer) level students • Principal payment can be deferred while student is • Direct Parent PLUS in school Loan » Interest will continue to accrue » 7.00 % variable/fixed • IF denied - student is interest rate; 4.264% eligible for an additional fees (AY 17/18) $4,000 unsubsidized loan • Rates set every July 1 st