Financing a College Education

1
Financing a College Education
2
Financial Aid

• The most important decision to make about college
  attendance is finding the right school that will
  provide the educational program most suited to
  the students needs.
• How to finance that education is the next issue.

3
Financial Aid

• Financial aid is funding provided to the student
  to assist with educational expenses.
• The family is considered to be the first source
  of financial support.
• The other major sources of financial aid are the
  federal government, state government, colleges,
  and private foundations, organizations and
  agencies.

4
Financial Aid Sources
5
Cost of Education

• What does is really cost to attend college?
• Expenses include
• Tuition -Fees
• Room -Board
• Books -Supplies
• Transportation -Personal Expenses

6
Cost of Attendance
7
Cost of Education

• Cost of education may vary by school type,
  academic program, academic level, state
  residency, and program of study.
• Be very careful when comparing college costs!
  Hard Costs (tuition, fees, room and board) versus
  Total Costs (also includes books, personal
  expenses, and transportation).

8
Cost of Education

• Private College or University
• 20,000 to 40,000
• PA State Related University
• 17,000 to 20,000
• PA State Owned University
• 13,000 to 14,500
• PA Community College
• 1,400 to 2,500 (Tuition Only)

9
Cost of Education
10
Cost of Education

• Dont get sticker shock!
• High cost schools often have substantial amounts
  of institutional aid that can provide adequate
  financial support.

11
Application Process

• Find out from each institution what financial aid
  application(s) are required and the deadline date
  for filing them.
• Do not wait until you are admitted to file for
  financial aid.
• Everyone must complete the 2004-2005 Free
  Application for Federal Student Aid (FAFSA).

12
FAFSA
13
FAFSA on the Web
14
Application Process

• Other financial aid forms may include a CSS
  Profile or an institutional application.
• More information on scholarship applications will
  be presented at a later point.

15
Application Process

• Keep copies of all forms that you file.
• Keep copies of all documents used to complete the
  applications.
• Dont miss any deadline dates.
• Apply for US Department of Education PIN numbers
  for both the student and one of the parents
  before you start.

16
Completing the FAFSA

• Can complete the form using estimated data if you
  have not yet filed your 2003 federal income tax
  returns.
• Pink sections are for the student and purple
  sections are for the parents.
• Follow instructions carefully!

17
Expected Family Contribution

• The FAFSA data is used to calculate an Expected
  Family Contribution (EFC) which measures the
  financial ability of the family to contribute to
  educational expenses.
• The major determinants of EFC are income, assets,
  household size, and number in college.

18
Financial Need

• Financial need is determined by subtracting the
  EFC from the cost of education.
• Cost of Education
• - Expected Family Contribution
• Financial Need

19
Financial Need

• College A College B College C
• 40,000 19,000 14,000
• 5,000 5,000 5,000
• 35,000 14,000 9,000
• Colleges try to meet the financial need of the
  student.

20
Financial Aid Programs

• Financial aid comes in three major types
• Grants and Scholarships
• Student Employment
• Educational Loans

21
Financial Aid Programs

• Grants are based on financial need. Major grant
  programs include
• Federal Pell Grant
• Pennsylvania State Grant
• Federal Supplemental Educational Opportunity Grant

22
Financial Aid Programs

• Student employment offers the opportunity to work
  and earn money while also gaining on-the-job
  experience.
• Positions available both on and off campus.

23
Educational Loans

• Educational loans are funds that are borrowed now
  to be repaid in the future. These programs
  represent the largest available source for
  student aid
• Terms and conditions vary among the various loan
  programs.

24
Educational Loans

• Federal Loans
• Federal Stafford Loan (Ford Direct Loan)
• Subsidized
• Unsubsidized
• Federal Perkins Loan
• Federal PLUS Loan
• Health Professions Loans
• Privately Financed Alternative Loans
• Multiple Providers

25
Scholarships
26
Scholarships

• Scholarships are based on special talent,
  affiliations, or merit.
• Check with any organization, association,
  business, religious group, or other entity that
  the student or parents have an affiliation.
• Do web searches for scholarships by going online.

27
Scholarships

• www.fastweb.org

28
Scholarships

• Scholarships require more effort to locate and
  apply for since there is not a centralized
  application process.
• Some applications may require written essays or
  letters of recommendation.

29
Financial Aid Package

• After the Financial Aid Office has all of your
  information, a financial aid package will be
  sent to you outlining the types and amounts of
  aid that you are being offered.
• You can compare the various offers that you
  receive in order to make an informed decision
  about your college choice.

30
Financial Aid Package

• Is the package sufficient to enable your child to
  attend?
• If not, where or how will you obtain the needed
  funding?
• What will be the debt load for the student and
  for the parents after four years of study?
• Is working truly an option?

31
Decision Time

• After you have decided upon a college, pay the
  advance deposit fee by May 1 to ensure your
  admission. Contact the Financial Aid Office to
  accept your financial aid package.
• Notify the schools that you are not going to
  attend of your decision to enroll elsewhere.

32
Keeping Your Aid

• The financial aid applications must be filed out
  each year in order to continue to receive
  financial aid.
• Students must be maintaining satisfactory
  academic progress in order to continue to be
  eligible for aid.

33
Good Luck!