Franklin County Scholarship Page

THE FAFSA

Every year of college you will need to complete the FAFSA, or the Free Application for Federal Student Aid. Completing the FAFSA makes you eligible to receive federal financial aid as well as helps to determine how much aid Pennsylvania or your college will give you. This is done by determining your EFC (expected family contribution)based off of the results of your FAFSA. Your EFC is how much of the cost of your college education it is expected that your family will pay.

 

Completing the FAFSA

While the FAFSA may seem to be a large obstacle in your path, the FAFSA is relatively simple to complete. It typically takes only 20 minutes to complete, and if your family already has their taxes done, it can take even less time by using the IRS Data Retrieval Tool. The data retrieval tool autofills information straight from your family's tax return and helps to reduce the risk of any errors in your FAFSA. However, you can still submit the FAFSA even if you have not submitted your taxes yet! You have the option of using estimates for your tax information by using the previous year's tax returns. Afterwards, you will log back into your account and resubmit the FAFSA with the corrected numbers.

 

To complete the FAFSA, you will need to set up a username and password, also called your FSA ID. To set up your FSA ID and to complete the FAFSA, you will want to go to the FAFSA website. 

 

After the FAFSA

Once you have completed the FAFSA, you will want to complete the application for PHEAA. PHEAA is the organizaiton responsible for giving out financial aid from the state of Pennsylvania. Immediately after submitting the FAFSA, there will be an option to complete the PHEAA application. It only takes a few more minutes and will allow you to be elligble for state aid.

 

The Importance of DEADLINES

When it comes to financial aid, it is best to complete the FAFSA as soon as possible. This typically means you will want to do your FAFSA in January or February. CHECK ON WHEN YOUR COLLEGE WANTS YOU TO HAVE YOUR FAFSA COMPLETED.

Colleges will give out financial aid until they run out of funds. Waiting longer to complete the FAFSA could mean less financial aid for you. This may mean you will have to complete your FAFSA BEFORE your family has sumbitted their taxes. This is perfectly fine and is also quite common! You and your family can use the previous year's tax returns as estimates on your FAFSA if you have not received your tax return yet. Once you have received the return, you can use the IRS Data Retrieval Tool to update your FAFSA with the correct numbers and resubmit it to the colleges you have applied to.

 

CSS PROFILE

About the CSS Profile

The CSS Profile is another form that is required by many private colleges in order to receive financial aid. This form is used institutionally to determine how much financial aid a college will give you. To complete the CSS, log on/create an account on the CSS Profile website. It may not be explicitly stated when you are applying for financial aid that you are required to do the CSS Profile. The CSS may go more in depth than the FAFSA did, and also weights different factors differently than the FAFSA does.

 

If you are unsure about completing an item on the CSS Profile, get in touch with your college's financial aid office. It is also imperative that you keep an eye on the deadline for the CSS Profile. If you do not submit your CSS Profile before the specified deadline, you may not be elligible to receive need based aid from your college. Deadlines should be included in acceptance package from a college, or can be found online on the college's financial aid website.

 

This may require you to upload documents to IDOC which is run through the College Board. This program will manage all of your documents and will help to easily send documents to various colleges.

 

TYPES OF FINANCIAL AID

Merit versus Need Based Aid

The first distinction to make is the different types of financial aid you might receive from a college. Merit aid means that money may be awarded based on academic performance (high shcool GPA, SAT/ACT scores), community service, musical ability, or other specific qualifications. There are typically different levels that these scholarships have that range in monetary value. On the other hand, need based aid is given out based on a family's demonstrated need, as shown by the EFC on the FAFSA. Some colleges say that they will "meet 100% of demonstrated need." This means that you would receive need based financial aid to cover everything except for the amount your family is expected to pay. Need based aid can take the form of grants, scholarships, loans, or even a few other forms of aid.

 

Scholarships and Grants

Scholarships and grants are oftentimes refered to as "gift aid" because this is money that does NOT have to be paid back. These grants and scholarships can come from either the college itself or from the state and federal government. You may be elligible to receive the PHEAA grant from the state or to receive the Pell grant from the federal government. It is imortant to note that these grants and scholarships are typically only given for four years and usually have minimum GPA that you must maintain while in college. This is based on the amount of time it should take you to complete a college degree. Check with your college to see if there is any extra applicaiton you may need to do to receive financial aid or if there are certain criteria (SAT scores) for certain scholarships.

 

Remember that private/outside scholarships are not included in the financial aid package that you receive from your college. Outside scholarships usually go towards covering your family's out of pocket costs so that there is less that you and your family will have to pay up-front.

 

Loans

As part of your need based aid, you may see that you have been awarded some loans. These are typically federal loans and are either a Subsidized, Unsubsidized, or a Parent PLUS loan. See the Understanding Loans section to learn more about the differences between these loans. If you are receiving outside scholarships, you may choose to eliminate one or more of these loans so that it is less money you will have to repay. Talk with your family to find out what is the best course of action for you regarding loans.

 

Other forms of aid

On your financial aid award letter, you may also see "Federal Work Study." This means that you would find a job on your college's campus and have that as a source of income. While there is the option to have a certain percentage of this income earmarked for tuition, it may be better to view this source of income as your own spending money. These funds can be set aside to help cover your personal costs throughout the year such as food, travel, textooks, and other personal necessities.

 

UNDERSTANDING LOANS

Federal versus Private Loans

Perhaps the first distinction to make between Federal and Private loans is that private loans do not come as part of your financial aid package. Private loans can be taken out from a bank or credit union to help cover any remaining costs of college not covered by financial aid. Federal loans typically will also have lower interest rates, but are also usually for less money than a private loan. Federal loans will have fixed interests rates, while some private loans have variable interest rates that can get very high. Federal loans oftentimes have more appealing repayment plans that are based on factors such as income level. 

 

Types of Federal Loans

Direct Subsidized - A subsidized loan means that while you are in college, interest is paid for you by the government. However, once you graduate or are no longer enrolled full time, you will be responsible for paying interest and the principal amount of the loan.

 

Direct Unsubsidized - An unsubsidized loan means that interest will start to grow on your loan as soon as the funds have been dispersed. You can choose to make interest payments during college on this loan, or let the interest accrue. However, if the interest continues to grow, you could possibly end up paying interest on your interest.

 

Parent PLUS - The parent PLUS loan is a loan that your parents can get and it can cover up to the total of your out of pocket costs for a college. There is a credit check for this loan, however; if the parent is not eligible to receive a PLUS loan, then the student can receive more funds in their unsubsidized loan. While payment does begin once the loan has been dispersed, the payments can be deferred till after you are no longer a student. Interest will still accrue on the loan during this time similar to the unsubsidized loan.

 

Where to get an educational loan

Apart from Federal loans, you may want or need to get a private loan to help cover the remaining costs of college. It is very important that you and your family research the different lender options. It is best if you and your family compare different educational loan options, interest rates, and other terms from various lenders. As most private loans depend upon credit scores there may be some fluctuation in interest rates between lenders, or even between parents. Check with your family's bank or credit union that you have an existing history with to see if there are any reduced rate available through that lender. Check online with local banks such as Adams County National Bank, PNC, Susquehanna, or other lenders to see what they offer for educational loans.

 

Paying Back Your Loan

When it comes time to pay for your loan or loans, there are several factors to keep in mind:

 

Consolidation: If you have multiple federal or private loans (from the same lender), it could be beneficial for you to consolidate these loans into one loan. That way, you will not have to make many smaller payments to several different loans. By consolidating your loans, you only make one payment. The Simple Dollar offers a Loan Consolidation Guide that helps explain how loan consolidation works, and what the benefits of consolidating your loans are. This very helpful guide also offers advice on the best way to pay back multiple student loans in the fastest and easiest ways possible.

 

Loan Repayment Calculators: Here you can utilize some loan repayment calculators to see how you will be able to handle paying off your loans once you are done with college. This is very important in understanding how much debt you will have from your college loans, and how long it will take to pay back your loans. 

- Student Loan Hero Calculator 

- Fin Aid Loan Calculator 

 

Payment Plans: As you can see here from the Federal Student Aid website, there are many different repayment plans available to you. When you complete your loan exit counseling at the end of college, you will be able to select the payment plan that is most appropriate for you. Private loans may also have different repayment plans available, but the options will be much more limited.

 

Loan Forgiveness Options: With Federal loans, there are some ways in which all or part of a loan may be forgiven. For instance, if you become a teacher or work in the public service sector for at least 5 years, all or part of your loan will be forgiven. For more information on what qualifies for loan forgiveness, review the information found on the Forgiveness, Cancellation, and Discharge page of the Federal Student Aid website. 

 

NET PRICE CALCULATOR

On every college's financial aid website, there is a Net Price Calculator. The Net Price Calculator is a tool that you can use to determine what an estimated financial aid package from the college might look like. While these calculators are not an exact science, the results should get you within the right ballpark of how much aid you could receive. The Net Price Calculator is especially useful when looking at the sticker price of a college. Many times, that price tag seems way out of reach, but by doing the Net Price Calculator, it may put the college you thought was too expensive for you to into an affordable price range.