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Why Is This Important?
One of the biggest barriers to college access that students face is an inability to pay for school. Even when students are able to pay for school, it frequently comes with piles of debt that have the ability to drown recent college graduates who are trying to establish their place in the world. It can all be VERY overwhelming! This page is meant to provide a base knowledge of financial aid that will hopefully allow you to make the best decisions possible.
What Is Financial Aid?
Post-secondary institutions offer two main classifications of aid: merit-based aid and need-based aid.
Merit-based aid is frequently based upon the high school transcript and test scores, but may also incorporate things like extra-curricular participation, community service, and leadership. Merit-based aid is determined by each individual institution and often comes in the form of scholarships.
Need-based aid is based on family financial information that is provided on a financial application. Some of this aid will be constant across schools, but some can differ. The amount of total aid awarded is generally based on two factors: how much your family is expected to be able to pay and how much the school costs per year. Need-based aid generally comes in the form of loans that need to be paid back or grants that do not need to be paid back.
It's important to have open and honest family conversations about financial realities and expectations early in the college search process. This will allow you to build a solid list of realistic options that can meet your financial needs.
Tips To Get You Started
Complete the College Board’s EFC Calculator to get an early estimate of what the federal government expects your family to contribute each year, per child.
Explore the Net Price and Custom Financial Calculators in your Parent Scoir account. You can learn more about accessing the Parent Scoir account on the Scoir page of this site.
Complete the Net Price Calculator on individual college websites. This can give you an estimated financial package based on your family situation and typically takes into account expected merit awards.
Be sure not to limit yourself to public institutions, or expect to get huge aid packages from them. Public institutions have limited funds available and typically award a limited number of relatively small merit scholarships that are paired with need-based aid (loans, grants, work study). Private institutions will be much more likely to award large merit-based scholarships, but their tuition is generally higher. Do your homework, and do the math! All of these numbers are important.
Do not rule out private schools. While their “sticker price” may be higher, merit-based aid is typically generous. Because their tuition is generally higher, private institutions will be much more likely to award large merit-based scholarships.
Some out-of-state public institutions are currently awarding special grants or scholarships to students from certain geographic areas to make the price more competitive with our in-state schools. If you want to go to school outside of Pennsylvania, keep an eye out for those!
Do your homework and do the math! All of these numbers are important.
Financial Aid Applications
The official Financial Aid application process begins in the senior year. Students and parents should check carefully to see which applications are required by each school.
When you are filing financial aid paperwork, always be sure you are filling out the paperwork for the academic year for which you are looking to receive aid! If you are a high school senior, be sure that you are filling out the paperwork associated with next school year - when you would be a first-year college student.
There are three primary applications:
FAFSA - required to be considered for need-based aid. Only information about the parent(s) who hold primary custody of the student is reported.
CSS Profile - required by some schools. You can click here to see which schools require the CSS. Some schools will use this form for those classified as international students. Many schools require that non-custodial parent info also be included on the CSS.
PHEAA - this is specific to Pennsylvania, and allows students to access additional loans and grants. You can click here to access the PHEAA Website, learn more about their grants and loans, and apply for aid.
School-Specific Application - Some schools have their own aid applications as well. This is rare, but still could happen.
When Do I Apply For Aid?
The FAFSA application process typically begins in October of the senior year, and is completed independently of the college application process. Please note that there were changes made to the FAFSA for the Class of 2024 that significantly delayed access to the FAFSA. At this point, the FAFSA for the Class of 2025 is projected to be available on December 1st. It doesn’t matter which one is completed first. Students should be sure to adhere carefully to financial aid deadlines, and note that financial aid deadlines may be earlier for students who apply Early Decision or Early Action.
Schools award aid on a rolling basis, so once the allotted money for a school is gone, it's gone. If you wait until late into senior year to apply for college, there may not be aid left to be awarded.
Who Fills Out The Applications?
Financial Aid applications should be filled out by both students and parents. There are specific sections for each.
If your family does not consist of two married, biological parents, along with the children, it is important to understand early on whose income and assets will be considered as part of the financial aid process at each school. This infographic clearly depicts who the parent is on the FAFSA. Schools who require the CSS Profile, though, may also require non-custodial parent information.
What Does It All Mean?
By February/March, you should be starting to receive financial aid packages - either in the mail or online.
Finances are undoubtedly part of the conversation for most of you. You should be sure that you have ironed out all of the financial details before you make a deposit and commit to a school.
Things to consider:
What is the cost of attendance?
How much money will I have to pay back?
What is my family expected to pay out of pocket at each school?
What will my direct costs be? (costs charged by the school)
What will my indirect costs be? (other expenses like books and food that won't be on the bill)
Remember that what you are looking at now is only for your first year of college. Tuition and related expenses will increase each year of school. You will have to consider if you think you'll still have the same amount in cash to pay for the rest of your time in school. You want to have a four-year plan for paying for college.
If you have questions, do not hesitate to contact a school's financial aid office. It's their job to help you (and the service you get now might help you understand the type of service you would receive as a student).
Remember: if you're offered financial aid, that does not mean that you have to accept it. If you and your family determine that you can pay for that year of college without it, you can always defer or decline the loan.
What Do These Federal Loans Look Like?
There are several types of loans that can be available through federal student aid. They include, but aren't limited to:
Direct Subsidized Loan - interest does not accrue while you are a full-time student, so if you borrow $10,000, you owe $10,000 when you graduate, and then interest kicks in. They feature low interest rates. Only some students qualify, based on need. The maximum loan is $3500 for college freshmen. No co-signer is required.
Direct Unsubsidized Loan - interest starts accruing right away, so you already owe more than you borrowed by October of freshman year. Everyone who files the FAFSA is eligible to take an unsubsidized loan. They feature low interest rates with a maximum of $5500 for freshmen year in combination with a Direct Subsidized Loan in most cases. No co-signer is required.
Direct Plus Loans - parents can apply for these loans to cover additional costs. The loan is in the name of the parent, not the student. Interest rates are generally around 7%. If parents are deemed ineligible, the student may qualify to borrow additional Unsubsidized Loans of up to $4000 per year.
What If This Financial Aid Still Isn't Enough?
There may be a very real scenario where even after receiving your financial aid, it still isn't enough to pay for college. If you've decided to attend a school, and there is still a gap, you may be looking at private loans.
While many students do take some amount of money in loans, it's important that you are very careful about just how much you take, what the terms of repayment are, and who is responsible for each loan. All families are strongly encouraged to really talk these details through prior to taking a loan. It might be helpful to project what your monthly payment might be for the loan. You can estimate that using the Loan Repayment Calculator below.
It's important to know that these private loans typically carry with them higher interest rates than federal financial aid. Additionally, there is no grace period for repaying these loans. Aid given through FAFSA and other federal programs typically gives students six months after graduating to find a job and be prepared to begin paying back their student loans. Private loans typically require payment right after graduation, and sometimes require minimum payments while you're in college.
Most colleges have a list of acceptable private loan companies with whom they've had successful relationships on their website. These loans almost always need a cosigner. Some well-known companies include: Ascent, Citizen's Bank, College Ave, Discover, Sallie Mae, SoFi, Wells Fargo, PNC.
Resources
Breaking Down a Financial Award Letter
Aid Offer Comparison Worksheet
More Financial Aid resources will be shared as they are received!
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