Budget for College with Your Student

The FAFSA (Free Application for Federal Student Aid)

The most important step students must take to find money for college is completing the FAFSA. The FAFSA calculates “Expected Family Contribution“, or EFC, and determines what federal grants and loans students are eligible for. Colleges also use EFCs to decide how much “need-based aid” they will offer students.

Students should complete the FAFSA during the winter of their senior year of high school, and every following winter while they are in college.  To complete it they will need:

- Their Social Security Number, or Alien Registration Number if they’re not a U.S. citizen

- Their Driver’s License Number (if you have one)

- W-2 forms from the last two years

- Their 1040 Federal Tax Income Return (as well as their parents’ tax return if they are under 24 years old and are not legally independent)

- Records of Untaxed Income (i.e., TANF, Social Security, Welfare or Veterans Benefits)

The deadline for completing the FAFSA in order to qualify for Pennsylvania state grants is May 1st for 4 year colleges, and August 1st for 2 year and trade colleges. Some colleges allocate aid on a first come first serve basis. Students should complete their FAFSA as soon after January 1st as possible.

Students can estimate how much financial aid they may be eligible for using the FAFSA Forecaster.

If students need assistance completing the FAFSA they can check out our calendar to find a free workshop.

If you, your student, or their parents would like help completing taxes The Benefit Bank and The Campaign for Working Families can offer assistance. The Benefit Bank’s free online tax software helps individuals complete their taxes and will automatically transfer that information to the FAFSA. Both organizations also have walk in centers that offer personal assistance with taxes and FAFSA. Please note, to qualify for Campaign for Working Family services families must earn less than $49,000/year.

PHEAA

PHEAA is the Pennsylvania state grant. To find out if your student qualifies for PHEAA they must first complete the FAFSA. If they are eligible, a link to the PHEAA form will appear at the bottom of the last page of the FAFSA. Pay attention, the link is small and easy to miss! When you click on this link you will be asked to complete additional information, and then print and mail a hard copy of the signature page.

PHEAA may request additional information by mail or email, watch both closely for notices.

Tax Credits for College

The American Opportunity Tax Credit offers a rebate of up to $2,500 for college expenses. To qualify for this credit you must earn under $80,000 if you file as single, or under $160,000 if you file as married. The $2,500 credit can be claimed by parents for each child that is in college, or, if the student files their taxes as an independent, by students themselves. Click here to download a document with more details on how to file for this credit.

Scholarships

There are scholarships that are awarded based on a wide range of factors, not just grades. Some scholarships will look for students who excel at sports, or spend a lot of time helping out in their community. Finding the right scholarship can take some time and effort, but that time can pay off! Below you will find links to scholarships for Philadelphians,  lists of national scholarships, and links to scholarship search engine tools that your student can use to find scholarships that match their interests and skills. Before you get started, read these scholarships tips.

Scholarships for Philadelphia Residents

CORE Scholarships offers last dollar scholarships to high school seniors of up to $2000 to cover unmet financial need for their first year of college. The only eligibility requirement is enrollment at Community College of Philadelphia or any Pennsylvania State-Related college or university. For a list of eligible institutions visit their website.

The Philadelphia City Scholarship Program gives students $1,000/year to attend a college located in the greater Philadelphia area.

Center for Student Opportunity allows students to create a profile to search for scholarships and receive relevant college information. Creating a profile also qualifies you to apply for a scholarship they offer.

The Philadelphia Foundation manages several different scholarships intended for Philadelphia students. You can view the list of scholarships and download applications on their website.

The Urban League of Philadelphia offers several scholarships including the Community Scholarship Program and the American Association of Blacks in Energy/Urban League of Philadelphia Scholarship. Call 215-985-3220, ext. 208 for more information

Scholarships to Local Colleges and Universities

The Community College of Philadelphia offers the Robert S. King Scholarship to eligible students who graduate from a high school within the city of Philadelphia. For more information contact Patti Conroy at 215.751.8214 or pconroy@ccp.edu.

Drexel Liberty Scholars provides full tuition scholarships to low-income students from Philadelphia and is renewable annually.

The Philadelphia Scholars Award offered by Harrisburg University of Science and Technology provides a full tuition scholarship renewable over four years to students from Philadelphia.

Peirce College offers the Mayor’s Scholarship to one Philadelphia resident and one employee of the city of Philadelphia each year. It consists of a full tuition scholarship, renewable yearly. Submit the application, along with the essay and other materials described here to apply.

Penn State Alumni Association Scholarship is available to current first year students from Philadelphia who attend any Penn State campus. Scholarships of $1,000 each will be awarded to two students. The completed application is due October 1st 2010.

The Mayor’s Scholarship Program through the University of Pennsylvania fully meets financial need and is renewable for four years.

Websites to Help You Find Scholarships

The School District of Philadelphia sorts scholarships into lists by application deadline. This is a good place to start if you are feeling overwhelmed by search engines that list hundreds of scholarships. You do not have to attend a School District of Philadelphia school to use the site!

CollegeBoard  and FastWeb offer very detailed scholarship search engines that allow you to save a profile and enter information on everything from your grades to medical conditions. The engines use this information to find ideal scholarships for you.

United Negro College Fund has a scholarship search engine, but also allows you to browse lists of scholarships with upcoming deadlines.

ASPIRA provides a list of scholarships.

Scholarships 4 Students lists scholarships based on categories. It has a list for high school students, a list for current college students, a list by college major, etc.

Loans

Student loans can be a last resort to make up the difference between what a student can afford to pay and the financial assistance they receive from the government, their college and private scholarships. Taking out loans can be scary, but most students have to borrow at least a small amount of money to pay for college. There is a federal loan program just for students that offers low interest loans that they do not have to begin paying back until they are no longer in school. If your student has to borrow to attend college, federal loans should be their first choice.

There are two types of federal student loans, subsidized and unsubsidized. Students must complete the FAFSA to qualify for these loans, and their EFC (expected family contribution) determines whether they are eligible for subsidized loans, information on the FAFSA is included at the top of this page. A subsidized loan means that the government will pay off the interest that is charged to the loan while the student is in college. When the student is out of college they will only be responsible for paying the exact amount that they borrowed. If their loan is unsubsidized they will be responsible for paying the interest that is charged to the loan, as well as the original amount they borrowed.

Parents may also borrow money to help pay for their student’s education through the federal Parent PLUS loan program. Like federal student loans, Parent PLUS loans offer lower interest rates than loans from a bank.

Click here to view a chart showing different types of student and parent loan options.

Loan Forgiveness

If your student plans to go into public service, such as teaching or working for the government, they may be eligible for the Public Service Loan Forgiveness Program. This program offers loan forgiveness to individuals who have worked in public service positions for ten years while making payments on their loans. After ten years of payments, 120 payments, have been made the remainder of the loan will be forgiven. To count towards the 120, payments must have been made after October of 2007. Click here to download a document with details.