Funding Your Education

Piggy bank labeled college fund

Financing your college education is a big step toward obtaining your degree. In this segment, you'll read more about financial aid at Penn State and how to file the appropriate Free Application for Federal Student Aid Links to an external site. (FAFSA). 

FAFSA

The FAFSA is the starting point for financial aid for nearly every school.  To file the FAFSA, you'll first need to register for your Federal Student Aid ID (FSA ID). You will use the FSA ID for the duration of your education to complete the FAFSA each year and for other important documents pertaining to your federal aid. This ID will act as your electronic signature, and your FAFSA cannot be processed without it.

From October through June, you'll see two applications available. We encourage you to talk to a financial aid coordinator to know which application you should use, if you're unsure.

When completing the FAFSA, you'll need to include financial information. To make the tax section of the application easier to complete and more accurate, we suggest using the IRS Data Retrieval Tool, which pulls the information directly from the IRS. The FAFSA now uses tax information from two years prior, so you won't need to estimate income to complete the application. Here are some tips for filling out your application:

  • Apply early.
  • Use the correct FAFSA form.
  • Pay attention to the details.
  • Use the IRS Data Retrieval Tool.
  • Use your full legal name.
  • Enter the Penn State school code: 003329.

Most schools encourage students to apply early for financial aid so they have maximum consideration because some aid resources are limited. At Penn State, the preferred deadline for filing is February 15 for new students for the following academic year (starting with the fall session). Even if you've missed the deadline, it's still important to file your FAFSA.

Penn State's academic year sequence is fall to spring to summer. Other schools may start with the summer, so if you're transferring midyear, your aid usage will be reviewed to determine how much aid you still have available, in much the same way that your academic transcript is reviewed for credits you're transferring.

Paying attention to the details is very important for successful processing of the FAFSA. Double-check that you've spelled out your full name (such as Robert instead of Rob, if Robert is your legal name), that your Social Security number is on both your admissions and FAFSA applications so the system can retrieve it, and that you've included the correct date of birth. Please note: Penn State cannot process your FAFSA without the Social Security match. 

You can include more than one school on the FAFSA form; however, Penn State will not process your FAFSA until after you've accepted your offer of admission.

Before Penn State receives this information, your FAFSA will go through several database checks at the Department of Education. There they'll cross-reference your information with the Social Security Administration, check your criminal records, confirm your Selective Service registration through the Department of Veterans Affairs, and check your financial aid history through the National Student Loan Data System. This system contains any and all financial aid history of previous awards and borrowing you may have had if you've attended college before.

At the institutional level, Penn State's Office of Student Aid will review the information you submitted on the FAFSA for additional eligibility checks to determine the correct amount of aid you should receive. They'll check for the number of credits, academic standing, and the kind of enrollment you're applying for. When you file the FAFSA, your confirmation page will indicate what you can expect to receive, but it bases this information on the assumption that you're enrolled in an eligible program and attending full-time. The Department of Education doesn't know how many credits you're taking or what kind of program you're in. Therefore, some eligibility checks remain at the financial aid office at each university to make sure that the aid you receive is being delivered with accuracy based on your current enrollment information. Once all checks and balances are in place, your financial aid award will be made available to you. Admitted students can access their financial aid award on LionPATH.

You don't need to be a full-time student to be eligible for federal financial aid, but the number of credits you're taking will determine how much aid you can receive. Penn State will also review academic standing for each year and the type of program you're enrolled in—an associate's degree, bachelor's degree, or certificate program. It's important to note that most certificate programs aren't eligible for federal financial aid at Penn State. If you plan on completing a certificate, then please be sure to contact your school financial aid office about your options.

There are a lot of unique words associated with financial aid, so it will help to know the lingo. The FAFSA becomes the umbrella of eligibility for consideration for all of these resources. As we previously discussed, it will be up to the institution, using your enrollment standing and following the federal regulations, to determine which of these resources you'll receive and how much you'll be awarded.

Grants, Scholarships, and Loans, Oh My!

stack of papers labeled scholarship agreement

Grants and scholarships are considered "gift aid" and don't require repayment, in most circumstances. Loans, on the other hand, are considered "self-help" resources and will require repayment.

The Expected Family Contribution (EFC) number that's calculated with your FAFSA will help Penn State determine your level of need and how much of the Federal Pell Grant Links to an external site. you may be eligible to receive. Some students qualify for this grant only when taking full-time classes, while others with a lower EFC number may qualify even when taking fewer credits. Some students may not qualify for grants at all. There are also annual and lifetime limits associated with the grants.

There are two kinds of direct loans: subsidized and unsubsidized. In a nutshell, the government pays the interest that accrues on your subsidized loan while you're enrolled at least half-time in school, and you're required to pay the interest on the unsubsidized loans that accrues while you're in school. The FAFSA calculation determines how much is "sub" versus "unsub" for the loans. Most students can expect to have some loan eligibility, unless you're incarcerated, below half-time enrollment status, or in default on a previous federal loan. You're under no obligation to use the loans that are part of your aid award. Most schools have a process to either accept or decline loan funds. Keep in mind that there are annual and lifetime limits to what students can borrow, as well, which are listed on the web page Maximum Loan Amounts for Subsidized and Unsubsidized Loans Links to an external site.. You can check your prior borrowing history in the National Student Loan Data System.

If you choose the direct loans as one of your aid resources, there will be additional steps that you'll need to resolve by completing Entrance Loan Counseling and signing the Master Promissory Note. This is where the FSA ID you registered for will be used again.

Direct Versus Indirect Costs

At World Campus, the only billable charges are tuition and the technology fee. These are what we refer to as your direct costs and will show up on your Bursar bill. Some schools may have other fees listed on the tuition bill as part of the direct costs.

The indirect costs are the other expenses associated with your education—books, a computer, materials, and even housing, Internet access, and transportation—that are taken into consideration as part of your cost of attendance but aren't directly billed. This allows you to potentially receive more aid than what's needed just to cover the bill. Indirect costs associated with being an online student may not be the same for everyone. Adult students may find the need to hire a babysitter in order to finish their homework assignments or to study for tests, or they may need to decrease their work hours to offset the amount of time necessary to complete coursework.

That's where using your money wisely comes into play.

You're encouraged to decrease loans whenever possible, especially if you're attending school part-time. It's always wise to work some of your costs of education into your current budget, if you're able to. This will help hold some of your aid for future semesters and help you to not run out of eligibility before completing your degree.

If you're transferring from one institution to another and have used federal aid, it would be wise to call the financial aid office at your new school to discuss your previous aid usage and to develop a financial plan to help you successfully meet your academic goals.

Outside Aid Sources

This section lists some of the additional resources that might be available to help cover the cost of your education:

  • Scholarships: Many students indicate that they only want to have scholarships and/or grants to cover their educational expenses. Although there are many scholarship opportunities, most of them are highly competitive and may require additional steps in the form of an application. You'll want to check your school's website for the application procedure and deadlines. The World Campus scholarship form Links to an external site. is available every January for the next academic year.

    You could also try some creative searching online for additional outside scholarship opportunities Links to an external site.. Think about your academic pursuits or what you want to do after you graduate, and research that industry to see if any organizations or agencies have scholarships. You can also think about what makes you unique and search for that. For instance, are you left-handed? Do you speak another language? Look into scholarship opportunities that focus on those traits. When applying for an outside scholarship online, you shouldn't have to pay to apply, and always be sure to use safe Internet practices.

  • Savings: Do you have any savings that you might want to use to help offset your tuition balance? Consider what your total billable amount is going to be if you do receive some kind of gift aid, and see if you're able to make the three payments to cover that remaining balance so that you don't have to take out a loan. For more information about payment options available at Penn State, check the Bursar’s website Links to an external site..
  • Employer: Some employers offer tuition reimbursement programs as a benefit. Have you checked to see what your options may be?
  • Military and Veteran Benefits: There are many benefits available to military affiliated students.  Please check the links at the bottom of the page or the military module at the end of this course for more detailed information.
  • Family Support: Ask your family for gift cards to the bookstore or some help with a new computer purchase. You may be surprised to find alternative ways to cover your costs beyond increasing your loan debt.

Understanding your available resources and asking some of these questions can help you make good decisions when you review your billable costs each semester.

Resources

Understanding the material that we have covered here will go a long way toward helping you make informed decisions about financing your education. Please take some time to review the following links, as they will serve to reinforce what we've covered:

In conclusion, remember that everything begins with the FAFSA. Be sure to file every year and check the preferred deadlines. Understand what your resources are and how to use them most effectively. Know that, unlike a grant, a loan has to be repaid. Finally, Penn State's financial aid office is available to help you navigate this process if you have any questions along the way.

Are you ready for your homework? If you haven't already done so, you'll need to register for your Federal Student Aid ID Links to an external site.. After you have your FSA ID and your important documents pulled together, you'll be ready to complete your FAFSA.

Remember, filing doesn't commit you to anything, and it won't affect your credit rating, your acceptance standing, or anything else.

As we discussed previously, you'll have to complete other school-specific steps to have your aid processed. After you have filed this application, you'll get an email from the Department of Education stating that your application has been processed. Keep this for your records so that you can log back into your submitted FAFSA to add a school or make a correction at any time.

Contacting Financial Aid

We hope that you now have a better understanding of how the financial aid process works, and that you have been able to learn some specific components of the aid process that may assist you.  The Penn State Student Aid Office is available to help, so if you have questions, please email them at financialaid@outreach.psu.edu or call 814-867-4244. They're available Monday–Thursday from 8:00 a.m. (ET) through 8:00 p.m. (ET) and Friday from 8:00 a.m. (ET) through 5:00 p.m. (ET).

 


Military-Specific Information

Military-specific information about funding your education can be found at the following links:

School Certifying Officials (SCO)

Tuition Assistance & Military Grant-in-Aid

Tuition Assistance Portals

Benefits from the VA

The Parent Institution Letter (PIL)

Rate of Pursuit