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FINANCIAL AID 101. Presented by: Katie Sprunger Senior Edgewood Central Counselor Edgewood College. Financing A College Education. A successful experience requires a collaborative effort by: Student Parent Institution Government. What is Financial Aid?. Scholarships Grants Loans

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Financial aid 101

FINANCIAL AID 101

Presented by: Katie Sprunger

Senior Edgewood Central Counselor

Edgewood College


Financing a college education
Financing A College Education

A successful experience requires a collaborative effort by:

Student

Parent

Institution

Government


What is financial aid
What is Financial Aid?

Scholarships

Grants

Loans

Employment opportunities


What is an efc
What is an EFC?

Federal Methodology:

A formula created by Congress to determine your Expected Family Contribution (EFC).

The same formula applies to all applicants.

Measures your ability, not willingness to pay.

EFC components:

Parent Income and Assets

Student Income and Assets

Things not considered : value of primary residence, consumer debt, or retirement accounts


What is financial need
What is Financial Need?

Cost of Attendance (COA) =A

Tuition, Fees, Room, Board, Transportation, and Misc

Expected Family Contribution (EFC) from FAFSA=B

Income, Assets, Number in Family, Number in College

A – B = (C) Your Financial Need


Your need depends on the cost
Your need depends on the cost!

UW SystemVoc TechIndependent

COA $23,000 $14,000 $32,000

EFC $ 5,000 $ 5,000 $ 5,000

_____________

NEED $ 18,000 $ 9,000$ 27,000


Scholarships
Scholarships

  • Academic

  • Creative Talent

  • Athletic Talent

  • Ethnicity/Religion


Need based grants
Need-Based Grants

FEDERAL GOVERNMENT

  • Pell

  • SEOG

  • TEACH Grant

    STATE GOVERNMENT

  • Higher Education- Public

  • Wisconsin Tuition- Private

    INSTITUTIONAL

  • Varies by institution


Wi covenant
WI Covenant

  • Qualified students completed a pledge in 8th grade

  • Senior confirmation forms are currently being mailed –return completed form by April 1

  • FAFSA must be filed by April 1

  • Grants range from $250-$2,500 based on need

  • 2 Grant Sources:

    • WI Covenant Scholars Grant --state funding

    • WI Covenant Foundation Grant -- private foundation funding

    • Funds are not guaranteed after 2012-2013 year

      http://wisconsincovenant.wi.gov/


Loans
Loans

  • Federal Perkins Loan

    • Up to $5,000 (5 % interest)

  • Federal Stafford Loan

    • Subsidized 6.8%

    • Unsubsidized 6.8%

    • $3,500 Subsidized

    • $2,000 Unsubsidized

  • PLUS: Parent Loan for Undergraduate Students

    • 7.9%

  • Alternative Loans (vary)

  • Institutional (vary)


Student employment
Student Employment

  • Part-time employment

    • on campus

    • designated off-campus locations

  • Questions to Ask

    • When are jobs available?

    • How does a student secure a job?

    • Does the student get paid directly or is it applied to their account?

  • Be prepared to complete new hire

    paperwork( I9, WT4, W4) –bring 2 original

    forms of identification


Eligibility for financial aid
Eligibility for Financial Aid

  • Don’t eliminate yourself. Remember it’s

  • There is no income cutoff for financial aid

  • Contact the Aid Office if financial circumstances change


How to apply
How to Apply

  • Complete admission process

  • Apply for Student and Parent PIN numbers

  • Complete the Free Application for Federal Student Aid (FAFSA) after Jan. 1


Students and parents apply for a PIN today!

  • Not required~but processing time is substantially faster

  • PIN may be used by students and parents to complete loan paperwork and used in subsequent school years

www.pin.ed.gov


Free application for federal student aid fafsa
Free Application for Federal Student Aid (FAFSA)

www.fafsa.govAvailable January 1, 2012



Before you begin
Before you begin

  • FAFSA Filing Options– fill out preliminary data

    • Print a DPF of a paper FAFSA

  • It’s OK to estimate taxes in order to meet deadlines

  • Errors will delay processing and may result in the loss of financial aid funds


Step one student information
Step One: Student Information

  • Student’s Name

  • Date of Birth

  • Citizenship status

  • Marital status

  • Email Address

  • Drug Conviction Question CANNOT be left blank


Step two schools
Step Two: Schools

Enter up to 10 Colleges of Interest:

  • School Code

    • Searchable by name, city or state

  • Housing Plans


Step three student status
Step Three: Student Status

  • If student answers “NO” to all questions, then at least one parent’s information and signature is required.

  • If student answers “Yes” to any question, then student is Independent only their income and assets will be considered.


Step four parent info
Step Four: Parent Info

Which parent’s information must be included on the FAFSA?

  • Grandparents, foster parents, legal guardians, older siblings, and uncles/aunts are not considered parents unless they have legally adopted you.

  • If married and living with each other, both parents.

  • If parent is widowed and not remarried, only the surviving parent.

  • If parents are separated or divorced, only the biological parent with whom the student lived more or who provided more financial support.

  • If biological parents are divorced and student lives with a biological parent who has remarried as of the date of the FAFSA application, both the biological parent and stepparent.


Step four parent info cont
Step Four: Parent Info Cont

Parent Finances

  • AGI (line references from Federal Taxes or W2 forms)

  • Taxes paid

  • Cash/checking/savings

  • Investments

    • do not include value of primary residence or retirement accounts

    • do not include value of family controlled business with less than 100 employees

  • Household Members and Number of College Students


Irs data retrieval tool
IRS Data Retrieval Tool

  • While completing FAFSA, applicant may submit real-time request to IRS for tax data

  • *Available 2 weeks after electronically filing or 6 weeks after paper filing taxes

  • IRS will authenticate taxpayer’s identity and send real-time results to applicant in new window

  • Applicant chooses whether or not to transfer data to FAFSA

  • Available February 2012 for 2012–13 processing cycle

  • Participation is voluntary

  • Could reduce documents requested by financial aid office


Step five student information
Step Five: Student Information

Questions include:

  • AGI(line references from Federal Taxes or W2 forms)

  • Taxes paid

  • Cash/checking/savings

  • Investments


Step six signatures
Step Six: Signatures

  • Review information for accuracy prior to submitting

  • Dependent Students:

    - 1parent and student

  • Enter PIN numbers

    -or-

    print signature page and mail to processing center


Confirmation page
Confirmation Page

  • Transfer parent data to another child

  • EFC estimate

  • Eligibility indicator for Pell and Stafford Loans

  • College rates


Frequent fafsa errors
Frequent FAFSA Errors

  • Parent & Student Social Security Numbers

  • Divorced/remarried parental information

  • Income earned by parents/stepparents

  • Untaxed income

  • U.S. income taxes paid

  • Household size & # in college

  • Real estate & investment net worth


Special circumstances call the financial aid office
Special Circumstances? Call the Financial Aid Office

  • Divorce/Separation

  • Loss of income or benefits

  • One-time income

  • Death or Disability of student or parent

  • Substantial medical/dental expenses not covered by insurance

  • Elementary or secondary school tuition

  • Dependency override

    (Note: Professional Judgment is at the sole discretion of each institution.)


The application process
The Application Process

Student submits FAFSA

ED Calculates EFC and returns results to student.

ED sends copy of result to state & schools of choice.

School follows up with student.


Fafsa follow up
FAFSA Follow Up

  • Check status after submission

  • Make corrections to FAFSA

  • Add/Delete Schools

  • Print Signature Page


Verification
Verification

  • Department of Education picks about 30% of students randomly

  • Provide documentation to school

    • Verification Worksheet

    • Consent to IRS data retrieval or submit a tax return transcript

    • Asset Statements

    • Food Stamp Statements

    • Child Support Paid Documentation


Response from schools
Response from Schools

The Financial Aid Office issues a:

FINANCIAL AID PACKAGE

Consisting Of:

  • The Cost of Attendance

  • Your Financial Aid Eligibility

  • A description of each program

  • What to do next

    If you feel you have special circumstances, let the aid office know!


Questions to consider
Questions to Consider

  • Are the scholarships renewable?

    • Requirements?

      • GPA, participation, major, max number of terms

  • Grant/Loan combination

  • Will the student graduate in 4 or 5 years? What is the additional cost?

  • Are there additional fees for specific majors?

  • How is student employment handled?

  • Actual cost minus aid – not just the most aid


How am i going to pay
How am I Going to Pay?

Direct Costs(tuition, room & board, fees, books)

- Financial aid

= Remaining balance due

  • Am I billed for the year or by the term?

  • What are my payment options?

  • When are payments due?

  • Do I need an additional loan? If yes, ensure that loans are finalized 1 month prior to the start of the term.


Other resources
Other Resources

  • Parent or Student Employer Scholarships

  • Corporation for National and Community Service

  • Veterans/ROTC Benefits

  • Bureau of Indian Affairs (BIA) Grants

  • Division of Vocational Rehabilitation (DVR)

  • Higher Educational Aids Board (HEAB)


Scholarship searches
Scholarship Searches

www.collegeanswer.com

www.fastweb.com

www.collegenet.com

www.careersandcolleges.com

http://apps.collegeboard.com/cbsearch_ss/welcome.jsp


Avoid Being Scammed

  • THIS IS A FREE PROCESS!

    • Financial aid scam notices

    • Tips to avoid scams

    • Check legitimacy of scholarship agencies:

    • Department of Education

    • www.ed.gov

    • Better Business Bureau

      • http://search.bbb.org/search.html


Final
Final

  • Apply early – watch deadlines

  • Schools may have additional aid forms

  • Each school evaluates the student differently

  • Read all materials issued by the school

  • Inform your school of any “special circumstances”

  • Always keep copies


College goal sunday weekend edition sat feb 18 and sun feb 19 2 4 pm
College Goal Sunday Weekend Edition Sat, Feb. 18 and Sun, Feb. 19 2-4 pm

  • FREE Assistance to families from Financial Aid Administrators in complete the Free Application for Federal Student Aid (FAFSA)

  • 28 sites throughout Wisconsin

    • Madison Locations

      • Sat, Feb. 18-----Edgewood College

      • Sat, Feb. 18-----MATC Truax Campus

      • Sun, Feb. 19-----DeForest High School

        Want more details? www.collegegoalwi.org



Scholarship searches1
Scholarship Searches

www.collegeanswer.com

www.fastweb.com

www.collegenet.com

www.careersandcolleges.com

http://apps.collegeboard.com/cbsearch_ss/welcome.jsp


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