The financial aid process 2011 2012
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The Financial Aid Process 2011-2012. Presented by: Patty Taylor Director of Financial Aid Lakeland College. Financial Aid Topics for tonight. Types and Sources of Financial Aid Federal , State , Miscellaneous How is Financial Aid Determined? Budget, EFC, Financial Need

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The financial aid process 2011 2012

The Financial Aid Process2011-2012

Presented by: Patty Taylor

Director of Financial Aid

Lakeland College

Financial aid topics for tonight

Financial Aid Topics for tonight

  • Types and Sources of Financial Aid

    • Federal, State, Miscellaneous

  • How is Financial Aid Determined?

    • Budget, EFC, Financial Need

  • How to Apply for Financial Aid

    • FAFSA, other forms and documentation

  • Award Letter

  • Extras

    • Timetable

    • Special Circumstances

    • Tax Benefits

    • Contact Information

What is financial aid

What is Financial Aid?

  • Financial aid is money a student receives to help the student and family pay for educational expenses.

Types of financial aid

Types of Financial Aid

  • Grants—Money not paid back

  • Scholarships—Money not paid back

  • Loans—Money a student or parent borrows and pays back to a lender

  • Work Program—Job on-campus

Federal sources




Teach Grant/Loan

Work Study






Federal Sources

Work study

Work Study

  • Two Kinds

    • Federal Work Study -- partially funded by government money

    • Regular Employment -- 100% funded by the college

  • May be required to apply for a job

  • Jobs may not always be guaranteed

  • Check is issued to the student

Student loans

Student Loans

  • Loan Limits for the Subsidized/Unsubsidized per academic year for dependent students.

    • $5500 Freshman

    • $6500 Sophomore

    • $7500 Junior

    • $7500 Senior

  • Career Maximum to borrow is $31,000

Student loans cont

Student Loans Cont.

  • Federal Subsidized

    • Interest rate of 3.4%

    • 6 months grace after college before repayment begins

    • 0%-0.5% origination fee deducted by the federal government from the gross amount of the loan

    • government pays the interest while the student is in college

    • 1% federal default fee

Student loans cont1

Student Loans Cont.

  • Federal Unsubsidized

    • Interest rate is 6.8%

    • 6 month grace period after college before repayment begins

    • 0%-0.5% origination fee deducted by the federal government from the gross amount of the loan

    • The student is responsible for the interest on the loan while in college

    • 1% federal default fee

Plus loans

PLUS Loans

  • Federal Parent Loan for Undergraduate Students (PLUS)

    • Loan for Parents

    • Interest rate 7.90%

    • 3% origination fee deducted from the gross amount of the loan

Plus loans cont

PLUS Loans Cont.

  • 1% federal default fee

  • Credit check is performed—if denied, an endorser can be obtained

  • Payments begin 60 days after the latest disbursement

    • Parents can request to postpone payments while the student is enrolled at least half-time.

State sources

State Sources

  • Grants

    • Wisconsin State Tuition Grant (Private)

    • Wisconsin Higher Education Grant (UW’s / Tech)

    • Wisconsin Covenant

    • Wisconsin Indian Grant

    • Talent Incentive Program (TIP)—Wisconsin Education Opportunity Programs (WEOP)

    • Minority Grant

Wisconsin covenant new for 2011 12

Wisconsin Covenant New for 2011-12

  • Students MUST:

    • 1. Complete FAFSA by April 1

    • 2. Complete confirmation form by April 1

    • 3. By July determine which college student will attend.

    • There are not exceptions to these deadlines.

    • Appeal process—military, serious accident with severe medical issues.

      ***There is no guarantee that this program will be available beyond the 2011-12 year.

Wisconsin covenant full time 12 credits

Wisconsin CovenantFull-time (12 credits)

Wisconsin covenant half time 6 11 credits

Wisconsin CovenantHalf-Time (6-11 credits)

Miscellaneous sources

Miscellaneous Sources

  • College

  • Community, Foundations, Companies, Unions

  • DVR

  • Tribal Indian Grants

  • Workforce Development

  • Financial Institutions—Private Loans



  • Outside Scholarships

    • Must report scholarship(s) to financial aid offices

    • Ask colleges if the scholarship affects the students financial aid award

    • loan or work-study can be affected

    • National searches:




Scholarships cont

Scholarships Cont.

  • When applying for Scholarships:

    1. Type applications

    2. Follow directions

    3. Dress Up for Interviews

    4. 20 hours completing applications and if awarded $1000 equates to $50 per hour.

Alternative loans

Alternative Loans

  • Banks have been developing their own loan programs for student.

  • list of available lenders.

  • Schools can’t always recommend a lender

How financial aid is determined

How Financial Aid is Determined

Budget …

  • Expected Family

    Contribution (EFC)…

    = Financial Need…



  • Tuition and Fees—Direct Cost

  • Room and Board—May be direct or indirect Cost

  • Books—Indirect cost

  • Transportation—Indirect cost

  • Personal—Indirect cost

  • Loan Fees—Indirect cost

Expected family contribution efc

Expected Family Contribution (EFC)

  • Government Calculation

    • student income and assets

    • parent income and assets

    • number of people in the family

    • number of people in college

      Two Components:

      1. Parent Contribution

      2. Student Contribution

Example of financial need

Example of Financial Need

How to apply for financial aid

How to Apply for Financial Aid

  • Complete the Free application for Federal Student Aid (FAFSA)

  • FAFSA on the Web (FOTW) worksheets

  • Paper FAFSA’s can be obtained by calling

    1-800-4-fed-aid (1-800-433-3243)

  • Complete any other forms the financial aid office may require

Pin registration

PIN Registration

  • Web site:

  • For student and parent

  • Not required,

    but speeds processing

  • May be used

    throughout financial

    aid process

Documents needed to complete fafsa

Documents Needed to complete FAFSA

  • 2010 Federal Taxes—with 2 weeks after electronic submission of taxes, on the FAFSA you should be able to pull the data in.

  • W’2’s

  • Untaxed Income information

  • Bank Statement

  • Asset Values

  • Driver’s License

  • Social Security Number

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

  • Number of household members in college

  • Real estate & investment net worth

The 2011 2012 corrections on the web

The 2011-2012 Corrections on the Web

  • Talk with a financial aid office regarding corrections. Some corrections are required to be made while others may not be.

  • If you marked “will file” for taxes you will be required to submit corrections.

What happens after the fafsa is submitted

What Happens After the FAFSA is Submitted?

  • Student receives an e-mail that the FAFSA is processed within 3-5 days if PIN’s are used.

  • All colleges listed on the FAFSA should receive an electronic copy

  • A paper Student Aid Report is generated only if the FAFSA was completed on paper and an e-mail address was not entered.

Additional forms

Additional Forms

  • Additional forms (these may not be required for everyone)

    • Financial aid application

    • Signed copies of 2010 federal tax returns

      • Parent(s), Student

    • W-2’s

    • Verification worksheet

    • Social security card

    • Selective service card (

  • File should be complete for an award to be determined

The award letter

The Award Letter

  • Lists each source of assistance

  • Gives you the right to accept or decline any type of aid

  • May need to be signed and returned to the Financial Aid Office

  • Many colleges have the award letter available on-line.

Award letter is accepted what s next

Award Letter is Accepted. What’s Next?

  • If the student accepted a loan, the necessary promissory notes need to be completed.

  • Students borrowing for the first time through the federal programs must complete Entrance Counseling.

  • Students should keep copies of the loan application, award letters, and disclosure statements

  • Be there to help you son/daughters. Many have never borrowed money and need guidance determining which loan program is best for them.

  • 10 days prior to the term, we are allowed to disburse financial aid funds to a students account.



  • This is very important. Be very aware of deadlines. Some colleges have cut off dates for different institutional grants or scholarships.

Special circumstances

Special Circumstances

  • Involuntary loss of employment

  • Unusual and excessive paid medical expenses

  • Divorce/Separation

  • Death of parent or spouse

  • Others

Tax benefits

Tax Benefits

  • There are federal tax credits available while students are in college. This is a good time to talk with a tax advisor about these benefits and how they may impact your tax filing in the future.

College goal weekend

College Goal Weekend


  • When: February 20, 2011

  • Time: 2:00 p.m.

  • Location: UWC—Sheboygan

  • What For: Help with completing the FAFSA

Good luck

Good Luck!

Patty Taylor


[email protected]

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