2. Welcome!. . Today's Presenter:Benjamin P. DobnerWaukesha County Technical [email protected] 3. www.WiCollegeGoalSunday.org. College Goal Sunday February 10, 2008 2:00
1. 1 Financial Aid
2. 2 Welcome!
Benjamin P. Dobner
Waukesha County Technical College
3. 3 College Goal Sunday February 10, 2008 2:00 Ė 4:00 p.m. College Goal Sunday is a statewide event that will offer free assistance to families in completing the Free Application for Federal Student Aid (FAFSA)
Volunteer forms, marketing materials and additional information can be found on the website
Scheduled at 20 sites throughout Wisconsin
4. 4 College Goal Sunday Coming to a Location Near You!!!
5. 5 FINANCIAL AID FUNDAMENTALS
6. 6 Financing Your Education What is the goal of financial aid?
How is financial need determined?
How do I apply?
What aid is available?
What is the role of the financial aid office?
7. 7 Goal of Financial Aid To assist students in paying for college.
To provide opportunity and access to higher education.
8. 8 Basic Principles of Financial Aid The family has primary responsibility for financing postsecondary education.
9. 9 Principles of Needs Analysis To the extent they are able, parents have primary responsibility to pay for their dependent childrenís education.
Students also have a responsibility to contribute to their educational costs.
Families should be evaluated in their present financial condition.
A familyís ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect a familyís ability to pay.
10. 10 Financial Aid Regulations Are determined by federal and state statutes and legislators
Establish your eligibility for most types of aid
Apply to all schools
11. 11 What Are the Costs? Tuition and Fees
+ Room and Board
+ Books & Supplies
+ Miscellaneous Living Expenses
= Cost of Attendance (COA)
12. 12 Expected Family Contribution (EFC) (Federal Methodology established by U.S. Congress) Determined by filing the FAFSA
13. 13 Main Determinants of the EFC Income
Number in College
Age of the older parent
14. 14 Expected Family Contribution (EFC) Is the sum of four separate calculations:
Contribution from Parental Income
Contribution from Parental Assets
Contribution from Student Income
Contribution from Student Assets
15. 15 Financial Need Defined Cost of Attendance (COA)
Ė Expected Family Contribution (EFC)
= Financial Need
16. 16 Middle Income Student Family Size 4
Number in college 1
Parent AGI $ 68,400
Parent Untaxed Income $ 3,500
Parentís Assets $ 45,000
Studentís AGI $ 4,500
Studentís Assets $ 3,000
Parentís Contribution $ 8,895
(Parentís Contribution from Assets = $0)
+Studentís Contribution $ 978
(Student Income Contribution $378)
(Student Contribution from Assets $600)
=Expected Family Contribution: $ 9,873
(Note: 2007-2008 FM formula used)
17. 17 Financial Need Varies By School Cost
18. 18 You may be eligible for aid, butÖ.. YOU MUST APPLY TO FIND OUT!
And itís free!
File the FAFSA each year.
19. 19 Application Process Apply for PIN through Department of Education
Submit the Free Application for Federal Student Aid (FAFSA) prior to your schoolís deadline (paper or electronic)
Submit any institutional application materials (if required by your school)
Attain admission status
20. 20 Free Application For Federal Student Aid FAFSA on the Web (FAFSA.ED.GOV)
Paper FAFSA (must called 1-800-4-FED-AID)
21. 21 What is a PIN? www.pin.ed.gov Personal Identification Number
Students and parents can get PINs
Electronic signature for FAFSA on the Web
Real time online
By regular mail in 7-10 days
Can also be used for:
Renewal on the Web
Corrections on the Web
National Student Loan Database
Signing promissory notes for student/
parent loans (Perkins, Stafford, PLUS)
22. 22 Timelines The earliest a student can file the FAFSA for the 2008-2009 academic year - January 1, 2008.
Check with the colleges at which the student plans to apply for institutional deadlines and requirements.
Failure to apply early may result in less aid even if eligible.
Students must re-apply for aid every year.
23. 23 FAFSA on the Webís Homepage
24. 24 Before Beginning a FAFSA Overview
25. 25 The First Page
26. 26 The Dependency Worksheet
27. 27 Entering Income Information
28. 28 Entering Income Information
29. 29 Searching for College Codes
30. 30 Signature Process
31. 31 Confirmation Page
32. 32 What is Financial Aid? Scholarships
33. 33 Three primary sources of funding: US Department of Education
The federal agency that provides college funding in the form of grants, scholarships and loans.
Most states have agencies that administer state scholarship and grant programs, college savings and prepaid tuition programs, and loans. The Higher Educational Aids Board (HEAB) manages state aid in Wisconsin.
Colleges & Universities
Schools may offer their own scholarship, grant, work-study and loan programs, with each college setting its requirements.
34. 34 Gift Aid (FREE $$$) Grants & Scholarships
Federal (Administered by schools)
Federal Pell Grant
Federal Supplemental Educational Opportunity Grant (SEOG)
Academic Competitiveness Grant (ACG)
National SMART Grant
State (Administered by HEAB, DPI-WEOP & Schools)
Institutional (Endowment funds from Schools)
Private (Various outside organizations)
35. 35 Self-Help Aid Employment (must be earned as wages)
Institutional Work-Study Programs
Off Campus employment
Loans (must be repaid with interest)
Federal Perkins Loan
Federal Stafford Loans (school determines the loan program)
Federal Family Education Loan (FFEL) Program
William D. Ford Federal Direct Loan Program
Federal PLUS Loan (Parents)
36. 36 Why Get A Federal Student Loan? You donít have to repay until you leave school
Lower interest rates than private loans or credit cards
Credit record is not needed
Cosigner is not required
37. 37 Loan Comparison Chart
38. 38 PLUS vs. Private Alternative Loan
39. 39 How to Evaluate and Choose a Lender Interest rates and terms: some lenders offer better terms or discounts
Front End Benefits Ė awarded on or before repayment
Origination Fee waivers
Default Fee waivers
Back End Benefits Ė awarded after the loan is in repayment
Electronic debiting incentives
Interest rate reductions
Loan principal reductions
Borrower benefits may have specific eligibility requirements
Loan application processes:
Can you apply online?
Is instant approval offered?
Toll free numbers during convenient hours
Website Ability of lender to service all of your loans
Carefully evaluate terms and conditions of loan options available via the Financial Aid Office, from direct mail, etc.
40. 40 How to Compare College Financial Aid Offers Start with tuition, fees, room and board
Subtract grant and scholarship offers only
The difference is your ďnet costĒ
Always compare net cost
Do not subtract Federal Work Study as a lump sum disbursement as students are paid for hours worked
41. 41 Other Financing Options School Payment Plans (spread over several months)
Home Equity Loans (longer repayment, tax deductible)
Life Insurance Policy Loans
Pension Plan Loans
529 Plan withdrawals
Wisconsin Tuition Remission for Vets
42. 42 Government Resources Corporation for National and Community Service
Veteranís benefits and tuition waivers
ROTC Scholarships and/or stipends
Bureau of Indian Affairs (BIA) Grants
State Divisions of Vocational Rehabilitation (DVR)
Health and Human Services Loan and Scholarship Programs
43. 43 Other Sources of Funds Parental Affiliations
Employers & Labor Unions
Religious and Community Organizations
Clubs and Civic groups
Civic organization scholarships
Local Public Library
Private business scholarships
44. 44 FREE Scholarship Services
45. 45 Role of the Financial Aid Office Answers your questions
Determines financial need eligibility for various types of financial aid
Verifies applicant data when required
Develops policy and procedures to distribute aid
Packages aid from all available sources
Sends award notification letters/e-mails with information on:
Amount awarded from each aid program
How and when aid will be disbursed
Terms and conditions of studentís award
46. 46 Role of the Business Office Calculates tuition, meals and other fees
Sends billing statements
Credits financial aid to the studentís account
Sets up payment plans, if available
Processes student checks
Returns financial aid funds that are unearned
Collects payments for charges on studentís account
Sends out 1098T for tax purposes
47. 47 Sample Questions for the Financial Aid Office 1) What is the average cost for the first year? Estimates for future years?
2) Does applying for aid affect the admission decision?
3) What type of aid does the school have? Need-based or Merit?
4) What applications, besides the FAFSA, are needed to apply for aid?
5) What is the priority deadline date for all types of financial aid?
6) When will I be notified about a financial aid award?
7) How does the aid package normally change from year to year?
8) What are the conditions of the aid package?
9) Is there an opportunity to appeal if the package isnít enough?
10) How does the college bill for tuition, fees, etc.?
48. 48 Return on Educational Investments
49. 49 Questions?????