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Financial Aid 2013. RIVER VALLEY HIGH SCHOOL. Financial Aid Helping make college more affordable!. Financial Aid Is: Money for college A supplement to family resources A partnership between government, school, and family. You May Be Eligible For Aid, But….

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Financial Aid




Financial aid helping make college more affordable
Financial AidHelping make college more affordable!

Financial Aid Is:

  • Money for college

  • A supplement to family resources

  • A partnership between government, school, and family

You may be eligible for aid but
You May Be Eligible For Aid, But…

  • Applying for financial aid is FREE

    ( or vs. / .com -- $70- $80)

  • You must apply to find out.

  • Must be done on an annual basis.

Financial aid regulations
Financial Aid Regulations

  • Are determined by the government

  • Establish your eligibility for aid

  • Apply equally to all schools

How much is available
How Much $$$ Is Available?

  • Over $185 BILLION last year *

  • Nearly 90% more in the last decade.

  • Grant funding increased, but recipients did, too

  • Loans are increasing now in terms of total aid—as compared with a year or two ago—and comprise 70% of all federal aid.

  • Pell Grant levels have increased in the last year

    * College Board Report


  • After January 1st

  • 3-4 weeks prior to college priority date

    (Missing a deadline - $$$)

    BY APRIL 1 … for Wisconsin Covenant !

  • Be sure you’ve completed an admission application

  • Know which form(s) to use

    ** FAFSA—Paper / Not recommended

    ** FAFSA—Electronic

    ** Institutional form / if there is one

  • Can also access electronic application via college website

Federal school code for all uw colleges
Federal School CodeFor ALLUW Colleges



Need is determined by Federal Methodology

Simple Formula:

Cost of Attendance (Tuition/Fees, Room/Board, etc.)

- Expected Family Contribution (EFC)*


*Consideration of: income, non-home assets, family size, age of parents, # of parents working, # in college, other resources [outside scholarships, benefits, H.S. awards]

ABILITY…not willingness…to contribute

Comparing average costs typically 5 7 increases each year
Comparing Average CostsTypically…5-7% increases each year…

* Reduce if school has text rental; # allowance for rent off campus

3 primary types of aid
3 Primary Types of Aid

  • GRANTS (Gift assistance/no repayment)



Grant programs amounts
Grant Programs /Amounts

Pell $400 - $5,550

SEOG $100 - $4,000

WHEG $250 - $2,500 **

TIP $600-$1,800

WTG $250 - $2,900

Wisconsin Scholars Fund: ~ 3,500 Grants ($1800-3500K)

> Public institutions<

Wisconsin Covenant $250-$2,500

Note: Wisconsin grant programs for use only in WI

--Wisconsin-Minnesota Reciprocity—Must Apply

Loan options
Loan Options

  • Nearly 70% of all aid … from loans

  • Primary loan types:

    Federal Direct Loan Program

    Perkins Loan Program

    PLUS Loan

    > Private Student Alternative Loans

    Compare the differences: PLUS / Alt.

Federal family education loan program
Federal Family EducationLoan Program


  • Subsidized

  • Unsubsidized


    1st Year $3,500 + $2,000

    2nd Year $4,500 + $2,000

    3rd Year $5,500 + $2,000

    Aggregate Maximum = $31,000 ($23,000 Sub)

Direct loans
Direct Loans

Subsidized Loan

  • Government pays % -- in school, eligible deferment periods, but NO LONGER during the 6 month grace period

  • 2013-14 interest set at 6.8% for both Sub & Unsub

  • Pay % in effect at time repayment starts

  • Origination fee (1% of loan amount deducted)

  • Repayment begins

    Unsubsidized Loan

  • More than 1/3 of all loans

  • Interest rate same as Subsidized

  • Borrower responsible for interest from outset:

    - Capitalize or pay

  • 6 month grace period applies to principal only

  • Unsub Stafford available to anyone.

    --Separate application required. (MPN)

    --Must apply for financial aid to access subsidized student loans.


For those with greatest need

Must be offered

5% interest / 9 month grace

$4,000 max

Parent is the borrower

9% cap on interest: 7.9% / 4% orig. fee

Can be denied

Repayment begins at disbursement

Deferment available on principal

Separate application needed

Loan Limit

Cost of Education

- Other Financial Aid

Loan Limit

Private Alternative Loans


Other Loan Programs…


Other thoughts:

  • Home equity loans

  • Borrow from life insurance

  • 529 Savings Plans

  • Etc.

Student indebtedness at graduation
Student IndebtednessAt Graduation

Federal Family Education Loan Programs

4-Year Public $26,238 (all certified loans)

4-Year Private $34,000+ (all certified loans)

2-Year $8,500

(Survey does not include Alternative Loan or credit card debts.)

> 25% of undergrads report using credit cards to pay tuition/fees; average credit card debt for college students: ~$3,200 <


In the last 10 years—Average debt has doubled.*

NEW: Calculate your monthly payments @ DOE website.

(* From “The Project on Student Debt”)

Work study

  • Job assignments usually made in the Financial Aid Office.

  • Employment opportunities on/off campus.

  • Earn $$$ and also “connect”

  • Studies show—Work-study students do better.

  • Use earnings to meet college or personal expenses.


  • Recognition for academic achievement

  • Best sources of scholarship information:

    • High school guidance office

    • Your college

    • Parental affiliations / employer

    • Your employer

    • Reference library

    • & other web-based FREE services

      BEWARE of Scholarship Searches requiring $$$

A lot has been said about students parents getting hooked by fraudulent scholarship scams
A Lot Has Been Said About Students & Parents Getting Hooked By Fraudulent Scholarship Scams…

  • Beware False Claims:

    • “Guaranteed or your money back!”

    • “Give me your credit card or bank account to hold this scholarship!”

    • “The scholarship will cost some money!”

    • “You’ve been selected…”

    • “You’re a finalist in a contest (that you never entered)”

    • “Your ship has finally come in…”

    • CONCERN: Poor economy – more temptation …

Free Scholarship By Fraudulent Scholarship Scams…


Help is at hand
Help Is At Hand … By Fraudulent Scholarship Scams…


    Saturday & Sunday, February 23 & 24

    2:00 p.m.

  • 31 Locations in Wisconsin, including:

    Platteville H.S., & Edgewood, UW-Baraboo—Saturday, February 23

    MATC, UW-LaCrosse—Sunday, February 24

  • For more information:

Completing the By Fraudulent Scholarship Scams…

Completing The FAFSA By Fraudulent Scholarship Scams…

General Tips


Read instructions.

Be neat / accurate w/paper application.

Include correct SS#

If paper app, use black ink.

Parents: Purple

Students: Green

Useful information to have:

2012 federal tax information.

W-2 forms.

Property tax & other financial records.

Other Important Bits Of Advice: By Fraudulent Scholarship Scams…

Keep all records.

Make copies & keep them.

Keep copies of your tax returns & W-2’s.

Establish a financial aid file.

Respond to correspondence, when required.

Respond to requests for additional information.


Away for the summer?

Be sure you make provisions for mail forwarding.


Contact your financial aid office.

About The FAFSA By Fraudulent Scholarship Scams…

  • Paper: 10 pages: 4 instruction / 6 application / 7 Steps

  • Online: Web Worksheet: 3 pages; directions embedded within form

    Length of application shortened; streamlined help text/instructions

  • Easy to follow: separate sections for student & parent

  • Intuitive web experience: decreased redundancy / more seamless

  • Easier to track processing; ease of access to PIN

  • Assets referred to as “net worth”

    (current value minus debt)

  • Database matches with federal agencies (Social Security, INS, Selective Service, Veterans Administration, National Student Loan Database, Child Support, Health & Human Services, IRS)

Data retrieval tool
Data Retrieval Tool – By Fraudulent Scholarship Scams…

  • Available as of February 3.

  • If you’ve filed your tax return PRIOR to doing your FAFSA—you’ll be able to retrieve the FAFSA-requested income tax info from the IRS site.

  • Wait 2-3 weeks after filing to attempt DRT.

  • E-mails will encourage use of the DRT for those eligible.

  • Use of the Data Retrieval Tool with IRS – encouraged!

  • Will streamline the process of providing tax information if you are verified.

  • Impact of tax filing Status By Fraudulent Scholarship Scams…

  • Income < $23,000 and one of these:

  • rec’d means tested benefit (SS, free lunch)

  • Were eligible to file 1040A or EZ

  • Dislocated Worker

    EFC set to Zero

  • Simplified Needs Test By Fraudulent Scholarship Scams…

  • Income <$50,000 and one of the following:

  • Received means tested benefit

  • Eligible to file 1040A or EZ

  • Dislocated worker

    No Assets counted in EFC

Next Steps… By Fraudulent Scholarship Scams…

  • Review Web Worksheet for accuracy / then enter data @ FAFSA website

  • Print a copy of the completed FAFSA on the Web

  • Using electronic FAFSA entirely on-line / PIN acts as signature

  • If using paper FAFSA, be sure to place the ORIGINAL form in the envelope provided

  • If paper, be sure to mail the original app with nothing else (no margin notes, letters, tax forms …) – Make copy for your records.

  • Within 3 weeks – Student Aid Report arrives

  • May need to submit additional information (verification) …

    (1 in 3 selected)

  • EFC appears on the form

Additional Thoughts By Fraudulent Scholarship Scams…

Income/asset protection

  • about $45,000 of protection of net worth / 45 year old

  • (does not count home/farm assets)

  • income/asset protection increases as parents age—need for retirement income

  • Student assets: 20% toward student contribution

  • Special Circumstances – divorce/separation, deployment, loss of income/benefits, death/disability, one-time income

    Things not covered on the form you think should be?

  • medical/dental expenses not covered by insurance

  • elementary/secondary tuition

  • loss of income

  • other?

    Contact your college financial aid office.

Why File Electronically? By Fraudulent Scholarship Scams…

  • More than 97% of applications electronic

  • Error rate for paper apps is over 12%; help button for each item!

  • Error rate for online apps is less than 1%

  • Edit checks built into online process; it’s safe!

  • Average time for paper app is 3-4 weeks for initial processing

  • Average time for online app is 3-4 days

More Reasons For FOTW…. By Fraudulent Scholarship Scams…

  • Student PIN also used in MPN

  • Parent only needs 1 PIN regardless how many

    children in college; can transfer information to add’l apps

  • Easy to check status of a submitted FAFSA

  • Corrections on the Web with corrections back within 72 hours or less

  • Real-time online chat for immediate answers

  • Instant access to EFC estimate AND Pell Estimate

  • Provide e-mail address & receive e-mails w/link to PIN and SAR

Student Is Notified Of FAFSA Processing Results By… By Fraudulent Scholarship Scams…

  • Paper SAR if paper app is filed and student e-mail address was NOT provided.

  • SAR Information Acknowledgement if filed via FAFSA on the Web and student e-mail NOT provided.

  • E-mail notification containing direct link to student’s SAR online if student or parent e-mail provided on paper or electronic FAFSA.

  • If student has a PIN, can view SAR online at

Frequent FAFSA Errors By Fraudulent Scholarship Scams…

  • Missing signatures/PIN

  • Wrong SS# -- Can now be corrected online

  • Divorced/remarried parent info

  • Income earned by parents/stepparents

  • Untaxed income

  • U.S. income taxes paid

  • Household size

  • # of family members in college

  • Real Estate & investment net worth

  • Not using real name


Questions About Your Application? By Fraudulent Scholarship Scams…

If electronic: for ‘Follow up’

If paper:

Call —



Phone # on Page 1 of FAFSA.