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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

2013

RIVER VALLEY

HIGH SCHOOL


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

    (fafsa.ed.gov or fafsa.gov 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


Applying
Applying

  • 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 fafsa.gov

    ** 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

003897


Need

Need is determined by Federal Methodology

Simple Formula:

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

- Expected Family Contribution (EFC)*

NEED

*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)

  • LOANS

  • WORK-STUDY


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

FEDERAL DIRECT LOAN PROGRAM:

  • Subsidized

  • Unsubsidized

    AMOUNTS:

    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.


Perkins

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

PERKINS

Other Loan Programs…

P.L.U.S.

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 <

Noteworthy:

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

NEW: Calculate your monthly payments @ DOE website.

(* From “The Project on Student Debt”)



Work study
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.


Scholarships
Scholarships

  • Recognition for academic achievement

  • Best sources of scholarship information:

    • High school guidance office

    • Your college

    • Parental affiliations / employer

    • Your employer

    • Reference library

    • Fastweb.com & 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…

Searches

www.fastweb.com

www.collegeboard.com

www.scholarships.com

www.scholarshipexperts.com

www.scholarshipmonkey.com

www.collegexpress.com


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

  • COLLEGE GOAL WISCONSIN

    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:

    www.collegegoalwi.org


Completing the By Fraudulent Scholarship Scams…


Completing The FAFSA By Fraudulent Scholarship Scams…

General Tips

Remember: fafsa.gov

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.

Students:

Away for the summer?

Be sure you make provisions for mail forwarding.

QUESTIONS?

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 www.fafsa.ed.gov/studentaccess.htm


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

  • NOT APPLYING ON TIME … OR AT ALL!


Questions About Your Application? By Fraudulent Scholarship Scams…

If electronic:

www.fafsa.ed.gov for ‘Follow up’

If paper:

Call —

(1-800-4FED-AID)

1-800-433-3243

Phone # on Page 1 of FAFSA.


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