2007 High School Counselor Drive In Workshop

1. 2007 High School Counselor Drive In Workshop

2. My College Welcomes You Today’s Presenters:

3. Workshop Coordinated By: • Wisconsin Association of Student Financial Aid Administrators (WASFAA) • Wisconsin Higher Educational Aids Board (HEAB) • Wisconsin Department of Public Instruction (DPI) • Wisconsin Educational Opportunity Programs (WEOP) • Great Lakes

4. Today’s Agenda 8:00 – 8:30 Registration 8:30 – 8:45 Welcome Review of Agenda and Packet Materials College Goal Sunday 8:45 – 9:45 Financial Aid Fundamentals 9:45 – 10:00 Break 10:00 – 10:30 HEAB Update 10:30 – 11:00 DPI Update 11:00 – 12:00 Special Topics

5. College Goal SundayFebruary 10, 2008 2:00 – 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 www.WiCollegeGoalSunday.org

6. College Goal SundayComing to a Location Near You!!!

7. FINANCIAL AID FUNDAMENTALS

8. 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?

9. Goal of Financial Aid • To assist students in paying for college. • To provide opportunity and access to higher education.

10. Basic Principles of Financial Aid The family has primary responsibility for financing postsecondary education. Financial aid is the BRIDGE.

11. Principles of Needs Analysis • To the extent they are able, parents have primary responsibility to pay for their dependent children’s education. • Students also have a responsibility to contribute to their educational costs. • Families should be evaluated in their present financial condition. • A family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect a family’s ability to pay.

12. Financial Aid Regulations • Are determined by federal and state statutes and legislators • Establish your eligibility for most types of aid • Apply to all schools

13. What Are the Costs? Tuition and Fees + Room and Board + Transportation + Books & Supplies + Miscellaneous Living Expenses = Cost of Attendance (COA)

14. Expected Family Contribution (EFC)(Federal Methodology established by U.S. Congress) Determined by filing the FAFSA www.FAFSA.ed.gov

15. Main Determinants of the EFC • Income • Assets • Family size • Number in College • Age of the older parent Adjustments to EFC may be made due to Verification and/or Special Circumstances that limit ability to pay

16. 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

17. Financial Need Defined Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need

18. Middle Income Student Family Size 4 Number in college 1 Parent AGI $ 68,400 Parent Untaxed Income $ 3,500 Parent’s Assets $ 45,000 Student’s AGI $ 4,500 Student’s Assets $ 3,000 Parent’s Contribution $ 8,895 (Parent’s Contribution from Assets = $0) +Student’s Contribution $ 978 (Student Income Contribution $378) (Student Contribution from Assets $600) =Expected Family Contribution: $ 9,873 (Note: 2007-2008 FM formula used)

19. Financial Need Varies By School Cost

20. Financial Need Varies by School Cost

21. You may be eligible for aid, but….. YOU MUST APPLY TO FIND OUT! And it’s free! File the FAFSA each year. www.FAFSA.ed.gov

22. Application Process • Apply for PIN through Department of Education • Submit the Free Application for Federal Student Aid (FAFSA) prior to your school’s deadline (paper or electronic) • Submit any institutionalapplication materials(if required by your school) • Attain admission status • Make sure to meet allrequired deadlines!

23. Free Application for Federal Student Aid • Collects family’s personal and financial information used to calculate the EFC • May file the FAFSA in one of two ways: • FAFSA on the Web • Paper FAFSA www.FAFSA.ed.gov

24. What is a PIN?www.pin.ed.gov • Personal Identification Number • Students and parents can get PINs • Electronic signature for FAFSA on the Web • PIN delivery • 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)

25. Application Processing Flowchart college # 1 college # 2 CENTRAL FAFSA STUDENT PROCESSING college SYSTEM # 3 college SAR # 4 EFC: college # 5 college Data # 6 Wisconsin Higher base Educational Aids Board (HEAB) Match

26. CSS /PROFILE (used by some private schools) • Collects additional data colleges need • Targets non-federal funds • Financial need (ability to pay) vs. federal eligibility (EFC) • Supports Institutional Methodology (IM) as well as Federal Methodology (FM) • Supports early estimates/early admission

27. 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. Renewal notification is sent to students towards the end of each calendar year.

28. What is Financial Aid? • Scholarships • Grants • Loans • Employment opportunities

29. Three primary sources of funding: • US Department of Education • The federal agency that provides college funding in the form of grants, scholarships and loans. • State • 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.

30. 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)

31. Academic Competitiveness Grant (ACG) • First year grant is $750 • For students who will be new freshman in 2008-09 the following criteria are required: • U.S. Citizen AND • Enrolled in a 2 or 4-year program AND • Pell eligible AND • Full Time AND • Graduated from high school after 1/1/2006 AND • Completed a rigorous high school curriculum as defined by the state • Second year grant is $1300 • Same criteria as above AND • Must have a minimum 3.0 GPA AND • Graduated from high school after 1/1/2005

32. National Science and Mathematics Access to Retain Talent (SMART) Grant • Up to $4000 in 3rd and 4th years of undergraduate study • Eligibility requires include: • U.S. Citizen • Pell Eligible • Full Time • 3.0 Cumulative G.P.A. • Enrolled in an eligible program of study • Computer Science, Engineering, Critical Foreign Languages, Life Sciences, Mathematics, Physical Sciences, Technology, or Multidisciplinary Studies

33. ACG/SMART Grant Information Academic Competitiveness Grant (ACG) http://www.fsa4counselors.ed.gov/clcf/AcademicGrants.html National Science and Mathematics Access to Retain Talent (SMART) Grant http://www.fsa4counselors.ed.gov/clcf/SmartGrants.html

34. Wisconsin Covenant • Goal: Make sure that every Wisconsin 8th grader knows that higher education is an option if they are willing to work hard during high school. • Students pledge to graduate, maintain at least a “B” average, take classes that prepare them for higher education, and be good citizens. • Students who fulfill the pledge are guaranteed a place in a Wisconsin college or university and a financial aid package based on the family’s financial need that helps make college more affordable. • Students in the Class of 2011 were the first to sign the Wisconsin Covenant Pledge. • Wisconsin Covenant Students will apply for financial aid in the same way that other students do.

35. Wisconsin Covenant For more information: www.WisconsinCovenant.wi.gov Contact: Office of the Wisconsin Covenant PO Box 7869 Madison, WI 53707 608-267-9389 WisconsinCovenant@wi.gov

36. Self-Help Aid Employment (must be earned as wages) • Federal Work-Study • 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) • State Loans • Institutional Loans • Private-Alternative Loans

37. Why Get A Federal Student Loan? • You don’t 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

38. Loan Comparison Chart

39. PLUS vs. Private Alternative Loan

40. Interest rates and terms: some lenders offer better terms or discounts Front End Benefits – awarded on or before repayment Origination Fee waivers Default Fee waivers Back End Benefits – 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? Repayment plans Customer service: 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. How to Evaluate and Choose a Lender • Before borrowing, think about your ability to make the monthly payment when you leave school • Borrowers are free to choose any participating lender • Borrow only what is needed for direct educational expenses and avoid borrowing funds for discretionary spending

41. How to Compare College Financial Aid Offers • Start with tuition, fees, room and board • Subtract grant and scholarship offers only • The difference is your “net cost” • Always compare net cost • Do not subtract Federal Work Study as a lump sum disbursement as students are paid for hours worked

42. Award Package Comparison

43. 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

44. Need versus Merit Aid • Aid based on financial need • Most government grants • Subsidized student loans • Perkins loans • Federal Work-Study • Aid based on merit • Academic and athletic scholarships • Some government grants • Some scholarships require merit and need

45. Government Resources • Corporation for National and Community Service • Veteran’s 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

46. Other Sources of Funds • Parental Affiliations • Employers & Labor Unions • Religious and Community Organizations • Clubs and Civic groups • Civic organization scholarships • High School • Local Public Library • Private business scholarships

47. FREE Scholarship Services

48. Role of the Financial Aid Office • Answers your questions • FERPA restrictions • 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: • Costs • Amount awarded from each aid program • How and when aid will be disbursed • Terms and conditions of student’s award

49. Role of the Business Office • Calculates tuition, meals and other fees • Sends billing statements • Credits financial aid to the student’s account • Sets up payment plans, if available • Processes student checks • Returns financial aid funds that are unearned • Collects payments for charges on student’s account • Sends out 1098T for tax purposes

50. 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 isn’t enough? 10) How does the college bill for tuition, fees, etc.? If you have any other questions or concern aboutthe financial aid process, contact the financial aidoffice at your school. Your FinancialAid Administrator is there to help.