FINANCIAL AID 101Presented by: Katie SprungerSenior Edgewood Central

CounselorEdgewood College

A successful experience requires a collaborative effort by:

StudentParent InstitutionGovernment

Financing A College Education

What is Financial Aid?

• Scholarships

• Grants

• Loans

• Employment opportunities

Federal Methodology:

A formula created by Congress to determine your Expected Family Contribution (EFC).

The same formula applies to all applicants. Measures your ability, not willingness to pay. EFC components:

Parent Income and Assets Student Income and Assets

Things not considered : value of primary residence, consumer debt, or retirement accounts

What is an EFC?

Cost of Attendance (COA) =ATuition, Fees, Room, Board,

Transportation, and Misc

Expected Family Contribution (EFC) from FAFSA =B

Income, Assets, Number in Family, Number in College

A – B = (C) Your Financial Need

What is Financial Need?

  UW System Voc Tech Independent COA $23,000 $14,000 $32,000

EFC $ 5,000 $ 5,000 $ 5,000_____________

NEED $ 18,000 $ 9,000 $ 27,000

Your need depends on the cost!

Scholarships

- Academic

- Creative Talent

- Athletic Talent

- Ethnicity/Religion

Need-Based Grants

FEDERAL GOVERNMENT Pell SEOG TEACH Grant

STATE GOVERNMENT Higher Education- Public Wisconsin Tuition- Private

INSTITUTIONAL Varies by institution

WI Covenant

Qualified students completed a pledge in 8th grade

Senior confirmation forms are currently being mailed –return completed form by April 1

FAFSA must be filed by April 1 Grants range from $250-$2,500 based on need 2 Grant Sources:

WI Covenant Scholars Grant --state funding WI Covenant Foundation Grant -- private foundation

funding Funds are not guaranteed after 2012-2013 year

http://wisconsincovenant.wi.gov/

Loans Federal Perkins Loan

Up to $5,000 (5 % interest)

Federal Stafford Loan Subsidized 6.8% Unsubsidized 6.8% $3,500 Subsidized $2,000 Unsubsidized

PLUS: Parent Loan for Undergraduate

Students 7.9%

Alternative Loans (vary)

Institutional (vary)

Student Employment Part-time employment

on campus designated off-campus locations

Questions to Ask When are jobs available? How does a student secure a job? Does the student get paid directly or is it

applied to their account?

Be prepared to complete new hirepaperwork( I9, WT4, W4) –bring 2 originalforms of identification

Eligibility for Financial Aid Don’t eliminate yourself.

Remember it’s

There is no income cutoff for financial aid

Contact the Aid Office if financial circumstances change

How to Apply

Complete admission process Apply for Student and Parent PIN

numbers Complete the Free Application for Federal

Student Aid (FAFSA) after Jan. 1

Students and parents apply for a PIN today!

www.pin.ed.govwww.pin.ed.gov

Not required~but processing time is substantially faster

PIN may be used by students and parents to complete loan paperwork and used in subsequent school years

Free Application for Federal Student Aid (FAFSA)

www.fafsa.govwww.fafsa.govAvailable January 1, 2012Available January 1, 2012

Select a Year and Apply for a Pin

Before you begin

FAFSA Filing Options– fill out preliminary dataPrint a DPF of a paper FAFSA

It’s OK to estimate taxes in order to meet deadlines

Errors will delay processing and may result in the loss of financial aid funds

Step One: Student Information

Student’s Name

Date of Birth

Citizenship status

Marital status

Email Address

Drug Conviction Question CANNOT be left blank

Step Two: Schools

Enter up to 10 Colleges of Interest:

School Code Searchable by name,

city or state Housing Plans

Step Three: Student Status

If student answers “NO” to all questions, then at least one parent’s information and signature is required.

If student answers “Yes” to any question, then student is Independent only their income and assets will be considered.

Step Four: Parent Info

Which parent’s information must be included on the FAFSA?Grandparents, foster parents, legal guardians, older siblings, and uncles/aunts are not considered parents unless they have legally adopted you.

If married and living with each other, both parents. If parent is widowed and not remarried, only the surviving parent. If parents are separated or divorced, only the biological parent with whom the student lived more or who provided more financial support.If biological parents are divorced and student lives with a biological parent who has remarried as of the date of the FAFSA application, both the biological parent and stepparent.

Step Four: Parent Info Cont

AGI (line references from Federal Taxes or W2 forms)

Taxes paid Cash/checking/savings Investments

do not include value of primary residence or retirement accounts

do not include value of family controlled business with less than 100 employees

Household Members and Number of College Students

Parent Finances

IRS Data Retrieval Tool

While completing FAFSA, applicant may submit real-time request to IRS for tax data

*Available 2 weeks after electronically filing or 6 weeks after paper filing taxes

IRS will authenticate taxpayer’s identity and send real-time results to applicant in new window

Applicant chooses whether or not to transfer data to FAFSA

Available February 2012 for 2012–13 processing cycle

Participation is voluntary

Could reduce documents requested by financial aid office

Step Five: Student InformationQuestions include: AGI(line references from Federal

Taxes or W2 forms)

Taxes paid Cash/checking/

savings Investments

Step Six: Signatures Review information

for accuracy prior to submitting

Dependent Students:- 1parent and student

Enter PIN numbers -or- print signature page

and mail to processing center

Confirmation Page

Transfer parent data to another child

EFC estimate Eligibility indicator for

Pell and Stafford Loans

College rates

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 & # in college Real estate & investment net worth

Special Circumstances? Call the Financial Aid Office

Divorce/Separation Loss of income or benefits One-time income Death or Disability of student or parent Substantial medical/dental expenses not

covered by insurance Elementary or secondary school tuition Dependency override

(Note: Professional Judgment is at the sole discretion of each institution.)

The Application Process

Student submits FAFSA

ED Calculates EFC and returns results to student.

ED sends copy of result to state &

schools of choice.

School follows up with student.

FAFSA Follow Up

Check status after submission

Make corrections to FAFSA

Add/Delete Schools

Print Signature Page

Verification Department of

Education picks about 30% of students randomly

Provide documentation to school Verification Worksheet Consent to IRS data

retrieval or submit a tax return transcript

Asset Statements Food Stamp

Statements Child Support Paid

Documentation

Response from Schools

The Financial Aid Office issues a:FINANCIAL AID PACKAGE

Consisting Of: The Cost of Attendance Your Financial Aid Eligibility A description of each program What to do next

If you feel you have special circumstances, let the aid office know!

Questions to Consider

Are the scholarships renewable? Requirements?

GPA, participation, major, max number of terms

Grant/Loan combination Will the student graduate in 4 or 5 years?

What is the additional cost? Are there additional fees for specific majors? How is student employment handled? Actual cost minus aid – not just the most aid

How am I Going to Pay?

Direct Costs(tuition, room & board, fees, books)- Financial aid = Remaining balance due

Am I billed for the year or by the term? What are my payment options? When are payments due? Do I need an additional loan? If yes, ensure that

loans are finalized 1 month prior to the start of the term.

Other Resources Parent or Student Employer ScholarshipsParent or Student Employer Scholarships Corporation for National and Community Corporation for National and Community

ServiceService Veterans/ROTC BenefitsVeterans/ROTC Benefits Bureau of Indian Affairs (BIA) GrantsBureau of Indian Affairs (BIA) Grants Division of Vocational Rehabilitation (DVR)Division of Vocational Rehabilitation (DVR) Higher Educational Aids Board (HEAB)Higher Educational Aids Board (HEAB)

www.fastweb.com www.collegeanswer.com

http://apps.collegeboard.com/cbsearch_ss/welcome.jsp

www.careersandcolleges.com

www.collegenet.com

Scholarship Searches

Avoid Being Scammed

• THIS IS A FREE PROCESS!• Financial aid scam notices

• Tips to avoid scams

• Check legitimacy of scholarship agencies:

– Department of Education

www.ed.gov

– Better Business Bureau

http://search.bbb.org/search.html

Final

Apply early – watch deadlines

Schools may have additional aid forms

Each school evaluates the student differently

Read all materials issued by the school

Inform your school of any “special circumstances”

Always keep copies

College Goal Sunday Weekend Edition

Sat, Feb. 18 and Sun, Feb. 192-4 pm

FREE Assistance to families from Financial Aid Administrators in complete the Free Application for Federal Student Aid (FAFSA)

28 sites throughout Wisconsin Madison Locations

Sat, Feb. 18-----Edgewood College Sat, Feb. 18-----MATC Truax Campus Sun, Feb. 19-----DeForest High School

Want more details? www.collegegoalwi.org

Questions?

www.fastweb.com www.collegeanswer.com

http://apps.collegeboard.com/cbsearch_ss/welcome.jsp

www.careersandcolleges.com

www.collegenet.com

Scholarship Searches