FINANCIAL AID 101
Presented by: Kari Gribble
Director of Financial aid and Edgewood Central
Edgewood College
A successful experience requires a collaborative effort by:
Student Parent Institution Government
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.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.govAvailable January 1, 2012
Select a Year and Apply for a Pin
Before you begin
FAFSA Filing Options– fill out preliminary data Print 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 Information
Questions 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 Scholarships Corporation for National and Community
Service Veterans/ROTC Benefits Bureau of Indian Affairs (BIA) Grants Division of Vocational Rehabilitation (DVR) 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
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