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1. Financial Aid
2. 2 Financing Your Education What is the goal of financial aid?
How is financial need determined?
How do I apply?
What aid is available?
3. 3 Goal of Financial Aid To assist students in paying for school.
To provide opportunity and access to higher education.
To help bridge the gap between what the family can pay and the cost of education.
4. 4 Principles of Financial Aid To the extent they are able, parents have primary responsibility to pay for their dependent childrens education.
Students also have a responsibility to contribute to their educational costs.
Families should be evaluated in their present financial condition.
A familys ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect a familys ability to pay.
5. 5 Financial Aid Regulations Are determined by federal and state statutes and legislators
Establish applicants eligibility for most types of aid
Are applicable to all schools
6. 6 Expected Family Contribution (EFC)(Federal Methodology established by U.S. Congress) Determined by filing the FAFSA
www.FAFSA.ed.gov
7. 7 Main Determinants of the EFC Income of both student and parents
Assets of both student and parents
Family size
Number in College
Age of the older parent Parents of a dependent student cannot be included in number in college.Parents of a dependent student cannot be included in number in college.
8. 8 Dependency Status At least 24 years old;
Graduate or professional student;
Married;
Has child for whom student provides more than half support;
Has dependent other than child or spouse who lives with student and for whom provides more than half support;
Orphan;
In foster care or a ward of the court, at any time when the individual is 13 years of age or older;
Is an emancipated minor or is in legal guardianship;
Has been verified as an unaccompanied youth who is homeless or at risk of homelessness and is self-supporting;
Veteran of the U.S. Armed Forces or currently serving active duty for other than training purposes in the U.S. Armed forces; or
Determined to be independent by the financial aid administrator via Professional Judgment
(Parents refusal to provide support or financial data is insufficient to make a student independent regardless of tax filing status)
9. 9 Divorced/Separated Issues FAFSA is to be completed using parent with whom the student lived with more in the past 12 months. If student did not live with one parent more than the other, give answers about the parent who provided more financial support during the past 12 months, or during the most recent year that the student actually received support from a parent.
If this parent has remarried, stepparent information must be included on the FAFSA.
10. 10 You may be eligible for aid, but.. YOU MUST APPLY TO FIND OUT!
And its free!
NEVER pay to file the FAFSA!
File the FAFSA each year.
www.FAFSA.ed.gov Remind them not to go to www.fafsa.com. Remind them not to go to www.fafsa.com.
11. 11 Application Process Apply for PIN through Department of Education
Submit the Free Application for Federal Student Aid (FAFSA) prior to your schools deadline
Submit any institutionalapplication materials(if required by your school)
Finalize school admission
Make sure to meet allrequired deadlines!
12. 12 What is a PIN? www.pin.ed.gov Personal Identification Number
Student and one parent must get their own PIN
Used to electronically sign the FAFSA
PIN delivery
Real time online (immediate)
By e-mail, with a link to retrieve your PIN
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)
13. 13 FAFSA Processing Flowchart Database Matches:
Social Security Administration (SSA)
Department of Veterans Affairs (VA)
Selective Service System (SSS)
Department of Homeland Security
National Student Loans Data System (NSLDS)
Department of Justice (DOJ)
Database Matches:
Social Security Administration (SSA)
Department of Veterans Affairs (VA)
Selective Service System (SSS)
Department of Homeland Security
National Student Loans Data System (NSLDS)
Department of Justice (DOJ)
14. 14 Timelines A PIN may be obtained at any time prior to filing the FAFSA.
The earliest a student can file the FAFSA for the 2011-2012 academic year - January 1, 2011.
Check with schools for institutional deadlines and requirements.
Failure to apply early may result in less aid, even if eligible.
Students must renew the FAFSA every year. Renewal notification is sent to students towards the end of each calendar year.
15. 15 What is Financial Aid? Scholarships
Grants
Work Study Employment
Loans
16. 16 Gift Aid (FREE $$$) Grants & Scholarships
Federal
Federal Pell Grant
Federal Supplemental Educational Opportunity Grant (SEOG)
Academic Competitiveness Grant (ACG)
National SMART Grant
TEACH Grant
State
Institutional
Private/outside scholarships
17. 17 Academic Competitiveness Grant (ACG) First year grant is $750
For students who will be new freshman in 2009-10 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
Refer to handout in folder for additional information. FOTW will determine if you are eligible to answer the ACG questions
18. 18 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
19. 19 Self-Help Aid Employment (must be earned as wages)
Federal Work-Study
Institutional Work 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 (parent)
State Loans
Institutional Loans
Private-Alternative Loans
20. 20 Federal Student Loans Every family should file a FAFSA. Regardless of income, every student qualifies for a Federal Stafford loan, if they meet the basic eligibility requirements.
Benefits of a federal student loan:
You dont have to repay until you leave school
Lower interest rates than private loans or credit cards
Credit record is not needed
Co-signer is not required
21. Stafford/Direct Loans Base annual loan limits Dependent Students (combined subsidized and unsubsidized)
$5,500 for 1st year undergraduates
$6,500 for 2nd year undergraduates
$7,500 for 3rd & 4th year undergraduate and above
Career Maximum Dependent student $31,000 21
22. Stafford/Direct Loans Base annual loan limits Independent Students (combined subsidized and unsubsidized)
$9,500 for 1st year undergraduates
$10,500 for 2nd year undergraduates
$12,500 for 3rd & 4th year undergraduate and above
Career Maximum Dependent student $51,500 22
23. Stafford/Direct Loans Interest rate: 4.5% Subsidized 2010-2011
6.8% Unsubsidized
6-month grace period
Repayment period may be up to10 years
(25 year repayment period for certain circumstances)
Deferment and cancellation provisions available 23
24. PLUS Loans Borrowers are parents of dependent undergraduate students
Annual loan limit: cost of attendance minus other aid
Fixed interest rate
Direct Loan rate 7.9%
Loan fees based on principal amount of each loan:
Direct Loan Program: 4% loan fee
Repayment begins 60 days after loan is fully disbursed unless parent requests deferment.
Only principal may be deferred; interest may be capitalized
If Parents are denied PLUS loan student is eligible for additional unsubsidized loan.
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25. 25 How to Compare 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 because students are paid for hours worked
26. 26 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
27. 27 Government Resources Corporation for National and Community Service
Veterans 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
28. 28 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
29. 29 www.fafsa4caster.ed.gov Note each section on the home page provides you with important information.
(CLICK) Section A - Getting Started provides important information about what financial aid is, but it also provides you information about what you need before you start filling out the FAFSA4caster
(CLICK) Section B - Using the FAFSA4caster provides information on the benefits of using this tool and access to the FAFSA4caster tool
(CLICK) Section C - Whats Next. Now that youve submitted the FAFSA4caster, Section C will provide information about what to expect next and help you to transition from FAFSA4caster to FAFSA on the Web. Also, provides information about other non-federal aid, links to scholarship searches, and more.
(CLICK) Now, let click Begin Now to see the FAFSA4caster tool!
Note each section on the home page provides you with important information.
(CLICK) Section A - Getting Started provides important information about what financial aid is, but it also provides you information about what you need before you start filling out the FAFSA4caster
(CLICK) Section B - Using the FAFSA4caster provides information on the benefits of using this tool and access to the FAFSA4caster tool
(CLICK) Section C - Whats Next. Now that youve submitted the FAFSA4caster, Section C will provide information about what to expect next and help you to transition from FAFSA4caster to FAFSA on the Web. Also, provides information about other non-federal aid, links to scholarship searches, and more.
(CLICK) Now, let click Begin Now to see the FAFSA4caster tool!
30. Get Help College Goal Wisconsin
Free program to help families
complete the FAFSA
February 19-20, 2011
Scholarship drawing at each site
30 sites throughout Wisconsin
For location information:
visit www.wicollegegoalsunday.org
or call 1-866-578-4625
You can get help when it comes time to fill out the FAFSA. Every year, College Goal Sundayis held around the nation with several locations in most states.
Students and their families can attend these free programs to get information and assistance with filling out the FAFSA from financial aid administrators and knowledgeable volunteers so you can be sure youre completing it correctly. College Goal Sunday is usually held in February every year.
To finda location near you, visit CollegeGoalSundayUSA.org
You can get help when it comes time to fill out the FAFSA. Every year, College Goal Sundayis held around the nation with several locations in most states.
Students and their families can attend these free programs to get information and assistance with filling out the FAFSA from financial aid administrators and knowledgeable volunteers so you can be sure youre completing it correctly. College Goal Sunday is usually held in February every year.
To finda location near you, visit CollegeGoalSundayUSA.org
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34. 34 Questions? Kylene Radmer
Waukesha County
Technical College
kradmer@wctc.edu
262.691.5436
www.wctc.edu/finaidforms