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The Financial Aid Process 2011-2012

The Financial Aid Process 2011-2012. Presented by: Patty Taylor Director of Financial Aid Lakeland College. Financial Aid Topics for tonight. Types and Sources of Financial Aid Federal , State , Miscellaneous How is Financial Aid Determined? Budget, EFC, Financial Need

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The Financial Aid Process 2011-2012

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  1. The Financial Aid Process2011-2012 Presented by: Patty Taylor Director of Financial Aid Lakeland College

  2. Financial Aid Topics for tonight • Types and Sources of Financial Aid • Federal, State, Miscellaneous • How is Financial Aid Determined? • Budget, EFC, Financial Need • How to Apply for Financial Aid • FAFSA, other forms and documentation • Award Letter • Extras • Timetable • Special Circumstances • Tax Benefits • Contact Information

  3. What is Financial Aid? • Financial aid is money a student receives to help the student and family pay for educational expenses.

  4. Types of Financial Aid • Grants—Money not paid back • Scholarships—Money not paid back • Loans—Money a student or parent borrows and pays back to a lender • Work Program—Job on-campus

  5. Grants Pell SEOG Teach Grant/Loan Work Study Loans Subsidized Unsubsidized PLUS Perkins Federal Sources

  6. Work Study • Two Kinds • Federal Work Study -- partially funded by government money • Regular Employment -- 100% funded by the college • May be required to apply for a job • Jobs may not always be guaranteed • Check is issued to the student

  7. Student Loans • Loan Limits for the Subsidized/Unsubsidized per academic year for dependent students. • $5500 Freshman • $6500 Sophomore • $7500 Junior • $7500 Senior • Career Maximum to borrow is $31,000

  8. Student Loans Cont. • Federal Subsidized • Interest rate of 3.4% • 6 months grace after college before repayment begins • 0%-0.5% origination fee deducted by the federal government from the gross amount of the loan • government pays the interest while the student is in college • 1% federal default fee

  9. Student Loans Cont. • Federal Unsubsidized • Interest rate is 6.8% • 6 month grace period after college before repayment begins • 0%-0.5% origination fee deducted by the federal government from the gross amount of the loan • The student is responsible for the interest on the loan while in college • 1% federal default fee

  10. PLUS Loans • Federal Parent Loan for Undergraduate Students (PLUS) • Loan for Parents • Interest rate 7.90% • 3% origination fee deducted from the gross amount of the loan

  11. PLUS Loans Cont. • 1% federal default fee • Credit check is performed—if denied, an endorser can be obtained • Payments begin 60 days after the latest disbursement • Parents can request to postpone payments while the student is enrolled at least half-time.

  12. State Sources • Grants • Wisconsin State Tuition Grant (Private) • Wisconsin Higher Education Grant (UW’s / Tech) • Wisconsin Covenant • Wisconsin Indian Grant • Talent Incentive Program (TIP)—Wisconsin Education Opportunity Programs (WEOP) http://dpi.state.wi.us/weop/index.html • Minority Grant http://www.heab.state.wi.us/

  13. Wisconsin Covenant New for 2011-12 • Students MUST: • 1. Complete FAFSA by April 1 • 2. Complete confirmation form by April 1 • 3. By July determine which college student will attend. • There are not exceptions to these deadlines. • Appeal process—military, serious accident with severe medical issues. ***There is no guarantee that this program will be available beyond the 2011-12 year.

  14. Wisconsin CovenantFull-time (12 credits)

  15. Wisconsin CovenantHalf-Time (6-11 credits)

  16. Miscellaneous Sources • College • Community, Foundations, Companies, Unions • DVR • Tribal Indian Grants • Workforce Development • Financial Institutions—Private Loans

  17. Scholarships • Outside Scholarships • Must report scholarship(s) to financial aid offices • Ask colleges if the scholarship affects the students financial aid award • loan or work-study can be affected • National searches: www.fastweb.com • www.gocollege.com • www.finaid.org • www.nextstudentloans.com/sse1

  18. Scholarships Cont. • When applying for Scholarships: 1. Type applications 2. Follow directions 3. Dress Up for Interviews 4. 20 hours completing applications and if awarded $1000 equates to $50 per hour.

  19. Alternative Loans • Banks have been developing their own loan programs for student. • www.finaid.org--provides list of available lenders. • Schools can’t always recommend a lender

  20. How Financial Aid is Determined Budget … • Expected Family Contribution (EFC)… = Financial Need…

  21. Budget • Tuition and Fees—Direct Cost • Room and Board—May be direct or indirect Cost • Books—Indirect cost • Transportation—Indirect cost • Personal—Indirect cost • Loan Fees—Indirect cost

  22. Expected Family Contribution (EFC) • Government Calculation • student income and assets • parent income and assets • number of people in the family • number of people in college Two Components: 1. Parent Contribution 2. Student Contribution

  23. Example of Financial Need

  24. How to Apply for Financial Aid • Complete the Free application for Federal Student Aid (FAFSA) www.fafsa.ed.gov • FAFSA on the Web (FOTW) worksheets • Paper FAFSA’s can be obtained by calling 1-800-4-fed-aid (1-800-433-3243) • Complete any other forms the financial aid office may require

  25. PIN Registration • Web site: www.pin.ed.gov • For student and parent • Not required, but speeds processing • May be used throughout financial aid process

  26. Documents Needed to complete FAFSA • 2010 Federal Taxes—with 2 weeks after electronic submission of taxes, on the FAFSA you should be able to pull the data in. • W’2’s • Untaxed Income information • Bank Statement • Asset Values • Driver’s License • Social Security Number

  27. 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 • Number of household members in college • Real estate & investment net worth

  28. The 2011-2012 Corrections on the Web • Talk with a financial aid office regarding corrections. Some corrections are required to be made while others may not be. • If you marked “will file” for taxes you will be required to submit corrections.

  29. What Happens After the FAFSA is Submitted? • Student receives an e-mail that the FAFSA is processed within 3-5 days if PIN’s are used. • All colleges listed on the FAFSA should receive an electronic copy • A paper Student Aid Report is generated only if the FAFSA was completed on paper and an e-mail address was not entered.

  30. Additional Forms • Additional forms (these may not be required for everyone) • Financial aid application • Signed copies of 2010 federal tax returns • Parent(s), Student • W-2’s • Verification worksheet • Social security card • Selective service card (https://www4.sss.gov/regver/Register1.asp) • File should be complete for an award to be determined

  31. The Award Letter • Lists each source of assistance • Gives you the right to accept or decline any type of aid • May need to be signed and returned to the Financial Aid Office • Many colleges have the award letter available on-line.

  32. Award Letter is Accepted. What’s Next? • If the student accepted a loan, the necessary promissory notes need to be completed. • Students borrowing for the first time through the federal programs must complete Entrance Counseling. • Students should keep copies of the loan application, award letters, and disclosure statements • Be there to help you son/daughters. Many have never borrowed money and need guidance determining which loan program is best for them. • 10 days prior to the term, we are allowed to disburse financial aid funds to a students account.

  33. Timetable • This is very important. Be very aware of deadlines. Some colleges have cut off dates for different institutional grants or scholarships.

  34. Special Circumstances • Involuntary loss of employment • Unusual and excessive paid medical expenses • Divorce/Separation • Death of parent or spouse • Others

  35. Tax Benefits • There are federal tax credits available while students are in college. This is a good time to talk with a tax advisor about these benefits and how they may impact your tax filing in the future.

  36. College Goal Weekend • www.wicollegegoalsunday.org • When: February 20, 2011 • Time: 2:00 p.m. • Location: UWC—Sheboygan • What For: Help with completing the FAFSA

  37. Good Luck! Patty Taylor 920.565.1298 taylorpl@lakeland.edu

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