Tonight you will learn: • What Financial Aid is • The formulas used in determining eligibility • Sources of Financial Aid • When and how to apply • Resources for more information
Goal of Financial Aid • To assist students in paying for school • To provide opportunity and access to higher education • To help narrow the gap between what the family can pay and the cost of education
Financial Aid Basic Premises • 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
Books COST OF ATTENDANCE (COA) Tuition and Fees Room and Board + + + Other Personal Expenses + Supplies + Transportation
The Expected Family Contribution (EFC) EFC • IS a measure of family’s capacity over time to absorb educational costs • IS NOT a dollar amount expected from current income or assets. • IS NOT an estimate of “extra” cash available.
# in college Income Assets FAFSA Federal Methodology Taxes # in family • Used to award Federal Aidat public and private schools • Uses both parent & student information (for dependent students) • Uses standard income & asset protection allowances Expected Family Contribution (EFC)
Current Federal Methodologyfor a Dependent Student STUDENT Contribution PARENT Contribution + • Parent Income22-44%after taxes and income protection allowance • Parent Assets*5-6%after asset protection allowance • Divided by number in college • Student Income 50%after taxes and income protection allowance of $5250 • Student Assets 20% EXPECTED FAMILYCONTRIBUTION
Institutional Methodology • Used by some colleges to award their own institutional funds • Formula could vary widely from school to school • Often requires additional applications/forms • May consider income & assets not reported on the FASFA such as: • Home Equity • Retirement Accounts • Assets in siblings names • Income of non-custodial parent
The Parent Contribution A Case Study Family ProfileOldest Parent’s Age: 50 Family Members: 4Number in College: 1 23 2011-2012 Federal Methodology
Financial Need Determination Cost of Attendance (COA) - Expected Family Contribution (EFC) = Financial Need
A Sample Financial Aid Award COA EFC Need $25,000 - $9,000 = $16,000 $3,000 Scholarship + $4,000 Grant $2,000 Work Study + $5,500 Stafford Loan Unmet Need = $1,500 Family’s Responsibility = $10,500
Financial Aid Sources & Types of Funding
What is Financial Aid? • Scholarships • Do not have to be repaid • Usually awarded on the basis merit, talent, or skill • Grants • Do not have to be repaid • Usually awarded on the basis of financial need • Loans • Money that must be repaid • Borrowed by student, parent, or both • Work Study • Student is given the opportunity to earn money
Grants & Scholarships • Federal Grants • Pell Grant, SEOG, TEACH • State Grants & Scholarships • Need and non-need based • Institutional Grants & Scholarships • Vary by institution • Private Scholarship • Seek out funding early!
Self-Help Aid Employment Allows student to earn money to help pay educational costs Student paid for hours worked Loans • Money borrowed by student and/or parent(s) to help pay college expenses • Repayment usually begins after education is finished • Look at loans as an investment in the future, but Only borrow what is really needed
Federal Stafford Loan Every family should apply for financial aid. Regardless of income, every student qualifies for a Federal Stafford loan, if they meet the basic eligibility requirements.
Additional Resources Other Resources Private Scholarships Civic Organizations, Parent’s Employers, Community Foundations, Web Searches, etc. Private Education Loans School Payment Plans (spread over several months) Home Equity Loans Life Insurance Policy Loans Retirement Plan Loans 529 Plan withdrawals 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
Financial Aid State Programs
Wisconsin Higher Educational Aids Board (HEAB) • State financial aid is available to WI residents enrolled at non-profit colleges & universities based in WI • UW System Schools, WI Technical Colleges, Independent Colleges & Universities, Tribal Colleges • Cannot receive funding if listed on Statewide Child Support Lien Docket • Male students MUST be registered with selective service
Wisconsin Higher Educational Aids Board (HEAB) • HEAB receives FAFSA data for students that list WI as their state of residence • HEAB notifies the college or university financial aid offices of each student’s eligibility for state financial aid • The financial aid office includes state aid in the student’s financial aid package.
HEAB – Program Details • For students WITH financial need • WI Higher Education Grant (WHEG) • WI Tuition Grant (WTG) • For students WITH need AND additional requirements • Hearing & Visually Handicapped Student Grant • Indian Student Assistance Grant • Nursing Student Loan • Talent Incentive Grant (TIP) • WI Covenant Scholars Grant • Programs that do not require need • Academic Excellence Scholarship • Minnesota/Wisconsin Tuition Reciprocity Program • Minority Teacher Loan • Teacher of the Visually Impaired Loan
The Wisconsin Covenant • The goal of the Wisconsin Covenant is for 8th grade students to aspire to and prepare for higher education. • Every Wisconsin student should know that if they are willing to work hard in high school, stay out of trouble and contribute to their community, college IS possible For more information: www.wisconsincovenant.wi.gov
HEAB – WI Covenant’s Senior Checklist • A Confirmation form, signed by: • Student • Parent • Primary Contact • A record of service form • Two letters of recommendation, if necessary due to a suspension • Student and/or family mails these documents to the Wisconsin Covenant Office
HEAB – Important Dates for Confirmation Process Students MUST verify that they meet the pledge requirements to be recognized as a WI Covenant Scholar and to receive the Scholars Grant.
Fund for Wisconsin Scholars (FFWS) www.ffws.org The FFWS is a private charitable foundation that has been funded with a $175 million founding gift. It will provide grants to talented, lower-income graduates of Wisconsin public high schools attending a public college, university or technical school in Wisconsin. Grants are gifts and do not need to be repaid. Recipients are selected randomly out of those students that meet basic eligibility criteria.
Wisconsin Educational Opportunity Programs (WEOP) • Administered by the Department of Public Instruction • State Talent Search Program • Talent Incentive Program (TIP) • Precollege Scholarship Program • Early Identification Program (EIP) • Federal GEAR UP Program • Federal Talent Search Program
Financial Aid How to Apply
Application Process • Submit the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov • Submit institutional financial aid application materials (if required by school) • Meet all required deadlines! • Renew the FAFSA every year.
What is the FAFSA? www.fafsa.gov • A form that collects demographic & financial information about the student and family • Income of student and parent(s) • Assets of student and parent(s) • Family size • Number in College • Age of the older parent • May be filed electronically or using paper form • Available in English and Spanish 31
Department of Education PIN • Sign FAFSA electronically • Not required, but speeds processing • May be used by students and parents throughout aid process, including subsequent school years www.pin.ed.gov
Reporting Assets on the FAFSA Do Report on FAFSA Cash, Checking, Savings Rental Property Land, vacation property, second or summer home Trust Funds 529 accounts UTMA, UGMA, Custodial Accounts Money Market accounts, CDs, stocks, bonds, securities, etc. Investment Farm Business Value Do NOT Report on FAFSA • Principal place of residence/family farm (family must live on & operate farm) • Small business with 100 or few employees (must own & control more than 50% of business) • Personal Possessions • Whole Life Insurance • Retirment Accounts (pensions, annuities, IRAs, deferred comp, etc.)
Dependency Status Unless student meets one of these criteria, parental data must be reported on the FASFA • will be 24 years of age by December 31 of the award year; • has legal dependents other than a spouse who live with and receive more than half of their support from them • has dependent children who live with and receive more than half of their support from them; is or was an emancipated minor or in legal guardianship as determined by a court in the student’s state of legal residence; • is married; • is a veteran of the U.S. Armed Forces • is serving on active duty in the U.S. Armed Forces for purposes other then training;
Dependency Status (continued) • is a graduate or professional student; • is an orphan, in foster care, or a ward of the court, at any time when the student was 13 years of age or older; • is an unaccompanied youth who is homeless or who is at risk of homelessness and is self-supporting, as verified during the school year; or • presents documentation of other unusual circumstances demonstrating independence to the financial aid administrator. Parents refusal to provide support or financial data is insufficient to make a student independent regardless of tax filing status.
On the FAFSA, Who is a Parent? • Biological parents married to each other • Divorced or separated parents • 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, use information 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. • Stepparent • Widowed parent • Legal adoptive parent – this does NOT mean legal guardians, even those that are relatives.
After you file the FAFSA • Results are sent electronically to the school(s) student selected. • Students & Parents will receive the results of their FAFSA by e-mail (or regular mail) - Student Aid Report (SAR). • If FAFSA corrections are necessary, go to www.fafsa.gov and “make corrections to a processed FAFSA.” • If FAFSA is rejected, follow the instructions to correct it! • Students may be required to verify the information submitted on the FAFSA (submit tax forms). • After the student is admitted to a school, a financial aid package will be prepared. • Contact the school with any Special Circumstances.
Verification Process • Can be required by the federal government or by the institution • Is carried out by the institutions • Involves documentation of data provided on the FAFSA • An award may change after verification
Special Circumstances • Change in employment status • Loss of income or benefits • One-time income (capital gains, retirement withdrawal, etc.) • Change in parent marital status • Disability of student • Death or disability of parent • High medical/dental expenses not covered by insurance • Parent in college • Elementary or secondary school tuition • Elderly care expenses • Dependent care expenses • Student cannot obtain parent information – Unsubsidized loan eligibility ONLY • Dependency override Information not reported on the FAFSA can impact a family’s ability to contribute toward the student’s educational expenses
Special Circumstances • Send explanation to financial aid office at each college • College will review special circumstances • May be required to submit additional documentation • Adjustments are determined by each institution on a case by case basis, recognizing the unique situation of the student. Decisions made by the institution are final and cannot be appealed to U.S. Department of Education
Proceed with Caution! • Never pay a fee to file the FAFSA • When filing a FAFSA, make sure you go directly to: www.fafsa.gov (not www.fafsa.com) • Contact a financial aid office if you need help in completing the FAFSA • Never pay for financial aid assistance!
The Financial Aid Calendar January – February • Complete forms (BEST GUESS IS OK FOR INCOME) Late February - March • May be required to submit additional documents March - April • Financial Aid awards mailed • Compare award letters from different schools
The Financial Aid Calendar (continued) May 1 • DECISION DEADLINE - Tell all schools yes or no • Pay deposits (tuition, room and board) May - August • Complete paperwork for loans • Start searching for student employment opportunities • Pay bill for fall semester
“Insider” Tips • Find out the deadlines and comply! • Keep copies of what you send. • If you have questions, ask! • Look at all of your financing options • Never assume you’re too poor to attend college or too rich to receive some type of financial aid. • Do NOT underestimate your options & do NOT rule out a school just because of its cost • Apply to one or two financially ‘safe’ schools • Think about how you (parent & student) will pay your share of totalcollege costs (2/4+ years)
‘Financially’ Manageable During and AFTERthe College years Look at your entireFinancial Situation Estimate the ‘Total’ Cost of Education 4+ years of expenses STUDENT PARENT Make financial decisions that : • Will not jeopardize • Financial Security • Comfortable Retirement • Educating other children • Other financial goals • Will not leave excessive debt • Will not jeopardize financial independence after graduation
We’re Here to HELP!!! Additional Resources
College Access Advising • Part of Wisconsin’s College Access Challenge Grant administered by Great Lakes Higher Education Guaranty Corporation • Priority given to low-income students and families. Services available to all Wisconsin high school students. • Ten College Access Advisors provide free workshops and one-on-one advising 888-648-5733 E-mail: CollegeAccessAdvising@glhec.org
College Goal Wisconsin • Free program to help families complete the FAFSA • February 18-19, 2012 • Scholarship drawing at each site • Provided by WASFAA and CACG • 29 sites throughout Wisconsin • Sponsored by WASFAA along with several other partners For location information: visit www.collegegoalwi.org or call 1-866-578-4625
College Goal WisconsinSaturday Sites February 18, 2012 AppletonFox Valley Technical College1825 N Bluemound(Entrance 1, Room A105) JanesvilleHedberg Public Library316 S Main Street MarinetteUW Marinette750 W Bay Shore Street(Enter Main Building) PlattevillePlatteville High School710 E Madison StreetCommons Area West BendEast High School 1305 E Decorah DriveUse Auditorium Entrance on River Road (Cty Hwy G) BeloitBeloit Memorial High School1225 4th Street KenoshaGateway Technical College3520 30th AvenueThe Center for Bioscience MilwaukeeAlverno College3400 S 43rd Street(Free parking in ramp. Enter rotunda.) Rice LakeUW Barron County1800 College DriveRitzinger Hall Wisconsin RapidsMid State Technical College500 32nd Street, Building A ElkhornGateway Technical College400 County Road HBuilding 100 MadisonEdgewood College1000 Edgewood College Avenue(Use Main Entrance) MilwaukeeMoorse Marshall School for the Gifted and Talented 4041 N 64th Street WaukeshaUW Waukesha1500 N University DriveCommons Building Green Bay East High School 1415 E Walnut Street (use Front Entrance off of Walnut Street) MadisonMadison Area Technical College3550 Anderson Street(Use Redsten Gym Entrance) OshkoshUW Oshkosh800 Algoma Blvd WausauNorthcentral Technical College1000 Campus Drive(Main Entrance Rooms, E101 and E102)