Financial Aid Info Night

1. Financial Aid Info Night WELCOME! January 11, 2012 7pm LTA Commons

2. What is Financial Aid? • Scholarships (Gift Aid) • Grants (Gift Aid) • Loans • Employment opportunities

3. Financing Your Education • What is the goal of financial aid? • How is financial need determined? • How do I apply? • What aid is available? • What is the role of the financial aid office?

4. Goal of Financial Aid • To assist students in paying for college. • To provide opportunity and access to higher education.

5. Basic Principles of Financial Aid The family has primary responsibility for financing postsecondary education. Financial aid is the BRIDGE.

6. Principles of Needs Analysis • 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.

7. Financial Aid Regulations • Are determined by federal and state statutes and legislators • Establish your eligibility for most types of aid • Apply to all schools

8. What Are the Costs? Tuition and Fees + Room and Board + Transportation + Books & Supplies + Miscellaneous Living Expenses = Cost of Attendance (COA)

9. Expected Family Contribution (EFC)(Federal Methodology established by U.S. Congress) Determined by filing the FAFSA www.FAFSA.ed.gov

10. Main Determinants of the EFC • Income • Assets • Family size • Number in College • Age of the older parent Adjustments to EFC may be made due to Verification and/or Special Circumstances that limit ability to pay

11. Financial Need Defined Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need

12. Middle Income Student Family Size 4 Number in college 1 Parent AGI $ 68,400 Parent Untaxed Income $ 3,500 Parent’s Assets $ 45,000 Student’s AGI $ 4,500 Student’s Assets $ 3,000 Parent’s Contribution $ 8,895 (Parent’s Contribution from Assets = $0) +Student’s Contribution $ 978 (Student Income Contribution $378) (Student Contribution from Assets $600) =Expected Family Contribution: $ 9,873 (Note: 2007-2008 FM formula used)

13. Financial Need Varies by School Cost

14. You may be eligible for aid, but….. YOU MUST APPLY TO FIND OUT! And it’s free! File the FAFSA each year. www.FAFSA.ed.gov

15. Application Process • Apply for PIN through Department of Education • Submit the Free Application for Federal Student Aid (FAFSA) prior to your school’s deadline (paper or electronic) • Submit any institutionalapplication materials(if required by your school) • Attain admission status • Make sure to meet allrequired deadlines!

16. What is a PIN?www.pin.ed.gov • Personal Identification Number • Students and parents can get PINs • Electronic signature for FAFSA on the Web • PIN delivery • Real time online • 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)

17. Free Application for Federal Student Aid • Collects family’s personal and financial information used to calculate the EFC • May file the FAFSA in one of two ways: • FAFSA on the Web • Paper FAFSA www.FAFSA.ed.gov

18. Apply Renewal English and Spanish options Access PIN Web site Check status of application View SAR information Make corrections FAFSA on the Web www.fafsa.ed.gov

19. What’s So Great About Doing the FAFSA Online? You should use FAFSA on the Web instead of paper because: • It’s quick… • Results back up to three weeks faster • Speed may be important for schools awarding limited resources • Instant access to EFC estimate • Electronic Student Aid Report (SAR) sent to email provided • It’s easy… • Detailed help screens for every question • Live, private online help is available • Skip logic: asks only what you must answer – skips questions that don’t apply • Access from anywhere • Electronic signature using PIN • English or Spanish versions • It’s accurate… • Automatically edits data as you enter it and detects errors for correction before submission • Due to edits and online help, less likely to de delayed by the need for corrections • It’s safe… • FASFA on the Web uses encryption to protect confidentiality of data

20. 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 or ward of the court; • 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 (Parents refusal to provide support or financial data is insufficient to make a student independent regardless of tax filing status)

21. For Federal Methodology Who is a Parent? • Two biological parents married to each other • Divorced or separated parents • Stepparent • Widowed parent • Legal adoptive parent

22. Divorced/Separated Issues • FAFSA is to be completed by parent with whom the student is living, regardless of who claims student on taxes or what divorce decree states. • If parent has remarried, stepparent information must be included on the FAFSA. • Some higher-cost schools will ask for a Divorced/Separated Supplement to be completed on other parent to determine eligibility for college programs.

23. Frequent FAFSA Errors • Missing Signatures/PIN • Wrong Social Security Number • Divorced/remarried parent information • Income earned by parents/stepparents • Untaxed income • U.S. income taxes paid • Household size • Number in postsecondary education • Real estate and investment net worth • Not using real name • NOT APPLYING AT ALL

24. Results are sent electronically to the college(s) the student selected. Students & Parents will receive the results of their FAFSA by e-mail (or regular mail) - Student Aid Report (SAR). Students may be required to verify the information submitted on the FAFSA(submit tax forms). Contact the college with anySpecial Circumstances. After the student is admitted to acollege, a financial aidpackage will be prepared. After you file the FAFSA

25. Application Processing Flowchart college # 1 college # 2 CENTRAL FAFSA STUDENT PROCESSING college SYSTEM # 3 college SAR # 4 EFC: college # 5 college Data # 6 Wisconsin Higher base Educational Aids Board (HEAB) Match

26. Timelines • The earliest a student can file the FAFSA for the 2012-2013 academic year - January 1, 2012. • Check with the colleges at which the student plans to apply for institutional deadlines and requirements. • Failure to apply early may result in less aid even if eligible. • Students must re-apply for aid every year. Renewal notification is sent to students towards the end of each calendar year.

27. College Goal Sunday “Weekend Addition”February 19-20, 2011 2:00 – 4:00 p.m. • College Goal Sunday is a statewide event that will offer free assistance to families in completing the Free Application for Federal Student Aid (FAFSA) • Saturday 2/18/2012 ~ GTC Kenosha Campus • Sunday 2/19/2012 ~ UW Parkside & GTC Racine Campus • Bring driver’s license, SS #, 2010 Bank Statements, 2009 & 2010 Tax returns, and investment records www.WiCollegeGoalSunday.org

28. Three primary sources of funding: • US Department of Education • The federal agency that provides college funding in the form of grants, scholarships and loans. • State • Most states have agencies that administer state scholarship and grant programs, college savings and prepaid tuition programs, and loans. The Higher Educational Aids Board (HEAB) manages state aid in Wisconsin. • Colleges & Universities • Schools may offer their own scholarship, grant, work-study and loan programs, with each college setting its requirements.

29. Gift Aid (FREE $$$) Grants & Scholarships • Federal (Administered by schools) • Federal Pell Grant • Federal Supplemental Educational Opportunity Grant (SEOG) • Academic Competitiveness Grant (ACG) • National SMART Grant • State (Administered by HEAB, DPI-WEOP & Schools) • Institutional (Endowment funds from Schools) • Private (Various outside organizations)

30. Academic Competitiveness Grant (ACG) • First year grant is $750 • For students who will be new freshman in 2010-11 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

31. 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

32. ACG/SMART Grant Information Academic Competitiveness Grant (ACG) http://www.fsa4counselors.ed.gov/clcf/AcademicGrants.html National Science and Mathematics Access to Retain Talent (SMART) Grant http://www.fsa4counselors.ed.gov/clcf/SmartGrants.html

33. State Financial Aid Programs Programs for Students with Financial Need Student must file the Free Application for Federal Student Aid (FAFSA) Wisconsin Higher Education Grant Wisconsin Tuition Grant Programs for Students with Financial Need who must also meet Additional Requirements - FAFSA and additional Application or Nomination Hearing & Visually Handicapped Student Grant Indian Student Assistance Grant Minority Undergraduate Retention Grant Nursing Student Loan Talent Incentive Program Grant Programs Not Based on Financial Need - Do not require the FAFSA Academic Excellence Scholarship Minnesota-Wisconsin Tuition Reciprocity Program Minority Teacher Loan Teacher of the Visually Impaired Loan

34. Self-Help Aid Employment (must be earned as wages) • Federal Work-Study • Institutional Work-Study 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 (Parents) • State Loans • Institutional Loans • Private-Alternative Loans

35. Why Get A Federal Student Loan? • You don’t have to repay until you leave school • Lower interest rates than private loans or credit cards • Credit record is not needed • Cosigner is not required

36. Loan Comparison Chart

37. PLUS vs. Private Alternative Loan

38. How to Evaluate and Choose a Lender • Interest rates and terms: some lenders offer better terms or discounts • Loan application process • Repayment plans • Customer service • Ability of lender to service all of your loans • Carefully evaluate terms and conditions of loan options available via the Financial Aid Office, from direct mail, etc. • Before borrowing, think about your ability to make the monthly payment when you leave school • Borrowers are free to choose any participating lender • Borrow only what is needed for direct educational expenses and avoid borrowing funds for discretionary spending

39. How to Compare College 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 as students are paid for hours worked

40. Award Package Comparison

41. 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 • Wisconsin Tuition Remission for Vets

42. Need versus Merit Aid • Aid based on financial need • Most government grants • Subsidized student loans • Perkins loans • Federal Work-Study • Aid based on merit • Academic and athletic scholarships • Some government grants • Some scholarships require merit and need

43. 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

44. 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

45. FREE Scholarship Services

46. Don’t Get Scammed on Your Way to College Consumer complaints are mainly about business practices: • College prep/financial aid advice services • FAFSA for a fee Be aware of tactics used to convince students to buy services: • “If you use our services, you’re guaranteed to get at least $2000 in student aid for college, or we’ll give you your money back.” • “Applying for aid is complicated. We’re the only ones who can help you through the process and find all the aid for which you’re eligible.” • “I’d like to offer you a scholarship (or grant). All I need is your bank account information so the money can be deposited and a processing fee charged.” Contact your nearest college financial aid office if you have questions regarding the legitimacy of any questionable offer

47. Proceed with Caution! • Avoid being charged a fee to file the FAFSA • Processes of completing and processing the FAFSA are FREE • If filing FAFSA on the Web, make sure you go directly to: www.fafsa.ed.gov (not www.fafsa.com) • Contact the financial aid office if you need help in completing the FAFSA