2005 High School Counselor Drive In Workshop

1. 2005 High School Counselor Drive In Workshop

2. Coordinated By: • Wisconsin Association of Student Financial Aid Administrators (WASFAA) • Wisconsin Higher Educational Aids Board (HEAB) • Wisconsin Department of Public Instruction (DPI) • Wisconsin Educational Opportunity Programs (WEOP) • Great Lakes Higher Education Corporation (GLHEC)

3. Thank You to Our Sponsors PLATINUM Great Lakes Higher Education Corporation TCF Bank Wells Fargo GOLD Collegiate Funding Services M&I Bank US Bank SILVER Anchorbank Bank One Citibank Student Loans Edamerica Educaid, Wachovia Bank First Federal Capital Bank Key Education Resources

4. Today’s Agenda 8:00 - 8:30 Registration 8:30 – 9:00 Welcome Review of Agenda and Packet Materials College Goal Sunday 9:00 – 10:00 Financial Aid Fundamentals 10:00 – 10:15 Break 10:15 – 10:30 HEAB Update 10:30 – 10:45 DPI Update 10:45 - 11:00 Special Topics 11:00 – 12:00 FAFSA Demonstration

5. Financial Aid Fundamentals

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

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

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

9. 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.

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

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

12. Expected Family Contribution (EFC)(Federal Methodology established by U.S. Congress) Determined by filing the FAFSA. Free Application for Federal Student Aid

13. 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

14. Expected Family Contribution (EFC) Is the sum of four separate calculations: • Contribution from Parental Income • Contribution from Parental Assets • Contribution from Student Income • Contribution from Student Assets

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

16. Middle Income Student Family Size 4 Number in college 1 Parent AGI $61,980 Parent Untaxed Income $ 2,900 Parent’s Assets $45,000 Student’s AGI $ 4,468 Student’s Assets $ 1,000 Parent’s Contribution $ 9,325 (Parent’s Contribution from Assets = $0) +Student’s Contribution $ 1,106 (Student Income Contribution $756) (Student Contribution from Assets $350) =Expected Family Contribution: $10,431 (Note: 2005-2006 FM formula used)

17. Financial Need Varies by School Cost

18. Financial Need Varies By School Cost

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

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

21. Free Application for Federal Student Aid Collects family’s personal and financial information used to calculate the student’s EFC May file the FAFSA in one of two ways: 1. FAFSA on the Web 2. Paper FAFSA

22. Paper vs. Electronic FilersThrough Week 25 Since 2003-04 – • Number of electronic filers has increased 40% • Number of paper filers has decreased by more than 60% 88% of 2005-2006 FAFSAs are filed electronically! US Dept of Education Processing Update

23. 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 delivered by e-mail within 24-36 hours • (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)

24. The PIN Website Improved Home Page www.pin.ed.gov • Fly-over text describes menu items • Re-named “Change My Address” to “Update My Personal Information” • Re-ordered main menu options so those most frequently used are at the top and are in logical order Flyover help text

25. After you file the FAFSA • 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 any Special Circumstances. • After the student is admitted to a college, a financial aid package will be prepared.

26. CSS /PROFILE (used by some private schools) • Collects additional data colleges need • Targets non-federal funds • Financial need (ability to pay) vs. federal eligibility (EFC) • Supports Institutional Methodology (IM) as well as Federal Methodology (FM) • Supports early estimates/early admission

27. Timelines • The earliest a student can file the FAFSA for the 2006-2007 academic year - January 1, 2006. • 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.

28. What is Financial Aid? • Scholarships • Grants • Loans • Employment opportunities

29. Three primary sources of funding: • US Department of Education • the federal agency that provides college funding in the form of grants, scholarships and loans • States • most states have agencies that administer state scholarship and grant programs, college savings and prepaid tuition programs, and loans. (In WI it is HEAB, the Higher Educational Aids Board.) • Colleges & Universities • schools may offer their own scholarship, grant, work-study and loan programs, with each college setting its requirements

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

31. Self-Help Aid 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 • Employment • (must be earned as wages) • Federal Work-Study • Institutional Work-Study Programs • Off Campus employment

32. 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

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

34. Government Resources • Corporation for National and Community Service • Veteran’s benefits • 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

35. 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

36. FREE Scholarship Services

37. Role of the Financial Aid Office • Answers your questions • Determines financial need eligibility for various types of financial aid • Verifies applicant data when required • Develops policy and procedures to distribute aid • Packages aid from all available sources • Sends award notification letters/e-mails with information on: • Costs • Amount awarded from each aid program • How and when aid will be disbursed • Terms and conditions of student’s award

38. 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

39. Award Package Comparison

40. Sample Questions for the Financial Aid Office • 1) What is the average cost for the first year? Estimates for future years? • 2) Does applying for aid affect the admission decision? • 3) What type of aid does the school have? Need-based or Merit? • 4) What applications, besides the FAFSA, are needed to apply for aid? • 5) What is the priority deadline date for all types of financial aid? • 6) When will I be notified about a financial aid award? • 7) How does the aid package normally change from year to year? • 8) What are the conditions of the aid package? • 9) Is there an opportunity to appeal if the package isn’t enough? • 10) How does the College bill for tuition, fees, etc.?

41. Role of the Business Office • Calculates tuition, meals and other fees • Sends billing statements • Credits financial aid to the student’s account • Sets up payment plans, if available • Processes student checks • Returns financial aid funds that are unearned • Collects payments for charges on student’s account • Sends out 1098T for tax purposes

42. Questions?????

43. BREAK 10:00 - 10:15am

44. 2005High School Guidance Counselor Workshops State of Wisconsin Higher Educational Aids Board

45. Financial Aid is a… …Shared Responsibility • Students • Parents • State and Federal Governments • Private Sources

46. Goals of State Financial Aid • Eliminate financial barriers and ensure educational opportunity for all Wisconsin citizens consistent with their individual abilities, interests, and ambitions. • Support educational diversity by allowing students freedom to choose among the various educational offerings.

47. Who May Receive State Aid? State financial aid is available to residents of the State of Wisconsin enrolled at non-profit colleges and universities based in Wisconsin: • University of Wisconsin System • Wisconsin Technical Colleges • Independent Colleges & Universities • Tribal Colleges

48. Who May Not Receive State Aid? State statutes prohibit students from receiving state financial aid who are: • Not registered with Selective Service • Listed on the Dept. of Workforce Development’s statewide Child Support Lien Docket. (Students on the Lien Docket may still receive state loans.)

49. Applying for State Aid Free Application for Federal Student Aid • HEAB receives FAFSA data for all Wisconsin residents. • The FAFSA is the only application for Wisconsin's 2 major grant programs: • Wisconsin Higher Education Grant (UW, Technical Colleges, Tribal Colleges) • Wisconsin Tuition Grant (Independent Colleges & Universities)

50. 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