Understanding Financial Aid: YOUR High School Information Night

1. Understanding Financial Aid:YOURHigh School Information Night

2. Financing Your Education • Goal of financial aid • How to apply • Determining eligibility • Types of aid available

3. Paying for College is… …a Shared Responsibility • Students and Parents • State and Federal Governments • Private Sources

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

5. You may be eligible for aid, but… YOU MUST APPLY TO FIND OUT! www.FAFSA.gov

6. Completing the FAFSA • Apply for a pin, www.pin.ed.gov (both student and parent) • The earliest you may file the FAFSA is January 1 each year • Check with the colleges where you plan to apply for deadlines and institutional requirements. • UW-Milwaukee priority date March 1 • IRS Data Retrieval Tool • Who is considered a parent? • You must re-apply for aid every year.

7. FAFSA: What do I need? • Your social security number • Driver’s license (if applicable) • Your W-2 Forms from previous year • Student and Parent Federal Income Taxes • Form 1040, 1040A, or 1040EZ • Need PIN, correct filing address, and filing status for IRS Data Retrieval • Untaxed income records (Non-ed veteran benefits, child support) • Current bank statements • Business and investment mortgage information, business and farm records, stock, bond, and other investment records • Documentation that you are a permanent resident or other eligible non-citizen

8. Frequent FAFSA Errors • Missing Signatures/PIN • Wrong Social Security Number • Divorced/remarried parent information • Untaxed income • U.S. income taxes paid • Household size • Number in postsecondary education • Not using birth name • NOT APPLYING AT ALL!

9. 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 Department of Education 1-800-4FEDAID for help • Never pay for financial aid assistance! • Financial Aid Nights • Campus Tours • Scholarship Searches

10. Get FAFSA Help

11. IRS Data Retrieval- Tips • Must have valid SSN and FAFSA PIN number • Must have filed 2013 taxes (1040/1040A/1040EZ) • Available for use 2 weeks after completing 2012 tax returns • Look up address through USPS.com

12. IRS Data Retrieval- Tips Ineligible to use DRT • Married but filed taxes separately • Student or Parents that married after December 31, 2013 • Filed amended tax returns • Filed Puerto Rican or foreign tax returns *The IRS often processes returns for those receiving refunds first. If you owe taxes, your return may not be processed for a while which may cause a delay in your being able to use the DRT.

13. Assets and the FAFSA Assets Included • Cash, Savings & Checking Accounts • Value of business land, buildings, equipment, inventory, etc. for companies with 100 or more employees. • Education IRA’s • College Savings Plans (529’s) Assets Not Included • Home in which you live ~ including family farm • Value of life insurance and retirement plans (pensions, annuities, Keogh’s non-education IRA funds, etc.) • Personal vehicles ***Any questions about what should or should not be included, you may contact your school’s Financial Aid Office.

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

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

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

17. After you file the FAFSA • Results are sent electronically to the college(s) the student selected. • Students may be required to verify the information submitted on the FAFSA: • 2013 tax transcript OR IRS Data Retrieval required • After the student is admitted to a college, a financial aid package will be prepared. • ***Contact the college with any Special Circumstances.

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

19. 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

20. Gift Aid Grants & Scholarships • Federal (Administered by schools) • Federal Pell Grant • Federal SEOG • TEACH Grant • State (Administered by HEAB, DPI-WEOP & Schools) • Wisconsin Higher Ed Grant (WHEG) • Institutional (Endowment funds from Schools) • Private (Various outside organizations)

21. Self-Help Aid Loans • Federal Direct Loan • Federal Perkins Loans • Federal Direct PLUS (Parents) • State or Institutional Loans • Private-Alternative Loans Employment • Federal Work Study (earned as wages)

22. Federal Direct Loans Two types of Direct Loans: • Subsidized - no interest accrues while in school or in deferment (Interest rate of 3.86% 2013-2014) • Unsubsidized - interest begins immediately, although repayment is not required immediately: (Interest rate of 3.86% 2013-2014)

23. Direct Loan Limits Cumulative maximum for dependent undergraduate is $31,000, with no more than $23,000 in subsidized loans.

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

25. Financial Need Varies by School

26. How to Compare College Financial Aid Offers • Start with tuition, fees, room and meals • 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

27. Other Financing Options - PLUS (Parent Loan for Undergraduate Student) - Private Educational Loans - Monthly Payment Plans - Home Equity Loans

28. www.wisconsincovenant.wi.gov • Graduate from a Wisconsin high school. • Maintain at least a B average while in high school. • Take classes in high school that will prepare me for entrance into higher education and will meet or exceed college entrance requirements. • Demonstrate good citizenship and engage in activities that support my community. • Apply for state and federal financial aid in a timely manner. • Apply and do all that is necessary to gain admission to a University of Wisconsin System institution, a Wisconsin Technical College, and/or a Wisconsin private college or university.

29. 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

30. 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

31. Federal Student Aid- Great Resource!www.studentaid.ed.gov

32. FAFSA4caster • FAFSA4caster will: • Instantly calculate estimated eligibility for federal student aid • Provide you with basic information about funding resources through government • Give you a starting point of what to expect

33. Helpful Websites to Remember: • www.fafsa4caster.ed.gov • www.PIN.ed.gov • www.FAFSA.gov • www.collegegoalwi.org • www.studentaid.ed.gov • www.KnowHowToGo.org • www.Going2College.org

34. Questions?Thank you for attending!