Financial Aid 2013

1. Financial Aid 2013 RIVER VALLEY HIGH SCHOOL

3. Financial AidHelping make college more affordable! Financial Aid Is: • Money for college • A supplement to family resources • A partnership between government, school, and family

4. You May Be Eligible For Aid, But… • Applying for financial aid is FREE (fafsa.ed.gov or fafsa.gov vs. / .com -- $70- $80) • You must apply to find out. • Must be done on an annual basis.

5. Financial Aid Regulations • Are determined by the government • Establish your eligibility for aid • Apply equally to all schools

6. How Much $$$ Is Available? • Over $185 BILLION last year * • Nearly 90% more in the last decade. • Grant funding increased, but recipients did, too • Loans are increasing now in terms of total aid—as compared with a year or two ago—and comprise 70% of all federal aid. • Pell Grant levels have increased in the last year * College Board Report

7. Applying • After January 1st • 3-4 weeks prior to college priority date (Missing a deadline - $$$) BY APRIL 1 … for Wisconsin Covenant ! • Be sure you’ve completed an admission application • Know which form(s) to use ** FAFSA—Paper / Not recommended ** FAFSA—Electronic fafsa.gov ** Institutional form / if there is one • Can also access electronic application via college website

9. Federal School CodeFor ALLUW Colleges 003897

10. Need Need is determined by Federal Methodology Simple Formula: Cost of Attendance (Tuition/Fees, Room/Board, etc.) - Expected Family Contribution (EFC)* NEED *Consideration of: income, non-home assets, family size, age of parents, # of parents working, # in college, other resources [outside scholarships, benefits, H.S. awards] ABILITY…not willingness…to contribute

12. Comparing Average CostsTypically…5-7% increases each year… * Reduce if school has text rental; # allowance for rent off campus

13. 3 Primary Types of Aid • GRANTS (Gift assistance/no repayment) • LOANS • WORK-STUDY

14. Grant Programs /Amounts Pell $400 - $5,550 SEOG $100 - $4,000 WHEG $250 - $2,500 ** TIP $600-$1,800 WTG $250 - $2,900 Wisconsin Scholars Fund: ~ 3,500 Grants ($1800-3500K) > Public institutions< Wisconsin Covenant $250-$2,500 Note: Wisconsin grant programs for use only in WI --Wisconsin-Minnesota Reciprocity—Must Apply

15. Loan Options • Nearly 70% of all aid … from loans • Primary loan types: Federal Direct Loan Program Perkins Loan Program PLUS Loan > Private Student Alternative Loans Compare the differences: PLUS / Alt.

16. Federal Family EducationLoan Program FEDERAL DIRECT LOAN PROGRAM: • Subsidized • Unsubsidized AMOUNTS: 1st Year $3,500 + $2,000 2nd Year $4,500 + $2,000 3rd Year $5,500 + $2,000 Aggregate Maximum = $31,000 ($23,000 Sub)

17. Direct Loans Subsidized Loan • Government pays % -- in school, eligible deferment periods, but NO LONGER during the 6 month grace period • 2013-14 interest set at 6.8% for both Sub & Unsub • Pay % in effect at time repayment starts • Origination fee (1% of loan amount deducted) • Repayment begins Unsubsidized Loan • More than 1/3 of all loans • Interest rate same as Subsidized • Borrower responsible for interest from outset: - Capitalize or pay • 6 month grace period applies to principal only • Unsub Stafford available to anyone. --Separate application required. (MPN) --Must apply for financial aid to access subsidized student loans.

18. For those with greatest need Must be offered 5% interest / 9 month grace $4,000 max Parent is the borrower 9% cap on interest: 7.9% / 4% orig. fee Can be denied Repayment begins at disbursement Deferment available on principal Separate application needed Loan Limit Cost of Education - Other Financial Aid Loan Limit Private Alternative Loans PERKINS Other Loan Programs… P.L.U.S. Other thoughts: • Home equity loans • Borrow from life insurance • 529 Savings Plans • Etc.

19. Student IndebtednessAt Graduation Federal Family Education Loan Programs 4-Year Public $26,238 (all certified loans) 4-Year Private $34,000+ (all certified loans) 2-Year $8,500 (Survey does not include Alternative Loan or credit card debts.) > 25% of undergrads report using credit cards to pay tuition/fees; average credit card debt for college students: ~$3,200 < Noteworthy: In the last 10 years—Average debt has doubled.* NEW: Calculate your monthly payments @ DOE website. (* From “The Project on Student Debt”)

20. 2013-14 Loan Comparison Chart

22. Work-Study • Job assignments usually made in the Financial Aid Office. • Employment opportunities on/off campus. • Earn $$$ and also “connect” • Studies show—Work-study students do better. • Use earnings to meet college or personal expenses.

23. Scholarships • Recognition for academic achievement • Best sources of scholarship information: • High school guidance office • Your college • Parental affiliations / employer • Your employer • Reference library • Fastweb.com & other web-based FREE services BEWARE of Scholarship Searches requiring $$$

24. A Lot Has Been Said About Students & Parents Getting Hooked By Fraudulent Scholarship Scams… • Beware False Claims: • “Guaranteed or your money back!” • “Give me your credit card or bank account to hold this scholarship!” • “The scholarship will cost some money!” • “You’ve been selected…” • “You’re a finalist in a contest (that you never entered)” • “Your ship has finally come in…” • CONCERN: Poor economy – more temptation …

25. Free Scholarship Searches www.fastweb.com www.collegeboard.com www.scholarships.com www.scholarshipexperts.com www.scholarshipmonkey.com www.collegexpress.com

26. Help Is At Hand … • COLLEGE GOAL WISCONSIN Saturday & Sunday, February 23 & 24 2:00 p.m. • 31 Locations in Wisconsin, including: Platteville H.S., & Edgewood, UW-Baraboo—Saturday, February 23 MATC, UW-LaCrosse—Sunday, February 24 • For more information: www.collegegoalwi.org

27. Completing the

28. Completing The FAFSA General Tips Remember: fafsa.gov Read instructions. Be neat / accurate w/paper application. Include correct SS# If paper app, use black ink. Parents: Purple Students: Green Useful information to have: 2012 federal tax information. W-2 forms. Property tax & other financial records.

29. Other Important Bits Of Advice: Keep all records. Make copies & keep them. Keep copies of your tax returns & W-2’s. Establish a financial aid file. Respond to correspondence, when required. Respond to requests for additional information. Students: Away for the summer? Be sure you make provisions for mail forwarding. QUESTIONS? Contact your financial aid office.

30. About The FAFSA • Paper: 10 pages: 4 instruction / 6 application / 7 Steps • Online: Web Worksheet: 3 pages; directions embedded within form Length of application shortened; streamlined help text/instructions • Easy to follow: separate sections for student & parent • Intuitive web experience: decreased redundancy / more seamless • Easier to track processing; ease of access to PIN • Assets referred to as “net worth” (current value minus debt) • Database matches with federal agencies (Social Security, INS, Selective Service, Veterans Administration, National Student Loan Database, Child Support, Health & Human Services, IRS)

37. Data Retrieval Tool – • Available as of February 3. • If you’ve filed your tax return PRIOR to doing your FAFSA—you’ll be able to retrieve the FAFSA-requested income tax info from the IRS site. • Wait 2-3 weeks after filing to attempt DRT. • E-mails will encourage use of the DRT for those eligible. • Use of the Data Retrieval Tool with IRS – encouraged! • Will streamline the process of providing tax information if you are verified.

40. Impact of tax filing Status • Income < $23,000 and one of these: • rec’d means tested benefit (SS, free lunch) • Were eligible to file 1040A or EZ • Dislocated Worker EFC set to Zero

41. Simplified Needs Test • Income <$50,000 and one of the following: • Received means tested benefit • Eligible to file 1040A or EZ • Dislocated worker No Assets counted in EFC

42. Next Steps… • Review Web Worksheet for accuracy / then enter data @ FAFSA website • Print a copy of the completed FAFSA on the Web • Using electronic FAFSA entirely on-line / PIN acts as signature • If using paper FAFSA, be sure to place the ORIGINAL form in the envelope provided • If paper, be sure to mail the original app with nothing else (no margin notes, letters, tax forms …) – Make copy for your records. • Within 3 weeks – Student Aid Report arrives • May need to submit additional information (verification) … (1 in 3 selected) • EFC appears on the form

43. Additional Thoughts Income/asset protection • about $45,000 of protection of net worth / 45 year old • (does not count home/farm assets) • income/asset protection increases as parents age—need for retirement income • Student assets: 20% toward student contribution • Special Circumstances – divorce/separation, deployment, loss of income/benefits, death/disability, one-time income Things not covered on the form you think should be? • medical/dental expenses not covered by insurance • elementary/secondary tuition • loss of income • other? Contact your college financial aid office.

44. Why File Electronically? • More than 97% of applications electronic • Error rate for paper apps is over 12%; help button for each item! • Error rate for online apps is less than 1% • Edit checks built into online process; it’s safe! • Average time for paper app is 3-4 weeks for initial processing • Average time for online app is 3-4 days

45. More Reasons For FOTW…. • Student PIN also used in MPN • Parent only needs 1 PIN regardless how many children in college; can transfer information to add’l apps • Easy to check status of a submitted FAFSA • Corrections on the Web with corrections back within 72 hours or less • Real-time online chat for immediate answers • Instant access to EFC estimate AND Pell Estimate • Provide e-mail address & receive e-mails w/link to PIN and SAR

46. Student Is Notified Of FAFSA Processing Results By… • Paper SAR if paper app is filed and student e-mail address was NOT provided. • SAR Information Acknowledgement if filed via FAFSA on the Web and student e-mail NOT provided. • E-mail notification containing direct link to student’s SAR online if student or parent e-mail provided on paper or electronic FAFSA. • If student has a PIN, can view SAR online at www.fafsa.ed.gov/studentaccess.htm

47. Frequent FAFSA Errors • Missing signatures/PIN • Wrong SS# -- Can now be corrected online • Divorced/remarried parent info • Income earned by parents/stepparents • Untaxed income • U.S. income taxes paid • Household size • # of family members in college • Real Estate & investment net worth • Not using real name • NOT APPLYING ON TIME … OR AT ALL!

48. Questions About Your Application? If electronic: www.fafsa.ed.gov for ‘Follow up’ If paper: Call — (1-800-4FED-AID) 1-800-433-3243 Phone # on Page 1 of FAFSA.