Understanding Financial Aid

1. Understanding Financial Aid Grafton High School Margaret Zitzer December 14, 2009

2. Agenda • Principles of Financial Aid • Key Concepts • Completing the FAFSA • Types of Aid Available

3. Basic Principles of Financial Aid • Parents have primary responsibility to pay for the education of their dependent children. • Students also have a responsibility to help pay for their educational costs. • A family’s ability to pay for educational expenses must be evaluated in an equitable and consistent manner while recognizing that special circumstances can and do alter a family’s ability to pay.

4. Financial aid helps bridge the gap between the cost of education and what the family can pay.

5. Key Concepts • Cost of Attendance (COA) • Expected Family Contribution (EFC) • Demonstrated Financial Need (Need)

6. Cost of Attendance(Direct & Indirect Costs) • Tuition • Fees • Room & Board • Books & Supplies • Personal/Miscellaneous • Travel

7. Expected Family Contribution(EFC) Determined by filing the FAFSA Free Application for Federal Student Aid

8. EFC • Income • Assets • Family size • Number in College • Age of the older parent

9. Demonstrated Financial Need Financial Need is a simple equation: COA -EFC =Need

10. Examples of Financial Need Public College Cost $18,014 EFC -$9,000 Need $9,014 Source: The College Board Private College Cost $35,374 EFC - $9,000 Need $26,374 Average College Costs, 2007-08

11. Applying for Financial Aid 1 is as easy as 2 3

12. 1 • Get Organized • To complete the FAFSA you will need to: • Gather your and your parent’s 2009 tax information • Apply for a Personal Identification Number (PIN) • Parent must have his/her own PIN. • PIN serves as electronic signatures for the FAFSA and promissory notes • www.PIN.ed.gov

14. 2 • Submit the FAFSA • www.FAFSA.ed.gov • Select the appropriate school year • Complete all sections about you, your school plans and financial information • List your school code(s) • Provide your electronic signatures (PINs) • Submit your information • Keep copies for your records

15. www.fafsa.ed.gov

16. 2010-11 FAFSA – “Simplified” ♦ Fewer Questions ♦ Fewer Screens ♦ Skip Logic ♦ Less Text ♦ Possible to import tax info from IRS ♦ Low income levels - do not report assets

17. Completing the FAFSAPoints to Remember: ♦The earliest you may file the FAFSA for the 2010-2011 school year – January 1, 2010. ♦ May be able to download income from IRS web site ♦ Check with the colleges where you plan to apply for deadlines and institutional requirements. ♦ The FAFSA is student specific. ♦ You do not need to wait until tax returns are filed; It is o.k. to estimate. ♦ Who is considered a parent? ♦ You must re-apply for aid every year.

18. FAFSA Follow Up • Here’s what happens after you file: • Your EFC is calculated. • Results are sent electronically to the college(s) you selected. (List up to 10 schools on electronic FAFSA) • You will receive a Student Aid Report (SAR). • If you have extraordinary circumstances notify the Financial Aid office. • After you are admitted to a college, a financial aid award will be sent to you. • You may be required to verify the information submitted on your FAFSA. 3

19. Common Errors • No signature(s) on FAFSA • Remember to electronically sign the FAFSA with PIN (student & parent) • After submitting the FAFSA – scroll down to the bottom of the confirmation and read the whole message • Make corrections to the FAFSA – clear up any Rejected FAFSA errors • Missing signature(s) • AGI equals tax paid • Check with the school regarding any future deadlines – You don’t want to miss out on any financial aid in subsequent years

20. Types of Aid Available • Gift • Scholarships • Grants • Self-help • Employment • Loans

21. Scholarships Academic - merit based Talent Service ROTC Private www.fastweb.com www.finaid.org www.BrokeScholar.com

22. Grants Need-Based Federal Grants Pell SEOG ACG SMART (National Science and Mathematics Access to Retain Talent Grant) TEACH

23. Grants Cont. Need-Based • State Grants • Institutional Grants

24. Employment • Two types: • Federal Work Study • Regular Campus Employment • Can be used for personal expenses • Does not adversely affect grades

25. Student Loans Federal Stafford Subsidized Unsubsidized (anyone can borrow) Sub fixed interest rate of 4.5% Unsub fixed interest rate of 6.8% Freshmen - $3500 Sophomores - $4500 Juniors/Seniors - $5500 Additional Unsub $2000/year (Loan Fee up to 2.5% (may receive rebate)) 6 month grace period 10 year repayment Federal Perkins 5% interest rate interest deferred while in school No loan fee 9 month grace period 10 year repayment

26. Other Options • Parent PLUS Loan • Student Alternative Loans – Private Lenders • Payment Plan • Tax Credits • EdVest (529 Plan) Withdrawals

27. “FAFSA 4 caster” • www.fafsa4caster.ed.gov • Early financial aid estimation tool • Estimate of EFC • Not the official application, student still must submit the actual FAFSA form • Bio Demo Information will transfer to FAFSA

29. College Goal Sundayhttp://www.wicollegegoalsunday.org/ • College Goal Sunday is a Statewide event that will offer free assistance to families in completing the FAFSA • February 20, 2010 and February 21, 2010 from 2:00-4:00pm (“Weekend Edition”) • Event is being held on behalf of WASFAA • Assistance with paper and online FAFSAs • Scheduled at 25 sites throughout Wisconsin

30. Additional Information Marquette University Office of Student Financial Aid (800) 222-6544 or (414) 288-7390 financialaid@marquette.edu website: www.marquette.edu/financialaid