FINANCIAL AID 101

1. FINANCIAL AID 101 Presented by Edgewood College

2. Financing A College Education A successful experience requires a collaborative effort by: Student Parent Institution Government

3. What is Financial Aid? Scholarships Grants Loans Employment opportunities

4. What is an EFC? Federal Methodology: A formula created by Congress to determine your Expected Family Contribution (EFC). The same formula applies to all applicants. Measures your ability, not willingness to pay. EFC components: Parent Income and Assets Student Income and Assets Things not considered : value of primary residence, consumer debt, or retirement accounts

5. What is Financial Need? Cost of Attendance (COA) =A Tuition, Fees, Room, Board, Transportation, and Misc Expected Family Contribution (EFC) from FAFSA=B Income, Assets, Number in Family, Number in College A – B = (C) Your Financial Need

6. Your need depends on the cost! UW SystemVoc TechIndependent COA $17,000 $12,000 $30,000 EFC $ 5,000 $ 5,000 $ 5,000 _____________ NEED $ 12,000 $ 7,000$ 25,000

7. Scholarships • Academic • Creative Talent • Athletic Talent • Ethnicity/Religion

8. Need-Based Grants FEDERAL GOVERNMENT • Pell • ACG/Smart Grants • SEOG • TEACH Grant STATE GOVERNMENT • Higher Education- Public • Wisconsin Tuition- Private INSTITUTIONAL • Varies by institution

9. Loans • Federal Perkins Loan • Up to $5,000 (5 % interest) • Federal Stafford Loan • Subsidized 4.5% • Unsubsidized 6.8% • $3,500 Subsidized • $2,000 Unsubsidized • PLUS: Parent Loan for Undergraduate Students • 8.5% • Alternative Loans (vary) • Institutional (vary)

10. Student Employment • Part-time employment • on campus • designated off-campus locations • Questions to Ask • When are jobs available? • How does a student secure a job? • Does the student get paid directly or is it applied to their account? • Be prepared to complete new hire Paperwork( I9, WT4, W4) –bring 2 original forms of identification

11. Eligibility for Financial Aid • Don’t eliminate yourself. Remember it’s • There is no income cutoff for financial aid • Contact the Aid Office if financial circumstances change

12. How to Apply • Complete admission process • Apply for PIN numbers -student and parent • Complete the Free Application for Federal Student Aid (FAFSA) after Jan. 1

13. Students and parents without PINs apply for one today! www.pin.ed.gov

14. Free Application for Federal Student Aid (FAFSA) www.fafsa.ed.govAvailable January 1, 2010

15. Before you begin • Web Worksheet – fill out then just data enter form • Errors will delay processing and may result in the loss of financial aid funds • It’s OK to estimate taxes in order to meet deadlines.

16. Step One: Student Information • Student’s Name • Date of Birth • Citizenship status • Marital status • Aid preferences • Email Address • Drug Conviction Question CANNOT be left blank

17. Step Two: Student Status • If student answers “NO” to all questions, then at least one parent’s information and signature is required. • If student answers “Yes” to any question, then student is Independent only their income and assets will be considered.

18. Step Three: Parent Info Which parent’s information must be included on the FAFSA? • Grandparents, foster parents, legal guardians, older siblings, and uncles/aunts are not considered parents on this form unless they have legally adopted you. • If married and living with each other, both parents. • If parent is widowed and not remarried, only the surviving parent. • If parents are separated or divorced, only the biological parent with whom the student lived more or who provided more financial support. • If biological parents are divorced and student lives with a biological parent who has remarried as of the date of the FAFSA application, both the biological parent and stepparent. • If single, the biological parent.

19. Step Three: Parent Info Cont Parent Finances • AGI • Taxes paid • Cash/checking/savings • Investments • do not include value of primary residence or retirement accounts • do not include value of family controlled business with less than 100 employees • Household Members and Number of College Students

20. Special Circumstances? Call the Financial Aid Office • Divorce/Separation • Loss of income or benefits • One-time income • Death or Disability of student or parent • Medical/Dental expenses not covered by insurance • Elementary or secondary school tuition • Dependency override (Note: Professional Judgment is at the sole discretion of each institution.)

21. Step Four: Student Information Questions include: • AGI • Taxes paid • Cash/checking/savings • Investments **line references from Federal Taxes or W2 forms** ** Do not leave blanks, if it does not apply put a zero “0” **

22. Step Five: Schools Enter up to 10 Colleges of Interest: * School Code * Address * School Name * Housing Plans

23. Frequent FAFSA Errors • Parent & student Social Security Numbers • Divorced/remarried parental information • Income earned by parents/stepparents • Untaxed income • U.S. income taxes paid • Household size • Number of household members in college • Real estate & investment net worth

24. Step Six: Signatures • Review information for accuracy prior to submitting • Dependent Students: - 1parent and student • Enter PIN numbers -or- print signature page and mail to processing center

25. The Application Process Student submits FAFSA ED Calculates EFC and returns result to student. ED sends copy of result to state & schools of choice. School follows up with student.

26. FAFSA Follow Up • Check status after submission • Make corrections to FAFSA • Add/Delete Schools • Print Signature Page

27. Response from Schools The Financial Aid Office issues a: FINANCIAL AID PACKAGE Consisting Of: • The Cost of Attendance • Your Financial Aid Eligibility • A description of each program • What to do next If you feel you have special circumstances, let the aid office know!

28. Verification • Department of Education picks about 30% of students randomly. • Provide documentation to school as soon as possible: • Verification Worksheet • 2009 Federal 1040’s • W-2’s, Bank Statements

29. Questions to Consider • Are the scholarships renewable? • Requirements? • GPA, participation, major, max number of terms • Grant/Loan combination • Will the student graduate in 4 or 5 years? What is the additional cost? • Are there additional fees for specific majors? • Student employment • Actual cost minus aid – not just the most aid

30. How am I Going to Pay? Costs(tuition, room & board, fees, books) - Financial aid = Remaining balance due • Am I billed for the year or by the term? • What are my payment options? • When are payments due? • Do I need an additional loan? If yes, ensure that loans are finalized 1 month prior to the start of the term.

31. Other Resources • Parent or Student Employer Scholarships • Corporation for National and Community Service • Veterans Benefits • ROTC Scholarships and/or stipends • Bureau of Indian Affairs (BIA) Grants • Division of Vocational Rehabilitation • Higher Educational Aids Board

32. Scholarship Searches www.collegeanswer.com www.fastweb.com www.collegenet.com www.collegeboard.com www.wficweb.org www.absolutelyscholarships.com

33. Avoid Being Scammed • THIS IS A FREE PROCESS! • Financial aid scam notices • Tips to avoid scams • Check legitimacy of scholarship agencies: • Department of Education • www.ed.gov • Better Business Bureau • http://search.bbb.org/search.html

34. Final • Apply early – watch deadlines • Schools may have additional aid forms • Each school evaluates the student differently • Read all materials issued by the school • Inform your school of any “special circumstances” • Always keep copies

35. College Goal Sunday Weekend Edition Sat, Feb. 20 and Sun, Feb. 21 2-4 pm • FREE Assistance to families from Financial Aid Administrators in complete the Free Application for Federal Student Aid (FAFSA) • 26 sites throughout Wisconsin • Madison Locations • Sat. Feb 20-----Edgewood College • Sun. Feb 21-----MATC Traux Campus Want more details? www.WiCollegeGoalSunday.org

36. Questions?

37. Scholarship Searches www.collegeanswer.com www.fastweb.com www.collegenet.com www.collegeboard.com www.wficweb.org www.absolutelyscholarships.com