FINANCIAL AID 101 Presented by: Edgewood College

1. FINANCIAL AID 101Presented by:Edgewood College

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

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

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 SystemVocTechIndependent COA$26,000 $16,000 $36,000 EFC $ 5,000 $ 5,000 $ 5,000 _____________ NEED $ 21,000 $ 11,000$ 31,000

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

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

9. WI Covenant • Qualified students completed a pledge in 8th grade • Senior confirmation forms are currently being mailed –return completed form by April 1 • FAFSA must be filed by April 1 • Grants range from $250-$2,500 based on need • 2 Grant Sources: • WI Covenant Scholars Grant --state funding • WI Covenant Foundation Grant -- private foundation funding • Funds are not guaranteed beyond 2014-2015 year http://wisconsincovenant.wi.gov/

10. Loans • Federal Perkins Loan • Up to $5,000 (5 % interest) • Federal Stafford Loan with 13-14 rates • Subsidized 3.86% • Unsubsidized 3.86% • $3,500 Subsidized • $2,000 Unsubsidized • PLUS: Parent Loan for Undergraduate Students • 6.41% • Alternative Loans (vary) • Institutional (vary)

11. 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

12. 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

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

14. Students and parents apply for a PIN today! • Not required~but processing time is substantially faster • PIN may be used by students and parents to complete loan paperwork and in subsequent school years www.pin.ed.gov

15. Free Application for Federal Student Aid (FAFSA) www.fafsa.govAvailable January 1, 2014

16. Select a Year and Apply for a PinFall applicants = 2014-2015

17. Before you begin • FAFSA Filing Options– fill out preliminary data • Print a PDF of a paper FAFSA • It’s OK to estimate taxes in order to meet deadlines • Errors will delay processing and may result in the loss of financial aid funds

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

19. Step Two: Schools Enter up to 10 potential colleges: • School Code • Searchable by name, city or state • Housing Plans

20. Step Three: 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.

21. Step Four: Parent Info • Which parent’s information must be included on the FAFSA? • Parents are married- Both parents • Parents are divorced (not remarried)- Only parent with whom student lives with most • Parents are divorced (remarried)Parent and step parent with whom student lives with most • Parents were never married (don’t live together)- Only parent with whom student lives with most • Parents are not married (DO live together) Both parents • Grandparents, foster parents, legal guardians, older siblings, and uncles/aunts are not considered parents unless they have legally adopted you.

22. Step Four: Parent Info Cont Parent Finances • AGI (line references from Federal Taxes or W2 forms) • Taxes paid • Cash/checking/savings • Investments • do not include value of: • primary residence • retirement accounts • family controlled business with less than 100 employees • Household Members and Number of College Students

23. IRS Data Retrieval Tool • While completing FAFSA, applicant may submit real-time request to IRS for tax data • *Available 2 weeks after electronically filing or 6 weeks after paper filing taxes • IRS will authenticate taxpayer’s identity and send real-time results to applicant in new window • Applicant chooses whether or not to transfer data to FAFSA • Participation is voluntary • Could reduce documents requested by financial aid office

24. Step Five: Student Information Questions include: • AGI(line references from Federal Taxes or W2 forms) • Taxes paid • Cash/checking/savings • Investments

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

26. Confirmation Page • Transfer parent data to another child • EFC estimate • Eligibility indicator for Pell and Stafford Loans • College rates

27. 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 & # in college • Real estate & investment net worth

28. Special Circumstances? Contact the Financial Aid Office • Divorce/Separation • Loss of income or benefits • One-time income • Death or Disability of student or parent • Substantial 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.)

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

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

31. Verification • Department of Education picks about 30% of students randomly • Provide documentation to school • Verification Worksheet • Consent to IRS data retrieval or submit a tax return transcript • Asset Statements • Food Stamp Statements • Child Support Paid Documentation

32. 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!

33. 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? • How is student employment handled? • Actual cost minus aid – not just the most aid

34. How are we going to pay? Direct 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.

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

36. Scholarship Searches www.collegeanswer.com www.fastweb.com www.collegenet.com www.collegeexpress.com https://bigfuture.collegeboard.org/scholarship-search

37. Avoid Being Scammed • APPLYING FOR AID 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

38. 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

39. College Goal WisconsinSat, Feb. 22 and Sun, Feb. 232-4 pm • Free FAFSA filing assistance from aid experts • 95.7 percent of the families felt it was worth attending • 29sites throughout Wisconsin • Sat. Feb. 22-----Madison College Truax Campus • Sun. Feb. 23-----Edgewood College • Sun. Feb. 23-----DeForest High School Want more details? www.collegegoalwi.orgor call 1-866-578-4625

40. Questions?

41. Building a stronger Wisconsin • Sign the petition to Wisconsin’s Governor and legislators. • Indicates that financial aid should be a priority in the state budget, because investment in student aid is an investment in everyone’s future—that’s the Power of Financial Aid. Visit: www.poweroffinancialaid.org

42. Scholarship Searches www.collegeanswer.com www.fastweb.com www.collegenet.com www.collegeexpress.com https://bigfuture.collegeboard.org/scholarship-search