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The Financial Aid Process 2012-2013

The Financial Aid Process 2012-2013. Presented by: Patty Taylor Director of Financial Aid Lakeland College. Financial Aid Topics for tonight. Types and Sources of Financial Aid Federal, State, Miscellaneous How is Financial Aid Determined? Budget, EFC, Financial Need

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The Financial Aid Process 2012-2013

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  1. The Financial Aid Process2012-2013 Presented by: Patty Taylor Director of Financial Aid Lakeland College

  2. Financial Aid Topics for tonight • Types and Sources of Financial Aid • Federal, State, Miscellaneous • How is Financial Aid Determined? • Budget, EFC, Financial Need • How to Apply for Financial Aid • FAFSA, other forms and documentation • Award Letter • Extras • Timetable • Special Circumstances • Tax Benefits • Contact Information

  3. What is Financial Aid? • Financial aid is money a student receives to help the student and family pay for educational expenses.

  4. Types of Financial Aid • Grants—Money not paid back • Scholarships—Money not paid back • Loans—Money a student or parent borrows and pays back to a lender • Work Program—Job on-campus

  5. Federal Sources • Grants • Pell • SEOG • Teach Grant/Loan • Work Study • Loans • Subsidized • Unsubsidized • PLUS • Perkins

  6. Work Study • Two Kinds • Federal Work Study -- partially funded by government money • Regular Employment -- 100% funded by the college • May be required to apply for a job • Jobs may not always be guaranteed • Check is issued to the student

  7. Student Loans • Loan Limits for the Subsidized/Unsubsidized per academic year for dependent students. • $5500 Freshman • $6500 Sophomore • $7500 Junior • $7500 Senior • Career Maximum to borrow is $31,000

  8. Student Loans Cont. • Federal Subsidized • Interest rate of 6.8% • 6 months grace after college before repayment begins • 1% origination fee deducted by the federal government from the gross amount of the loan • government pays the interest while the student is in college • 1% federal default fee

  9. Student Loans Cont. • Federal Unsubsidized • Interest rate is 6.8% • 6 month grace period after college before repayment begins • 1% origination fee deducted by the federal government from the gross amount of the loan • The student is responsible for the interest on the loan while in college • 1% federal default fee

  10. PLUS Loans • Federal Parent Loan for Undergraduate Students (PLUS) • Loan for Parents • Interest rate 7.90% • 4% origination fee deducted from the gross amount of the loan

  11. PLUS Loans Cont. • 1% federal default fee • Credit check is performed—if denied, an endorser can be obtained • Payments begin 60 days after the latest disbursement • Parents can request to postpone payments while the student is enrolled at least half-time.

  12. State Sources • Grants • Wisconsin State Tuition Grant (Private) • Wisconsin Higher Education Grant (UW’s / Tech) • Wisconsin Covenant • Wisconsin Indian Grant • Talent Incentive Program (TIP)—Wisconsin Education Opportunity Programs (WEOP) http://dpi.state.wi.us/weop/index.html • Minority Grant http://www.heab.state.wi.us/

  13. Wisconsin Covenant 2012-13 • Students MUST: • 1. Complete FAFSA by April 1 • 2. Complete confirmation form by April 1 • 3. By July determine which college student will attend. • There are not exceptions to these deadlines. • Appeal process—military, serious accident with severe medical issues. .

  14. Wisconsin CovenantFull-time (12 credits)

  15. Wisconsin CovenantHalf-Time (6-11 credits)

  16. Miscellaneous Sources • College • Community, Foundations, Companies, Unions • DVR • Tribal Indian Grants • Workforce Development • Financial Institutions—Private Loans

  17. Scholarships • Outside Scholarships • Must report scholarship(s) to financial aid offices • Ask colleges if the scholarship affects the students financial aid award • loan or work-study can be affected • National searches: www.fastweb.com • www.gocollege.com • www.finaid.org • www.nextstudentloans.com/sse1

  18. Scholarships Cont. • When applying for Scholarships: 1. Type applications 2. Follow directions 3. Dress Up for Interviews 4. 20 hours completing applications and if awarded $1000 equates to $50 per hour.

  19. Alternative Loans • Banks have been developing their own loan programs for student. • www.finaid.org--provides list of available lenders. • Schools can’t always recommend a lender

  20. How Financial Aid is Determined Budget … • Expected Family Contribution (EFC)… = Financial Need…

  21. Budget • Tuition and Fees—Direct Cost • Room and Board—May be direct or indirect Cost • Books—Indirect cost • Transportation—Indirect cost • Personal—Indirect cost • Loan Fees—Indirect cost

  22. Expected Family Contribution (EFC) • Government Calculation • student income and assets • parent income and assets • number of people in the family • number of people in college Two Components: 1. Parent Contribution 2. Student Contribution

  23. Example of Financial Need

  24. How to Apply for Financial Aid • Complete the Free application for Federal Student Aid (FAFSA) www.fafsa.ed.gov • FAFSA on the Web (FOTW) worksheets • Paper FAFSA’s can be obtained by calling 1-800-4-fed-aid (1-800-433-3243) • Complete any other forms the financial aid office may require

  25. PIN Registration • Web site: www.pin.ed.gov • For student and parent • Not required, but speeds processing • May be used throughout financial aid process

  26. Documents Needed to complete FAFSA • 2011 Federal Taxes—with 2 weeks after electronic submission of taxes, on the FAFSA you should be able to pull the data in through the IRS Data Retrieval Tool. • W’2’s • Untaxed Income information • Bank Statement • Asset Values • Driver’s License • Social Security Number

  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 • Number of household members in college • Real estate & investment net worth

  28. The 2012-2013 Corrections on the Web • Talk with a financial aid office regarding corrections. Some corrections are required to be made while others may not be. • If you marked “will file” for taxes you will be required to submit corrections.

  29. What Happens After the FAFSA is Submitted? • Student receives an e-mail that the FAFSA is processed within 3-5 days if PIN’s are used. • All colleges listed on the FAFSA should receive an electronic copy • A paper Student Aid Report is generated only if the FAFSA was completed on paper and an e-mail address was not entered.

  30. Additional Forms • Additional forms (these may not be required for everyone) • Financial aid application • Signed copies of 2011 federal tax returns transcripts *NEW THIS YEAR • Parent(s), Student • W-2’s • Verification worksheet • Social security card • Selective service card (https://www4.sss.gov/regver/Register1.asp) • File should be complete for an award to be determined

  31. The Award Letter • Lists each source of assistance • Gives you the right to accept or decline any type of aid • May need to be signed and returned to the Financial Aid Office • Many colleges have the award letter available on-line.

  32. Award Letter is Accepted. What’s Next? • If the student accepted a loan, the necessary promissory notes need to be completed. • Students borrowing for the first time through the federal programs must complete Entrance Counseling. • Students should keep copies of the loan application, award letters, and disclosure statements • Be there to help you son/daughters. Many have never borrowed money and need guidance determining which loan program is best for them. • 10 days prior to the term, we are allowed to disburse financial aid funds to a students account.

  33. Timetable • This is very important. Be very aware of deadlines. Some colleges have cut off dates for different institutional grants or scholarships.

  34. Special Circumstances • Involuntary loss of employment • Unusual and excessive paid medical expenses • Divorce/Separation • Death of parent or spouse • Others

  35. Tax Benefits • There are federal tax credits available while students are in college. This is a good time to talk with a tax advisor about these benefits and how they may impact your tax filing in the future.

  36. College Goal Weekend • www.wicollegegoalsunday.org • When: February 18 & 19 2012 • Time: 2:00 p.m. • Location: various location around the state • What For: Help with completing the FAFSA

  37. Net Price Calculator (NPC) • Available on all college website • Strictly and estimate • Colleges must follow minimum guidelines • Net Prices can vary depending on the Cost of Attendance (COA)

  38. Good Luck! Patty Taylor 920.565.1298 taylorpl@lakeland.edu

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