2013-14 Financial Aid Night

1. 2013-14 Financial Aid Night Welcome Parents and Students! Tonight’s Presenters are: • Karla Weber, UW-Madison Financial Aid Office • Barb Fassbender, Counselor, Waunakee HS

2. Agenda • Review of Handouts • Scholarships • College Goal Wisconsin • The Wisconsin Covenant • Questions • Financial Aid & College Cost Basics • Types of Financial Aid Available • The FAFSA & Application Process • Questions

3. Scholarships • Free money! • $900,000+ of awards given to WHS students last year • Your son/daughter MUST apply for these awards • Some school awards are drawn directly from the admissions application information • Other information al sources and sites for scholarships: • Waunakee HS Scholarship Bulletins • Waunakee Scholarship Fund Drive • Parent’s place of employment opportunities • Local Service Organizations, businesses

4. College Goal Wisconsin This is an opportunity to help students and families complete application for financial aid Where and When? • Saturday, February 22, 2014– begins at 2:00 pm ~ Madison College – Truax Campus • Sunday, February 23, 2014– begins at 2:00 pm ~ DeForest High School ~ Edgewood College – Main Campus, Monroe Street • Wednesday, February 26, 2014 – beings at 6:00 pm ~ All sites are outside of the Madison Area – check handout for listings If you go, plan to bring completed federal income tax return for 2013, W-2 statements, and other 2013 income and/or benefit information for both parents and students. If parents are unable to attend, students may attend alone and bring this information. Independent students may bring just their own income and asset information. STUDENTS ARE ELIGIBLE FOR A SCHOLARSHIP DRAWING!

5. Wisconsin Covenant Scholars Grant Throughout the state, Wisconsin Covenant students are dedicated to bettering themselves and their communities. They are taking tough classes, volunteering in their neighborhoods, and checking out colleges that will be the right fit for them. To honor this hard work, all Wisconsin Covenant students who fulfill the pledge will be eligible to receive the Wisconsin Covenant Scholars Grant (WCSG). Senior Student Responsibilities: • Sign and submit the confirmation form. Parent (s), primary contact ( the student’s school counselor), and student signatures are all needed. • Provide a record of your service hours. • Two letters of recommendation, if necessary, due to a suspension. • Students/parents mail these completed forms to the Wisconsin Covenant Office. Important Dates for the Confirmation Process November/December: Lists of Covenant students sent to the primary contact. December 1: Confirmation form will become available online and will be mailed to seniors. January 1: Confirmation process begins. April 1: Confirmation/FAFSA deadline. July 1: Deadline for primary contacts to send list of students that were confirmed, but did not graduate.

6. Wisconsin Covenant Scholars Grant • In order to receive the funds students who signed the Covenant agreement in 8th grade, and their parents, MUST file the FAFSA form, regardless of need • Downloadable forms and questions may be directed to wisconsincovenant.wi.gov I have been sent the listing of our current Wisconsin Covenant Scholars who are seniors. If you are unsure if you son/daughter is a Covenant student, please see me afterwards.

7. Minnesota Wisconsin Reciprocity Agreement for 2014 School Year Under the new reciprocity agreement, the supplementary payments to Minnesota schools (previously paid by the State of Wisconsin) have been eliminated.That means Wisconsin residents will have to pay the full in-state tuition to attend school in Minnesota. Visit the Wisconsin Department of Public Instruction’s website for the required filing form and information at: http://www.heab.state.wi.us/programs.html#reciprocity

8. Before we continue, are there any questions?

9. Karla Weber Financial Aid Advisor Office of Student Financial Aid University of Wisconsin – Madison Karla.weber@finaid.wisc.edu Paying For Higher Education 2014-2015 Academic Year

10. Tonight’s Discussion • Financial Aid & College Cost Basics • Types of Financial Aid Available • The FAFSA & Application Process • Questions

11. WARNING!!!

12. Financial Aid Regulations • Federal and state statues and legislation • Establish unique eligibility requirements • Applicable to ALL schools that receive funding

13. Financial Aid & College Cost Basics Need Analysis Cost of Attendance Expected Family Contribution Financial Need

14. Principles of Need Analysis • Financial aid narrows the gap between what the family can pay and the cost of education • To extent they are able, parents have the primary responsibility to pay for their dependent children’s education. • Students have a responsibility to contribute • Evaluated in current financial situation • Ability to pay evaluated in an equitable and consistent manner • Recognize that special circumstances can have major financial implications.

15. What are the costs? Tuition and Fees + Room and Board + Transportation + Books and Supplies + Miscellaneous Living Expenses =Cost of Attendance (COA) ** Direct versus Indirect Costs**

16. 2013/14 Estimated Costs of Attendance (approx)

17. Expected Family Contribution (EFC) • Determined by filing the FREE Application for Federal Student Aid (FAFSA) at www.fafsa.gov (NOT .com!) • Ways to think about the purpose of the EFC • An index number used to calculate eligibility for aid • NOT an estimate of “extra” cash available • NOT what you will pay for school • Stays the same regardless of college/university • What WILL you be expected to contribute? • Whatever costs the financial aid is unable to cover

18. EFC Calculation • A complicatedformula established by Congress – sometimes referred to as Federal Methodology • Uses both parent AND student information (for dependent students) • Has income and asset protection allowances • Ranges from 0 to 999,999 # in family Taxes Paid # in college Assets Income FAFSA Expected Family Contribution (EFC)

19. Financial Need Cost of Attendance (COA) - Expected Family Contribution (EFC) = Financial Need

20. Need Varies

21. Types of Financial Aid Sources of Aid Gift Aid Versus Self Help

22. Three Primary Sources • US Department of Education • The federal agency that provides funding in the form of grants, work study, and loans. • State • Higher Educational Aids Board (HEAB) manages aid for Wisconsin • Administers state scholarships, grants, loans, college savings programs. • Colleges & Universities • May offer their own scholarships, grant, and loan programs with each setting its own requirements • Availability eligibility varies WIDELY between schools

23. Types of Financial Aid • Grants • Federal – Pell Grant, Supplemental Educational Opportunity Grant (SEOG) • State – WI Higher Ed Grant, WI Tuition Grant • Scholarships – Institutional, Community, Business, Organizational • Work Study/Other Employment • Loans • Subsidized/Unsubsidized Federal Direct Loans • Perkins Loan • Parent Loan for Undergraduate Students (PLUS) • Private/Alternative Loans Gift Aid - FREE Self-Help Aid

24. Federal Pell Grant • Pell Grant • Based on EFC range; this current year 0 – 5,081 • Award amount varies based on EFC and enrollment status • Maximum award for 2013/14 - $5,645 • Lifetime Pell Grant eligibility • decreased from 18 semesters (900%) to 12 semesters (600%)

25. State of WI Funding - HEAB • Wisconsin Higher Education Grant (WHEG) or Wisconsin Tuition Grant (WTG) • UW System, Technical and Tribal Colleges • Independent Colleges & Universities (does NOT include for-profit institutions) • Academic Excellence Scholarship • Questions/Issues? Nancy.wilkison@wisconsin.gov • WI Covenant • Questions/Issues? Garth.beyer@wisconsin.gov • Minnesota-Wisconsin Reciprocity – MUST apply • http://heab.state.wi.gov/reciprocity • Other various programs – most require add’l application – see website • http://heab.state.wi.us

26. Scholarships • Colleges/Universities • Need-based & non-need based: Academic, athletic, music, or other talent • Alumni Organizations • Civic/Community Organizations • Churches, PTA, Elks, Kiwanis, cultural leagues, etc • Private businesses • Wal-mart, Best Buy, Dell, Gates Foundation, etc • Parents’ and/or students’ employers or labor unions

27. Employment • Federal Work Study (FWS) • Must show a specified amount of need • Part-time employment may be on or off campus (public/private non-profit) • Receive funds through a regular paycheck • Earnings do not count against future aid eligibility • Institutional Work Programs • Off campus/summer employment

28. Loans • Perkins Loan • Priority to students who show “exceptional need” as defined by the school and the amount received varies • Subsidized – Gov’t. covers interest as long as student is at least ½ time. • Fixed Interest Rate: 5% • 9 month grace period/10 year standard repayment period • State Loans • Institutional Loans • Vary in availability and eligibility depending on college/university • Private/Alternative Loans

29. Federal Direct Loans Regardless of income, EVERY student qualifies if they meet the basic eligibility requirements! • William D Ford Federal Direct Loan Program (DL) • Subsidized: MUST demonstrate financial need • Unsubsidized: Not based on need (EVERY student is eligible – no matter what!!) • EFFECTIVE July 1,2013 for NEW BORROWERS 150% Rule for Subsidized Direct Loans • If a borrower exceeds the total enrollment allowed for their program, they become ineligible for any additional subsidized loans, AND • They become responsible for the accruing interest on all previously borrowed subsidized loans from that point forward.

30. Federal Direct Loans - Benefits • No credit score or co-signer requirements • Currently low and fixed interest rate • In-School Deferment: student must maintain at least ½ time enrollment • 6 month grace period • Repayment period between 10 & 30 years depending on repayment plan • Deferment and cancellation provisions available

31. Direct Loan Amounts • Annual Loan Limits • Freshmen - $5,500 total ($3,500 max subsidized) • Sophomore - $6,500 total ($4,500 max subsidized) • Junior/Seniors - $7,500 ($5,500 max subsidized) • Grad Student - $20,500 (as of 12/13 no longer have subsidized eligibility) • Career Maximums • Dependent Undergrads - $31,000 ($23,000 max subsidized) • Independent Undergrads - $57,500 ($23,000 max subsidized) • Grad & Law - $138,500 • Med, Vet Med, Pharm, Dentist - $224,000

32. Direct Loan Interest – NEW! EFFECTIVE July 1, 2013 – Bipartisan Student Loan Certainty Act of 2013 • ALL federal loan interest rates will be tied to the 10-Year Treasury note with a statutorily defined add-on • Fixed/Variable Rate – interest rate will adjust each year, but will remain fixed once applied to a specific loan. • There are interest rate caps • Undergrad Direct Loans 8.25% • Graduate Direct Loans 9.50% • PLUS Loans 10.50%

33. Direct Loan Interest – NEW!

34. Direct Loan Fees – NEW! • All federal loans have an Origination Fee that is charged at the time of disbursement • Due to Sequestration – any loans disbursed after December 1, 2013 • Federal Direct Loans (Subsidized & Unsubsidized) • 1.072% • Federal PLUS Loans (Parent & Grad) • 4.288%

35. Repayment Basics • National Student Loan Data System • www.nslds.ed.gov • Repayment Plans • Standard(10 years, minimum $50/month) • Graduated (10 years, low payments gradually increase) • Extended (Up to 25 years, fixed or graduated payments) • Income Based (Up to 25 years, 15% of discretionary income) • Pay As You Earn (Up to 20 years, 10% of discretionary income) • Forgiveness Programs • Teacher • Public Service • Nursing

36. Parent Loan for Undergrad Students (PLUS) • Must pass a basic credit check • Annual Loan Limit: COA minus other accepted aid • 2013/14 fixed interest rate – 6.41% • Origination Fee – 4.288% • 60 day grace period – “opt-in” to in-school deferment • Compare to Private/Alternative Loans • Additional unsubsidized loan eligibility for undergrads whose parent was denied PLUS: • $4,000 per year for 1st and 2nd year students • $5,000 per year for 3rd and 4th year students

37. www.studentloans.gov

38. Borrowing Tips • Consider ability to make monthly payments when you leave school • Loan repayment calculators available online • Shop around! Choose any participating lender. • Compare the differences: Fixed/Variable, co-signer requirements, min/max amounts, deferment and/or forbearance options, fees, repayment period, etc • Borrow only what you need for direct educational expenses and avoid borrowing for discretionary spending • ALWAYS check with the Financial Aid Office BEFORE pursuing to make sure all other options have been exhausted

39. Other Resources • Other Government Related • AmeriCorps www.americorps.gov • Veteran’s benefits/tuition waivers • ROTC scholarships and/or stipends • Bureau of Indian Affairs Grants • Dept of Vocational Rehab (DVR) • School payment plans – may or may not be available • Home equity loans • Life insurance policy loans • Retirement Plan loans • 529 Education Savings Plans (EdVest) www.edvest.com

40. The Application Process FAFSA IRS Data Retrieval Common Questions/Confusion Special Circumstances Comparing Offers

41. College Scholarship Service/PROFILE • Used by SOME colleges/universities (mostly private) • The school should notify if required • Don’t trust the website’s list of participating schools (Ex. Edgewood) • Collects data beyond what’s required on FAFSA • Uses institutional methodology and targets their dollars ONLY • Supports early estimates/admission - became available October 1st • Application fee is $25, plus $16 for each additional school it needs to be sent to

42. www.fafsa.GOV

43. Application Process Overview • Apply for a PIN – student and one parent • www.pin.ed.gov – can request at any point either prior to or during FAFSA • Submit: • the FREE Application for Federal Student Aid (FAFSA) prior to your school’s deadline • www.fafsa.GOV (not .com!!!!) • Becomes available January 1stfor the upcoming academic year • Must reapply EVERY year!!! • Any requested/required documents for Verification to the school(s) • Any institutional application materials (if required/requested by your school) • Finalize school admissions • Make sure to meet ALL required deadlines!

44. What is the PIN? • www.pin.ed.gov Personal Identification Number • Electronically sign the FAFSA, but can also be used to: • Make corrections to a completed FAFSA • Sign-in to the National Student Loan Data System • Sign promissory notes for student/parent loans (Perkins, Federal Direct, PLUS) • The student and at least one parent (if dependent) must get their own • The PIN should NEVER be shared

45. PIN Main Page

46. FAFSA.gov – Student Sign-In

47. Documents to Have Ready • Social Security number (Student and parents) • Student’s driver’s license number (not required) • Alien Registration Number if not a U.S. citizen • Federal tax info or W-2 information, for student and parents • IRS 1040, 1040A, 1040EZ • Foreign tax return and/or • Tax return for Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands, the Marshall Islands, the Federal States of Micronesia, or Palau • Records of untaxed income for student and parents, such as child support received, interest income, and veterans non-education benefits • Information on cash, savings and checking account balances, investments, business/farm assets if required to include

48. FAFSA Steps • Student Demographics • School Selection • Dependency Status • Parent Demographics • Financial Information • Sign & Submit! • Confirmation

49. IRS Data Retrieval Tool • Request and retrieve income and tax data directly from the IRS • VOLUNTARY! • “Should” be available beginning early February • Can be used: • After at least 2 – 3 weeks of electronic tax filing • After at least 8 – 11 weeks of paper tax filing • If tool not used or changes made, may request “Tax Return Transcript”

50. IRS Data Retrieval Tool • 3 Possible Responses • You are not eligible to transfer information • Too soon since taxes filed – may not be available • Recommend to try!