Financing Your Education

1. Financing Your Education Speaker: Chris Beloin, MBA, MSE, GCDF UW Washington County, West Bend, (262) 335-5201 or www.washington.uwc.edu • The goal of financial aid – bridging the gap • How financial need determined • How to apply • What aid is available? • What is the role of the financial aid office?

2. Principles of Needs Analysis • To the extent they are able, parents have primary responsibility to pay for their dependent children’s education. • Students also have a responsibility to contribute to their educational costs. • Families should be evaluated in their present financial condition. • A family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect a family’s ability to pay.

3. What Are the Costs? Tuition and Fees + Room and Board + Transportation + Books & Supplies + Miscellaneous Living Expenses = Cost of Attendance (COA)

4. Main Determinants of the EFC • Income of both student and parents • Assets of both student and parents • Family size • Number in College • Age of the older parent Adjustments to EFC may be made by the Financial Aid Office due to Verification and/or Special Circumstances that limit ability to pay

5. Expected Family Contribution (EFC) • Is the sum of four separate calculations: • Contribution from Parental Income • Contribution from Parental Assets • Contribution from Student Income • Contribution from Student Assets

6. Financial Need Defined Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need

7. EFC Calculation Example Family Size 4 Number in college 1 Parent AGI $ 68,400 Parent Untaxed Income $ 3,500 Parent’s Assets $ 45,000 Student’s AGI $ 4,500 Student’s Assets $ 3,000 Parent’s Contribution $ 6,957 (Parent’s Contribution from Assets = $0) +Student’s Contribution $ 1,070 (Student Income Contribution $470) (Student Contribution from Assets $600) =Expected Family Contribution: $ 8,027 (Note: 2008-2009 FM formula used)

8. Financial Need Varies by School Cost

9. Financial Need Varies By School Cost

10. You may be eligible for aid, but….. YOU MUST APPLY TO FIND OUT! And it’s free! NEVER pay to file the FAFSA! File the FAFSA each year. www.FAFSA.ed.gov

11. Application Process • Apply for PIN through Department of Education • Submit the Free Application for Federal Student Aid (FAFSA) prior to your school’s deadline • Submit any institutionalapplication materials(if required by your school) • Finalize school admission • Make sure to meet allrequired deadlines!

12. What is a PIN?www.pin.ed.gov • Personal Identification Number • Student and one parent must get their own PIN • Used to electronically sign the FAFSA • PIN delivery • Real time online (immediate) • By e-mail, with a link to retrieve your PIN • By regular mail in 7-10 days • Can also be used for: • Renewal on the Web • Corrections on the Web • National Student Loan Database • Signing promissory notes for student/parent loans (Perkins, Stafford, PLUS)

13. FAFSA Processing Flowchart Schools #1 - #10 FAFSA STUDENT FAFSA PROCESSING CENTER Database Matches Student Aid Report Wisconsin Higher Educational Aids Board (HEAB)

14. College Scholarship Service /PROFILE(used by some private schools) • Collects additional data • Targets non-federal funds • Supports Institutional Methodology (IM) as well as Federal Methodology (FM) • Supports early estimates/early admission

15. Timelines • A PIN may be obtained at any time prior to filing the FAFSA. • The earliest a student can file the FAFSA for the 2009-2010 academic year - January 1, 2009. • Check with schools for institutional deadlines and requirements. • Failure to apply early may result in less aid, even if eligible. • Students must renew the FAFSA every year. Renewal notification is sent to students towards the end of each calendar year.

16. What is Financial Aid? • Scholarships • Grants • Work Study Employment • Loans

17. Three primary sources of funding: • US Department of Education • The federal agency that provides funding in the form of grants, scholarships and loans. • State • Most states have agencies that administer state scholarship and grant programs, college savings and prepaid tuition programs, and loans. The Higher Educational Aids Board (HEAB) manages state aid in Wisconsin. • Colleges & Universities • Schools may offer their own scholarship, grant, work-study and loan programs, with each setting its own requirements.

18. Gift Aid (FREE $$$) Grants & Scholarships – (see red brochure) • Federal • Federal Pell Grant • Federal Supplemental Educational Opportunity Grant (SEOG) • Academic Competitiveness Grant (ACG) • National SMART Grant • TEACH Grant • State • Institutional • Private/outside scholarships

19. Academic Competitiveness Grant (ACG) • First year grant is $750 • For students who will be new freshman in 2009-10 the following criteria are required: • U.S. Citizen AND • Enrolled in a 2 or 4-year program AND • Pell eligible AND • Full Time AND • Graduated from high school after 1/1/2006 AND • Completed a rigorous high school curriculum as defined by the state • Second year grant is $1300 • Same criteria as above AND • Must have a minimum 3.0 GPA AND • Graduated from high school after 1/1/2005

20. National Science and Mathematics Access to Retain Talent (SMART) Grant • Up to $4000 in 3rd and 4th years of undergraduate study • Eligibility requires include: • U.S. Citizen • Pell Eligible • Full Time • 3.0 Cumulative G.P.A. • Enrolled in an eligible program of study • Computer Science, Engineering, Critical Foreign Languages, Life Sciences, Mathematics, Physical Sciences, Technology, or Multidisciplinary Studies

21. ACG/SMART Grant Information Academic Competitiveness Grant (ACG) http://www.fsa4counselors.ed.gov/clcf/AcademicGrants.html National Science and Mathematics Access to Retain Talent (SMART) Grant http://www.fsa4counselors.ed.gov/clcf/SmartGrants.html

22. Teacher Education Assistance for College and Higher Education (TEACH) Grant • Created by College Cost Reduction and Access Act (9/27/07) and effective for the 2008-2009 award year • Provides a TEACH grant of $4,000 for each academic year during which the teacher candidate is in full time attendance at a participating institution. • Applicant must agree to serve as a full-time teacher for at least 4 academic years within 8 years after completing education for which the applicant received a TEACH grant teach in a public or other qualified nonprofit private elementary or secondary school in a high-need field • If a recipient fails or refuses to comply with this service obligation, the sum of the TEACH grant amounts the recipient received shall be treated as a Federal Direct Unsubsidized Stafford Loan and shall be subject to repayment with interest from the date of the grant award. • Check with specific schools to determine if they are participating in the TEACH Grant program • FAFSA is the TEACH Grant Application:

23. Fund for Wisconsin Scholars (FFWS) • The FFWS is a private charitable foundation that has been funded with a $175 million founding gift. It will provide grants to talented, lower-income graduates of Wisconsin public high schools attending a public college, university or technical school in Wisconsin. Grants are gifts and do not need to be repaid. For More Information: www.ffws.org Contact: Mary Gulbrandsen, Executive DirectorP.O. Box 5506Madison, WI 53705-0506 Ph: 608.238.2400mgulbrandsen@ffws.org

24. Wisconsin Covenant • Goal: Make sure that every Wisconsin 8th grader knows that higher education is an option if they are willing to work hard during high school. • Students pledge to graduate, maintain at least a “B” average, take classes that prepare them for higher education, and be good citizens. • Students who fulfill the pledge are guaranteed a place in a Wisconsin college or university and a financial aid package based on the family’s financial need that helps make college more affordable. • Students can sign the pledge between April of their 8th grade year and September of their 9th grade year. Students in the Class of 2011 were the first to sign the Wisconsin Covenant Pledge. • Wisconsin Covenant Students will apply for financial aid in the same way that other students do.

25. Wisconsin Covenant For more information: www.WisconsinCovenant.wi.gov Contact: Office of the Wisconsin Covenant PO Box 7869 Madison, WI 53707 608-267-9389 WisconsinCovenant@wi.gov

26. Self-Help Aid Employment (must be earned as wages) • Federal Work-Study • Institutional Work Programs • Off Campus employment Loans (must be repaid with interest) • Federal Perkins Loan • Federal Stafford Loans (school determines the loan program) • Federal Family Education Loan (FFEL) Program • William D. Ford Federal Direct Loan Program • Federal PLUS Loan (parent) • State Loans • Institutional Loans • Private-Alternative Loans

27. Federal Student Loans Every family should file a FAFSA. Regardless of income, every student qualifies for a Federal Stafford loan, if they meet the basic eligibility requirements. Benefits of a federal student loan: • You don’t have to repay until you leave school • Lower interest rates than private loans or credit cards • Credit record is not needed • Co-signer is not required

28. 2009-2010 Loan Comparison Chart 28

29. PLUS vs. Private/Alternative Loan • Compare the Differences: • Interest Rate • Borrower/Cosigner requirements & qualifications • Minimum and Maximum loan amounts • Interest accrual • Deferment & Forbearance options • Fees (origination and repayment) • Repayment period • Consolidation options

30. Borrowing Tips! • Before borrowing, think about your ability to make the monthly payment when you leave school • Borrowers are free to choose any participating lender • Borrow only what is needed for direct educational expenses and avoid borrowing funds for discretionary spending

31. How to Compare Financial Aid Offers • Start with tuition, fees, room and board • Subtract grant and scholarship offers only • The difference is your “net cost” • Always compare net cost • Do not subtract Federal Work Study as a lump sum disbursement because students are paid for hours worked

32. Award Package Comparison

33. Other Financing Options • School Payment Plans (spread over several months) • Home Equity Loans (longer repayment, tax deductible) • Life Insurance Policy Loans • Pension Plan Loans • 529 Plan withdrawals

34. Government Resources • Corporation for National and Community Service • Veteran’s benefits and tuition waivers • ROTC Scholarships and/or stipends • Bureau of Indian Affairs (BIA) Grants • State Divisions of Vocational Rehabilitation (DVR) • Health and Human Services Loan and Scholarship Programs

35. Other Sources of Funds • Parental Affiliations • Employers & Labor Unions • Religious and Community Organizations • Clubs and Civic groups • Civic organization scholarships • High School • Local Public Library • Private business scholarships

36. Sample Questions for the Financial Aid Office 1) What is the average cost for the first year? Estimates for future years? 2) Does applying for aid affect the admission decision? 3) What type of aid does the school have? Need-based or Merit? 4) What applications, besides the FAFSA, are needed to apply for aid? 5) What is the priority deadline date for all types of financial aid? 6) When will I be notified about a financial aid award? 7) How does the aid package normally change from year to year? 8) What are the conditions of the aid package? 9) Is there an opportunity to appeal if the package isn’t enough? 10) How is financial aid applied to your bill for tuition, fees, etc.? If you have any other questions or concern aboutthe financial aid process, contact the financial aidoffice at your school. Your FinancialAid Administrator is there to help.

37. Questions?

38. Take a Break

39. State of WisconsinHigher Educational Aids Board

40. Goals of State Financial Aid • Eliminate financial barriers and ensure educational opportunity for all Wisconsin citizens consistent with their individual abilities, interests, and ambitions. • Support educational diversity by allowing students freedom to choose among the various educational offerings.

41. Who May Receive State Aid? State financial aid is available to residents of the State of Wisconsin enrolled at non-profit colleges and universities based in Wisconsin: • University of Wisconsin System • Wisconsin Technical Colleges • Independent Colleges & Universities • Tribal Colleges

42. Who May Not Receive State Aid? State statutes prohibit students from receiving state financial aid who are: • Not registered with Selective Service • Listed on the Dept. of Workforce Development’s statewide Child Support Lien Docket • Students on the Lien Docket may still receive state loans

43. Applying for State Aid Free Application for Federal Student Aid • HEAB receives FAFSA data for all Wisconsin residents. • The FAFSA is the only application for Wisconsin's 2 major grant programs: • Wisconsin Higher Education Grant (UW, Technical Colleges, Tribal Colleges) • Wisconsin Tuition Grant (Independent Colleges & Universities)

44. State Financial Aid Programs Programs for Students with Financial Need Student must file the Free Application for Federal Student Aid (FAFSA) Wisconsin Higher Education Grant Wisconsin Tuition Grant Programs for Students with Financial Need who must also meet Additional Requirements - FAFSA and additional Application or Nomination Hearing & Visually Handicapped Student Grant Indian Student Assistance Grant Minority Undergraduate Retention Grant Nursing Student Loan Talent Incentive Program Grant Programs Not Based on Financial Need - Do not require the FAFSA Academic Excellence Scholarship Minnesota-Wisconsin Tuition Reciprocity Program Minority Teacher Loan Teacher of the Visually Impaired Loan

45. Academic Excellence Scholarship (AES) • Awarded to Wisconsin’s top high school seniors who are Wisconsin residents and are US citizens or permanent US residents. • Earned by the high school senior with the highest cumulative grade point average in the class at the end of the fall semester of senior year. • Up to $2250 per year, for up to four years, toward tuition at participating Wisconsin colleges or universities. HEAB notifies the college of the student’s AES award, and the college and HEAB jointly disburse the money and apply it directly to the tuition. • Certificates are sent to the high schools for your AES winners. Alternates do not receive certificates. • The number of Academic Excellence Scholarships that may be awarded per school is based on student enrollment, as shown in the following table: Enrollment Number of Scholarships 1-79 total of 10 available 80-499 1 500-999 2 1000-1499 3 1500-1999 4 2000-2499 5 Over 2500 6 • HEAB determines the number of scholarships for each school based on Department of Public Instruction fall enrollment reports. Contact HEAB if you believe your number of scholarships is inaccurate.

46. AES High School Timeline JANUARY High schools receive forms, instructions, notification of number of scholarships available for individual schools (based on school enrollment), and a copy of the State of Wisconsin Statutes and Rules which pertain to the AES. FEBRUARY 15 By February 15th of each school year the school board shall designate the Academic Excellence Scholar(s). These designations are final. MARCH 1 High school counselors must submit nomination forms, with the names of the Academic Excellence Scholars and alternates, to HEAB no later than March 1. MARCH Academic Excellence Scholarship recipients are contacted by HEAB asking them to verify their intent to accept the scholarship, and asking which participating school they plan to attend. HEAB begins the alternate selection process. MAY HEAB sends AES certificates to high schools for presentation to the scholars. Alternates do not receive certificates. Contact Nancy Wilkison, HEAB Grant Specialist, for any questions about AES. Email:nancy.wilkison@wisconsin.gov Phone: (608) 267-2213

47. AES Tips for Guidance Counselors • The scholarship recipient(s) you list should be the student(s) with the highest cumulative GPAs at the end of the fall semester of senior year, regardless of whether or not they plan to accept the Academic Excellence Scholarship. • Your districts are required to have a tie-breaking strategy in place in the event that more than one student shares the highest cumulative GPA. • The required number of semesters of enrollment for a student to be eligible for the AES is determined by each school district as part of your Board Policy. • If you have an un-weighted, or traditional, grading system, alternates for the AES must have the very same GPA as the winner of the AES. • If you have a weighted grading system, alternates are listed in order of the next highest GPAs. • The cumulative GPA for each student should be reported exactly as it is shown on your official high school transcript. • Student names should be written exactly as the student wishes it to appear on the certificate. • Schools should inform all recipients and alternates of their AES status as early as possible. • Please encourage recipients to return their paperwork to HEAB as soon as possible. Those who will not be attending a participating school should be reminded that alternates may be waiting in the wings!

48. Receiving State Financial Aid • HEAB notifies the college or university financial aid offices of each student’s eligibility for state financial aid. • The financial aid offices include the state aid in the student’s financial aid package.

49. Contacting HEAB State of Wisconsin Higher Educational Aids Board P.O. Box 7885 Madison, WI 53707-7885 (608) 267-2206 Fax: (608) 267-2808 E-Mail:HEABmail@wi.gov Web Page: heab.wi.gov

50. Wisconsin Department of Public InstructionWisconsin Educational Opportunity Programs