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Financial Aid Information Session

Financial Aid Information Session. What is Financial Aid?. Financial aid is money intended to help students pay for their educational expenses. Typically, aid comes in one of the following forms: Scholarships Grants (Federal and State) Federal Work Study Loans.

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Financial Aid Information Session

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  1. Financial Aid Information Session

  2. What is Financial Aid? • Financial aid is money intended to help students pay for their educational expenses. Typically, aid comes in one of the following forms: • Scholarships • Grants (Federal and State) • Federal Work Study • Loans The last three types of aid are all applied for in one single application – the Free Application for Federal Student Aid or the “FAFSA.”

  3. Best Advice: APPLY!!!

  4. Applying… Easy as 1, 2, 3 1.) www.PIN.ed.gov 2.) www.FAFSA.gov 3.) Follow up: UW-Milwaukee Department of Financial Aid http://www4.uwm.edu/financialaid

  5. Applying Online: • Detects common errors before submission • Skip logic: asks only what you must answer • English or Spanish versions • Electronic Signature • E-mail notification of results • Instant access to EFC estimate • Faster Results • Can list up to 10 different schools to receive your information

  6. Frequent FAFSA Errors • Missing Signatures/PIN • Wrong Social Security Number • Using nickname instead of name on SSN card • U.S. Taxes Paid • Divorced/remarried parent information • Household size • Number in postsecondary education • NOT APPLYING AT ALL

  7. What do you need to complete the FAFSA? • Personal Information for Student and Parent(s) • Social Security Number • Driver’s License • Financial Information for Student and Parent(s) • 2010 taxes and W-2’s • Bank statements • Asset information *If you are prepared before you start, the entire application can be completed in about 45 minutes.

  8. Expected Family Contribution (EFC)(Federal Methodology established by U.S. Congress) Determined by filing the FAFSA • Main Determinants of the EFC • Income • Assets • Family Size • Number in College • Age of Parent

  9. Assets and the FAFSA • Assets Included • Cash, Savings & Checking Accounts • Value of business land, buildings, equipment, inventory, etc. for companies with 100 or more employees. • Education IRA’s • College Savings Plans (529’s) Assets Not Included • Home in which you live • Value of life insurance and retirement plans (pensions, annuities, Keogh’s non-education IRA funds, etc.) • Personal vehicles ***Any questions about what should or should not be included, you may contact your school’s Financial Aid Office.

  10. Myth #1: If I have savings I won’t get Financial Aid! Fact: FAFSA counts a fraction, not ALL of a family’s assets in determining financial need. A portion of assets are sheltered by an asset protection allowance.

  11. An Example: • A typical family with college-age children would have about $50,000 of assets sheltered. • In the end, 4% of dependent children have any contribution from parent asset in the EFC calculation Source: www.finaid.org

  12. Myth #2: If I move my child’s 529 college savings plan to his name, he will be eligible for more aid. Fact: Child’s assets are assessed at a 20% rate; parent assets assessed at a rate of no more than 5.64% On average every $10,000 in a 529 plan may reduce need based aid by up to $564, but it still leaves you with at least $9,436 more available than if you hadn’t saved Source: www.finaid.org

  13. Application Processing School usually receive the results and student the Student Aid Report (SAR) 1-2 weeks after submission Within 3-5 weeks: - You will get notification of your award via email OR - Be asked via email to submit additional information, * Verification process: 6-8 weeks

  14. Paying for College: Financial aid was created as the “BRIDGE” to Higher education. All the information gathered on the FAFSA is to develop an understanding of the household information.

  15. Cost of Attendance (COA) Tuition and Fees Room and Board Transportation Books & Supplies + Miscellaneous Living Expenses Cost of Attendance (COA) DO NOTconfuse this with your bill – “Cost of Attendance” exceeds costs billed by the university and is meant as a “ceiling” to the amount of aid a student can receive.

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

  17. What can we expect? • Your EFC and “financial need” determine the types of aid you will be eligible for: • Grants • Subsidized Loans and Federal Work-Study • Unsubsidized Loans

  18. Grants • Grants are “gift money” from the federal and state government which are meant to help the neediest families • Some grant funds are limited and they are awarded on a first come, first serve basis, so it is important to apply early every year! Our Priority deadline is March 1st.

  19. Federal Work Study • Must have “financial need” • Student is responsible for finding on-campus job • Student receives a payroll check for money earned, does not get sent directly to pay for tuition

  20. Subsidized Stafford Loan Interest rate 3.4% Will not accrue interest while in school Unsubsidized Stafford Loan Interest rate 6.8% Will accrue interest Direct Stafford Loans • Payments for BOTH loans are deferred until 6 months after graduation • Freshman Max = $5500 • - $3500 Subsidized *As determined by “Need” • - $2000 Unsubsidized

  21. Master Promissory Note (MPN) Signed electronically with PIN Entrance loan counseling Both items can be completed at studentloans.gov Is there anything else I have to do?

  22. What if it is not enough? • Often, financial aid is not enough to cover all expenses ex: $8284 (Full-time tuition) -5500 (Minimum Freshman Award) That leaves, AT LEAST $2,784, without even considering housing, meals, and books.

  23. Additional Options • Parent PLUS • 7.9% interest rate • Taken out in parent’s name • Studentloans.gov • Alternative Education Loans • Variable interest rate • Co-signer needed • Private lending institutions

  24. REMEMBER: Re-apply early every year. FAFSA available every January 1st.

  25. My FAFSA does not reflect what is happening now!!! What should I do? Answer: Talk to the Financial Aid Office, please complete FAFSA with 2010 data Examples include: Divorce/Separation Loss of Income/Benefits One-time Income Disability Medical/Dental Expense K-12 School Tuition

  26. www.wisconsincovenant.wi.gov • Graduate from a Wisconsin high school. • Maintain at least a B average while in high school. • Take classes in high school that will prepare me for entrance into higher education and will meet or exceed college entrance requirements. • Demonstrate good citizenship and engage in activities that support my community. • Apply for state and federal financial aid in a timely manner. • Apply and do all that is necessary to gain admission to a University of Wisconsin System institution, a Wisconsin Technical College, and/or a Wisconsin private college or university.

  27. Get Help College Goal Wisconsin • Free program to help families complete the FAFSA • February 19-20, 2011 • Scholarship drawing at each site • 30 sites throughout Wisconsin For location information: visit www.wicollegegoalsunday.org or call 1-866-578-4625

  28. Questions? Thank You for your time!

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