2008 High School Counselor Drive In Workshop
Welcomes YouTodays Presenters:
*Workshop Coordinated By:Wisconsin Association of Student Financial Aid Administrators (WASFAA)Wisconsin Department of Public Instruction (DPI)Wisconsin Educational Opportunity Programs (WEOP)Wisconsin Higher Educational Aids Board (HEAB)Great Lakes Educational Loan Services (Great Lakes)
*Todays Agenda8:00 8:30Registration8:30 8:45WelcomeReview of Agenda and Packet MaterialsCollege Goal Sunday8:45 10:00Financial Aid Fundamentals10:00 10:15Break10:15 10:45HEAB Update10:45 11:15DPI Update11:15 12:00FAFSA Filing Topics Todays presentation may be accessed online at http://www.wasfaa.net/resources/presentations.asp or www.heab.wi.gov
*College Goal Sunday Weekend Edition Saturday, Feb 21st & Sunday, Feb 22nd - 2:00pmCollege Goal Sunday is a statewide event that will offer free assistance to families in completing the Free Application for Federal Student Aid (FAFSA)
Volunteer forms, marketing materials and additional information can be found on the website at www.WiCollegeGoalSunday.org
Scheduled at 20 sites throughout Wisconsin.
New this year: The event is being held on Saturday and Sunday. Check your site for the date!!!
*College Goal SundayWeekend Edition Coming to a location near you!!!Saturday, February 21stSunday, February 22nd
AppletonFox Valley Technical CollegeBeloitTurner High SchoolKenoshaGateway Technical CollegeMilwaukeeHigh School of the ArtsMilwaukeeRufus King High SchoolWaukeshaUW-Waukesha
Eau ClaireChippewa Valley Technical CollegeFond du LacMarian UniversityGreen BayEast High SchoolLaCrosseViterbo UniversityMadisonEdgewood CollegeMadisonMadison Area Technical CollegeMilwaukeePulaski High SchoolMilwaukeeRiverside High SchoolPlattevillePlatteville High SchoolRacineGateway Technical CollegeRhinelanderRhinelander High SchoolSheboyganUW-SheboyganSuperiorSuperior High SchoolWausauNorthcentral Technical College
FINANCIAL AID FUNDAMENTALS
*Financing Your Education What is the goal of financial aid?How is financial need determined?How do I apply?What aid is available?What is the role of the financial aid office?
*Goal of Financial AidTo assist students in paying for school.To provide opportunity and access to higher education.To help bridge the gap between what the family can pay and the cost of education.
*Principles of Needs AnalysisTo the extent they are able, parents have primary responsibility to pay for their dependent childrens education.Students also have a responsibility to contribute to their educational costs.Families should be evaluated in their present financial condition.A familys ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect a familys ability to pay.
*Financial Aid RegulationsAre determined by federal and state statutes and legislatorsEstablish applicants eligibility for most types of aidAre applicable to all schools
*What Are the Costs?Tuition and Fees+Room and Board+Transportation+Books & Supplies+Miscellaneous Living Expenses=Cost of Attendance (COA)
*Expected Family Contribution (EFC)(Federal Methodology established by U.S. Congress)Determined by filing the FAFSA
*Main Determinants of the EFCIncome of both student and parentsAssets of both student and parentsFamily sizeNumber in CollegeAge of the older parentAdjustments to EFC may be made by the Financial Aid Office due to Verification and/or Special Circumstances that limit ability to pay
*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
*Financial Need DefinedCost of Attendance (COA) Expected Family Contribution (EFC)= Financial Need
*EFC Calculation ExampleFamily Size 4Number in college 1Parent AGI $ 68,400Parent Untaxed Income$ 3,500Parents Assets $ 45,000Students AGI $ 4,500Students Assets $ 3,000 Parents Contribution$ 6,957(Parents Contribution from Assets = $0)+Students Contribution$ 1,070(Student Income Contribution $470)(Student Contribution from Assets $600)=Expected Family Contribution:$ 8,027
(Note: 2008-2009 FM formula used)
*Financial Need Varies by School Cost
School 1School 2School 3Cost of Attendance$ 27,394$ 17,425$ 12,056Less EFC$ 8,027$ 8,027$ 8,027Need$ 19,367$ 9,398$ 4,029
*Financial Need Varies By School Cost
*You may be eligible for aid, but..YOU MUST APPLY TO FIND OUT!And its free!NEVER pay to file the FAFSA!
File the FAFSA each year.
*Application ProcessApply for PIN through Department of EducationSubmit the Free Application for Federal Student Aid (FAFSA) prior to your schools deadline Submit any institutional application materials (if required by your school)Finalize school admissionMake sure to meet all required deadlines!
*What is a PIN? www.pin.ed.govPersonal Identification NumberStudent and one parent must get their own PINUsed to electronically sign the FAFSAPIN deliveryReal time online (immediate)By e-mail, with a link to retrieve your PINBy regular mail in 7-10 daysCan also be used for:Renewal on the WebCorrections on the WebNational Student Loan Database Signing promissory notes for student/parent loans (Perkins, Stafford, PLUS)
*FAFSA Processing FlowchartSchools #1 - #10StudentAidReportFAFSAPROCESSINGCENTERSTUDENTFAFSADatabase MatchesWisconsin HigherEducational Aids Board(HEAB)
*College Scholarship Service /PROFILE (used by some private schools)Collects additional dataTargets non-federal fundsSupports Institutional Methodology (IM) as well as Federal Methodology (FM)Supports early estimates/early admission
*TimelinesA 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.
*What is Financial Aid?ScholarshipsGrantsWork Study EmploymentLoans
*Three primary sources of funding:US Department of EducationThe federal agency that provides funding in the form of grants, scholarships and loans.StateMost 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 & UniversitiesSchools may offer their own scholarship, grant, work-study and loan programs, with each setting its own requirements.
*Gift Aid (FREE $$$)Grants & ScholarshipsFederal Federal Pell GrantFederal Supplemental Educational Opportunity Grant (SEOG)Academic Competitiveness Grant (ACG)National SMART GrantTEACH GrantState Institutional Private/outside scholarships
*Academic Competitiveness Grant (ACG)First year grant is $750For students who will be new freshman in 2009-10 the following criteria are required:U.S. Citizen ANDEnrolled in a 2 or 4-year program ANDPell eligible ANDFull Time ANDGraduated from high school after 1/1/2006 ANDCompleted a rigorous high school curriculum as defined by the state Second year grant is $1300Same criteria as above AND Must have a minimum 3.0 GPA ANDGraduated from high school after 1/1/2005
*National Science and Mathematics Access to Retain Talent (SMART) GrantUp to $4000 in 3rd and 4th years of undergraduate studyEligibility requires include:U.S. CitizenPell EligibleFull Time3.0 Cumulative G.P.A.Enrolled in an eligible program of studyComputer Science, Engineering, Critical Foreign Languages, Life Sciences, Mathematics, Physical Sciences, Technology, or Multidisciplinary Studies
*ACG/SMART Grant InformationAcademic Competitiveness Grant (ACG)http://www.fsa4counselors.ed.gov/clcf/AcademicGrants.html
National Science and Mathematics Access to Retain Talent (SMART) Granthttp://www.fsa4counselors.ed.gov/clcf/SmartGrants.html
*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:
*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:
Contact:Mary Gulbrandsen, Executive Director P.O. Box 5506 Madison, WI 53705-0506Ph: 608.238.2400 email@example.com
*Wisconsin CovenantGoal: 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 familys 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.
*For more information:www.WisconsinCovenant.wi.gov
Contact:Office of the Wisconsin CovenantPO Box 7869Madison, WI 53707608-267-9389WisconsinCovenant@wi.govWisconsin Covenant
*Self-Help AidEmployment (must be earned as wages)Federal Work-StudyInstitutional Work ProgramsOff Campus employment
Loans (must be repaid with interest)Federal Perkins LoanFederal Stafford Loans (school determines the loan program)Federal Family Education Loan (FFEL) ProgramWilliam D. Ford Federal Direct Loan ProgramFederal PLUS Loan (parent)State LoansInstitutional LoansPrivate-Alternative Loans
*Federal Student LoansEvery 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 dont have to repay until you leave schoolLower interest rates than private loans or credit cardsCredit record is not neededCo-signer is not required
**2009-2010 Loan Comparison Chart
Federal Perkins LoanFederal Stafford Loan (subsidized & unsubsidized)Federal PLUS LoanPrivate Alternative LoanBorrowerStudentStudentParentStudentCosignerNoneNoneOnly if poor creditProbableCredit check NoNoYesYesFAFSA requiredYesYesRecommendedRecommendedInterest Rate5% Fixed5.6% Fixed subsidized 6.8% Fixed unsubsidized7.9% (Direct) Fixed8.5% (FFELP) FixedVariableFeesNoneOrigination Fee & Default Fee may apply (up to 2.5%)Origination and Default Fees apply (up to 4%)Vary by loan program and credit ratingLoan LimitsDetermined by school based on need and available funds 1st year - $5500 (up to $3500 sub)2nd year - $6500 (up to $4500 sub)3,4,5 years - $7500 (up to $5500 sub)Graduate - $20500 (up to $8500 sub)Unsubsidized available to all Cost of Attendance less AidCost of Attendance less AidRepayment9 months after leaving school or dropping below time6 months after leaving school or dropping below time60 days after fully disbursed (Upon request, may delay payments until after student graduates)Check with lenderBorrower BenefitsNot ApplicableCheck with lenderCheck with lenderCheck with lender
*PLUS vs. Private/Alternative LoanCompare the Differences:Interest RateBorrower/Cosigner requirements & qualificationsMinimum and Maximum loan amountsInterest accrualDeferment & Forbearance optionsFees (origination and repayment)Repayment periodConsolidation options
*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 expensesand avoid borrowing funds for discretionary spending
*How to Compare Financial Aid OffersStart with tuition, fees, room and boardSubtract grant and scholarship offers onlyThe difference is your net costAlways compare net costDo not subtract Federal Work Study as a lump sum disbursement because students are paid for hours worked
*Award Package Comparison
*Other Financing OptionsSchool Payment Plans (spread over several months)Home Equity Loans (longer repayment, tax deductible)Life Insurance Policy LoansPension Plan Loans529 Plan withdrawals
*Government ResourcesCorporation for National and Community ServiceVeterans benefits and tuition waiversROTC Scholarships and/or stipendsBureau of Indian Affairs (BIA) GrantsState Divisions of Vocational Rehabilitation (DVR)Health and Human Services Loan and Scholarship Programs
*Other Sources of FundsParental AffiliationsEmployers & Labor UnionsReligious and Community OrganizationsClubs and Civic groupsCivic organization scholarshipsHigh SchoolLocal Public LibraryPrivate business scholarships
*Sample Questions for the Financial Aid Office1)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 isnt enough?10) How is financial aid applied to your bill for tuition, fees, etc.?
If you have any other questions or concern about the financial aid process, contac...