2008 High School Counselor Drive In Workshop

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My college

Welcomes You

Today’s Presenters:

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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)

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Today’s Agenda

8:00 – 8:30 Registration

8:30 – 8:45 Welcome

Review of Agenda and Packet Materials

College Goal Sunday

8:45 – 10:00 Financial Aid Fundamentals

10:00 – 10:15 Break

10:15 – 10:45 HEAB Update

10:45 – 11:15 DPI Update

11:15 – 12:00 FAFSA Filing Topics

Today’s presentation may be accessed online at

http://www.wasfaa.net/resources/presentations.asp or www.heab.wi.gov

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College Goal Sunday “Weekend Edition”

Saturday, Feb 21st & Sunday, Feb 22nd - 2:00pm

■ College 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!!!

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College Goal Sunday…”Weekend Edition”Coming to a location near you!!!

Saturday, February 21st

Sunday, February 22nd

Appleton

Fox Valley Technical College

Beloit

Turner High School

Kenosha

Gateway Technical College

Milwaukee

High School of the Arts

Milwaukee

Rufus King High School

Waukesha

UW-Waukesha

Eau Claire

Chippewa Valley Technical College

Fond du Lac

Marian University

Green Bay

East High School

LaCrosse

Viterbo University

Madison

Edgewood College

Madison

Madison Area Technical College

Milwaukee

Pulaski High School

Milwaukee

Riverside High School

Platteville

Platteville High School

Racine

Gateway Technical College

Rhinelander

Rhinelander High School

Sheboygan

UW-Sheboygan

Superior

Superior High School

Wausau

Northcentral Technical College

FINANCIAL AID FUNDAMENTALS

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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?

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Goal of Financial Aid

■ To 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.

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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.

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Financial Aid Regulations

■ Are determined by federal and state statutes and legislators

■ Establish applicant’s eligibility for most types of aid

■ Are applicable to all schools

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What Are the Costs?

Tuition and Fees

+ Room and Board

+ Transportation

+ Books & Supplies

+ Miscellaneous Living Expenses

= Cost of Attendance (COA)

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Expected Family Contribution (EFC)(Federal Methodology established by U.S. Congress)

Determined by filing the FAFSA

www.FAFSA.ed.gov

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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

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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

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Financial Need Defined

Cost of Attendance (COA)

– Expected Family Contribution (EFC)

= Financial Need

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EFC Calculation Example

Family Size 4Number in college 1Parent AGI $ 68,400Parent Untaxed Income $ 3,500Parent’s Assets $ 45,000Student’s AGI $ 4,500Student’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)

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Financial Need Varies by School Cost

School 1 School 2 School 3

Cost of Attendance

$ 27,394 $ 17,425 $ 12,056

Less EFC $ 8,027 $ 8,027 $ 8,027

Need $ 19,367 $ 9,398 $ 4,029

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Financial Need Varies By School Cost

1

2

3

Cost of Expected Family Financial Need

Attendance Contribution (V ariable)

(V ariable) (Constant)

1

2

3

EFC EFC

N E E D

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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

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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 institutional

application materials(if required by your school)

■ Finalize school admission■ Make sure to meet all

required deadlines!

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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)

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FAFSA Processing Flowchart

Schools #1 - #10

StudentAid

Report

FAFSA

PROCESSING

CENTER

STUDENT FAFSA

Database Matches

Wisconsin HigherEducational Aids Board

(HEAB)

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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

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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.

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What is Financial Aid?

■ Scholarships■ Grants■ Work Study Employment■ Loans

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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.

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Gift Aid (FREE $$$)

Grants & Scholarships■ Federal

Federal Pell Grant Federal Supplemental Educational Opportunity Grant

(SEOG) Academic Competitiveness Grant (ACG) National SMART Grant TEACH Grant

■ State ■ Institutional ■ Private/outside scholarships

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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

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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

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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

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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:

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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 53705-0506Ph: 608.238.2400mgulbrandsen@ffws.org

 

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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.

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For more information:www.WisconsinCovenant.wi.gov

Contact:Office of the Wisconsin CovenantPO Box 7869Madison, WI 53707608-267-9389WisconsinCovenant@wi.gov

Wisconsin Covenant

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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

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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

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2009-2010 Loan Comparison Chart

Federal Perkins Loan

Federal Stafford Loan (subsidized & unsubsidized)

Federal PLUS Loan Private Alternative Loan

Borrower Student Student Parent Student

Cosigner None None Only if poor credit Probable

Credit check No No Yes Yes

FAFSA required Yes Yes Recommended Recommended

Interest Rate 5% Fixed 5.6% Fixed subsidized6.8% Fixed unsubsidized

7.9% (Direct) Fixed8.5% (FFELP) Fixed

Variable

Fees None Origination Fee & Default Fee may apply

(up to 2.5%)

Origination and Default Fees apply (up to 4%)

Vary by loan program and credit

rating

Loan Limits Determined 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 Aid

Cost of Attendance less Aid

Repayment 9 months after leaving school or dropping

below ½ time

6 months after leaving school or dropping below ½ time

60 days after fully disbursed (Upon request, may delay payments until after student graduates)

Check with lender

Borrower Benefits Not Applicable Check with lender Check with lender Check with lender

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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

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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

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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

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Award Package Comparison

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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

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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

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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

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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.

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Questions?

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Take a Break

State of WisconsinHigher Educational Aids Board

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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.

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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

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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

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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)

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State Financial Aid Programs

Programs for Students with Financial NeedStudent must file the Free Application for Federal Student Aid (FAFSA)

Wisconsin Higher Education GrantWisconsin Tuition Grant

Programs for Students with Financial Need who must also meet Additional Requirements - FAFSA and additional Application or Nomination

Hearing & Visually Handicapped Student GrantIndian Student Assistance GrantMinority Undergraduate Retention GrantNursing Student LoanTalent Incentive Program Grant

Programs Not Based on Financial Need - Do not require the FAFSAAcademic Excellence ScholarshipMinnesota-Wisconsin Tuition Reciprocity ProgramMinority Teacher LoanTeacher of the Visually Impaired Loan

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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.

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AES High School Timeline

JANUARYHigh 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 15By February 15th of each school year the school board shall designate the Academic Excellence Scholar(s). These designations are final.

MARCH 1High school counselors must submit nomination forms, with the names of the Academic Excellence Scholars and alternates, to HEAB no later than March 1.

MARCHAcademic 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.

MAYHEAB 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

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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!

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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.

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Contacting HEAB

State of WisconsinHigher Educational Aids BoardP.O. Box 7885Madison, WI 53707-7885

(608) 267-2206 Fax: (608) 267-2808

E-Mail: HEABmail@wi.gov

Web Page: heab.wi.gov

Wisconsin Department of Public InstructionWisconsin Educational Opportunity

Programs

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Seven WEOP Office Locations

Ashland - 715-682-7975

Eau-Claire - 715-836-3171

Green Bay - 920-492-5745

Madison - 608-267-1058

Milwaukee - 414-227-4466

Racine - 262-638-7370

Wausau - 715-842-0871

www.dpi.wi.gov

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What is WEOP?

WEOP is a component of the Department of Public Instruction.

Our purpose is to help educationally and economically disadvantaged students continue their education through select statewide programs.

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WEOP Programs

■ State Talent Search Program■ Talent Incentive Program (TIP)■ PreCollege Scholarship Program■ Early Identification Program (EIP) ■ Federal GEAR UP Program (GU)■ Federal Upward Bound Program

(Wausau Office only)

■ Federal Talent Search Program (Ashland, Eau Claire, Green

Bay, and Wausau offices only)

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State Talent Search Program

■ Individual financial aid, admissions, scholarship and career advising

■ Assist with the college and financial aid application process

■ Identify and recommend students for the TIP Grant■ Recommend students for the GEAR UP scholarship■ Assist students in identifying scholarship sources■ Make financial aid presentations to parents, students,

and community groups

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Talent Incentive Program (TIP)

TIP Grant Purpose:

Assist disadvantaged, low-income students with limited financial resources

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Benefits of the TIP Grant

■ Grant ranges from $600-$1800 per year■ Automatically renewable if student applies for

financial aid and is continuously enrolled■ Available for 10 consecutive semesters

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TIP Guidelines

■ Must be a WI resident■ Attend a HEAB approved post-secondary

institution (WI technical, public or private college/university)

■ Be a first time college freshman (A student who has been enrolled in a post-secondary institution for less than two semesters at half time or greater status since attending high school.)

■ Must meet the following criteria:

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TIP Criteria

■ A student must meet one criteria from Group A and one from Group B Group A is based on financial need Group B is based on other factors

■ The criteria is based on dependent or independent status for financial aid purposes as determined by the FAFSA

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Group A

Dependent Student

1. Parent contribution at or below $200

2. Family receives TANF benefits

3. Parents unemployed and have no current income from employment and are ineligible for unemployment compensation

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Group A

Independent Student

1. A student contribution at or below $200

2. A student receives TANF benefits

3. A student and spouse, if married, is unemployed and receives no income from employment, and is/are ineligible for unemployment compensation

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Group B

A student must meet one of these criteria:■ Is a member of a minority group as listed■ Is enrolled in a special academic support program at

college■ Is first generation (neither parent graduated from a 4-

year college)■ Is disabled according to DHSF, DVR, or a special

needs office at the college campus■ Is currently or formerly incarcerated■ Have special family circumstances that may deter the

student from pursuing a post-secondary education

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Documentation that may be Requested to Complete the TIP Application Process

■ College Letter of Acceptance or Class Schedule■ Student Aid Report (SAR)■ Prior Year Tax Forms■ Verification of untaxed income ■ Financial Aid Award Letter

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How to apply?

■ Contact your nearest WEOP office■ Download the application at:

www.dpi.wi.gov/weop/index.html

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PreCollege Scholarship Program

■ Available to Wisconsin students in grades 6-12 who are eligible for free or reduced price school meals.

■ Must be attending a Wisconsin academic pre-college program

■ Covers tuition, books, supplies, room and board

■ Application must be signed by guidance counselor, teacher, principal or WEOP counselor and a parent or legal guardian

The application is available at:

www.dpi.wi.gov/weop/index.html

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EIP, FTS, UB, GU Guidelines

■ Grades 6-12

■ Programs are provided to: Targeted School Districts Students who meet federal

income guidelines for federal programs

■ Programs emphasize: Academic Achievement Tutoring Mentoring Parent Involvement College Visits Workshops

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GEAR UP Scholarship

Eligible participants: ■ Are GEAR UP, EIP or Federal Trio students

who are Wisconsin residents■ Must be nominated by a WEOP Counselor ■ Must attend a public, private, or technical

college in Wisconsin■ Must be eligible for a Pell Grant and a WHEG or

WTG grant■ Can receive this renewable scholarship for 10

consecutive semesters of attendance

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WEOP Officeswww.dpi.wi.gov

Ashland:620 Beaser AvenueAshland, WI 54806(715) 682-7975

Eau Claire:204 E. Grand Avenue, 5th FloorEau Claire, WI 54701(715) 836-3171

Green Bay:2140 Holmgren WayGreen Bay, WI 54304(920) 492-5745

Milwaukee:101 W. Pleasant Street, Suite 110Milwaukee, WI 53212(414) 227-4466

Madison:125 South Webster Street, Room 309Madison, WI 53707(608) 267-1058

Racine:2113 N. WisconsinRacine, WI 53402(262) 638-7370

Wausau:133 River DriveWausau, WI 54403(715) 842-0871

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Thanks!

Questions or Comments?

FAFSA Filing Topics

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FAFSA Filing Topics

■ Don’t Get Scammed■ Common Errors■ Special Circumstances■ Processing■ Tool Kit■ Internet Resources

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Don’t Get Scammed on Your Way to CollegeConsumer complaints are mainly about business practices:■ College prep/financial aid advice services■ FAFSA for a fee

Be aware of tactics used to convince students to buy services:

■ “If you use our services, you’re guaranteed to get at least $2000 in student aid for college, or we’ll give you your money back.”

■ “Applying for aid is complicated. We’re the only ones who can help you through the process and find all the aid for which you’re eligible.”

■ “I’d like to offer you a scholarship (or grant). All I need is your bank account information so the money can be deposited and a processing fee charged.”

Contact your nearest college financial aid office if you have questions regarding the legitimacy of any questionable offer

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Proceed with Caution!

■ Never pay a fee to file the FAFSA When filing a FAFSA, make sure you go directly to:

www.fafsa.ed.gov (not www.fafsa.com) Contact the financial aid office if you need help in

completing the FAFSA

■ Never pay for financial aid assistance! Financial aid nights Campus tours Scholarship searches

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Frequent FAFSA Errors

■ Missing Signatures/PIN■ Wrong Social Security Number■ Divorced/remarried parent information■ Income earned by parents/stepparents■ Untaxed income■ Incorrect reporting of U.S. income taxes paid■ Household size■ Number in postsecondary education■ Real estate and investment net worth■ Not using name listed on Social Security card■ NOT APPLYING AT ALL

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Assets – FAFSA Questions

■ Student (and Spouse

■ Parents

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Assets - Definitions

■ Net worth means current value minus debt.

■ Investments include real estate (do not include the home you live in), trust funds, UGMA and UTMA accounts, money market funds, mutual funds, certificates of deposit, stocks, stock options, bonds, other securities, installment and land sale contracts (including mortgages held), commodities, etc.

■ Investments also include qualified educational benefits or education savings accounts such as Coverdell savings accounts, 529 college savings plans and the refund value of 529 prepaid tuition plans. For a student who does not report parental information, the accounts owned by the student (and the student’s spouse) are reported as student investments in question 42. For a student who must report parental information, the accounts are reported as parental investments in question 92, including all accounts owned by the student and all accounts owned by the parents for any member of the household.

■ Investments do not include the home you live in, the value of life insurance, retirement plans (401[k] plans, pension funds, annuities, non-education IRAs, Keogh plans, etc.) or cash, savings and checking accounts already reported in 41 and 91. Investment value means the current balance or market value of these investments as of today. Investment debt means only those debts that are related to the investments.

■ Business and/or investment farm value includes the market value of land, buildings, machinery, equipment, inventory, etc. Business and/or investment farm debt means only those debts for which the business or investment farm was used as collateral.

■ Business value does not include the value of a small business that you (your spouse and/or your parents) own and control and that has 100 or fewer full-time or full-time equivalent employees. Investment farm value does not include the value of a family farm that you (your spouse and/or your parents) live on and operate.

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Dependency Status

■ At least 24 years old;■ Graduate or professional student;■ Married;■ Has child for whom student provides more than half support;■ Has dependent other than child or spouse who lives with student and for

whom provides more than half support;■ Orphan;■ In foster care or a ward of the court, at any time when the individual is 13

years of age or older;■ Is an emancipated minor or is in legal guardianship;■ Has been verified as an unaccompanied youth who is homeless or at risk

of homelessness and is self-supporting;■ Veteran of the U.S. Armed Forces or currently serving active duty for other

than training purposes in the U.S. Armed forces; or■ Determined to be independent by the financial aid administrator via

Professional Judgement

(Parents refusal to provide support or financial data is insufficient to make a student independent regardless of tax filing status)

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FASFA Dependency Questions

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Dependency: Orphan, Foster Child or Ward of the Court

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Dependency: Emancipated Minor or in Legal Guardianship

Emancipation is not available in every state in the United States.

There is no emancipation status in Wisconsin.

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Dependency: Unaccompanied Youth (homeless or at risk of)

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For Federal Methodology, Who is a Parent?

■ Two biological parents married to each other■ Divorced or separated parents■ Stepparent■ Widowed parent■ Legal adoptive parent

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Divorced/Separated Issues

■ FAFSA is to be completed using parent with whom the student lived with more in the past 12 months. If student did not live with one parent more than the other, give answers about the parent who provided more financial support during the past 12 months, or during the most recent year that the student actually received support from a parent.

■ If this parent has remarried, stepparent information must be included on the FAFSA.

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After you file the FAFSA

■ Results are sent electronically to the school(s) the student selected.

■ Students & Parents will receive the results of their FAFSA by e-mail (or regular mail) - Student Aid Report (SAR).

■ Students may be required to verify the information submitted on the FAFSA(submit tax forms).

■ Contact the school with anySpecial Circumstances.

■ After the student is admitted to aschool, a financial aidpackage will be prepared.

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Special Circumstances? Call the Financial Aid Office

■ Divorce/Separation■ Loss of income or benefits■ One-time income■ Death or Disability of student or parent■ Medical/Dental expenses not covered by

insurance■ Elementary or secondary school tuition■ Dependency override

(Note: Professional Judgement is at the sole discretion of each institution.)

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Professional Judgment by Financial Aid Administrators

■ Adjustments are determined by each institution on a case by case basis.

■ Another institution may automatically accept a professional judgment made by another institution.

■ The decision must recognize the unique situation of the student and must be documented.

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FAFSA on the Web andRenewal FAFSA on the Web

■ Parents with multiple children in school can continue to transfer information to additional applications

■ Link on confirmation page to “Begin a new application with parent data already filled in?” will display only for – Dependent students Independent students who provided parent data

on the application

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E-Mail Correspondence

■ When e-mails with links to SAR information on the Web are returned as undeliverable, a paper SAR or SAR Acknowledgement will be generated and mailed to student

■ Spanish e-mail notifications will be sent to students and parents who submitted Spanish-language applications and provided valid e-mail addresses

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What’s So Great About Doing the FAFSA Online?

■ It’s quick… Results back up to three weeks faster Speed may be important for schools awarding limited resources Instant access to EFC estimate Electronic Student Aid Report (SAR) sent to email provided

■ It’s easy… Detailed help screens for every question Live, private online help is available Skip logic: asks only what you must answer – skips questions that don’t

apply Access from anywhere Electronic signature using PIN English or Spanish versions

■ It’s accurate… Automatically edits data as you enter it and detects errors for correction

before submission Due to edits and online help, less likely to de delayed by the need for

corrections

■ It’s safe… FASFA on the Web uses encryption to protect confidentiality of data

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FAFSA on the Web Worksheet

Designed to use in preparing for On-Line FAFSA

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2009-2010 Changes

■ TEACH Grant question added to FAFSA■ Stafford Loan limits have increased■ Undergraduate Subsidized Stafford Loan interest change (6.0% to

5.6%)■ Dependency criteria expanded■ Educational Savings Accounts for dependents now considered in

parental assets■ Worksheet A deleted & Worksheets B and C incorporated into the

FAFSA

■ IF a paper FAFSA is needed, you may order one by calling 1-800-433-3243 or online at: http://federalstudentaid.ed.gov/fafsa/fafsa_options.html

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2009-10 Renewal Application Process

■ Renewal Reminders sent in early January 2009 Students with a valid e-mail address will receive

e-mail reminders If no e-mail address or e-mail is undeliverable,

paper reminder letter will be sent to applicant

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FAFSA on the Web Toolkits

Mailed in October to –Mailed in October to – Postsecondary schools High schools State agencies Libraries PTAs TRIO Centers Gear Up NCAN

Toolkits will include –Toolkits will include – FOTW Brochure PIN Brochure Poster Tips Card Web-Link Graphics Flyer FAA Access Flyer

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FAFSA4caster

■ FAFSA4Caster was developed to: Foster early awareness with the financial aid

application process and form Serve as an early analysis tool informing college

affordability Reduce the time required

to submit the “official”financial aid application inthe student's senior yearof high school

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FAFSA4caster

■ FAFSA4caster will: Automatically generate a Federal Student Aid PIN

for use when signing the FAFSA Instantly calculate eligibility for federal student aid Generate a FAFSA –

a FAFSA populated withstudent FAFSA4casterdata will be availablewhen the student isready to file the officialFAFSA

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www.fafsa4caster.ed.gov

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Congratulations, THERESA!

FAFSA4caster has successfully calculated the information you submitted.

Below you will see an estimated Expected Family Contribution (EFC). The EFC is not the amount of money that your family must provide. Rather, you should think of the EFC as an index that colleges use to determine how much financial aid you would receive if you were to attend their school.

When you officially apply for financial aid, the colleges you list on your Free Application for Federal Student Aid (FAFSA) will determine your eligibility and then send you award information that identifies the aid they have determined you may receive. This award information will vary from college to college because the cost of attending each is different.

Your estimated EFC is 1060.

Now that we have calculated your EFC you can see what your college education may cost for attending a certain type of college in the United States. We will use your estimated EFC of 1060 and the national average for cost of attendance at each type of school.

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FAFSA on the Web Demo Site

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Helpful Websites

■ www.fsa4counselors.ed.gov■ www.studentaid.ed.gov■ www.students.gov■ www.Going2College.org■ www.KnowHow2GO.org■ www.heab.wi.gov■ www.wasfaa.net■ www.finaid.org

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www.college.gov

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Questions? Comments?

How can we help you?

What challenges do you have?

Do you need assistance with your financial aid night?

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THANK YOU ALL FOR ATTENDING!!!

Please complete the evaluation.

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Pre-Collegiate School Relations Committee

Committee Objective: To educate students, parents, teachers, and school counselors about the availability of financial aid and the aid application process.

Committee Members:Lisa Albers Connie HutchisonPaul Baldridge Jane LemkeTriena Bodart Tom MartinLinda Brumm Heather McGeeDonna Dahlvang Amy SchraderBill Henderson David SandraMichelle Hermes Bill TrippettSara Beth Holmen Kelly Vander WystSharon Hunter Margaret Zitzer