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2012-2013Financial Aid Night
Tonight you will learn:
• What Financial Aid is• The formulas used in determining
eligibility• Sources of Financial Aid• When and how to apply• Resources for more information
To assist students in paying for schoolTo provide opportunity and access to higher
educationTo help narrow the gap between what the family
can pay and the cost of education
Goal of Financial Aid
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
Financial Aid Basic Premises
SuppliesSupplies
Tuition and Fees
Tuition and Fees
Roomand
Board
Roomand
Board+
+
Other Personal Expenses
Other Personal Expenses++
+Books
Transportation
COST OF ATTENDANCE (COA)
Living at Home
Living On/Off
Campus
UW-Madison $15,320 $22,330
UW-Milwaukee $17,810 $24,800
UW-Green Bay $14,722 $18,000
UW Colleges $11,770 $16,170
NWTC $10,300 $14,624
Carroll University $33,216 $37,050
Lawrence University $48,471
Marquette University $41,972 $44,922
Northwestern University
$56,006
Iowa State University $30,490
6
2011-2012 Estimated COA Examples
IS a measure of family’s capacity over time to absorb educational costs
IS NOT a dollar amount expected from current income or assets.
IS NOT an estimate of “extra” cash available.
The Expected Family Contribution(EFC)
Taxe
s
#
in fa
mily
Expected Family Contribution (EFC)
Federal Methodology
Used to award Federal Aidat public and private schools
Uses both parent & student information (for dependent students)
Uses standard income & asset protection allowances
# in
colle
ge
Ass
ets
Income
FAFSA
Current Federal Methodologyfor a Dependent Student
Parent Income 22-44% after taxes and income protection allowance
Parent Assets* 5-6% after asset protection allowance
Divided by number in college
Student Income 50% after taxes and income protection allowance of $5250
Student Assets 20%
EXPECTED FAMILY
CONTRIBUTION
STUDENT Contribution PARENT Contribution +
Used by some colleges to award their own institutional funds
Formula could vary widely from school to school
Often requires additional applications/formsMay consider income & assets not reported
on the FASFA such as:Home EquityRetirement AccountsAssets in siblings namesIncome of non-custodial parent
Institutional Methodology
23
The Parent Contribution
A Case Study
2011-2012 Federal Methodology
If Parents' Assets are: $15,000 $50,000 $70,000 $100,000
Parents' AGI Expected Parent Contribution will be:
$40,000 $1,558 $1,590 $2,118 $2,910
$60,000 $4,178 $4,220 $4,916 $6,093
$80,000 $10,223 $10,290 $11,418 $13,110
$100,000 $17,129 $17,196 $18,324 $20,016
Family ProfileOldest Parent’s Age: 50Family Members: 4Number in College: 1
Cost of Attendance (COA) - Expected Family Contribution (EFC)
= Financial Need
Financial Need Determination
A Sample Financial Aid Award
$3,000 Scholarship + $4,000 Grant
$2,000 Work Study + $5,500 Stafford Loan
Unmet Need = $1,500
COA EFC Need$25,000 - $9,000 = $16,000
Family’s Responsibility = $10,500
Sources & Types of Funding
Financial Aid
14
• Scholarships Do not have to be repaid Usually awarded on the basis merit, talent, or skill
• Grants Do not have to be repaid Usually awarded on the basis of financial need
• Loans Money that must be repaid Borrowed by student, parent, or both
• Work Study Student is given the
opportunity to earn money
What is Financial Aid?
Grants & Scholarships
• Federal Grants• Pell Grant, SEOG, TEACH
• State Grants & Scholarships• Need and non-need based
• Institutional Grants & Scholarships• Vary by institution
• Private Scholarship• Seek out funding early!
Self-Help Aid
Loans
Money borrowed by student and/or parent(s) to help pay college expenses
Repayment usually begins after education is finished
Look at loans as an investment in the future, but Only borrow what is really needed
Employment
Allows student to earn money to help pay educational costs
Student paid for hours worked
17
Every family should apply for financial aid.
Regardless of income, every student qualifies for a Federal Stafford
loan, if they meet the basic eligibility requirements.
18
Federal Stafford Loan
Additional Resources
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
Other Resources
Private Scholarships Civic Organizations,
Parent’s Employers, Community Foundations, Web Searches, etc.
Private Education Loans School Payment Plans
(spread over several months)
Home Equity Loans Life Insurance Policy
Loans Retirement Plan Loans 529 Plan withdrawals
State ProgramsFinancial Aid
20
State financial aid is available to WI residents enrolled at non-profit colleges & universities based in WI UW System Schools, WI Technical Colleges,
Independent Colleges & Universities, Tribal Colleges
Cannot receive funding if listed on Statewide Child Support Lien Docket
Male students MUST be registered with selective service
21
Wisconsin Higher Educational Aids Board (HEAB)
HEAB receives FAFSA data for students that list WI as their state of residence
HEAB notifies the college or university financial aid offices of each student’s eligibility for state financial aid
The financial aid office includes state aid in the student’s financial aid package.
Wisconsin Higher Educational Aids Board (HEAB)
For students WITH financial need WI Higher Education Grant (WHEG) WI Tuition Grant (WTG)
For students WITH need AND additional requirements Hearing & Visually Handicapped Student Grant Indian Student Assistance Grant Nursing Student Loan Talent Incentive Grant (TIP) WI Covenant Scholars Grant
Programs that do not require need Academic Excellence Scholarship Minnesota/Wisconsin Tuition Reciprocity Program Minority Teacher Loan Teacher of the Visually Impaired Loan
23
HEAB – Program Details
The goal of the Wisconsin Covenant is for 8th grade students to aspire to and prepare for higher education.
Every Wisconsin student should know that if they are willing to work hard in high school, stay out of trouble and contribute to their community, college IS possible
For more information: www.wisconsincovenant.wi.gov
The Wisconsin Covenant
A Confirmation form, signed by:StudentParentPrimary Contact
A record of service formTwo letters of recommendation, if
necessary due to a suspensionStudent and/or family mails these
documents to the Wisconsin Covenant Office
HEAB – WI Covenant’s Senior Checklist
November/December
Lists of Wisconsin Covenant students provided to Primary Contact at each high school
December 1 Confirmation form available online & mailed to seniors
January 1 Confirmation Process Begins
April 1 Confirmation/FAFSA deadline
26
HEAB – Important Dates for Confirmation Process
Students MUST verify that they meet the pledge requirements to be recognized as a WI Covenant Scholar and to receive the
Scholars Grant.
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. Recipients are selected randomly out of those students that meet basic eligibility criteria.
Fund for Wisconsin Scholars (FFWS)
www.ffws.org
• Administered by the Department of Public Instruction State Talent Search Program Talent Incentive Program (TIP) Precollege Scholarship Program Early Identification Program (EIP) Federal GEAR UP Program Federal Talent Search Program
Wisconsin Educational Opportunity Programs (WEOP)
How to ApplyFinancial Aid
Submit the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov
Submit institutional financial aid application materials (if required by school)
Meet all required deadlines! Renew the FAFSA every year.
Application Process
31
A form that collects demographic & financial information about the student and family Income of student and
parent(s) Assets of student and
parent(s) Family size Number in College Age of the older parent
May be filed electronically or using paper form
Available in English and Spanish
31
What is the FAFSA?
www.fafsa.gov
Department of Education PIN
Sign FAFSA electronically
Not required, but speeds processing
May be used by students and parents throughout aid process, including subsequent school years
www.pin.ed.gov
Reporting Assets on the FAFSA
Do NOT Report on FAFSA
Principal place of residence/family farm (family must live on & operate farm)
Small business with 100 or few employees (must own & control more than 50% of business)
Personal PossessionsWhole Life InsuranceRetirment Accounts
(pensions, annuities, IRAs, deferred comp, etc.)
Do Report on FAFSA
Cash, Checking, SavingsRental PropertyLand, vacation property,
second or summer home Trust Funds529 accountsUTMA, UGMA, Custodial
AccountsMoney Market accounts, CDs,
stocks, bonds, securities, etc. Investment Farm Business Value 33
Unless student meets one of these criteria, parental data must be reported on the FASFA
will be 24 years of age by December 31 of the award year; has legal dependents other than a spouse who live with and
receive more than half of their support from them has dependent children who live with and receive more than
half of their support from them; is or was an emancipated minor or in legal guardianship as determined by a court in the student’s state of legal residence;
is married;is a veteran of the U.S. Armed Forcesis serving on active duty in the U.S. Armed Forces for
purposes other then training; 34
Dependency Status
is a graduate or professional student; is an orphan, in foster care, or a ward of the court, at any
time when the student was 13 years of age or older; is an unaccompanied youth who is homeless or who is at
risk of homelessness and is self-supporting, as verified during the school year; or
presents documentation of other unusual circumstances demonstrating independence to the financial aid administrator.
Parents refusal to provide support or financial data is insufficient to make a student independent regardless of tax filing status.
Dependency Status (continued)
• Biological parents married to each other• Divorced or separated parents• 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, use information 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.
• Stepparent• Widowed parent• Legal adoptive parent – this does NOT mean legal guardians,
even those that are relatives. 36
On the FAFSA, Who is a Parent?
Results are sent electronically to the school(s) student selected.
Students & Parents will receive the results of their FAFSA by e-mail (or regular mail) - Student Aid Report (SAR).
If FAFSA corrections are necessary, go to www.fafsa.gov and “make corrections to a processed FAFSA.”
If FAFSA is rejected, follow the instructions to correct it! Students may be required to verify the information
submitted on the FAFSA (submit tax forms). After the student is admitted to a school, a financial aid
package will be prepared. Contact the school with any Special Circumstances.
After you file the FAFSA
Can be required by the federal government or by the institution
Is carried out by the institutions Involves documentation of data
provided on the FAFSA An award may change after verification
Verification Process
Information not reported on the FAFSA can impact a family’s ability to contribute toward the
student’s educational expenses
39
Special Circumstances
Change in employment status
Loss of income or benefits One-time income (capital
gains, retirement withdrawal, etc.)
Change in parent marital status
Disability of student Death or disability of parent High medical/dental expenses
not covered by insurance
Parent in college Elementary or secondary
school tuition Elderly care expenses Dependent care expenses Student cannot obtain parent
information – Unsubsidized loan eligibility ONLY
Dependency override
Send explanation to financial aid office at each college
College will review special circumstances
May be required to submit additional documentation
Adjustments are determined by each institution on a case by case basis, recognizing the unique situation of the student.
Decisions made by the institution are final and cannot be appealed to U.S. Department of Education
40
Special Circumstances
Proceed with Caution!
Never pay a fee to file the FAFSA– When filing a FAFSA, make sure
you go directly to: www.fafsa.gov (not www.fafsa.com)
– Contact a financial aid office if you need help in completing the FAFSA
Never pay for financial aid assistance!
The Financial Aid Calendar
January – FebruaryComplete forms (BEST GUESS IS OK FOR
INCOME)
Late February - March May be required to submit additional
documents
March - April Financial Aid awards mailedCompare award letters from different schools
The Financial Aid Calendar (continued)
May 1 DECISION DEADLINE - Tell all
schools yes or noPay deposits (tuition,
room and board)May - August
Complete paperwork for loans
Start searching for student employment opportunities
Pay bill for fall semester
“Insider” Tips
Find out the deadlines and comply! Keep copies of what you send. If you have questions, ask! Look at all of your financing options Never assume you’re too poor to attend college
or too rich to receive some type of financial aid. Do NOT underestimate your options & do NOT
rule out a school just because of its cost Apply to one or two financially ‘safe’ schools Think about how you (parent & student) will pay
your share of total college costs (2/4+ years)
‘Financially’ Manageable During and AFTER
the College years
PARENTPARENT STUDENTSTUDENT
Will not jeopardize Financial Security Comfortable Retirement Educating other children Other financial goals
Will not leave excessive debt Will not jeopardize financial
independence after graduation
Estimate the ‘Total’
Cost of Education4+ years of expenses
Estimate the ‘Total’
Cost of Education4+ years of expenses
Look at your entireFinancial Situation
Look at your entireFinancial Situation
Make financial decisions that :
In Summary Student Responsibility
We’re Here to HELP!!!
Additional Resources
College Access Advising
Part of Wisconsin’s College Access Challenge Grant administered by Great Lakes Higher Education Guaranty Corporation
Priority given to low-income students and families. Services available to all Wisconsin high school students.
Ten College Access Advisors provide free workshops and one-on-one advising
888-648-5733
E-mail: [email protected]
• Free program to help families complete the FAFSA• February 18-19, 2012• Scholarship drawing at each site
– Provided by WASFAA and CACG• 29 sites throughout Wisconsin• Sponsored by WASFAA along with several other
partners
For location information:
visit www.collegegoalwi.orgor call 1-866-578-4625
College Goal Wisconsin
College Goal WisconsinSaturday Sites
February 18, 2012
AppletonFox Valley Technical College1825 N Bluemound(Entrance 1, Room A105)
JanesvilleHedberg Public Library316 S Main Street
MarinetteUW Marinette750 W Bay Shore Street(Enter Main Building)
PlattevillePlatteville High School710 E Madison StreetCommons Area
West BendEast High School 1305 E Decorah Drive Use Auditorium Entrance on River Road (Cty Hwy G)
BeloitBeloit Memorial High School1225 4th Street
KenoshaGateway Technical College3520 30th AvenueThe Center for Bioscience
MilwaukeeAlverno College3400 S 43rd Street(Free parking in ramp. Enter rotunda.)
Rice LakeUW Barron County1800 College DriveRitzinger Hall
Wisconsin RapidsMid State Technical College500 32nd Street, Building A
ElkhornGateway Technical College400 County Road HBuilding 100
MadisonEdgewood College1000 Edgewood College Avenue(Use Main Entrance)
MilwaukeeMoorse Marshall School for the Gifted and Talented 4041 N 64th Street
WaukeshaUW Waukesha1500 N University DriveCommons Building
Green Bay East High School 1415 E Walnut Street (use Front Entrance off of Walnut Street)
MadisonMadison Area Technical College3550 Anderson Street(Use Redsten Gym Entrance)
OshkoshUW Oshkosh800 Algoma Blvd
WausauNorthcentral Technical College1000 Campus Drive(Main Entrance Rooms, E101 and E102)
College Goal WisconsinSunday Sites
February 19, 2012
DeForest (Madison Area)DeForest High School815 Jefferson Street
LaCrosseUW LaCrosse1705 State StreetWing Technology Center
RacineGateway Technical College1001 S Main StreetRacine Conference Center(Parking in Lake Level Parking Lots. Lake Side Entrance.)
Eau ClaireChippewa Valley Technical College620 W Clairemont AvenueBusiness Education Center(Entrance by Parking Lot P1 at the front of the building or P9 on the west side)
Manitowoc UW Manitowoc 705 Viebahn Street Entrance-Founders Hall (Middle Building)
RhinelanderRhinelander High School665 Coolidge Avenue(Entrance 1)
Fond du LacMarian University45 S National AvenueStayer CenterCorner of 4th and National
MilwaukeePulaski High School2500 W Oklahoma Avenue(Use Main Entrance at 25th & Oklahoma)
SuperiorSuperior High School2600 Catlin AvenueLibrary Computer Lab
KenoshaUW Parkside900 Wood RoadStudent Center
MilwaukeeRiverside High School1615 E Locust Street(Main Entrance off of Locust)
