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Andrew ReddingtonAssistant Director of Financial Aid
Illinois Wesleyan University
Scholarships are typically based on “merit”◦ Academic, fine arts, athletic, leadership
qualities◦ Awarded by colleges and universities,
organizations, businesses, clubs◦ Requirements for renewal
Grants typically based on “Need”◦ State and Federal programs◦ Colleges/Universities◦ Evaluated each year
Ability to Pay vs. Willingness to Pay◦ Parent’s Responsibility◦ Student’s Responsibility
A family’s ability to pay must be evaluated in an equitable and consistent manner.
Free Application for Federal Student Aid (FAFSA)
Student Aid Report (SAR)
Expected Family Contribution (EFC)
Data Retrieval Tool (DRT)
CSS PROFILE
Illinois Student Assistance Commission (ISAC)
IRS Data Retrieval
Student’s Social Security Number
Dependency Questions
Family Size
Taxes Paid (not amount withheld on W-2)
Investments carefully read what is included and excluded
Business/Farm
Additional Financial Information
Untaxed Income
Signatures
Automatically pulls Tax Info to the FAFSA
Available approx. 2 weeks after taxes are filed with IRS using electronic transmission
Not done after Congratulations Notice
Can be used as a component in verification
May not work in all family situations
Parent Contribution
+ Student Contribution
Family Contribution
Family Income (AGI plus untaxed income) Family Size Number of Children in College Parents Assets Age of Parents Student’s Income Student’s Assets Other…..
Cost of Education
- Family Contribution
Financial Need
Professional Judgment - with factual and verifiable information
◦ Early retirement◦ Marital Status Change- divorce, separation, etc…◦ Medical expenses not covered by insurance◦ One-Time taxable income◦ Elder care◦ Other
Gift Assistance◦ Grant in Aid◦ Scholarships◦ State Funds (MAP Grant) ◦ Federal Funds – Pell and SEOG
Loan Assistance◦ Stafford Loans◦ Perkins◦ Private, PLUS, Home Equity loans
Employment◦ Campus Work Study (On/Off Campus)
Federal Grants◦ Pell Grant◦ SEOG Grant (Supplemental Education Opportunity
Grant)
State Grants◦ MAP Grant (Monetary Award Program)◦ Other Programs
***Keep an eye on these grants as there may/will be some changes to them.***
Seen as lowest interest rates on student loans
The FAFSA must be completed
Interest rate at 3.4% Subsidized and 6.8% Unsub.
Repayment begins 6 months after the student graduates or falls below half-time
No Repayment While Student is in School
Financial Need◦ Subsidized = need based◦ Unsubsidized = not based on need
Payment of interest◦ Subsidized- Federal Government pays while
student is in college and reduced interest rate◦ Unsubsidized - interest is accruing, currently 6.8%
Freshman $3500
Sophomore $4500
Junior $5500
Senior $5500
$2000 added opportunity for Stafford Unsubsidized Loan
Parent PLUS Loan◦ Fixed Interest Rate 7.9%◦ 4% Origination Fee (Government Fee)◦ Repay While Student is in School (120 payments/10 years)
Private/Alternative Loans◦ Based heavily off of Student/Co-signer Credit◦ Interest Rates are Variable◦ Most do not Require Payment While Student is in School
Payment Plans◦ Breaks up Balance into Monthly Installments◦ May or May not Have a Fee to Set Up
Billed by the University to the plan provider
◦ College Illinois
◦ 529 Prepaid Plans
◦ Out of State 529 Plans
Family Contribution 3000 3000 3000
Grant 9,500 24,500 39,500Loan 5,500 5,500 5,500
Remaining Balance 17,000 32,000 47,000
Job 2,000 2,000 2,000
Breakdown:
Total Aid 17,000 32,000 47,000
A B C
Cost of College 20,000 35,000 50,000
◦ Can accept or decline any portion of a FA proposal
◦ Understand scholarship renewal qualifications
◦ Be aware of scholarship scams
◦ Juniors - use calculators on websites, don’t file
FAFSA
◦ Consider possibility of graduation in 4 vs 5 years
Do IRS Data Retrieval on FAFSA
Read Instructions carefully
Know state and institutional deadlines for applications (IWU is March 1st)
Use a completed Tax Return if possible
Make copies of all the forms you send
www.finaid.org
www.collegezone.com
www.collegeboard.com
www.fastweb.com
www.fafsa.ed.gov
www.pin.ed.gov
www.iwu.edu
