1. The Financial Aid Process 2014-2015
Presented by: Patty Taylor
Director of Financial Aid
Lakeland College

2. Financial Aid Topics for tonight
How to Apply for Financial Aid
FAFSA, other forms and documentation
How is Financial Aid Determined?
Budget, EFC, Financial Need
Types and Sources of Financial Aid
Federal, State, Miscellaneous
Award Letter
Extras
Timetable
Special Circumstances
Tax Benefits
Contact Information
Types → and Sources of Financial Aid
↓ Federal 5
→ workstudy 6
→ loans 7
→ sub 8
→ unsub 9
→ PLUS
↓ State 12
↓ Lakeland College
↓ Miscellaneous 15
→ scholarships
→ private loans 18
How is Financial Aid Determined? (Budget … - EFC … = Financial Need …)
How to Apply for Financial Aid – FAFSA, other forms (24-27) / 28
Award Letter
Extras
↓ Timetable 32
↓ Special Circumstances 33
↓ Tax Benefits 34
↓ Contact Information 35

3. How to Apply for Financial Aid
Complete the Free application for Federal Student Aid (FAFSA)
FAFSA on the Web (FOTW) worksheets
Paper FAFSA’s can be obtained by calling
fed-aid ( )
Complete any other forms the financial aid office may require
To apply for financial aid, you need to complete the Free Application for federal student aid (FAFSA). The FAFSA can be completed on paper or online.
Paper versions—CALL
Go to the FAFSA Website

4. FAFSA on the Web

5. Opening page when selecting “Start FAFSA”
Beginning the FAFSA
Opening page when selecting “Start FAFSA”
Legal Name
Student SSN
Student Date of Birth

6. Documents Needed to complete FAFSA
2013 Federal Taxes—with 2 weeks after electronic submission of taxes, on the FAFSA you should be able to pull the data in through the IRS Data Retrieval Tool.
W’2’s
Untaxed Income information
Bank Statement
Asset Values
Driver’s License
Social Security Number
On Tax Data it is important to know which 1040 form you were eligible to use (1040,1040a, 1040ez). Makes a difference with Assets that need to be listed
Talk about the assets –what to include—what not to include
Untaxed Income

7. FAFSA Sections Student Biographical Information
Student Dependency Status
Parent Information
Student Information
Colleges and Housing
Signature Page and Submission

8. Student Biolog ical Data
LEGAL NAME as listed on the Birth Certificate
Address
Citizenship
Social Security Number
Driver’s License
Male/Female—Selective Service
Drug Conviction
Biological Parent’s Highest Grade level

9. Student Dependency Status
Born Before January 1, 1991
Married
Master’s Degree
Active Duty
Veteran
Have Children that are supported by you
Parent’s Deceased
Legal guardianship
Homelessness

10. Parent General Information
Last Name
First Initial
SSN
Date of Birth
Marital Status
State of Legal Residence
Number in the Household
Number in College

11. Parent Financial Information
Benefits from Federal Programs
Filing Status
Type of return filed or filing
Adjusted Gross Income (AGI)
(‘help’ with tell you exactly which line on the 1040, 1040A, 1040EZ)
Taxes Paid
Income earned from work for Parent 1 and Parent 2
Parent 1 and Parent 2 is a change from last year. Must be a legal parent.

12. Parent Financial Information cont.
Education Credit
Child Support Paid
Tax deferred pensions (401k’s or 403b’s)
(W2 boxes 12a,b,c,d,e,f g,h,s)
Child Support Received
Distributions from IRA or Pensions
Other Income

13. Parent Financial Information Cont
Balance of Cash, Savings, Checking
Net Worth of Investments
Real estate (not the home you reside in), trust funds, UGMA and UTMA accounts, money market funds, mutual funds, CD’s stocks, stock options, bonds, other securities, installments on land sale contracts, commodities
Qualified educational benefits or education savings accounts (e.g., Coverdell savings accounts The refund value of 529 prepaid tuition plans)

14. Parent Assets continued
Do not include
Home you live in, value of life insurance, retirement plans (401K, 403B) plans, pension funds, annuities, non-education IRA’s, Keogh plans, etc) or cash, savings and checking accounts already reported under cash, savings, and checking.
UGMA and UTMA accounts for which you are the custodian but not the owner.
Investment Value means the current balance or market value of these investments as of today.

15. Parent Assets Continued
Business or Farm Value
Include 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.
Do not include a business if your family owns and controls 50 percent of the business and the farm or business has fewer than 100 full-time equivalent employees
Do not include the value of a family farm that you and (your spouse, and/or your parents) live on and operate.

16. Student Financial Information
Benefits from Federal Programs
Filing Status
Type of return filed or filing
Adjusted Gross Income (AGI)
(‘help’ with tell you exactly which line on the 1040, 1040A, 1040EZ)
Taxes Paid
Income earned from work for Student (and/or Spouse)

17. Student Financial Information cont.
Education Credit
Child Support Paid
Taxable Earnings from Federal Work Study
Tax deferred pensions (401k’s or 403b’s)
(W2 boxes 12a,b,c,d,e,f g,h,s)
Child Support Received
Distributions from IRA or Pensions
Other Income

18. Student Financial Information Cont
Balance of Cash, Savings, Checking
Net Worth of Investments
Real estate (not the home you reside in), trust funds, UGMA and UTMA accounts, money market funds, mutual funds, CD’s stocks, stock options, bonds, other securities, installments on land sale contracts, commodities
Qualified educational benefits or education savings accounts (e.g., Coverdell savings accounts The refund value of 529 prepaid tuition plans)

19. Student Assets continued
Do not include
Home you live in, value of life insurance, retirement plans (401K, 403B) plans, pension funds, annuities, non-education IRA’s, Keogh plans, etc) or cash, savings and checking accounts already reported under cash, savings, and checking.
UGMA and UTMA accounts for which you are the custodian but not the owner.
Investment Value means the current balance or market value of these investments as of today.

20. Student Assets Continued
Business or Farm Value
Include 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.
Do not include a business if your family owns and controls 50 percent of the business and the farm or business has fewer than 100 full-time equivalent employees
Do not include the value of a family farm that you and (your spouse, and/or your parents) live on and operate.

21. Colleges and Housing List up to ten colleges
Search for the school code
List WI schools first. Only the first four will be included on the State lists to the colleges.

22. IRS Data Retrieval Tool (DRT)
Allows the federal tax data to be linked from the IRS data base to the FAFSA
If filed electronically the taxes, two week lag time, if filed by mail 4 week lag time
If owe taxes the IRS DRT is delayed and not available as quickly. Typically it is after the 15th of April.
Not Available for Amended Tax Filers
DO NOT change any of the data that was transferred through the IRS DRT process

23. Signature Page Personal Identification Number (PIN)
Student needs a number
A Parent needs a number
You must mark the oval to agree to the statement on the page.
Can print the signature but the processing will take longer
Must submit the FAFSA and actually received a confirmation page

24. PIN Registration Web site: www.pin.ed.gov For student and parent
Not required,
but speeds processing
May be used
throughout financial
aid process
If you do complete the FAFSA online, it is a good idea for you and parent to get a pin number. The PIN is used as electronic signatures. You’ll want to keep your PIN in a safe place along with all necessary passwords.
PINS can be used for Student/PLUS loan Master Promissory Notes.
PIN—keep it safe with all necessary passwords.

25. Frequent FAFSA Errors Parent & student social security numbers
Divorced/remarried parental information
Income earned by parents/stepparents
Untaxed income
U.S. income taxes paid
Household size
Number of household members in college
Real estate & investment net worth
Parent and Student SSN = Match Social Security Administration.
Divorced/remarried—family household income
Real estate & investments—see directions
Small business—sole ownership < 100 employees—no longer listed.
There are several good reasons to complete the FAFSA online…such as built-in edits to help prevent errors, skip logic which allows for students and parents to skip questions that do not apply. There is help available online for common questions. Students and parents have the ability to check the status of the FAFSA online and there is a simplified renewal process when completing the FAFSA each year.

26. The 2014-2015 Corrections on the Web
Talk with a financial aid office regarding corrections. Some corrections are required to be made while others may not be.
If you marked “will file” for taxes you will be required to submit corrections.

27. What Happens After the FAFSA is Submitted?
Student receives an that the FAFSA is processed within 3-5 days if PIN’s are used.
All colleges listed on the FAFSA should receive an electronic copy
A paper Student Aid Report is generated only if the FAFSA was completed on paper and an address was not entered.
Once you have filed your FAFSA, you will receive a that the FAFSA is processed within 3-5 days if PIN’ s are used. All the colleges you listed on the FAFSA will receive an electronic copy of the FAFSA. Also a note that a paper Student Aid Report is generated only if the FAFSA was completed on paper and an address was not entered. A Student Aid Report just details all the information you entered on the FAFSA.

28. Additional Forms
Additional forms (these may not be required for everyone)
Financial aid application
Signed copies of 2013 federal tax returns transcripts for Parent’s and Student
IRS DRT fulfills this requirement
By Phone
On line at under tools “Order a Tax Return Transcript or Account Transcript—for amended tax files only
Paper request—download form 4506T-EZ from the website
W-2’s
Verification worksheet (maybe different for each college)
Social security card
Selective service card (
File should be complete for an award to be determined
May need to watch internet site of college

29. The Award Letter Lists each source of assistance
Gives you the right to accept or decline any type of aid
May need to be signed and returned to the Financial Aid Office
Many colleges have the award letter available on-line.
Some FAO don’t require a signature. If they don’t hear from you they automatically assume you will accept all aid.

30. Award Letter is Accepted. What’s Next?
If the student accepted a loan, the necessary promissory notes need to be completed at
Students borrowing for the first time through the federal programs must complete Entrance Counseling.
Students should keep copies of the loan application, award letters, and disclosure statements
Be there to help you son/daughters. Many have never borrowed money and need guidance determining which loan program is best for them.
10 days prior to the term, we are allowed to disburse financial aid funds to a students account.
After you sign your award letter, if you accepted a loan you will need to complete the necessary promissory notes—which detail the terms of loan and is basically your promise to repay the loan.
If you are a first-time loan borrower through the Federal Loan program, you will also need to complete loan entrance counseling. The loan entrance counseling allows for students to learn about loans.
Many schools wait to disburse after a census date. (two weeks into the term)

31. What is Financial Aid?
Financial aid is money a student receives to help the student and family pay for educational expenses.
So paying for college is a cooperative effort between students, parents and financial aid.

32. Types of Financial Aid Grants—Money not paid back
Scholarships—Money not paid back
Loans—Money a student or parent borrows and pays back to a lender
Work Program—Job on-campus
There are several different types of financial aid.
Grants and Scholarships are funds that don’t need to be repaid.
Grants are usually awarded base on financial need whereas scholarship are usually earned based on academics or special interest (such as major/community service/participation).
Loans are funds the student or parents borrow and pay back a lender. There are also loans available for Parents called the PLUS loan.
Finally there is the work program, where a student can get a job on-campus.

33. Federal Sources Grants Pell SEOG Teach Grant Work Study Loans
Subsidized
Unsubsidized
PLUS
Perkins
Pell Grant—awarded based on need
SEOG—awarded by the school based on need
Teach Grant—School must apply to participate—Student can receive up to $4000. Careful—lots of requirements and it can become a loan.

34. Work Study Wages partially funded by Federal Dollars
May be required to apply for a job
Jobs may not always be guaranteed
Earnings must be issued to the student
Student can used funds as they determine…extra spending money or can apply towards semester balance—FWS or regular employment doesn’t come directly off the bill.

35. Student Loans
Loan Limits for the Subsidized/Unsubsidized per academic year for dependent students.
$5500 Freshman
$6500 Sophomore
$7500 Junior
$7500 Senior
Career Maximum to borrow is $31,000
Subsidized Loan limit of 150% of Program.
$27000 after 4 years…important for students to strive to graduate in 4 years (only $4000 left for a 5th year)

36. Student Loans Cont. Federal Subsidized
Interest rate of 3.86% (subject to Change as of July 1, 2013
6 months grace after college before repayment begins however interest starts accruing
1.072% origination fee deducted by the federal government from the gross amount of the loan
government pays the interest while the student is in college
1% federal default fee
Origination will decline to 0 over the next 2 years.

37. Student Loans Cont. Federal Unsubsidized
Interest rate is 3.86% (Undergraduates)
6 month grace period after college before repayment begins however interest starts accruing
1.072% origination fee deducted by the federal government from the gross amount of the loan
The student is responsible for the interest on the loan while in college
1% federal default fee

38. PLUS Loans Federal Parent Loan for Undergraduate Students (PLUS)
Loan for Parents
Interest rate 6.41%
4.288% origination fee deducted from the gross amount of the loan

39. PLUS Loans Cont. 1% federal default fee
Credit check is performed—if denied, an endorser can be obtained
Payments begin 60 days after the latest disbursement
Parents can request to postpone payments while the student is enrolled at least half-time.
If the loan is denied b/c of the credit check, a couple of different things can happen. Parent may be able to request a 2nd look to review the credit history more closely or the student will become eligible for a federal Stafford unsubsidized loan with a parent denial for the PLUS loan. ($4000/$5000)

40. State Sources Grants Wisconsin State Tuition Grant (Private)
Wisconsin Higher Education Grant (UW’s / Tech)
Wisconsin Covenant
Wisconsin Indian Grant
Talent Incentive Program (TIP)—Wisconsin Education Opportunity Programs (WEOP)
Minority Grant
State grant programs will not appear equally at all colleges. Private is based on a formula that takes into account tuition charges at each school and EFC.
Briefly Explain TIP—which is designated to assist low income, disadvantaged students. Students would need to apply for this grant separately if they meet eligibility requirements.

41. Wisconsin Covenant 2014-15 http://www.wisconsincovenant.wi.gov/
Students MUST:
1. Complete FAFSA by April 1
2. Complete confirmation form by April 1
3. By July determine which college student will attend.
There are not exceptions to these deadlines.
Appeal process—military, serious accident with severe medical issues. .

42. Wisconsin Covenant Full-time (12 credits) for 2013-14
EFC
WI Covenant Foundation Grant
WI Covenant Scholars Grant
Yearly Total $0
$1,500
$1,000
$2,500
$1-$3,499
$3,500-$11,999
$1000
$12,000-$99,999
$250
WI Covenant Foundation---Great Lakes $
WI Covenant Scholars—State Tax Sponsored

43. Wisconsin Covenant Half-Time (6-11 credits)
EFC
WI Covenant Foundation Grant
WI Covenant Scholars Grant
Yearly Total $0
$1,500
$750
$2,250
$1-$3,499
$3,500-$11,999
$500
$12,000-$99,999
$125
Again, no guarantee it will be available after this year.

44. Miscellaneous Sources
College
Community, foundations, Companies
DVR
Tribal Indian Grants
Financial Institutions—Private/Alternative Loans:
Scholarships can be given out by community groups, local businesses, churches, the college or other organizations.
DVR—Department of Vocational Rehabilitation—receive special services at school, you may want to look into this program (Physical/Mental Disabilities)
Workforce Development—loss of employment

45. Scholarships Outside Scholarships
Must report scholarship(s) to financial aid offices
Ask colleges if the scholarship affects the students financial aid award
loan or work-study can be affected
National searches:

46. Scholarships Cont. When applying for Scholarships:
1. Type applications
2. Follow directions
3. Dress Up for Interviews
hours completing applications and if awarded $1000 equates to $50 per hour.

47. Alternative Loans
Banks have been developing their own loan programs for student.
list of available lenders at above weblink.
Schools can’t always recommend a lender
Often need co-signer—PLUS might then be better option
Maintain Good Credit.

48. How Financial Aid is Determined
Budget …
Expected Family
Contribution (EFC)…
= Financial Need…
EFC is a formula passed by Congress. Don’t always have to agree but we must use it.
Principles of Need Analysis
Family has primary responsibility for meeting cost
Federal Methodology need analysis attempts to measure ability not willingness to pay.
Family’s financial circumstances are taken as they are at the time of application as a benchmark.
Family’s may provide the FAO with documented unusual circumstances for further consideration.

49. Budget Tuition and Fees—Direct Cost
Room and Board—May be direct or indirect Cost
Books—Indirect cost
Transportation—Indirect cost
Personal—Indirect cost
Loan Fees—Indirect cost

50. Expected Family Contribution (EFC)
Government Calculation
student income and assets
parent income and assets
number of people in the family
number of people in college
Two Components:
1. Parent Contribution
2. Student Contribution
Principles of Need Analysis—approved by congress—consider it a measurement tool.
Family has primary responsibility for meeting cost
Federal Methodology need analysis attempts to measure ability not willingness to pay.
Family’s financial circumstances are taken as they are at the time of application as a benchmark.
Family’s may provide the FAO with documented unusual circumstances for further consideration.
Explain # in College ie: 1 in college and $5000 EFC 2 in college may be $3500 per student because of how they adjust the allowances on the income side.

51. Example of Financial Need
4-Year Private college
4-Year Public College
2-Year Public College
Budget
$40,000
$19,000
$8,000
EFC
$7,000
Financial Need
$33,000
$12,000
$1000
Explain the examples

52. Timetable
This is very important. Be very aware of deadlines. Some colleges have cut off dates for different institutional grants or scholarships.
Example--WSTG

53. Special Circumstances
Involuntary loss of employment
Unusual and excessive paid medical expenses
Divorce/Separation
Death of parent or spouse
Others
FAFSA takes a snapshot of family situation, so if you have special circumstance…Talk to FAO
Generally require a letter and documentation of special circumstances. Different colleges may make different determinations on special circumstances, but decisions of each college are final and cannot be appealed to the US Dept of Ed.

54. Tax Benefits
There are federal tax credits available while students are in college. This is a good time to talk with a tax advisor about these benefits and how they may impact your tax filing in the future.
Brochure about tax tips
Mention tax deferred savings plans

55. College Goal Weekend www.wicollegegoalsunday.org
When: February 23 &
Time: 2:00 p.m.
Location: various location around the state
What For: Help with completing the FAFSA

56. Net Price Calculator (NPC)
Available on all college website
Strictly an estimate
Colleges must follow minimum guidelines
Net Prices can vary depending on the Cost of Attendance (COA)

57. College Shopping Sheet
Has certain statistics
Lists your aid
Includes your entire budget (Direct and Indirect Costs)
The form is set by Federal Requirements
It is optional for schools to participate

58. Good Luck! Patty Taylor 920.565.1298 taylorpl@lakeland.edu
One last thing—PRIVACY ACTS—Sometimes we can not always disclose information to parents without students permission