THREE TYPES : 1. Gift Money (Money that you do not have to pay back) 2. Earned Money (Money earned by student and/or parent(s) 3. Borrowed Money (Loans-must be repaid when done with college) TYPES OF FINANCIAL AID
Gift Money Gift Money Money for College that does NOT have to be repaid Scholarships: FREE Money for College! 1.Anyone can get scholarships 2.Finding Scholarships School Counselor College Financial Aid Office Local searches Online searches: bigfuture.org zinch.com cappex.com
Federal & State Financial Aid It all starts with the FAFSA so you hafta FAFSA!
Federal PELL Grant: Up to $5550 per year Supplemental Educational Opportunity Grant (SEOG): Up to $4000 per year Teach Education Assistance for College and Higher Education (TEACH) Grant: Up to $4000 Caution: Turns into a loan if you switch your major at any time. Federal Grants – Gift Money
State Grants – Gift Money Wisconsin Higher Education Grant – WHEG Most common at UW’s Wisconsin Tuition Grant Most common at Technical Schools Others Wisconsin Covenant, Gear Up, etc. Hint: If it says “Grant” that means FREE Money!!!!
Federal Work Study (Earned Money) An opportunity for you to work Earn money to cover your college expenses Jobs you might finds: Library aid Food service worker Front desk clerk Advantages
Many schools (particularly private) have additional work study programs that help you pay for school. You need to ask early about obtaining one of these positions. Other Work Study Opportunities
Name of LoanMaximum Amount Interest Rate 2013-2014 Who Covers Interest while in College Grace Period Perkins Loan$5,5005%Government9 months Subsidized Stafford $3,5006.8%Government6 months Unsubsidized Stafford $5,500 (Maximum for both types of Stafford loans 6.8%Student6 months Student Loans – (Borrowed Money) Student Loans – (Borrowed Money) Never borrow more than you absolutely need
Loans borrowed by parents PLUS loans have a compound interest rate Payment can be delayed until after the student leaves college Can borrow up to the cost of attendance minus any other financial aid received PARENT PLUS LOANS – Borrowed Money
FAFSA: The Free Application for Federal Student Aid Completing the FAFSA is THE most important step in qualifying for federal financial aid. Most scholarship applications also require the information from the FAFSA. Get a PIN (personal identification number) both student and parent need one How to Get Financial Aid You Hafta FAFSA!
Bring Six to Submit… What you need to complete the FAFSA… Both Parents & Students 1.Social Security number 2.Dates of birth, death, marriage and divorce 3.W2’s and tax forms 4.Most recent bank statements 5.Amounts of any other income 6.Values of any other assets
Can begin working on your FAFSA starting January 1 of the year you are going to college Complete prior to college’s priority date Average time to complete the FAFSA is 22 minutes Complete & Submit the FAFSA!
How Financial Aid is Awarded Cost of Attendance (COA) 1.Tuition, room & board, books & supplies, transportation, personal expenses 2.Each college will have a different COA Expected Family Contribution 1.What the college expects the student/student’s family to contribute as determined by the FAFSA 2.Remains the same for ALL colleges Financial Need
Cost of Attendance (COA) - Expected Family Contribution (EFC) =Financial Need Financial Need Equation
Award Letters ALWAYS compare offers from different colleges!
Vary from school to school “Shopping Sheet” Always compare - may be very different from school to school Understand the options The Award Letter
Compare Offers Cost of Attendance $15,000 Financial Aid Awarded - $10,000 GAP $ 5,000 Cost of Attendance $15,000 Financial Aid Awarded - $15,000 GAP $ 0
Filling the Gap Outside Scholarships School year or summer jobs College-based programs if available-contact Financial Aid Office Private loan - Never borrow more than you absolutely need! If the gap is too large, consider other schools.
A financial aid offer will likely include student loans. You can decide: 1.To accept a loan or not- remember it is an investment 2.To accept just a portion of the loan that is being offered. It’s up to you!
The Cost of Borrowing Each additional $2,000 borrowed adds: 1.Approximately $762 in interest 2.Approximately $23 to monthly payment
How Much Loan Debt is Too Much? Tip: Your total loan balance should be less than the salary you can expect in your first job after college.
Steps To Take Now 1.Use a net price Calculator. Net price calculators are designed to provide accurate and timely information about the price of a particular college of type of college. Visit www.collegecost.ed.gov to find net price calculators for the colleges that you are considering.www.collegecost.ed.gov 2.Talk to your parents about college costs 3.Research the costs of colleges that interest you 4.Research the type of career you would like to pursue
Things to Remember 1.Help is available 2.Help is FREE a.School counselor b.College admissions and financial aid offices c.College Goal Wisconsin
College Goal Wisconsin 2014! Wednesday, February 26th Begins promptly at 6 pm Location: UW-Manitowoc $15,000 in Scholarship Drawings!!! For location information: visit www.collegegoalwi.org or call 1-866-578-4625 MARK YOUR CALENDAR!
Questions? Comments? How can we help you? Thank you so much for coming.