Presentation on theme: "The Financial Aid Process 2011-2012 Presented by: Patty Taylor Director of Financial Aid Lakeland College."— Presentation transcript:
The Financial Aid Process Presented by: Patty Taylor Director of Financial Aid Lakeland College
Financial Aid Topics for tonight Types and Sources of Financial Aid Types Federal, State, Miscellaneous FederalStateMiscellaneous How is Financial Aid Determined? Budget, EFC, Financial Need How to Apply for Financial Aid FAFSA, other forms and documentation Award Letter Extras Timetable Special Circumstances Tax Benefits Contact Information
What is Financial Aid? Financial aid is money a student receives to help the student and family pay for educational expenses.
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
Federal Sources Grants Pell SEOG Teach Grant/Loan Work Study Loans Subsidized Unsubsidized PLUS Perkins
Work Study Two Kinds Federal Work Study -- partially funded by government money Regular Employment % funded by the college May be required to apply for a job Jobs may not always be guaranteed Check is issued to the student
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
Student Loans Cont. Federal Subsidized Interest rate of 3.4% 6 months grace after college before repayment begins 0%-0.5% 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
Student Loans Cont. Federal Unsubsidized Interest rate is 6.8% 6 month grace period after college before repayment begins 0%-0.5% 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
PLUS Loans Federal Parent Loan for Undergraduate Students (PLUS) Loan for Parents Interest rate 7.90% 3% origination fee deducted from the gross amount of the loan
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.
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
Wisconsin Covenant New for 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. ***There is no guarantee that this program will be available beyond the year.
Wisconsin Covenant Full-time (12 credits) EFCWI Covenant Foundation Grant WI Covenant Scholars Grant Yearly Total $0$1,500$1,000$2,500 $1-$3,499$0$1,500 $3,500-$11,999$0$1000 $12,000-$99,999$0$250
Wisconsin Covenant Half-Time (6-11 credits) EFCWI Covenant Foundation Grant WI Covenant Scholars Grant Yearly Total $0$1,500$750$2,250 $1-$3,499$0$750 $3,500-$11,999$0$500 $12,000-$99,999$0$125
Miscellaneous Sources College Community, Foundations, Companies, Unions Community, Foundations, Companies, Unions DVR Tribal Indian Grants Workforce Development Financial Institutions—Private LoansPrivate Loans
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:
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.
Alternative Loans Banks have been developing their own loan programs for student. list of available lenders. Schools can’t always recommend a lender
How Financial Aid is Determined Budget …… - Expected Family Contribution (EFC)…… = Financial Need……
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
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
Example of Financial Need 4-Year Private college 4-Year Public College 2-Year Public College Budget$30,000$16,000$7,000 EFC $7,000 Financial Need $23,000 $9,000$0
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 requireother forms
PIN Registration Web site: For student and parent Not required, but speeds processing May be used throughout financial aid process
Documents Needed to complete FAFSA 2010 Federal Taxes—with 2 weeks after electronic submission of taxes, on the FAFSA you should be able to pull the data in. W’2’s Untaxed Income information Bank Statement Asset Values Driver’s License Social Security Number
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
The 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.
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.
Additional Forms Additional forms (these may not be required for everyone) Financial aid application Signed copies of 2010 federal tax returns Parent(s), Student W-2’s Verification worksheet Social security card Selective service card (https://www4.sss.gov/regver/Register1.asp)https://www4.sss.gov/regver/Register1.asp File should be complete for an award to be determined
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.
Award Letter is Accepted. What’s Next? If the student accepted a loan, the necessary promissory notes need to be completed. 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.
Timetable This is very important. Be very aware of deadlines. Some colleges have cut off dates for different institutional grants or scholarships.
Special Circumstances Involuntary loss of employment Unusual and excessive paid medical expenses Divorce/Separation Death of parent or spouse Others
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.
College Goal Weekend When: February 20, 2011 Time: 2:00 p.m. Location: UWC—Sheboygan What For: Help with completing the FAFSA