1. FINANCIAL AID 101 Presented by: Kari Gribble Director of Financial aid and Edgewood Central Edgewood College

2. A successful experience requires a collaborative effort by:  Student  Parent  Institution  Government Financing A College Education

3. What is Financial Aid? Scholarships Grants Loans Employment opportunities

4. Federal Methodology: A formula created by Congress to determine your Expected Family Contribution (EFC).  The same formula applies to all applicants.  Measures your ability, not willingness to pay.  EFC components:  Parent Income and Assets  Student Income and Assets Things not considered : value of primary residence, consumer debt, or retirement accounts What is an EFC?

5. Cost of Attendance (COA) =A Tuition, Fees, Room, Board, Transportation, and Misc Expected Family Contribution (EFC) from FAFSA =B Income, Assets, Number in Family, Number in College A – B = (C) Your Financial Need What is Financial Need?

6. UW System Voc Tech Independent COA $23,000 $14,000 $32,000 EFC $ 5,000$ 5,000 $ 5,000 _____________ NEED $ 18,000 $ 9,000 $ 27,000 Your need depends on the cost!

7. Scholarships - Academic - Creative Talent - Athletic Talent - Ethnicity/Religion

8. Need-Based Grants FEDERAL GOVERNMENT Pell SEOG TEACH Grant STATE GOVERNMENT Higher Education- Public Wisconsin Tuition- Private INSTITUTIONAL Varies by institution

9. WI Covenant  Qualified students completed a pledge in 8 th grade  Senior confirmation forms are currently being mailed –return completed form by April 1  FAFSA must be filed by April 1  Grants range from $250-$2,500 based on need  2 Grant Sources:  WI Covenant Scholars Grant -- state funding  WI Covenant Foundation Grant -- private foundation funding  Funds are not guaranteed after 2012-2013 year http://wisconsincovenant.wi.gov/

10. Loans  Federal Perkins Loan  Up to $5,000 ( 5 % interest )  Federal Stafford Loan  Subsidized 6.8%  Unsubsidized 6.8%  $3,500 Subsidized  $2,000 Unsubsidized  PLUS: Parent Loan for Undergraduate Students  7.9%  Alternative Loans (vary)  Institutional (vary)

11. Student Employment  Part-time employment  on campus  designated off-campus locations  Questions to Ask  When are jobs available?  How does a student secure a job?  Does the student get paid directly or is it applied to their account?  Be prepared to complete new hire paperwork( I9, WT4, W4) –bring 2 original forms of identification

12. Eligibility for Financial Aid  Don’t eliminate yourself. Remember it’s  There is no income cutoff for financial aid  Contact the Aid Office if financial circumstances change

13. How to Apply  Complete admission process  Apply for Student and Parent PIN numbers  Complete the Free Application for Federal Student Aid (FAFSA) after Jan. 1

14. Students and parents apply for a PIN today! www.pin.ed.gov  Not required~but processing time is substantially faster  PIN may be used by students and parents to complete loan paperwork and used in subsequent school years

15. Free Application for Federal Student Aid (FAFSA) www.fafsa.gov Available January 1, 2012

16. Select a Year and Apply for a Pin

17. Before you begin  FAFSA Filing Options– fill out preliminary data  Print a DPF of a paper FAFSA  It’s OK to estimate taxes in order to meet deadlines  Errors will delay processing and may result in the loss of financial aid funds

18. Step One: Student Information  Student’s Name  Date of Birth  Citizenship status  Marital status  Email Address  Drug Conviction Question CANNOT be left blank

19. Step Two: Schools Enter up to 10 Colleges of Interest:  School Code Searchable by name, city or state  Housing Plans

20. Step Three: Student Status  If student answers “NO” to all questions, then at least one parent’s information and signature is required.  If student answers “Yes” to any question, then student is Independent only their income and assets will be considered.

21. Step Four: Parent Info Which parent’s information must be included on the FAFSA?  Grandparents, foster parents, legal guardians, older siblings, and uncles/aunts are not considered parents unless they have legally adopted you.  If married and living with each other, both parents.  If parent is widowed and not remarried, only the surviving parent.  If parents are separated or divorced, only the biological parent with whom the student lived more or who provided more financial support.  If biological parents are divorced and student lives with a biological parent who has remarried as of the date of the FAFSA application, both the biological parent and stepparent.

22. Step Four: Parent Info Cont  AGI ( line references from Federal Taxes or W2 forms)  Taxes paid  Cash/checking/savings  Investments  do not include value of primary residence or retirement accounts  do not include value of family controlled business with less than 100 employees  Household Members and Number of College Students Parent Finances

23. IRS Data Retrieval Tool  While completing FAFSA, applicant may submit real-time request to IRS for tax data * Available 2 weeks after electronically filing or 6 weeks after paper filing taxes  IRS will authenticate taxpayer’s identity and send real-time results to applicant in new window  Applicant chooses whether or not to transfer data to FAFSA  Available February 2012 for 2012–13 processing cycle  Participation is voluntary  Could reduce documents requested by financial aid office

24. Step Five: Student Information Questions include:  AGI (line references from Federal Taxes or W2 forms)  Taxes paid  Cash/checking/savings  Investments

25. Step Six: Signatures  Review information for accuracy prior to submitting  Dependent Students: - 1parent and student  Enter PIN numbers -or- print signature page and mail to processing center

26. Confirmation Page  Transfer parent data to another child  EFC estimate  Eligibility indicator for Pell and Stafford Loans  College rates

27. 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 & # in college  Real estate & investment net worth

28. Special Circumstances? Call the Financial Aid Office  Divorce/Separation  Loss of income or benefits  One-time income  Death or Disability of student or parent  Substantial medical/dental expenses not covered by insurance  Elementary or secondary school tuition  Dependency override (Note: Professional Judgment is at the sole discretion of each institution.)

29. The Application Process Student submits FAFSA ED Calculates EFC and returns results to student. ED sends copy of result to state & schools of choice. School follows up with student.

30. FAFSA Follow Up  Check status after submission  Make corrections to FAFSA  Add/Delete Schools  Print Signature Page

31. Verification  Department of Education picks about 30% of students randomly  Provide documentation to school  Verification Worksheet  Consent to IRS data retrieval or submit a tax return transcript  Asset Statements  Food Stamp Statements  Child Support Paid Documentation

32. Response from Schools The Financial Aid Office issues a: FINANCIAL AID PACKAGE Consisting Of:  The Cost of Attendance  Your Financial Aid Eligibility  A description of each program  What to do next If you feel you have special circumstances, let the aid office know!

33. Questions to Consider  Are the scholarships renewable? Requirements? GPA, participation, major, max number of terms  Grant/Loan combination  Will the student graduate in 4 or 5 years? What is the additional cost?  Are there additional fees for specific majors?  How is student employment handled?  Actual cost minus aid – not just the most aid

34. How am I Going to Pay? Direct Costs(tuition, room & board, fees, books) - Financial aid = Remaining balance due Am I billed for the year or by the term? What are my payment options? When are payments due? Do I need an additional loan? If yes, ensure that loans are finalized 1 month prior to the start of the term.

35. Other Resources  Parent or Student Employer Scholarships  Corporation for National and Community Service  Veterans/ROTC Benefits  Bureau of Indian Affairs (BIA) Grants  Division of Vocational Rehabilitation (DVR)  Higher Educational Aids Board (HEAB)

36. www.fastweb.com www.collegeanswer.com http://apps.collegeboard.com/cbsearch_ss/welcome.jsp www.careersandcolleges.com www.collegenet.com Scholarship Searches

37. Avoid Being Scammed THIS IS A FREE PROCESS! Financial aid scam notices Tips to avoid scams Check legitimacy of scholarship agencies: –Department of Education www.ed.gov –Better Business Bureau http://search.bbb.org/search.html

38. Final  Apply early – watch deadlines  Schools may have additional aid forms  Each school evaluates the student differently  Read all materials issued by the school  Inform your school of any “special circumstances”  Always keep copies

39. College Goal Sunday Weekend Edition Sat, Feb. 18 and Sun, Feb. 19 2-4 pm  FREE Assistance to families from Financial Aid Administrators in complete the Free Application for Federal Student Aid (FAFSA)  28 sites throughout Wisconsin  Madison Locations Sat, Feb. 18-----Edgewood College Sat, Feb. 18-----MATC Truax Campus Sun, Feb. 19-----DeForest High School Want more details? www.collegegoalwi.org

40. Questions?

41. www.fastweb.com www.collegeanswer.com http://apps.collegeboard.com/cbsearch_ss/welcome.jsp www.careersandcolleges.com www.collegenet.com Scholarship Searches