Andrew Reddington Assistant 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 Grant 9,500 24,500 39,500 Loan 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 1 st )  Use a completed Tax Return if possible  Make copies of all the forms you send

Andrew Reddington (309)