1. Presented by: Edgewood College
FINANCIAL AID 101
Presented by: Edgewood College

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

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

4. What is an EFC?
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

5. A – B = (C) Your Financial Need
What is Financial Need?
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

6. Your need depends on the cost!
  UW System Voc Tech Independent
COA $17,000 $12, $30,000
EFC $ 5,000 $ 5, $ 5,000
_____________
NEED $ 12, $ 7,000 $ 25,000

7. Scholarships Academic Creative Talent Athletic Talent
Ethnicity/Religion

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

9. Loans Federal Perkins Loan Federal Stafford Loan Subsidized 4.5%
Up to $5,000 (5 % interest)
Federal Stafford Loan
Subsidized 4.5%
Unsubsidized 6.8%
$3,500 Subsidized
$2,000 Unsubsidized
PLUS: Parent Loan for Undergraduate Students
8.5%
Alternative Loans (vary)
Institutional (vary)

10. Student Employment Part-time employment Questions to Ask
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

11. 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

12. How to Apply Complete admission process Apply for PIN numbers
-student and parent
Complete the Free Application for Federal Student Aid (FAFSA) after Jan. 1

13. Students and parents without PINs apply for one today!

14. Free Application for Federal Student Aid (FAFSA)
Available January 1, 2010

15. Before you begin Web Worksheet – fill out then just data enter form
Errors will delay processing and may result in the loss of financial aid funds
It’s OK to estimate taxes in order to meet deadlines.

16. Step One: Student Information
Student’s Name
Date of Birth
Citizenship status
Marital status
Aid preferences
Address
Drug Conviction Question CANNOT be left blank

17. Step Two: 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.

18. Step Three: 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 on this form 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.
If single, the biological parent.

19. Step Three: Parent Info Cont
Parent Finances
AGI
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

20. Special Circumstances? Call the Financial Aid Office
Divorce/Separation
Loss of income or benefits
One-time income
Death or Disability of student or parent
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.)

21. Step Four: Student Information
Questions include:
AGI
Taxes paid
Cash/checking/savings
Investments
**line references from Federal Taxes or W2 forms**
** Do not leave blanks, if it does not apply put a zero “0” **

22. Step Five: Schools Enter up to 10 Colleges of Interest:
* School Code * Address
* School Name * Housing Plans

23. 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

24. 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

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

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

27. Response from Schools FINANCIAL AID PACKAGE Consisting Of:
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!

28. Verification
Department of Education picks about 30% of students randomly.
Provide documentation to school as soon as possible:
Verification Worksheet
2009 Federal 1040’s
W-2’s, Bank Statements

29. 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?
Student employment
Actual cost minus aid – not just the most aid

30. How am I Going to Pay? 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.

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

32. Scholarship Searches www.collegeanswer.com www.fastweb.com

33. Avoid Being Scammed THIS IS A FREE PROCESS! Financial aid scam notices
Tips to avoid scams
Check legitimacy of scholarship agencies:
Department of Education
Better Business Bureau

34. 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

35. College Goal Sunday Weekend Edition. Sat, Feb. 20 and Sun, Feb. 21
College Goal Sunday Weekend Edition Sat, Feb. 20 and Sun, Feb pm
FREE Assistance to families from Financial Aid Administrators in complete the Free Application for Federal Student Aid (FAFSA)
26 sites throughout Wisconsin
Madison Locations
Sat. Feb Edgewood College
Sun. Feb MATC Truax Campus
Want more details?

36. Questions?

37. Scholarship Searches www.collegeanswer.com www.fastweb.com