Financial Aid Information Session. What is Financial Aid? 2 Financial aid is money intended to help...
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Transcript of Financial Aid Information Session. What is Financial Aid? 2 Financial aid is money intended to help...
Financial Aid Information Session
What is Financial Aid?
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Financial aid is money intended to help students pay for their educational expenses. Typically, aid comes in one of the following forms:
• Scholarships• Grants (Federal and State)• Federal Work Study• Loans
The last three types of aid are all applied for in one single application – the Free Application for Federal Student Aid or the “FAFSA.”
Best Advice:
APPLY!!!
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Applying… Easy as 1, 2, 3
1.) www.PIN.ed.gov
2.) www.FAFSA.gov
3.) Follow up:UW-Milwaukee Department of Financial
Aid http://www4.uwm.edu/financialaid
Applying Online:• Detects common errors before submission
• Skip logic: asks only what you must answer
• English or Spanish versions
• Electronic Signature
• E-mail notification of results
• Instant access to EFC estimate
• Faster Results
• Can list up to 10 different schools to receive your information
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Frequent FAFSA Errors• Missing Signatures/PIN
• Wrong Social Security Number
• Using nickname instead of name on SSN card
• U.S. Taxes Paid
• Divorced/remarried parent information
• Household size
• Number in postsecondary education
• NOT APPLYING AT ALL
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What do you need to complete the FAFSA?• Personal Information for Student and Parent(s)
– Social Security Number
– Driver’s License
• Financial Information for Student and Parent(s)
– 2010 taxes and W-2’s
– Bank statements
– Asset information
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*If you are prepared before you start, the entire application can be completed in about 45 minutes.
Expected Family Contribution (EFC)
(Federal Methodology established by U.S. Congress)
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Determined by filing the FAFSA
Main Determinants of the EFC• Income• Assets• Family Size• Number in College• Age of Parent
Assets and the FAFSA Assets Not Included
• Home in which you live• Value of life insurance
and retirement plans (pensions, annuities, Keogh’s non-education IRA funds, etc.)
• Personal vehicles
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Assets Included•Cash, Savings & Checking Accounts•Value of business land, buildings, equipment, inventory, etc. for companies with 100 or more employees.•Education IRA’s•College Savings Plans (529’s) ***Any questions about what should or should not be included, you may contact your school’s Financial Aid Office.
Myth #1: If I have savings I won’t get Financial Aid!Fact:
FAFSA counts a fraction, not ALL of a family’s assets in determining financial need.
A portion of assets are sheltered by an asset protection allowance.
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An Example:
• A typical family with college-age children would have about $50,000 of assets sheltered.
• In the end, 4% of dependent children have any contribution from parent asset in the EFC calculation
Source: www.finaid.org
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Myth #2: If I move my child’s 529 college savings plan to his name, he will be eligible for more aid.Fact:
Child’s assets are assessed at a 20% rate; parent assets assessed at a rate of no more than 5.64%
On average every $10,000 in a 529 plan may reduce need based aid by up to $564, but it still leaves you with at least $9,436 more available than if you hadn’t saved
Source: www.finaid.org
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Application ProcessingSchool usually receive the results
and student the Student Aid Report (SAR) 1-2 weeks after submission
Within 3-5 weeks:
- You will get notification of your award via email
OR - Be asked via email to submit additional information,
* Verification process: 6-8 weeks13
Paying for College:Financial aid was created as the “BRIDGE” to Higher education.
All the information gathered on the FAFSA is to develop an understanding
of the household information.
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Cost of Attendance (COA)
Tuition and Fees Room and Board Transportation
Books & Supplies+ Miscellaneous Living ExpensesCost of Attendance (COA)
DO NOT confuse this with your bill – “Cost of Attendance” exceeds costs billed by the university and is meant as a “ceiling” to the amount of aid a student can receive.
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Financial Need DefinedCost of Attendance (COA)
– Expected Family Contribution (EFC)
= Financial Need
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What can we expect?• Your EFC and “financial need” determine the types of aid you will be eligible for:
– Grants
– Subsidized Loans and Federal Work-Study
– Unsubsidized Loans
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Grants• Grants are “gift money” from the federal and state
government which are meant to help the neediest families
• Some grant funds are limited and they are awarded on a first come, first serve basis, so it is important to apply early every year! Our Priority deadline is March 1st.
Federal Work Study
• Must have “financial need”
• Student is responsible for finding on-campus job
• Student receives a payroll check for money earned, does not get sent directly to pay for tuition
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Direct Stafford Loans• Subsidized
Stafford Loan– Interest rate 3.4%
– Will not accrue interest while in school
• Unsubsidized Stafford Loan
– Interest rate 6.8%
– Will accrue interest
Payments for BOTH loans are deferred until 6 months after graduation
Freshman Max = $5500
- $3500 Subsidized *As determined by “Need”
- $2000 Unsubsidized
Is there anything else I have to do?
• Master Promissory Note (MPN)
– Signed electronically with PIN
– Entrance loan counseling
• Both items can be completed at studentloans.gov
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What if it is not enough?• Often, financial aid is not enough to cover all expenses
ex: $8284 (Full-time tuition)
-5500 (Minimum Freshman Award)
That leaves, AT LEAST $2,784, without even considering housing, meals, and books.
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Additional Options– Parent PLUS
• 7.9% interest rate• Taken out in parent’s
name• Studentloans.gov
– Alternative Education Loans• Variable interest rate• Co-signer needed• Private lending institutions
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REMEMBER:
Re-apply early every year. FAFSA available every
January 1st.
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My FAFSA does not reflect what is happening now!!! What should I do?Answer: Talk to the Financial Aid Office,
please complete FAFSA with 2010 data
Examples include:
Divorce/Separation Loss of Income/Benefits
One-time Income Disability
Medical/Dental Expense K-12 School Tuition
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WWW.WISCONSINCOVENANT.WWW.WISCONSINCOVENANT.WI.GOVWI.GOV
• Graduate from a Wisconsin high school.
• Maintain at least a B average while in high school.
• Take classes in high school that will prepare me for entrance into higher
education and will meet or exceed college entrance requirements.
• Demonstrate good citizenship and engage in activities that support my
community.
• Apply for state and federal financial aid in a timely manner.
• Apply and do all that is necessary to gain admission to a University of Wisconsin
System institution, a Wisconsin Technical College, and/or a Wisconsin private
college or university.
Get HelpCollege Goal Wisconsin
• Free program to help families complete the FAFSA
• February 19-20, 2011• Scholarship drawing at each site• 30 sites throughout Wisconsin
For location information: visit www.wicollegegoalsunday.org
or call 1-866-578-4625
Questions?
Thank You for your time!
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