RIVER VALLEY HIGH SCHOOL. Financial Aid Helping make college more affordable! Financial Aid Is:...
-
Upload
clyde-johnston -
Category
Documents
-
view
217 -
download
0
Transcript of RIVER VALLEY HIGH SCHOOL. Financial Aid Helping make college more affordable! Financial Aid Is:...
RIVER VALLEYHIGH SCHOOL
Financial AidHelping make college more affordable!
Financial Aid Is:
Money for college
A supplement to family resources
A partnership between government, school, and family
You May Be Eligible For Aid, But…
Applying for financial aid is FREE
(fafsa.ed.gov or fafsa.gov vs. / .com -- $70- $80)
You must apply to find out.
Must be done on an annual basis.
Financial Aid Regulations
Are determined by the government
Establish your eligibility for aid
Apply equally to all schools
How Much $$$ Is Available?
Over $185 BILLION last year *
Nearly 90% more in the last decade.
Grant funding increased, but recipients did, too
Loans are increasing now in terms of total aid—as compared with a year or two ago—and comprise
70% of all federal aid.
Pell Grant levels have increased in the last year
* College Board Report
Applying
After January 1st
3-4 weeks prior to college priority date
(Missing a deadline - $$$)
BY APRIL 1 … for Wisconsin Covenant !
Be sure you’ve completed an admission application
Know which form(s) to use
** FAFSA—Paper / Not recommended
** FAFSA—Electronic fafsa.gov
** Institutional form / if there is one Can also access electronic application via college website
Federal School Code
For ALLUW Colleges
003897
NeedNeed is determined by Federal Methodology
Simple Formula:
Cost of Attendance (Tuition/Fees, Room/Board, etc.)
- Expected Family Contribution (EFC)*
NEED *Consideration of: income, non-home assets, family size, age of parents, #
of parents working, # in college, other resources [outside scholarships, benefits, H.S. awards]
ABILITY…not willingness…to contribute
Comparing Average CostsTypically…5-7% increases each year…
UW WTCS Private UWC
Tuition/Fees $8,210 $4,125 $25,882 $5,100
Room, Meal $6,970 $5,000# $7,454 $5,100#
*Books/Supplies $1,020 $1,020 $1,020 $1,020*
Personal $4,730 $4,730 $4,730 $4,730
TOTAL $20,930 $14,875 $39,026 $15,950
* Reduce if school has text rental; # allowance for rent off campus
3 Primary Types of Aid
GRANTS (Gift assistance/no repayment)
LOANS
WORK-STUDY
Grant Programs /Amounts
Pell $400 - $5,550
SEOG $100 - $4,000
WHEG $250 - $2,500 **
TIP $600-$1,800
WTG $250 - $2,900
Wisconsin Scholars Fund: ~ 3,500 Grants ($1800-3500K)
> Public institutions<
Wisconsin Covenant $250-$2,500
Note: Wisconsin grant programs for use only in WI
--Wisconsin-Minnesota Reciprocity—Must Apply
Loan Options Nearly 70% of all aid … from loans
Primary loan types:
Federal Direct Loan Program
Perkins Loan Program
PLUS Loan
> Private Student Alternative Loans
Compare the differences: PLUS / Alt.
Federal Family EducationLoan Program
FEDERAL DIRECT LOAN PROGRAM: Subsidized Unsubsidized
AMOUNTS:1st Year $3,500 + $2,000
2nd Year $4,500 + $2,000
3rd Year $5,500 + $2,000
Aggregate Maximum = $31,000 ($23,000 Sub)
Direct LoansSubsidized Loan
Government pays % -- in school, eligible deferment periods, but NO LONGER during the 6 month grace period
2013-14 interest set at 6.8% for both Sub & Unsub Pay % in effect at time repayment starts Origination fee (1% of loan amount deducted) Repayment begins
Unsubsidized Loan More than 1/3 of all loans Interest rate same as Subsidized Borrower responsible for interest from outset:
- Capitalize or pay 6 month grace period applies to principal only Unsub Stafford available to anyone.
--Separate application required. (MPN)--Must apply for financial aid to access subsidized student loans.
For those with greatest needMust be offered5% interest / 9 month grace$4,000 max
Parent is the borrower9% cap on interest: 7.9% / 4% orig. feeCan be deniedRepayment begins at disbursementDeferment available on principalSeparate application neededLoan Limit
Cost of Education - Other Financial Aid
Loan Limit
Private Alternative Loans
PERKINS
Other Loan Programs…
Home equity loans Borrow from life insurance 529 Savings Plans Etc.
P.L.U.S.
Other thoughts:
Student IndebtednessAt Graduation
Federal Family Education Loan Programs
4-Year Public $26,238 (all certified loans)4-Year Private $34,000+ (all certified loans)2-Year $8,500
(Survey does not include Alternative Loan or credit card debts.)
> 25% of undergrads report using credit cards to pay tuition/fees; average credit card debt for college students: ~$3,200 <
Noteworthy:In the last 10 years—Average debt has doubled.*
NEW: Calculate your monthly payments @ DOE website.
(* From “The Project on Student Debt”)
2013-14 Loan Comparison Chart
Federal Perkins Loan Direct Loan(Subsidized & Unsubsidized)
Direct PLUS Loan
Private Alternative Loan
Borrower Student Student Parent Student
Cosigner None None Only if declined credit
Probable
Credit Check No No Yes Yes
FAFSA required Yes Yes Yes Recommended
Interest Rate 5% Fixed 6.8% Fixed Subsidized6.8% Fixed Unsubsidized
7.9% Fixed Variable (Determined by lender based on credit check)
Fees None 1% of loan amount 4% of loan amount
Variable
Annual Loan Limits Determined by school based on need and available funds
Freshman - $5,500 (up to $3,500 sub)Sophomore - $6,500 (up to $4,500 sub)Junior/Senior - $7,500 (up to $5,500 sub)
Full amount can be unsubsidized
Cost of Attendance less Aid
Cost of Attendance less Aid
Repayment 9 months after leaving school or dropping below ½ time
6 months after leaving school or dropping below ½ time
60 days after fully disbursed (Upon request, may delay payments until after student graduates)
Check with lender
Borrower Benefits Not applicable .25% interest rate reduction for auto pay Not applicable Check with lender
Work-Study
Job assignments usually made in the Financial Aid Office.
Employment opportunities on/off campus.
Earn $$$ and also “connect”
Studies show—Work-study students do better.
Use earnings to meet college or personal expenses.
Scholarships Recognition for academic achievement Best sources of scholarship information:
High school guidance office
Your college
Parental affiliations / employer
Your employer
Reference library
Fastweb.com & other web-based FREE services
BEWARE of Scholarship Searches requiring $$$
A Lot Has Been Said About Students & Parents Getting Hooked By Fraudulent Scholarship Scams…
Beware False Claims:
“Guaranteed or your money back!”
“Give me your credit card or bank account to hold this scholarship!”
“The scholarship will cost some money!”
“You’ve been selected…”
“You’re a finalist in a contest (that you never entered)”
“Your ship has finally come in…”
CONCERN: Poor economy – more temptation …
www.scholarshipexperts.com
www.fastweb.com www.collegeboard.com
www.scholarshipmonkey.com
www.scholarships.com
www.collegexpress.com
Help Is At Hand …
COLLEGE GOAL WISCONSIN
Saturday & Sunday, February 23 & 24
2:00 p.m. 31 Locations in Wisconsin, including:
Platteville H.S., & Edgewood, UW-Baraboo—Saturday, February 23
MATC, UW-LaCrosse—Sunday, February 24
For more information:
www.collegegoalwi.org
General TipsRemember: fafsa.gov
Read instructions.Be neat / accurate w/paper application.
Include correct SS#If paper app, use black ink.
Parents: PurpleStudents: Green
Useful information to have:2012 federal tax information.
W-2 forms.Property tax & other financial records.
Completing The FAFSA
Keep all records.Make copies & keep them.
Keep copies of your tax returns & W-2’s.Establish a financial aid file.
Respond to correspondence, when required.Respond to requests for additional information.
Students:Away for the summer?
Be sure you make provisions for mail forwarding.QUESTIONS?
Contact your financial aid office.
Other Important Bits Of Advice:
Paper: 10 pages: 4 instruction / 6 application / 7 Steps
Online: Web Worksheet: 3 pages; directions embedded within formLength of application shortened; streamlined help text/instructions
Easy to follow: separate sections for student & parent
Intuitive web experience: decreased redundancy / more seamless
Easier to track processing; ease of access to PIN
Assets referred to as “net worth” (current value minus debt)
Database matches with federal agencies (Social Security, INS, Selective Service, Veterans Administration, National Student Loan Database, Child Support, Health & Human Services, IRS)
About The FAFSA
Data Retrieval Tool – Available as of February 3.
If you’ve filed your tax return PRIOR to doing your FAFSA—you’ll be able to retrieve the FAFSA-requested income tax info from the IRS site.
Wait 2-3 weeks after filing to attempt DRT.
E-mails will encourage use of the DRT for those eligible.
Use of the Data Retrieval Tool with IRS – encouraged!
Will streamline the process of providing tax information if you are verified.
Impact of tax filing Status Income < $23,000 and one of these:
rec’d means tested benefit (SS, free lunch) Were eligible to file 1040A or EZ Dislocated Worker
EFC set to Zero
Simplified Needs Test
Income <$50,000 and one of the following:
Received means tested benefit Eligible to file 1040A or EZ Dislocated worker
No Assets counted in EFC
Review Web Worksheet for accuracy / then enter data @ FAFSA website
Print a copy of the completed FAFSA on the Web Using electronic FAFSA entirely on-line / PIN acts as signature
If using paper FAFSA, be sure to place the ORIGINAL form in the envelope provided
If paper, be sure to mail the original app with nothing else (no margin notes, letters, tax forms …) – Make copy for your records.
Within 3 weeks – Student Aid Report arrives May need to submit additional information (verification) …
(1 in 3 selected) EFC appears on the form
Next Steps…
Income/asset protection about $45,000 of protection of net worth / 45 year old
(does not count home/farm assets) income/asset protection increases as parents age—need for retirement
income Student assets: 20% toward student contribution
Special Circumstances – divorce/separation, deployment, loss of income/benefits, death/disability, one-time income
Things not covered on the form you think should be? medical/dental expenses not covered by insurance
elementary/secondary tuition loss of income
other?
Contact your college financial aid office.
Additional Thoughts
More than 97% of applications electronic
Error rate for paper apps is over 12%; help button for each item!
Error rate for online apps is less than 1%
Edit checks built into online process; it’s safe!
Average time for paper app is 3-4 weeks for initial processing
Average time for online app is 3-4 days
Why File Electronically?
Student PIN also used in MPN
Parent only needs 1 PIN regardless how many children in college; can transfer information to add’l apps
Easy to check status of a submitted FAFSA
Corrections on the Web with corrections back within 72 hours or less
Real-time online chat for immediate answers
Instant access to EFC estimate AND Pell Estimate
Provide e-mail address & receive e-mails w/link to PIN and SAR
More Reasons For FOTW….
Paper SAR if paper app is filed and student e-mail address was NOT provided.
SAR Information Acknowledgement if filed via FAFSA on the Web and student e-mail NOT provided.
E-mail notification containing direct link to student’s SAR online if student or parent e-mail provided on paper or electronic FAFSA.
If student has a PIN, can view SAR online at www.fafsa.ed.gov/studentaccess.htm
Student Is Notified Of FAFSA Processing Results By…
Missing signatures/PIN Wrong SS# -- Can now be corrected online
Divorced/remarried parent info
Income earned by parents/stepparents
Untaxed income
U.S. income taxes paid
Household size
# of family members in college
Real Estate & investment net worth
Not using real name
NOT APPLYING ON TIME … OR AT ALL!
Frequent FAFSA Errors
If electronic:www.fafsa.ed.gov for ‘Follow up’
If paper:Call —
(1-800-4FED-AID)1-800-433-3243
Phone # on Page 1 of FAFSA.
Questions About Your Application?