Understanding Financial Aid: High School Financial Aid Night Jamie Thomson Financial Aid Advisor.
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Transcript of Understanding Financial Aid: High School Financial Aid Night Jamie Thomson Financial Aid Advisor.
Understanding Financial Aid:High School Financial Aid
NightJamie Thomson
Financial Aid Advisor
Financing Your Education
• Goal of financial aid
• How to apply
• Determining eligibility
• Types of aid available
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Paying for College is…
…a Shared Responsibility
• Students and Parents
• State and Federal Governments
• Private Sources
3
Financial Aid Regulations
•Are determined by federal and state statutes and legislators
•Establish your eligibility for most types of aid
•Apply to all schools
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You may be eligible for aid, but…
YOU MUST APPLY TO FIND
OUT!
www.FAFSA.gov
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Completing the FAFSA• Apply for a pin, www.pin.ed.gov (both student and parent)
• The earliest you may file the FAFSA is January 1 each year
• Check with the colleges where you plan to apply for deadlines
and institutional requirements.
• UW-Milwaukee priority date March 1
• IRS Data Retrieval Tool
• Who is considered a parent?
• You must re-apply for aid every year.
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FAFSA: What do I need?• Your social security number
• Driver’s license (if applicable)
• Your W-2 Forms from previous year
• Student and Parent Federal Income Taxes
– Form 1040, 1040A, or 1040EZ
– Need PIN, correct filing address, and filing status for IRS Data Retrieval
• Untaxed income records (SSI, TANF, veteran benefits)
• Current bank statements
• Business and investment mortgage information, business and farm
records, stock, bond, and other investment records
• Documentation that you are a permanent resident or other eligible non-
citizen
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Frequent FAFSA Errors• Missing Signatures/PIN
• Wrong Social Security Number
• Divorced/remarried parent information
• Untaxed income
• U.S. income taxes paid
• Household size
• Number in postsecondary education
• Not using birth name
• NOT APPLYING AT ALL!
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Proceed with Caution!• Never pay a fee to file the FAFSA
– When filing a FAFSA, make sure you go directly to: www.fafsa.gov (not www.fafsa.com)
– Contact Department of Education 1-800-4FEDAID for help
• Never pay for financial aid assistance!
– Financial Aid Nights
– Campus Tours
– Scholarship Searches
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Get Help College Goal Sunday
• Free program to help families
complete the FAFSA
• February 23-24, 2013
• Scholarship drawing at each site
• 30 sites throughout Wisconsinwww.collegegoalwi.org
Put your hands on some money for college!
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Expected Family Contribution (EFC)
(Federal Methodology established by U.S. Congress)
Determined by filing the FAFSA www.FAFSA.gov
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Main Determinants of the EFC
•Income
•Assets
•Family size
•Number in College
•Age of Older Parent
*Adjustments to EFC may be made due to Verification and/or Special Circumstances that limit ability to pay
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IRS Data Retrieval- Tips
• Must have valid SSN and
FAFSA PIN number
• Must have filed 2012 taxes
(1040/1040A/1040EZ)
• Available for use 2 weeks after
completing 2012 tax returns
• Look up address through
USPS.com
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IRS Data Retrieval- TipsIneligible to use DRT
•Married but filed taxes separately
•Student or Parents that married after December 31, 2012
•Filed amended tax returns
•Filed Puerto Rican or foreign tax returns
*If you owe taxes, you may not be able to use DRT till August.
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Assets and the FAFSA Assets Not Included
• Home in which you live ~ including family farm
• Value of life insurance and retirement plans (pensions, annuities, Keogh’s non-education IRA funds, etc.)
• Personal vehicles
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.
15 Presentation Author, 2006
Financial Need Defined
Cost of Attendance (COA)
– Expected Family Contribution (EFC)
= Financial Need
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After you file the FAFSA
• Results are sent electronically to the college(s) the student
selected.
• Students may be required to verify the information
submitted on the FAFSA:
- 2012 tax transcript OR IRS Data Retrieval
required
• After the student is admitted to a college, a financial aid
package will be prepared.
• ***Contact the college with any Special Circumstances.
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FAFSA4caster• FAFSA4caster will:
– Automatically generate a Federal Student Aid PIN for
use when signing the FAFSA
– Instantly calculate eligibility for federal student aid
– Generate a FAFSA –a FAFSA populated withstudent FAFSA4casterdata will be availablewhen the student isready to file officially
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What is Financial Aid?• Grants
• Scholarships
• Loans
• Employment opportunities
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Need versus Merit Aid
• Aid based on financial need– Most government grants– Subsidized student loans– Federal Work-Study
• Aid based on merit– Academic and athletic scholarships– Some government grants
• Some scholarships require merit and need
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Gift AidGrants & Scholarships
• Federal (Administered by schools)
• Federal Pell Grant
• Federal SEOG
• TEACH Grant
• State (Administered by HEAB, DPI-WEOP & Schools)
• Wisconsin Higher Ed Grant (WHEG)
• Institutional (Endowment funds from Schools)
• Private (Various outside organizations)
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Self-Help AidLoans • Federal Direct Loan
• Federal Perkins Loans
• Federal Direct PLUS (Parents)
• State or Institutional Loans
• Private-Alternative Loans
Employment• Federal Work Study (earned as wages)
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Federal Direct Loans
Two types of Direct Loans:
– Subsidized - no interest accrues while in school or in
deferment (Interest rate of 3.4% 2012-2013)
– Unsubsidized - interest begins immediately, although
repayment is not required immediately: (Interest rate of
6.8% 2012-2013)
*Note: Interest rates for 2013-2014 have not been
released at this time.
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Direct Loan Limits
Cumulative maximum for dependent undergraduate is
$31,000, with no more than $23,000 in subsidized loans.
Total Max Subsidized
Freshman $5,500 3,500
Sophomore 6,500 4,500
Junior/Senior 7,500 5,500
5th Year/Other 7,500 5,500
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What Are the Costs?
Tuition and Fees+ Room and Board+ Transportation+ Books & Supplies+ Miscellaneous Living Expenses Cost of Attendance (COA)
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Financial Need Varies by School
1 2 3
Cost $ 37,850 $ 23,378 $ 15,806
Less EFC $ 17,074 $ 17,074 $ 17,074
Need $ 20,776
X
$ 6,304
Y
$ 0
Z
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How to Compare College Financial Aid Offers
• Start with tuition, fees, room and board
• Subtract grant and scholarship offers only
• The difference is your “net cost”
• Always compare net cost
• Do not subtract Federal Work Study as a lump sum disbursement
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- PLUS (Parent Loan for Undergraduate Student)
- Alternative Loans
- Monthly Payment Plans
- Home Equity Loans
Other Financing Options
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Other Sources of FundsParental Affiliations
– Employers & Labor Unions
– Religious and Community Organizations
– Clubs and Civic groups
Civic organization scholarships
– High School
– Local Public Library
Private business scholarships
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Government Resources
• Corporation for National and Community Service
• Veteran’s benefits
• ROTC Scholarships and/or stipends
• Bureau of Indian Affairs (BIA) Grants
• State Divisions of Vocational Rehabilitation (DVR)
• Health and Human Services Loan and Scholarship Programs
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Federal Student Aid- Great Resource!
www.studentaid.ed.gov
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Helpful Websites to Remember:
• www.fafsa4caster.ed.gov
• www.PIN.ed.gov
• www.FAFSA.gov
• www.collegegoalwi.org
• www.studentaid.ed.gov
• www.KnowHowToGo.org
• www.Going2College.org
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Questions?
Thank you for attending!
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