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AN INTRODUCTION TO FINANCIAL AID Financing Your Future
AN INTRODUCTION TO FINANCIAL AID
Financing Your Future
Agenda
What does college cost?What types of aid are available?How do I apply for financial aid?Where can I get more information?
What Does College Cost?(Annual Tuition & Fees for WI Colleges)
Private Colleges: $24,273 (average Freshman
package includes $13,960 in grants)
UW-Madison: $9,664State Universities: $6,930 - $8,676Community Colleges: $4,774 - $5,154Technical Colleges: $3,355 - $4,500
Cost of Attendance (COA)
The cost of attending an institution includes more than just tuition and fees. Also included
are:
Room and Board Books and Supplies
Transportation Personal Expenses
How Will I Pay For It?
Family Support Parents: talk to your accountant, tax preparer, bank,
and employer about planning for and financing collegeSavings
You may want to look into “EdVest” Wisconsin’s official 529 Savings Plan Similar to a 401K – contribute and earn through
investments and receive tax benefitsFinancial Aid
Where Does Financial Aid Come From?
Federal GovernmentState GovernmentColleges and UniversitiesPrivate and Public Sources
What is Financial Aid?
GrantsLoansEmployment Opportunities (Work Study)Merit-based aid (Scholarships)
From within the college/university From private/public sources outside the
college/university
National Grants
Federal Pell Grant Need based; annual award range for a full-time
student is $976-$5,350Federal SEOG Grant
Limited funding; priority given to students with exceptional need; annual award range is $100 - $4,000
Academic Competitiveness Grant Completed rigorous secondary curriculum; GPA
requirement; freshman/sophomore award range is $750 - $1,300
State Grants
WI Higher Education Grant Need based; annual award range for a full-time student
is $250-$3,000Talent Incentive Program (TIP) Grant
Need based; $600 to $1,800 for initial awardsIndian Student Assistance GrantMinority Undergraduate Retention GrantHearing and Visually Handicapped Student
Grant
http://heab.state.wi.us/programs.html
Types of LoansType of Loan Interest Rate Repayment Additional
Info.Federal Perkins Loan
5% Fixed 9 months after school
Federal Stafford/ Direct Loan
Subsidized 4.5% fixedUnsubsidized 6.5% fixed
6 months after school
Subsidized: no interest charged while in schoolUnsubsidized: interest accrues while in school
Federal Parent PLUS Loan
7.9% - 8.5% Fixed
May be deferred until 6 months after school
Interest accrues while student is in school
Alternative/ Private Loans
Variable rate Variable repayment terms
Interest accrues while student is in school
There are also WI state loans for Teachers and Nurses.See http://heab.state.wi.us/programs.html for details.
Work Study
Part-time student employmentEarnings paid to studentWork-Study earnings are not included when
determining EFC on next year’s FAFSA
Scholarships
Local and Non-Local available in the Guidance Office Lists handed out to seniors periodically Most local scholarships come out between December and
MarchCommunity, church, civic, and business
organizationsEmployersColleges and UniversitiesOn the InternetAvoid scams – never pay a fee to apply or get info.
How Do I Apply for Financial Aid?
Complete a FAFSA worksheet in December or January
Get a Federal PIN so you can sign your FAFSA electronically (parents and students need one)
Fill out the Free Application for Federal Student Aid (FAFSA) after January 1st of your senior year
Apply for scholarships during your junior and senior year, as well as each year of college
Contact your financial aid administrator if you have special circumstances
PIN Registration
www.PIN.ed.gov
FAFSA on the Web
www.fafsa.ed.gov
FAFSA on the Web
www.fafsa.ed.govCompleting and processing the FAFSA are free!Never pay a fee to file the FAFSA.You can fill out the FAFSA before doing your taxes,
but it’s easier to wait until your taxes are done. If you do the FAFSA before your taxes are done, you put in
estimated amounts and then amend them later after you’ve done your taxes.
The deadline for priority consideration is March 1st
Contact your school’s financial aid office if you need help.
New This Year…
FAFSA on the Web will now allow applicants to access their IRS tax information and have it automatically inserted into the FAFSA.
The 2012 FAFSA will include a brief series of questions to determine whether you are eligible for IRS data retrieval.
This system begins February 1, 2012.
Be Careful…
www.fafsa.ed.govPut your name and SSN on the FAFSA exactly
how it appears on your social security cardRefer to completed federal income tax return
and consult instructions for proper line reference
If entry is zero or none, enter O – don’t leave blank
Enter school code(s) to send to
Be Careful…
www.fafsa.ed.govStudent and one parent must both sign (with
PIN) on dependent student’s FAFSAWhen asked about parent’s education level
on the FAFSA, “college” is referring to a 4 year completed degree.
What Makes a Student “Independent”?
At least 24 years old by December 31st of the award year covered by the FAFSA
Graduate or Professional StudentMarriedHas legal dependents other than a spouse who
receive more than one half their support from the student
Is an orphan, in foster care, or ward of the courtEmancipated minor or in legal guardianship as
determined by a courtHas been determined to be homeless by an
authorized official
Expected Family Contribution (EFC)
The EFC is calculated from the information you provide on the FAFSA according to a formula established by law.
You can get an estimate of your EFC using the FAFSA 4-caster tool at www.fafsa.ed.gov
Dependent Student Independent Student
Parents’ income and assets
Household sizeNumber of
dependents attending college
Students’ income and assets
Student’s (and spouse’s) income and assets
Household sizeNumber in household
attending college
FAFSA Data that Tends to Have the Most Impact on EFC Calculation
How Does a School Determine My Financial Aid Award?
Cost of Attendance (COA)
Expected Family
Contribution (EFC)
Eligibility for need-
based financial
aid
WI College Goal Sunday www.wicollegegoalsunday.org
Get free help completing the FAFSA.Get entered to win a $1,000 scholarship!Chippewa Valley Technical CollegeSunday, February, 19th at 2:00 p.m.620 Clairemont Ave
Business Education Center Eau Claire, WI 54701
Entrance by Parking Lot P1 at the front of the building, or P9 on the west side.
After completing the FAFSA…
A Student Aid Report (SAR) will be generated and used by each college/university you entered on your FAFSA to generate an award letter for each school
Review your SAR for accuracyThe award letter states what the student
qualifies for at each schoolOnce you decide what school you’re going to,
you must notify that school’s financial aid office of your intent to use those funds, and for what amount
Reciprocity Programs for WI Residents
Minnesota: All public institutions
Illinois: College of Lake County, Grayslake, IL
McHenry County College, Crystal Lake, ILRock Valley College, Rockford, IL
Iowa: Northeast Iowa Community College, Calmar and
Peosta, IA Michigan:
Bay de Noc Community College, Escanaba, MIGogebic Community College, Iron Mountain, MI
Other Resources
Federal Tax Benefits for Higher Education Deduction for Qualified Education Expenses Employer Paid Tuition Assistance Hope and Lifetime Learning Tax Credits Student Loan Interest Deduction
Other Government Programs Americorps Program Bureau of Indian Affairs Grants Dislocated Worker Programs ROTC Scholarships and/or Stipends Veterans Benefits Vocational Rehabilitation Programs
Summary of Financial Aid Timeline
Complete the FAFSA on the Web Worksheet, if desired.
1st semester of Senior year: Apply for colleges and scholarships and get your PIN
2nd semester of Senior year: Complete FAFSA, continue applying for scholarships, select college of choice, and submit for financial aid
Each year of college: apply for scholarships and submit a FAFSA each spring
Helpful Websites
www.pin.ed.govwww.fafsa.ed.govhttp://heab.state.wi.us
Provides links to Wisconsin grants, scholarships and loans
Paula HaugleSchool Counselor
School District of Elmwood213 s. Scott StreetElmwood, WI 54740
715-639-2721(fax) 715-639-3110
Questions?
