Cost of attendance includes: direct costs (billed by or paid directly to the college, such as tuition or on-campus housing) indirect costs (not paid to the college: books, transportation, personal care items)This isn’t the amount that you owe the school, it is a budget of all your expenses while you are enrolledCost of attendance varies dependent on the type of college or university.
EFC is not the amount that a family is actually willing to contribute (ability vs. willingness) and does not obligate the family to contribute that amount. There is an asset protection allowance for expenses such as food, housing, transportation, clothing, medical, and other family consumption) The parent contribution is divided by the number in college (and then added to the student contribution to get the EFC) The closer the oldest parent is to retirement age the more of the families assets that are protected.
Colleges may not be able to offer enough aid to meet your Financial Need
Aid is divided into two categoriesNeed-Based – awarded on the basis of financial needNon-Need Based – awarded on the basis of ability/talent/academic achievement or other non-need based factor
Scholarships are the one thing you are not applying for when you complete a FAFSA. Scholarship searches are done on your own. There are many free scholarship search sites out there. On many of them you create a profile about yourself which allows you to easily find the scholarship applications that fit you best.Never pay for help with financial aid or scholarships. Check out the Better Business Bureau’s website if a service is requesting money.
Junior year of high school is a good time to start researching for scholarships, but it is never too late.Scholarship story –Let’s say you spend 10 hours, or 2 Saturdays applying for scholarships. And then you find yourself disappointed that all you got was a $500 scholarship. Well, if you spent 10 hours and earned $500 how much did you earn per hour? … $50/hr. I bet your parents don’t make $50 an hour! It is worth your time to apply for scholarships.
These are the most common grants:Pell – is based on your EFC and your enrollment status (full-time/part-time). In 2010-2011 If your EFC is 0 and you are attending full time you receive $5,550.SEOG – is limited, each school receives a limited amount of funds so it is important to apply as early as possibleWHEG – is also limited due to the state budget. It is important to apply as early as possible and include all the schools you may attend on your FAFSA. This grant is determined by your EFC. (Additional Notes: UW Colleges and some other institutions may put a WHEG in your award, however you may be on the waitlist. As additional funds become available some people on the wait list may receive the aid. Be aware of any notes on your award letter indicating if you are on the wait list. The cutoff for the last few years was around July 1st. This is another reason to get your application submitted as soon as possible.)In 2010-2011 the formula is ($5,960 – EFC) x .43 = WHEG annual award.Maximum = $2,563Minimum = $843Maximum EFC to receive grant = $4,000
Other Federal GrantsACG/SMART grant – although some parents and students may have heard of these grants they are no longer funded after the 2010-2011 academic yearTEACH grants – a word of caution about TEACH grants, these “grants” come with very specific obligations to teach in designated school districts for a specific amount of time after you graduate. If that obligation is not met this “grant” turns into a loan and interest is added from the day you received the grant. UW Colleges does not offer TEACH grants because generally they are only available to students enrolled in programs seeking teaching or educational degrees. UW System has determined that only Juniors and Seniors are eligible for TEACH grants so you are not likely to see these on your award right away. If you do, read over the obligation paperwork and carefully consider if this is the right choice for you.Other State GrantsYou may hear about HEAB or the Higher Education Aids Board – they are the state agency that administers state aid. You apply for most of these grants when you complete your FAFSA. Their website is listed on the slide.Hearing or Visually Handicapped Student grant - You may want to visit their site if you or your student is hearing or visually handicapped for the application to this grant. Indian Student Assistance Grant – See The Tribal Higher Education Office for the federal grant application and state information. Federal amount varies by tribe. State amount is between $250 and $1,100 depending on need.Minority Retention Grant – No additional applicationAcademic Excellence Scholarship – This is awarded to Wisconsin high school seniors who have the highest GPA at each public and private high school. This award will go with you to any Wisconsin school you attend as long as you are enrolled full-time by September 30th of the academic year following graduation. $2,250 per year.The Wisconsin Educational Opportunity Program (WEOP) which is part of the Wisconsin Department of Public Instruction (DPI) also administers some specific state grants. Their website is listed on the slide. Talent Incentive Program (TIP) Grant –This grant is awarded to students who are first-time freshman with financial need who comes from a non-traditional or educationally-disadvantaged background. If you think you might be eligible visit the WEOP website to apply. The school receives a limited amount of funds to make new awards, but the regional WEOP offices also make awards. GEAR-Up Grant – GEAR-UP is a program that specifically targets rural and urban school districts. You must have participated in the GEAR-UP pre-college programs to receive this grant.
UW Colleges no longer offers Perkins loans, however some schools may have this as well. It is similar to a Subsidized Loan.Disbursement is when the money is applied to your student account.You are not required to pay the interest as it accrues while you are in school. However it is recommend that you do so if you can. When you go into repayment this interest is capitalized; this means it becomes part of the principal of the loan. You are then charged interest on that higher amount going forward.
Disbursed means that the funds are given to the borrower. The first half disbursed in September and the second half disbursed in January. Repayment begins 60 days after January disbursement.
Recommend using this as a handout so families can see detailed info.*UW Colleges no longer offers the Perkins Loan, however other schools may **The loan fee include a rebate for making the first 12 payments on time. If one of these payments is missed the rebate is added back on to the loan.
UW Colleges generally awards $2,100 if there is financial need.Does not pay out with other aid at beginning of year, earned during the semester.Students connected to campus are more likely to graduate/transfer successfully.
You may complete this on paper or online. Make sure you are at www.fafsa.gov if you go to Google and enter FAFSA you may end up at fafsa.com which charges you $80. The first “F” in FAFSA stands for FREE!The site and forms are available in English and Spanish.
Reasons to file electronically: built-in error checks skip-logic allows you to skip questions that don’t apply to you option to use the IRS data (We will discuss more later) faster submission and processing detailed instructions and help while completing the form
Remember to use the full legal spelling of your name. If your name is Jennifer and you list your name as Jen the social security administration check will not find a match. Computers are not as smart as we are and can not tell that it is the same person. (This goes for your admissions application too.)Your FAFSA goes through several eligibility checks. The social security check is one, the next is a citizenship check. There is a place to include your alien registration number if you have one. U.S. Citizens, U.S. permanent residents, persons here as refugees are all eligible for financial aid. All males ages 18-26 are required to register for selective service. This is not the draft, but a database that would be used were the draft to be implemented. If you have not already done so you can go to www.sss.gov to register or get more information. You can also register by choosing “register me” on this question of your FAFSA.If you have never completed a FAFSA before then your answer to the drug conviction question will be “no” this question asks if you have had any convictions for offenses that occurred while you were receiving aid.
In order to be considered an Independent student you must answer yes to one of the dependency status questions. If you cannot answer yes then parent information will be required.45 – Students who will be 24 during the academic year they are applying for aid in49 – Active duty for purposes other than training51- If the children are not supported by the student, but by the student’s parents then student is not independent52 – Dependents legally obligated to support such as kinship care of a niece or nephew (supporting boyfriend/girlfriend does not make someone independent)
You will be required to provide documentation of these situations to your school. Have that paperwork ready.54 – Wisconsin does not have legal emancipationFor questions 56-58 this status must have been determined by the school district or an emergency shelter director.
If you have answered no to all of the dependency questions, but do not have a parent who can provide information for the FAFSA you may be eligible for a dependency override. Complete the FAFSA and submit without parental data and then contact the school to provide information about your situation.Please note that grandparents, foster parents and legal guardians are not considered parents for the FAFSA unless they have legally adopted the student.
If your parents are divorced then use the parent who you lived with more or who provided the most financial support in the last 12 months. If you did not receive support then use the parent who you last lived with or who last provided support.After you choose the appropriate parent for the FAFSA if that person is married their spouse’s information is also included.
10-14 days after you file your taxes with the IRS you can complete your FAFSA using the IRS data match.You leave the FAFSA site and go to the IRS site. You must enter the address you used on your previous tax return in order to find your data.Once you pull up your info. Click “Transfer Now”You will be taken back to the FAFSA site and your tax information will be filled in with what was on your taxes.You don’t have to use the match, you can hand enter the info.If you have been divorced or married since filing your taxes you won’t be able to use the IRS data retrieval.
529 College Savings plans where the parent is the owner and the student is the beneficiary are reported as a parent asset.
Please note that a person can include children in their household OR list the child support paid for those children. Listing both results in double counting and will need to be corrected.
Contact the school if the parent is in college. If you provide documentation they may be able to include the parent in the number in college.
Make sure you hit submit!
The July 1st date is not a guarantee that you will have aid ready when school begins. The best thing to do is to complete it by April 15th.
SAR is the info you put on FAFSA for you to review to check for accuracyThe Department of Education selects at least 30% of the students at each school for verification. It doesn’t mean you did anything wrong. You submit the verification worksheet and copies of your taxes and an aid administrator reviews your application for accuracy.
UW Colleges consists of the 13 two-year UW campuses and UW Colleges Online.For the FAFSA, MPN and Entrance Counseling choose UW Colleges – 780 Regent Street, Madison, WI 53715Be careful not to choose UW Madison if you intend to choose UW Colleges.
Funding a College EducationFinancial Aid 2011-2012Financial Aid Information Night 2011 Melissa Haberman
Topics• What is financial aid• Cost of attendance (COA)• Expected Family Contribution (EFC)• What is financial need• Types of aid• Free Application for Federal Student Aid (FAFSA)• After you file the FAFSA• Special circumstances
Financial Aid• To the extent they are able the student and his or her family has the primary responsibility to pay for education.• Financial aid provides opportunity and access to higher education.• Financial aid helps to bridge the gap between what the family can pay and the cost of education.
Cost of Attendance (COA)UW Colleges COA for full-time student living with parents (2010-2011 budget) Item Cost Tuition/Fees $4,580 Books and Supplies $950 Room $0 ($4,760 if living on own) Board $2,570 Miscellaneous $1,690 Transportation $2,640 TOTAL $12,430 ($17,190 if living on own)
Expected Family Contribution (EFC)The amount a family can reasonably be expected to contribute to a student’s educational expenses.Parent Contribution + Student Contribution = EFC • Income • Assets • Family Size • Number in College • Age of the older parent
Financial Need Cost of Attendance (COA) - Expected Family Contribution (EFC) = Financial Need• Need will vary based on the cost of different colleges• Your Financial Need determines how much aid you may receive
Types of Aid• Scholarships• Grants• Loans• Employment
Scholarships• Money that does not have to be paid back• Awarded on the basis of merit, skill, or unique characteristic• Never pay for scholarship search! Check www.bbb.com
ScholarshipsBegin researching early! Small Scholarships add up!• Foundations• Businesses• Employers• Charitable organizations• Civic organizations and Churches• Free scholarship web search sites
Most Common Grants• Money that does not have to be paid back• Awarded based on Financial NeedFederal• Pell Grant• Federal Supplemental Educational Opportunity Grant (SEOG)State• Wisconsin Higher Education Grant (WHEG)
Additional GrantsFederal• ACG/SMART Grant• TEACH Grant (Accept with Caution)State http://heab.state.wi.us/• Hearing or Visually Handicapped State Grant• Indian Student Assistance Grant• Minority Retention Grant• Academic Excellence Scholarship• Talent Incentive Program (TIP) Grant http://dpi.state.wi.us/weop/• GEAR-UP Grant
Student Loans• FAFSA is only application• Will have to complete Loan Entrance Counseling and a Master Promissory Note• Not based on your credit• Repayment begins after you are no longer enrolled at least half-time
Federal Student LoansSubsidized Loan Unsubsidized LoanNeed-Based NOT Need-BasedNo interest while enrolled Interest accrues from disbursementFreshman can borrow up to Freshman can borrow up to $5,500 minus$3,500 amount of Sub loan receivedSophomores can borrow up to Sophomores can borrow up to $6,500 minus$4,500 amount of Sub loan received Independent Students Can borrow additional up to $9,500/$10,500 minus amount of Sub loan received2011-2012 Interest Rate: 3.4% 2011-2012 Interest Rate: 6.8%
PLUS LoanParent Loan for Undergraduate Students (PLUS)• Loan parent borrows to assist with educational costs• Need to complete FAFSA• Need to complete PLUS application and Master Promissory Note• Eligibility determined upon credit check• Option to add a co-signer• Maximum amount to borrow is Cost of Attendance minus all other aid• 2011-2012 interest rate: 7.9%• Repayment begins after loan is disbursed, but can apply for deferment
Loan Comparison 2011-2012 Federal Perkins Loan* Direct Stafford Loan Direct PLUS Private (Subsidized & UnSubsidized) Loan Alternative LoanBorrower Student Student Parent StudentCosigner None None Only if declined Probable creditCredit Check No No Yes YesFAFSA required Yes Yes Yes RecommendedInterest Rate 5% Fixed 3.4% Fixed Subsidized 7.9% Fixed Variable 6.8% Fixed Unsubsidized (Determined by lender based on credit check)Fees None .5% (Includes .5% rebate** for making first 2.5% (1.5% Variable payments on time) rebate**)Annual Loan Limits Determined by school Freshman - $5,500 (up to $3,500 sub) Cost of Cost of based on need and Sophomore - $6,500 (up to $4,500 sub) Attendance less Attendance less available funds Junior/Senior - $7,500 (up to $5,500 sub) Aid Aid Graduate - $20,500 (up to $8,500 sub) Full amount can be unsubsidizedRepayment 9 months after leaving 6 months after leaving school or dropping 60 days after fully Check with lender school or dropping below below ½ time disbursed (Upon ½ time request, may delay payments until after student graduates)Borrower Benefits Not applicable .25% interest rate reduction for auto pay Not applicable Check with lender
EmploymentFederal Work Study• Need-Based Aid• Earned throughout the year• Allows work on campus – Flexibility, Experience, Connection• Does not count as income on next FAFSA
FAFSAFree Application for Federal Student Aid www.fafsa.gov
FAFSA on the WebComplete the FAFSA on the Web Worksheet before you go to the computer to make entering your info easier
Application Process• Apply for PIN from Department of Education• Submit the Free Application for Federal Student Aid (FAFSA)• Finalize school admission• Submit any materials your institution requires (verification worksheets, taxes)• Make sure to meet all deadlines and reply to requests for information as soon as possible
Personal Identification Number (PIN)• Each student and ONE of their parents needs a PIN (If student is independent parent does not need PIN)• It is your electronic signature DO NOT share your PIN with ANYONE• You will uses it later to sign loan documents, complete loan counseling, and access information about your loans www.pin.ed.gov
Student InformationGeneral information• Name• Birth date• Social security number• Citizenship status• Selective Service Registration• Drug convictions
Dependency Status46 Born before January 1, 1988 (Age 24)47 Married48 Graduate Student49 Active Duty50 Veteran51 Children who receive more than half of their support from you52 Other dependents
Dependency Status53 Both parents deceased, in foster At any time since care, dependent or ward of the turning 13 court54 Emancipated minor in your state Immediately before of legal residence turning 1855 In legal guardianship in state of Immediately before legal residence turning 1856-58 Determined to be a homeless School district, unaccompanied youth emergency shelter
Dependency OverridesUnacceptable circumstances• Do not live with parents• Parents do not provide financial supportAcceptable circumstances• Estrangement due to abuse/dysfunction• Student who was independent due to marriage and is now divorced
Parents• Two biological parents married to each other• Divorced or separated parents (see below)• Legal adoptive parentDivorced ParentsOver the past 12 months• Parent lived with more• Parent who provided more financial supportIf parent is remarried include the spouse information
Tax Information Parents and students enter information about their 2010 taxes for the 2011-2012 applicationYou can usethe IRS DataMatch 10 - 14days after youhave filed yourtaxes.
Assets and Investments• Use the value as of the date you sign FAFSA• Does not include the home you live in (if duplex include the value of other half)• Current Value – Debt = Net Worth• Do not include value of Family Farm (that you live on)• Do not include Business value if less than 100 employees• Asset protection allowance based on age of older parent Age Two Parents One Parent 45 $48,700 $19,900 65 $84,000 $32,800
Household SizeDependent Student• Student• Student’s parent and parent’s spouse if married• Parents other children if the parent will provide more than half of their support between July 1 and June 30 of upcoming academic year• Other people that parent is supporting
Household SizeIndependent Student• Student• Student’s spouse• Student’s children if the student will provide more than half of their support between July 1 and June 30 of upcoming academic year• Other people that student is supporting
Household SizeDo not include• Boyfriends/Girlfriends/Fiancées• Children that are not supported 51% or more by student for independent students• If Dependent: Siblings who are in college that would be considered independent if they did their own FAFSANote: Don’t list child support paid for children in your household
Number in College• Attending college between July 1 and June 30 of upcoming academic year• At least half time (6 credits)• In a degree or certificate program• Title IV aid eligible school• Do not include parents
Finish the FAFSA• Add school codes – Can add up to 10 schools – Authorization to release information to school• Student and one parent signature – PIN electronic signature OR – print signature page and mail
Common FAFSA Errors• Missing Signatures/PIN• Wrong Social Security Number• Not using legal name• Parents/Stepparent Information• Taxes paid (tax liability to IRS)• Household size• Number in college
FAFSA Deadlines• May be completed as soon as January 1, 2011• Colleges may have a priority date – UW Colleges priority date is April 15!• Can be completed any time during the academic year• Processing takes time, you may be required to provide additional documents to the school• Complete by July 1st at the very latest to have processed by September when school begins
After you file the FAFSA• You receive an email with your Student Aid Report (SAR) – You can make corrections at www.fafsa.gov• Schools receive information 10-14 days after submitted• Most schools do not process until you are admitted• School may require additional documents – Tax returns – Verification Worksheet• Financial Aid office at school sends you an award letter – You may have to accept the aid – Read the materials that your school sends with letter
Special CircumstancesContact the school with special circumstances• Dependency concerns• Change in employment status• Medical bills not covered by insurance• Change in parent marital status
Resources• National Association of Student Financial Aid Administrators www.nasfaa.org (Parents & Students Tab)• U.S. Department of Education’s Student Aid on the Web http://studentaid.ed.gov• Manage your student loans https://studentloans.gov• National Student Loan Data System http://www.nslds.ed.gov/nslds_SA/• UW Colleges Financial Aid Office http://www.uwc.edu/ (Money Matters Tab)• Find UW Colleges Student Financial Aid Office on Facebook
QuestionsUW CollegesStudent Financial Aid Office780 Regent Street, Suite 130Madison, WI 53715608-262-5928www.uwc.edu