What is Financial Aid - UW-Milwaukee

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What is Financial Aid - UW-Milwaukee Powered By Docstoc
					Understanding Financial Aid:
 High School Financial Aid
          Night
             Financing Your
                Education
    • Goal of financial aid
    • How to apply
    • Determining eligibility
    • Types of aid available



2
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




4
    You may be eligible for
    aid, but…

     YOU MUST
    APPLY TO FIND
        OUT!

     www.FAFSA.gov

5
    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.


6
      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

7
    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!

8
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


9
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 Wisconsin
        www.collegegoalwi.org
     Put your hands on some money for
                   college!
10
Expected Family Contribution (EFC)
(Federal Methodology established by U.S. Congress)
         Determined by filing the FAFSA
               www.FAFSA.gov




11
 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

12
     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




13
     IRS Data Retrieval- Tips
     Ineligible 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

     *The IRS often processes returns for those receiving refunds
     first. If you owe taxes, your return may not be processed for
     a while which may cause a delay in your being able to use the
     DRT.

14
       Assets and the FAFSA
     Assets Included                Assets Not Included
     •Cash, Savings & Checking      • Home in which you live ~
     Accounts                         including family farm
     •Value of business land,       • Value of life insurance
     buildings, equipment,            and retirement plans
     inventory, etc. for              (pensions, annuities,
     companies with 100 or            Keogh’s non-education
     more employees.                  IRA funds, etc.)
     •Education IRA’s               • Personal vehicles
     •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




16
       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.



17
     FAFSA4caster
• FAFSA4caster will:
     – Instantly calculate estimated
       eligibility for federal student
       aid
     – Provide you with basic
       information about funding
       resources through
       government
     – Give you a starting point of
       what to expect



18
     What is Financial Aid?
      • Grants


      • Scholarships


      • Loans


      • Employment
        opportunities

19
      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




20
     Gift Aid
     Grants & 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)




21
       Self-Help Aid
     Loans
     • Federal Direct Loan
     • Federal Perkins Loans
     • Federal Direct PLUS (Parents)
     • State or Institutional Loans
     • Private-Alternative Loans

     Employment
     • Federal Work Study (earned as wages)




22
     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: The interest rate for Subsidized Loans is
     scheduled to increase to 6.8% unless Congress takes
     action.

23
     Direct Loan Limits
                                         Max
                              Total
                                         Subsidized
        Freshman             $5,500           3,500
        Sophomore            6,500            4,500
        Junior/Senior        7,500            5,500
        5th Year/Other       7,500            5,500

     Cumulative maximum for dependent undergraduate is
      $31,000, with no more than $23,000 in subsidized loans.




24
         What Are the Costs?

         Tuition and Fees
     +   Room and Meals
     +   Transportation
     +   Books & Supplies
     +   Miscellaneous Living Expenses
         Cost of Attendance (COA)

25
     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 $   6,304 $ 0
                 X         Y           Z

26
     How to Compare College
     Financial Aid Offers
     • Start with tuition, fees, room and meals
     • 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

27
        Other Financing Options

     - PLUS (Parent Loan for Undergraduate Student)

     - Private Educational Loans

     - Monthly Payment Plans

     - Home Equity Loans




28
WWW.WISCONSINCOVENANT.WI.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.
     Other Sources of Funds
       Parental Affiliations
          – Employers & Labor Unions
          – Religious and Community
            Organizations
          – Clubs and Civic groups
       Civic organization scholarships
          – High School
          – Local Public Library
       Private business scholarships

30
     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

31
 Federal Student Aid- Great Resource!
 www.studentaid.ed.gov

32
     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


33
           Questions?

     Thank you for attending!




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