2012-2013
Financial Aid Night
Tonight you will learn:
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What Financial Aid is
The formulas used in determining eligibility
Sources of Financial Aid
When and how to apply
Resources for more information
Goal of Financial Aid
 To assist students in paying for school
 To provide opportunity and access to higher education
 To help narrow the gap between what the family can pay
and the cost of education
Financial Aid Basic Premises
 To the extent they are able, parents have primary responsibility
to pay for their dependent children’s education
 Students also have a responsibility to contribute to their
educational costs
 Families should be evaluated in their present financial condition
 A family’s ability to pay for educational costs must be evaluated
in an equitable and consistent manner, recognizing that special
circumstances can and do affect a family’s ability to pay
COST OF ATTENDANCE (COA)
Tuition
and Fees
Supplies
+
Room
and
Board
+
Transportation
Books
+
+
+
Other
Personal
Expenses
2011-2012 Estimated COA Examples
Living at Home
Living On/Off
Campus
UW-Madison
$15,320
$22,330
UW-Milwaukee
$17,810
$24,800
UW-Green Bay
$14,722
$18,000
UW Colleges
$11,770
$16,170
NWTC
$10,300
$14,624
Carroll University
$33,216
$37,050
Lawrence University
$48,471
Marquette University
$41,972
Northwestern University
Iowa State University
$44,922
$56,006
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$30,490
The Expected Family Contribution
(EFC)

IS a measure of family’s capacity over
time to absorb educational costs

IS NOT a dollar amount expected from
current income or assets.

IS NOT an estimate of “extra” cash
available.
Federal Methodology
 Used to award Federal Aid
at public and private schools
FAFSA
 Uses both parent & student
information (for dependent
students)
 Uses standard income & asset
protection allowances
Expected Family Contribution
(EFC)
Current Federal Methodology
for a Dependent Student
STUDENT Contribution
 Parent Income 22-44% after
 Student Income 50%
after taxes and income
protection allowance of $5250
 Student Assets 20%
+
PARENT Contribution
taxes and income protection allowance
 Parent Assets* 5-6%
after asset protection allowance
 Divided by number in college
EXPECTED
FAMILY
CONTRIBUTION
Institutional Methodology
 Used by some colleges to award their own
institutional funds
 Formula could vary widely from school to school
 Often requires additional applications/forms
 May consider income & assets not reported on the
FASFA such as:




Home Equity
Retirement Accounts
Assets in siblings names
Income of non-custodial parent
The Parent
Contribution
Family Profile
Oldest Parent’s Age: 50
Family Members: 4
Number in College: 1
A Case Study
If Parents' Assets are:
$15,000 $50,000
Parents' AGI
$70,000
$100,000
Expected Parent Contribution will be:
$40,000
$1,558
$1,590
$2,118
$2,910
$60,000
$4,178
$4,220
$4,916
$6,093
$80,000
$10,223
$10,290
$11,418
$13,110
$100,000
$17,129
$17,196 $18,324
$20,016
2011-2012 Federal Methodology
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Financial Need Determination
Cost of Attendance (COA)
- Expected Family Contribution (EFC)
= Financial Need
A Sample Financial Aid Award
COA
EFC
Need
$25,000 - $9,000 = $16,000
$3,000 Scholarship
+ $4,000 Grant
$2,000 Work Study
+ $5,500 Stafford Loan
Unmet Need = $1,500
Family’s Responsibility = $10,500
Financial Aid
Sources & Types of Funding
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What is Financial Aid?
• Scholarships
 Do not have to be repaid
 Usually awarded on the basis merit, talent, or skill
• Grants
 Do not have to be repaid
 Usually awarded on the basis of financial need
• Loans
 Money that must be repaid
 Borrowed by student, parent, or both
• Work Study
 Student is given the
opportunity to earn money
Grants & Scholarships
• Federal Grants
• Pell Grant, SEOG, TEACH
• State Grants & Scholarships
• Need and non-need based
• Institutional Grants & Scholarships
• Vary by institution
• Private Scholarship
• Seek out funding early!
Self-Help Aid
Loans
Employment
 Money borrowed by student
and/or parent(s) to help pay
college expenses
 Allows student to earn money
to help pay educational costs
 Repayment usually begins
after education is finished
 Student paid for hours
worked
 Look at loans as an investment
in the future, but Only borrow
what is really needed
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Federal Stafford Loan
Every family should apply for financial aid.
Regardless of income, every student qualifies
for a Federal Stafford loan, if they meet the
basic eligibility requirements.
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Additional Resources
Government Resources
 Corporation for National and
Community Service
 Veteran’s benefits and tuition
waivers
 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
Other Resources
 Private Scholarships
 Civic Organizations, Parent’s
Employers, Community
Foundations, Web Searches,
etc.
 Private Education Loans
 School Payment Plans
(spread over several
months)
 Home Equity Loans
 Life Insurance Policy Loans
 Retirement Plan Loans
 529 Plan withdrawals
Financial Aid
State Programs
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Wisconsin Higher Educational Aids
Board (HEAB)
 State financial aid is available to WI residents enrolled
at non-profit colleges & universities based in WI
 UW System Schools, WI Technical Colleges, Independent
Colleges & Universities, Tribal Colleges
 Cannot receive funding if listed on Statewide Child
Support Lien Docket
 Male students MUST be registered with selective
service
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Wisconsin Higher Educational Aids
Board (HEAB)
 HEAB receives FAFSA data for students that list
WI as their state of residence
 HEAB notifies the college or university financial
aid offices of each student’s eligibility for state
financial aid
 The financial aid office includes state aid in the
student’s financial aid package.
HEAB – Program Details
 For students WITH financial need
 WI Higher Education Grant (WHEG)
 WI Tuition Grant (WTG)
 For students WITH need AND additional requirements

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
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Hearing & Visually Handicapped Student Grant
Indian Student Assistance Grant
Nursing Student Loan
Talent Incentive Grant (TIP)
WI Covenant Scholars Grant
 Programs that do not require need




Academic Excellence Scholarship
Minnesota/Wisconsin Tuition Reciprocity Program
Minority Teacher Loan
23
Teacher of the Visually Impaired Loan
The Wisconsin Covenant
 The goal of the Wisconsin Covenant is for 8th grade
students to aspire to and prepare for higher education.
 Every Wisconsin student should know that if they are
willing to work hard in high school, stay out of trouble
and contribute to their community, college IS possible
For more information: www.wisconsincovenant.wi.gov
HEAB – WI Covenant’s Senior
Checklist
 A Confirmation form, signed by:
 Student
 Parent
 Primary Contact
 A record of service form
 Two letters of recommendation, if necessary due to a
suspension
 Student and/or family mails these documents to the
Wisconsin Covenant Office
HEAB – Important Dates for
Confirmation Process
November/December
Lists of Wisconsin Covenant students provided
to Primary Contact at each high school
December 1
Confirmation form available online & mailed to
seniors
January 1
Confirmation Process Begins
April 1
Confirmation/FAFSA deadline
Students MUST verify that they meet the pledge requirements
to be recognized as a WI Covenant Scholar and to receive the
26 Grant.
Scholars
Fund for Wisconsin Scholars (FFWS)
The FFWS is a private charitable foundation that has been
funded with a $175 million founding gift. It will provide
grants to talented, lower-income graduates of Wisconsin
public high schools attending a public college, university or
technical school in Wisconsin. Grants are gifts and do not
need to be repaid. Recipients are selected randomly out of
those students that meet basic eligibility criteria.
www.ffws.org
Wisconsin Educational Opportunity
Programs (WEOP)
• Administered by the Department of Public Instruction



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
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State Talent Search Program
Talent Incentive Program (TIP)
Precollege Scholarship Program
Early Identification Program (EIP)
Federal GEAR UP Program
Federal Talent Search Program
Financial Aid
How to Apply
Application Process
 Submit the Free Application for Federal
Student Aid (FAFSA) at www.fafsa.gov
 Submit institutional financial aid application
materials (if required by school)
 Meet all required deadlines!
 Renew the FAFSA every year.
What is the FAFSA?
www.fafsa.gov
 A form that collects demographic
& financial information about the
student and family
 Income of student and
parent(s)
 Assets of student and
parent(s)
 Family size
 Number in College
 Age of the older parent
 May be filed electronically or using
paper form
 Available in English and Spanish
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Department of Education PIN
 Sign FAFSA electronically
 Not required, but speeds
processing
 May be used by students
and parents throughout aid
process, including
subsequent school years
www.pin.ed.gov
Reporting Assets on the FAFSA
Do Report on FAFSA
 Cash, Checking, Savings
 Rental Property
 Land, vacation property, second
or summer home
 Trust Funds
 529 accounts
 UTMA, UGMA, Custodial Accounts
 Money Market accounts, CDs,
stocks, bonds, securities, etc.
 Investment Farm
 Business Value
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Do NOT Report on FAFSA
 Principal place of
residence/family farm (family
must live on & operate farm)
 Small business with 100 or few
employees (must own & control
more than 50% of business)
 Personal Possessions
 Whole Life Insurance
 Retirment Accounts (pensions,
annuities, IRAs, deferred comp,
etc.)
Dependency Status
Unless student meets one of these criteria, parental data must
be reported on the FASFA
 will be 24 years of age by December 31 of the award year;
 has legal dependents other than a spouse who live with and receive
more than half of their support from them
 has dependent children who live with and receive more than half of their
support from them; is or was an emancipated minor or in legal
guardianship as determined by a court in the student’s state of legal
residence;
 is married;
 is a veteran of the U.S. Armed Forces
 is serving on active duty in the U.S. Armed Forces for purposes other
then training;
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Dependency Status (continued)
 is a graduate or professional student;
 is an orphan, in foster care, or a ward of the court, at any time when
the student was 13 years of age or older;
 is an unaccompanied youth who is homeless or who is at risk of
homelessness and is self-supporting, as verified during the school
year; or
 presents documentation of other unusual circumstances
demonstrating independence to the financial aid administrator.
Parents refusal to provide support or financial data is
insufficient to make a student independent regardless of
tax filing status.
On the FAFSA, Who is a Parent?
•
•
Biological parents married to each other
Divorced or separated parents
• FAFSA is to be completed using parent with whom the student lived
with more in the past 12 months.
– If student did not live with one parent more than the other, use
information about the parent who provided more financial support
during the past 12 months, or during the most recent year that the
student actually received support from a parent.
– If this parent has remarried, stepparent information must be
included on the FAFSA.
• Stepparent
• Widowed parent
• Legal adoptive parent – this does NOT mean legal guardians, even
those that are relatives.
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After you file the FAFSA
 Results are sent electronically to the school(s) student
selected.
 Students & Parents will receive the results of their FAFSA
by e-mail (or regular mail) - Student Aid Report (SAR).
 If FAFSA corrections are necessary, go to www.fafsa.gov
and “make corrections to a processed FAFSA.”
 If FAFSA is rejected, follow the instructions to correct it!
 Students may be required to verify the information
submitted on the FAFSA (submit tax forms).
 After the student is admitted to a school, a financial aid
package will be prepared.
 Contact the school with any Special Circumstances.
Verification Process
 Can be required by the federal government or
by the institution
 Is carried out by the institutions
 Involves documentation of data provided on
the FAFSA
 An award may change after verification
Special Circumstances
Information not reported on the FAFSA can impact a
family’s ability to contribute toward the student’s
educational expenses

Change in employment status

Parent in college

Loss of income or benefits


One-time income (capital gains,
retirement withdrawal, etc.)
Elementary or secondary school
tuition

Elderly care expenses

Change in parent marital status

Dependent care expenses

Disability of student


Death or disability of parent

High medical/dental expenses not
covered by insurance
Student cannot obtain parent
information – Unsubsidized loan
eligibility ONLY

Dependency override
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Special Circumstances
 Send explanation to financial aid office at each college
 College will review special circumstances
 May be required to submit additional documentation
 Adjustments are determined by each institution on a
case by case basis, recognizing the unique situation of
the student.
Decisions made by the institution are final and cannot be
appealed to U.S. Department of Education
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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 a financial aid office if you
need help in completing the FAFSA
 Never pay for financial aid
assistance!
The Financial Aid Calendar
January – February
 Complete forms (BEST GUESS IS OK FOR INCOME)
Late February - March
 May be required to submit additional documents
March - April
 Financial Aid awards mailed
 Compare award letters from different schools
The Financial Aid Calendar
(continued)
May 1
 DECISION DEADLINE - Tell all
schools yes or no
 Pay deposits (tuition, room
and board)
May - August
 Complete paperwork for loans
 Start searching for student
employment opportunities
 Pay bill for fall semester
“Insider” Tips
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Find out the deadlines and comply!
Keep copies of what you send.
If you have questions, ask!
Look at all of your financing options
Never assume you’re too poor to attend college or
too rich to receive some type of financial aid.
 Do NOT underestimate your options & do NOT rule
out a school just because of its cost
 Apply to one or two financially ‘safe’ schools
 Think about how you (parent & student) will pay your
share of total college costs (2/4+ years)
‘Financially’ Manageable
During and AFTER
the College years
Estimate
the ‘Total’
Cost of Education
Look at your entire
Financial Situation
4+ years of expenses
PARENT
STUDENT
Make financial decisions that :
Will not jeopardize
 Financial Security
 Comfortable Retirement
 Educating other children
 Other financial goals
 Will not leave excessive debt
 Will not jeopardize financial
independence after graduation
In Summary Student Responsibility
The
Student
• Files the FAFSA
• May be selected for verification
• Receives an award notification
• Is responsible for notifying FAO of outside scholarships
The
Student
• Accepts/Declines aid offer
• Signs the Master Promissory Note for Stafford Loans
• Completes Loan Entrance Counseling
The
Student
• Is responsible for their bill with the institution
• Is responsible for their student loans
• May choose to share information with their parent, or
others
Additional Resources
We’re Here to HELP!!!
College Access Advising
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Part of Wisconsin’s College Access Challenge Grant
administered by Great Lakes Higher Education Guaranty
Corporation
Priority given to low-income students and families. Services
available to all Wisconsin high school students.
Ten College Access Advisors provide free workshops and oneon-one advising
888-648-5733
E-mail: CollegeAccessAdvising@glhec.org
College Goal Wisconsin
• Free program to help families complete the FAFSA
• February 18-19, 2012
• Scholarship drawing at each site
– Provided by WASFAA and CACG
• 29 sites throughout Wisconsin
• Sponsored by WASFAA along with several other partners
For location information:
visit www.collegegoalwi.org
or call 1-866-578-4625
College Goal Wisconsin
Saturday Sites
February 18, 2012
Appleton
Fox Valley Technical College
1825 N Bluemound
(Entrance 1, Room A105)
Janesville
Hedberg Public Library
316 S Main Street
Marinette
UW Marinette
750 W Bay Shore Street
(Enter Main Building)
Platteville
Platteville High School
710 E Madison Street
Commons Area
West Bend
East High School
1305 E Decorah Drive
Use Auditorium Entrance on
River Road (Cty Hwy G)
Beloit
Beloit Memorial High
School
1225 4th Street
Elkhorn
Gateway Technical
College
400 County Road H
Building 100
Green Bay
East High School
1415 E Walnut Street (use
Front Entrance off of
Walnut Street)
Kenosha
Gateway Technical
College
3520 30th Avenue
The Center for
Bioscience
Madison
Edgewood
College
1000 Edgewood
College Avenue
(Use Main
Entrance)
Madison
Madison Area Technical
College
3550 Anderson Street
(Use Redsten Gym
Entrance)
Milwaukee
Moorse Marshall
School for the
Gifted and
Talented 4041 N
64th Street
Oshkosh
UW Oshkosh
800 Algoma Blvd
Milwaukee
Alverno College
3400 S 43rd Street
(Free parking in ramp.
Enter rotunda.)
Rice Lake
UW Barron County
1800 College Drive
Ritzinger Hall
Wisconsin Rapids
Mid State Technical
College
500 32nd Street, Building
A
Waukesha
UW Waukesha
1500 N University
Drive
Commons Building
Wausau
Northcentral Technical
College
1000 Campus Drive
(Main Entrance Rooms,
E101 and E102)
College Goal Wisconsin
Sunday Sites
February 19, 2012
DeForest (Madison Area)
DeForest High School
815 Jefferson Street
LaCrosse
UW LaCrosse
1705 State Street
Wing Technology Center
Racine
Gateway Technical College
1001 S Main Street
Racine Conference Center
(Parking in Lake Level Parking
Lots. Lake Side Entrance.)
Eau Claire
Chippewa Valley
Technical College
620 W Clairemont
Avenue
Business Education
Center
(Entrance by Parking
Lot P1 at the front of
the building or P9 on the
west side)
Manitowoc
UW Manitowoc
705 Viebahn Street
Entrance-Founders Hall
(Middle Building)
Rhinelander
Rhinelander High School
665 Coolidge Avenue
(Entrance 1)
Fond du Lac
Marian University
45 S National Avenue
Stayer Center
Corner of 4th and
National
Kenosha
UW Parkside
900 Wood Road
Student Center
Milwaukee
Pulaski High School
2500 W Oklahoma
Avenue
(Use Main Entrance at
25th & Oklahoma)
Milwaukee
Riverside High
School
1615 E Locust Street
(Main Entrance off of
Locust)
Superior
Superior High School
2600 Catlin Avenue
Library Computer Lab
THANK YOU!
Sara Beth Holman
Director of Financial Aid
Lawrence University
sara.b.holman@lawrence.edu
920-832-6583