Financial Aid Overview Stacy Doran Fox Valley Technical College Director of Student Financial Services Common Questions What is financial aid? How does a student apply? Who is eligible? How many credits does the student need to be enrolled in to be eligible for aid? When is the money disbursed? What if a student drops or fails a class? What is financial aid warning status? What is financial aid suspension status? Basic Principles of Financial Aid •The family has the primary responsibility for financing a student’s post-secondary education to the extent they are able •Students also have a responsibility to contribute to their education costs •Financial Aid is the bridge Goal of Financial Aid •To assist students in paying for school •To provide opportunity & access to higher education •To help narrow the gap between what a family can pay & the cost of education •To take into consideration the present financial condition of the family Financial Aid Regulations •Determined by federal and state statutes and legislators •Establish •Apply eligibility for most types of aid to all schools What is financial aid? Funds Grants Federal (Pell, SEOG) State (WHEG, TIP) Self-Help Funds Work-study Loans (must be repaid) “Free” Perkins Subsidized Stafford Unsubsidized Stafford PLUS Private / Alternative “Other Funding” Agency Funding DVR, TRA, WI GI Bill, etc. Scholarships How to Apply? 1. 2. Request a PIN • www.pin.ed.gov Complete the FAFSA • www.fafsa.gov • School Code for College(s) that the student is interested in attending Note • Student must be admitted into a financial aid-eligible program at their college before funds can be disbursed How to Apply? •PIN (Personal Identification Number) •www.pin.ed.gov Why have a PIN? •Students and parents can get PINs •Parents can use same PIN for all students •Electronic signature for FAFSA •Can also be used for: •Renewal •Corrections •Check application status •Request duplicate SAR (Student Aid Report) •National Student Loan database •Signing promissory note for student/parent loans How to Apply? •FAFSA (Free Application for Federal Student Aid) •www.fafsa.gov •1-800-4FED-AID •Real-time online chat for immediate answers •English and Spanish options •Instant access to EFC (Expected Family Contribution) estimate •Email notification of results •Be aware of “scams” WWW.FAFSA.GOV Who is eligible? Students who are admitted to an eligible program: Bachelor’s degree programs Associate degree programs One & two year technical diploma programs *Certificates & <one year technical diplomas are not eligible for financial aid. Be a U.S. citizen, a national, or a permanent resident of the United States Not be in default or owe a repayment Tips on Applying for Financial Aid FAFSA becomes available on January 1 each year Once your taxes are completed and submitted to the IRS Two weeks after filing, you are able to use the “link to IRS” option on the FAFSA Meet college filing deadline and priority dates Failure to apply early may result in less aid, even if eligible You can still complete the FAFSA after the “priority” date, but you may not be eligible for certain types of funding at that point. Tips on Applying for Financial Aid Read the instructions. Don’t assume. Complete all questions Keep or save a copy of all documents submitted Respond promptly to any requests for information from your financial aid office Students must re-apply for aid every year. Renewal notification is sent to students towards the end of each calendar year. Aid year Academic year Verification If you don’t / can’t use the “link to IRS” option, you may need to request a Tax Return Transcript from the IRS student parents Contact your college’s Financial Aid Office if you encounter issues Colleges can no longer accept paper tax returns Various other items may need to be verified: Confirmation of child support paid, food stamp benefits, number of people in household, etc. Frequent FAFSA Errors Missing signatures / PIN Using nicknames Divorced / remarried parent information Income earned by parents / stepparents Untaxed income US income taxes paid Household size Number in college Who is a parent? Two biological parents married to each other Divorced or separated parents FAFSA is to be completed by parent with whom the student is living If parent has remarried, stepparent information must be included on the FAFSA Stepparent Widowed parent Legal adoptive parent Independent Student Determination At least 24 years old Married Has child or other dependent for whom student provides more than half support Orphan, foster child, ward of the court, homeless youth or under legal guardianship Veteran of the US Armed Forces Determined to be independent by the financial aid administrator Parent refusal to provide support or financial data is insufficient to make a student independent regardless of tax filing status Delivery System Overview FAFSA Central Processing Calculates EFC Results sent to student (SAR) Student will submit additional documentation to school, as requested. ©Wisconsin Association of Student Financial Aid Administrators, 1999 Results sent to school (ISIR) After you file the FAFSA Results are sent electronically to the college(s) the student selected (school codes) Student and parent will receive the results of their FAFSA by email and/or regular mail. This is the SAR (Student Aid Report) Student may be required to supply documentation to verify the information submitted on the FAFSA. A financial aid package (award) will be prepared after the student is admitted to a college and the FAFSA information has been processed Contact the college with any special circumstances (loss of income, etc.) How is need determined? Cost of Attendance (COA) minus (-) Expected Family Contribution (EFC) equals (=) Unmet Financial Need Cost of Attendance Components Tuition and Fees Dependent Care Room and Board Study Abroad Books and Disability Related Expenses Supplies Transportation Personal Expenses Expected Family Contribution (EFC) Is the sum of four separate calculations, based on the information contained in the FAFSA: Contribution from parental income Contribution from parental assets Contribution from student income Contribution from student assets What determines the EFC? Income parent and student Taxes paid parent and student Assets (cash, savings, investments, etc.) parent and student Family size Number in college Special Circumstances Examples Loss of income / job Divorce or separation Death of parent Unusual medical or dental expenses Private elementary/secondary tuition Parent in college Must submit FAFSA Consult with the financial aid office to determine what additional information is required. The override must recognize the unique situation of the student and must be documented. (note: Professional judgment is at the sole discretion of each institution.) When are funds disbursed? What is the census date? The actual amount of financial aid funding is determined by the fundable number of credits on the census date. The census date is quite often the 10th business day of a term, but can vary by institution. After this date: Adjustments will not be made to Pell amounts for additional enrollment Awards may be recalculated for classes with no attendance A repayment may be charged for all or a portion of funds received Credit Load A student must be enrolled at least half-time by the census date to receive most types of Federal or State financial aid funds, with the exception of the PELL grant Pell Grant credit requirements: Credits Status 1–5 Less-than-half time 6–8 Half-time 9 – 11 Three-quarter time 12 or more Full time WHAT IF A STUDENT DROPS OR FAILS A CLASS? Financial Aid Satisfactory Academic Progress (FA SAP) Review cumulative financial aid grade point average (FA GPA) Review cumulative pace of progression All attempted credits are included Number of credits passed versus number of credits attempted Potentially review term financial aid grade point average Review 150% rule The maximum time frame that a student may receive federal and state financial aid cannot exceed 150% of the number of credits required to earn their degree. Financial Aid Warning Financial Aid Warning Students will be placed on Financial Aid Warning for the next term of enrollment if the FA SAP requirements haven’t been met. While on Financial Aid Warning, a student may receive financial aid, but must be able to meet satisfactory progress for cumulative standards at the end of the warning term. Students who meet satisfactory academic progress standards at the end of the term while on Financial Aid Warning will have their status updated to reflect their good standing. Financial Aid Suspension Financial Aid Suspension If a student is on Financial Aid Warning and does not meet FA SAP at the end of the Financial Aid Warning term, the student will be suspended from further receipt of financial aid. A student who has been suspended must pay for future classes on their own until they meet the FA SAP requirements or successfully appeal. A change of program will not eliminate this suspension. Appeal Optional based on institution’s decision A student who believes their Financial Aid Suspension is due to extenuating circumstances beyond their control can submit an appeal. Death of an immediate relative of the student Injury or illness of the student Other circumstances that result in undue hardship to the student Role of the Financial Aid Office Answer your questions Determine financial need eligibility for various types of financial aid Verify applicant data when required Award aid from all available sources Develop policies and procedures to distribute aid Send award notification letters/e-mails with information about: Costs Amount awarded from each aid program How and when aid will be disbursed Terms and conditions of student’s award Role of the Business Office Calculate tuition, meals, housing and other fees Send billing statements Set up payment plans, if available Collect payments for charges on student’s account Credit financial aid to the student account Process student excess funds Return financial aid funds that are unearned Send out 1098T for tax purposes Scholarships Free scholarship search firms www.fastweb.com www.brokescholar.com www.wiredscholar.com www.collegeboard.com www.absolutelyscholarships.com High school guidance offices Post-secondary schools Parent organizations Parent’s employer Community organizations and groups Libraries Scholarships Scams “A list of scholarships is guaranteed” “I just need your credit card number” “Please enclose a $5 processing fee” “You’ve been selected” by a group you’ve never heard of “You’re a finalist” in a contest you never entered National Fraud Information Center 1-877-382-4357 Scholarships Scams For information about financial aid scams and tips to avoid being scammed, please check: Department of Education Federal Trade Commission To http://studentaid.ed.gov/students/publications/lsa/index.html http://www.ftc.gov/bcp/ check the legitimacy of scholarship search organizations or individuals, check the Better Business Bureau at www.bbb.com. Other financing options? School payment plans spread over several months 529 plan withdrawals Other loan options Reminders APPLY! Reapply yearly Don’t be afraid to ask questions Promptly review items from the Financial Aid Office Search for scholarships College Goal Wisconsin QUESTIONS?