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?