Financial Aid

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Financial Aid
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Welcome!

• Todays Presenter
• Benjamin P. Dobner
• Waukesha County Technical College
• bdobner_at_wctc.edu
• 262.691.5436
• www.wctc.edu/finaidforms

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College Goal Sunday Weekend EditionSaturday,
Feb 21st Sunday, Feb 22nd - 200pm

• College Goal Sunday is a statewide event that
  will offer free assistance to families in
  completing the Free Application for Federal
  Student Aid (FAFSA)
• Volunteer forms, marketing materials and
  additional information can be found on the
  website at www.WiCollegeGoalSunday.org
• Scheduled at 20 sites throughout Wisconsin.
• New this year The event is being held on
  Saturday and Sunday. Check your site for the
  date!!!

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College Goal SundayWeekend EditionComing to a
location near you!!!
Saturday, February 21st
Sunday, February 22nd
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FINANCIAL AID FUNDAMENTALS
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Financing Your Education

• What is the goal of financial aid?
• How is financial need determined?
• How do I apply?
• What aid is available?

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Goal of Financial Aid

• To assist students in paying for school.
• To provide opportunity and access to higher
  education.
• To help bridge the gap between what the family
  can pay and the cost of education.

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Principles of Financial Aid

• To the extent they are able, parents have primary
  responsibility to pay for their dependent
  childrens education.
• Students also have a responsibility to contribute
  to their educational costs.
• Families should be evaluated in their present
  financial condition.
• A familys ability to pay for educational costs
  must be evaluated in an equitable and consistent
  manner, recognizing that special circumstances
  can and do affect a familys ability to pay.

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Financial Aid Regulations

• Are determined by federal and state statutes and
  legislators
• Establish applicants eligibility for most types
  of aid
• Are applicable to all schools

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Expected Family Contribution (EFC)(Federal
Methodology established by U.S. Congress)

• Determined by filing the FAFSA
• www.FAFSA.ed.gov

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Main Determinants of the EFC

• Income of both student and parents
• Assets of both student and parents
• Family size
• Number in College
• Age of the older parent

Adjustments to EFC may be made by the Financial
Aid Office due to Verification and/or Special
Circumstances that limit ability to pay
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Expected Family Contribution (EFC)

• Is the sum of four separate calculations
• Contribution from Parental Income
• Contribution from Parental Assets
• Contribution from Student Income
• Contribution from Student Assets

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Dependency Status

• At least 24 years old
• Graduate or professional student
• Married
• Has child for whom student provides more than
  half support
• Has dependent other than child or spouse who
  lives with student and for whom provides more
  than half support
• Orphan
• In foster care or a ward of the court, at any
  time when the individual is 13 years of age or
  older
• Is an emancipated minor or is in legal
  guardianship
• Has been verified as an unaccompanied youth who
  is homeless or at risk of homelessness and is
  self-supporting
• Veteran of the U.S. Armed Forces or currently
  serving active duty for other than training
  purposes in the U.S. Armed forces or
• Determined to be independent by the financial aid
  administrator via Professional Judgement
• (Parents refusal to provide support or financial
  data is insufficient to make a student
  independent regardless of tax filing status)

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Divorced/Separated Issues

• 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, give answers 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.

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You may be eligible for aid, but..

• YOU MUST APPLY TO FIND OUT!
• And its free!
• NEVER pay to file the FAFSA!
• File the FAFSA each year.
• www.FAFSA.ed.gov

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Application Process

• Apply for PIN through Department of Education
• Submit the Free Application for Federal Student
  Aid (FAFSA) prior to your schools deadline
• Submit any institutionalapplication
  materials(if required by your school)
• Finalize school admission
• Make sure to meet allrequired deadlines!

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What is a PIN? www.pin.ed.gov

• Personal Identification Number
• Student and one parent must get their own PIN
• Used to electronically sign the FAFSA
• PIN delivery
• Real time online (immediate)
• By e-mail, with a link to retrieve your PIN
• By regular mail in 7-10 days
• Can also be used for
• Renewal on the Web
• Corrections on the Web
• National Student Loan Database
• Signing promissory notes for student/parent loans
  (Perkins, Stafford, PLUS)

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FAFSA Processing Flowchart
Schools 1 - 10
FAFSA
STUDENT
FAFSA
PROCESSING
CENTER
Database Matches
Student Aid Report
Wisconsin Higher Educational Aids Board (HEAB)
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College Scholarship Service /PROFILE (used by
some private schools)

• Collects additional data
• Targets non-federal funds
• Supports Institutional Methodology (IM) as well
  as Federal Methodology (FM)
• Supports early estimates/early admission

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Timelines

• A PIN may be obtained at any time prior to filing
  the FAFSA.
• The earliest a student can file the FAFSA for the
  2009-2010 academic year - January 1, 2009.
• Check with schools for institutional deadlines
  and requirements.
• Failure to apply early may result in less aid,
  even if eligible.
• Students must renew the FAFSA every year.
  Renewal notification is sent to students towards
  the end of each calendar year.

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What is Financial Aid?

• Scholarships
• Grants
• Work Study Employment
• Loans

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Three primary sources of funding

• US Department of Education
• The federal agency that provides funding in the
  form of grants, scholarships and loans.
• State
• Most states have agencies that administer state
  scholarship and grant programs, college savings
  and prepaid tuition programs, and loans. The
  Higher Educational Aids Board (HEAB) manages
  state aid in Wisconsin.
• Colleges Universities
• Schools may offer their own scholarship, grant,
  work-study and loan programs, with each setting
  its own requirements.

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Gift Aid (FREE )

• Grants Scholarships
• Federal
• Federal Pell Grant
• Federal Supplemental Educational Opportunity
  Grant (SEOG)
• Academic Competitiveness Grant (ACG)
• National SMART Grant
• TEACH Grant
• State
• Institutional
• Private/outside scholarships

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Academic Competitiveness Grant (ACG)

• First year grant is 750
• For students who will be new freshman in 2009-10
  the following criteria are required
• U.S. Citizen AND
• Enrolled in a 2 or 4-year program AND
• Pell eligible AND
• Full Time AND
• Graduated from high school after 1/1/2006 AND
• Completed a rigorous high school curriculum as
  defined by the state
• Second year grant is 1300
• Same criteria as above AND
• Must have a minimum 3.0 GPA AND
• Graduated from high school after 1/1/2005

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National Science and Mathematics Access to Retain
Talent (SMART) Grant

• Up to 4000 in 3rd and 4th years of undergraduate
  study
• Eligibility requires include
• U.S. Citizen
• Pell Eligible
• Full Time
• 3.0 Cumulative G.P.A.
• Enrolled in an eligible program of study
• Computer Science, Engineering, Critical Foreign
  Languages, Life Sciences, Mathematics, Physical
  Sciences, Technology, or Multidisciplinary
  Studies

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ACG/SMART Grant Information

• Academic Competitiveness Grant (ACG)
• http//www.fsa4counselors.ed.gov/clcf/AcademicGra
  nts.html
• National Science and Mathematics Access to Retain
  Talent (SMART) Grant
• http//www.fsa4counselors.ed.gov/clcf/SmartGrants
  .html

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Teacher Education Assistance for College and
Higher Education (TEACH) Grant

• Created by College Cost Reduction and Access Act
  (9/27/07) and effective for the 2008-2009 award
  year
• Provides a TEACH grant of 4,000 for each
  academic year during which the teacher candidate
  is in full time attendance at a participating
  institution.
• Applicant must agree to serve as a full-time
  teacher for at least 4 academic years within 8
  years after completing education for which the
  applicant received a TEACH grant teach in a
  public or other qualified nonprofit private
  elementary or secondary school in a high-need
  field
• If a recipient fails or refuses to comply with
  this service obligation, the sum of the TEACH
  grant amounts the recipient received shall be
  treated as a Federal Direct Unsubsidized Stafford
  Loan and shall be subject to repayment with
  interest from the date of the grant award.
• Check with specific schools to determine if they
  are participating in the TEACH Grant program
• FAFSA is the TEACH Grant Application

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Self-Help Aid

• Employment (must be earned as wages)
• Federal Work-Study
• Institutional Work Programs
• Off Campus employment
• Loans (must be repaid with interest)
• Federal Perkins Loan
• Federal Stafford Loans (school determines the
  loan program)
• Federal Family Education Loan (FFEL) Program
• William D. Ford Federal Direct Loan Program
• Federal PLUS Loan (parent)
• State Loans
• Institutional Loans
• Private-Alternative Loans

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Federal Student Loans

• Every family should file a FAFSA. Regardless of
  income, every student qualifies for a Federal
  Stafford loan, if they meet the basic eligibility
  requirements.
• Benefits of a federal student loan
• You dont have to repay until you leave school
• Lower interest rates than private loans or credit
  cards
• Credit record is not needed
• Co-signer is not required

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2009-2010 Loan Comparison Chart
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Borrowing Tips!

• Before borrowing, think about your ability to
  make
• the monthly payment when you leave school
• Borrowers are free to choose any participating
  lender
• Borrow only what is needed for direct educational
  expenses
• and avoid borrowing funds for discretionary
  spending

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How to Compare Financial Aid Offers

• Start with tuition, fees, room and board
• 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 because students are paid for hours
  worked

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Other Financing Options

• School Payment Plans (spread over several months)
• Home Equity Loans (longer repayment, tax
  deductible)
• Life Insurance Policy Loans
• Pension Plan Loans
• 529 Plan withdrawals

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Government Resources

• Corporation for National and Community Service
• Veterans 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

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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

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www.fafsa4caster.ed.gov
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Questions?

• Benjamin P. Dobner
• Waukesha County
• Technical College
• bdobner_at_wctc.edu
• 262.691.5436
• www.wctc.edu/finaidforms