Transcript Discover the Possibilities

Understanding
Financial Aid
Grafton High School
Margaret Zitzer – Marquette University
01/07/2010
Agenda
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Principles of Financial Aid
Key Concepts
Completing the FAFSA
Types of Aid Available
Basic Principles of Financial Aid
 Parents have primary responsibility to pay for the
education of their dependent children.
 Students also have a responsibility to help pay for their
educational costs.
 A family’s ability to pay for educational expenses must
be evaluated in an equitable and consistent manner
while recognizing that special circumstances can and
do alter a family’s ability to pay.
Financial aid
helps bridge the gap
between the cost of education and
what the family can pay.
Key Concepts
• Cost of Attendance (COA)
• Expected Family Contribution (EFC)
• Demonstrated Financial Need (Need)
Cost of Attendance
(Direct & Indirect Costs)
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Tuition
Fees
Room & Board
Books & Supplies
Personal/Miscellaneous
Travel
Expected Family Contribution
(EFC)
Determined by filing the FAFSA
Free Application for Federal Student Aid
EFC
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Income
Assets
Family size
Number in College
Age of the older parent
Demonstrated Financial Need
Financial Need is a simple equation:
COA
-EFC
=Need
Examples of Financial Need
Public College
Private College
Cost $18,014
EFC -$9,000
Need $9,014
Cost $35,374
EFC - $9,000
Need $26,374
Source: The College Board
Average College Costs, 2007-08
Applying for Financial Aid
is as easy as
1
2
Get Organized
To complete the FAFSA you will need to:
•Gather your and your parent’s 2009 tax
information
•Apply for a Personal Identification Number
(PIN)
•Parent must have his/her own PIN.
•PIN serves as electronic signatures for the
FAFSA and promissory notes
www.PIN.ed.gov
Submit the FAFSA
www.FAFSA.ed.gov
•Select the appropriate school year
•Complete all sections about you, your
school plans and financial
information
•List your school code(s)
•Provide your electronic signatures (PINs)
•Submit your information
•Keep copies for your records
www.fafsa.ed.gov
2010-11 FAFSA –
“Simplified”
♦ Fewer Questions
♦ Fewer Screens
♦ Skip Logic
♦ Less Text
♦ Possible to import
tax info from IRS
♦ Low income levels do not report assets
Completing the FAFSA
Points to Remember:
♦The earliest you may file the FAFSA for the
2010-2011 school year – January 1, 2010.
♦ May be able to download income from IRS web site
♦ Check with the colleges where you plan to apply for
deadlines and institutional requirements.
♦ The FAFSA is student specific.
♦ You do not need to wait until tax returns are filed; It is
o.k. to estimate.
♦ Who is considered a parent?
♦ You must re-apply for aid every year.
FAFSA Follow Up
Here’s what happens after you file:
•Your EFC is calculated.
•Results are sent electronically to the college(s) you
selected. (List up to 10 schools on electronic FAFSA)
•You will receive a Student Aid Report (SAR).
•If you have extraordinary circumstances notify the
Financial Aid office.
•After you are admitted to a college, a financial aid award
will be sent to you.
•You may be required to verify the information submitted
on your FAFSA.
Common Errors
 No signature(s) on FAFSA
 Remember to electronically sign the FAFSA with PIN (student
& parent)
 After submitting the FAFSA – scroll down to the bottom
of the confirmation and read the whole message
 Make corrections to the FAFSA – clear up any
Rejected FAFSA errors
 Missing signature(s)
 AGI equals tax paid
 Check with the school regarding any future deadlines –
You don’t want to miss out on any financial aid in
subsequent years
Types of Aid Available
• Gift
• Scholarships
• Grants
• Self-help
• Employment
• Loans
Scholarships
Academic - merit based
Talent
Service
ROTC
Private
www.fastweb.com
www.finaid.org
www.BrokeScholar.com
Grants
Need-Based
Federal Grants
Pell
SEOG
ACG
SMART (National Science and Mathematics Access to Retain Talent Grant)
TEACH
Grants Cont.
Need-Based
 State Grants
 Institutional Grants
Employment
• Two types:
• Federal Work Study
• Regular Campus Employment
• Can be used for personal expenses
• Does not adversely affect grades
Student Loans
Federal Stafford
Subsidized
Unsubsidized
(anyone can borrow)
Federal Perkins
5% interest rate
Sub fixed interest rate of 4.5%
Unsub fixed interest rate of 6.8%
interest deferred while in school
Freshmen - $3500
Sophomores - $4500
Juniors/Seniors - $5500
Additional Unsub $2000/year
No loan fee
9 month grace period
(Loan Fee up to 2.5% (may receive rebate))
6 month grace period
10 year repayment
10 year repayment
Other Options
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Parent PLUS Loan
Student Alternative Loans – Private Lenders
Payment Plan
Tax Credits
EdVest (529 Plan) Withdrawals
“FAFSA 4 caster”
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www.fafsa4caster.ed.gov
Early financial aid estimation tool
Estimate of EFC
Not the official application, student still
must submit the actual FAFSA form
 Bio Demo Information will transfer to
FAFSA
College Goal Sunday
http://www.wicollegegoalsunday.org/
 College Goal Sunday is a Statewide event that
will offer free assistance to families in
completing the FAFSA
 February 20, 2010 and February 21, 2010
from 2:00-4:00pm (“Weekend Edition”)
 Event is being held on behalf of WASFAA
 Assistance with paper and online FAFSAs
 Scheduled at 25 sites throughout Wisconsin
Additional Information
Marquette University
Office of Student Financial Aid
(800) 222-6544 or (414) 288-7390
[email protected]
website: www.marquette.edu/financialaid