Transcript Lakeland College - Sheboygan Area School District

The Financial Aid Process
2012-2013
Presented by: Patty Taylor
Director of Financial Aid
Lakeland College
Financial Aid Topics for tonight
• Types and Sources of Financial Aid
– Federal, State, Miscellaneous
• How is Financial Aid Determined?
– Budget, EFC, Financial Need
• How to Apply for Financial Aid
– FAFSA, other forms and documentation
• Award Letter
• Extras
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Timetable
Special Circumstances
Tax Benefits
Contact Information
What is Financial Aid?
• Financial aid is money a student receives to
help the student and family pay for
educational expenses.
Types of Financial Aid
• Grants—Money not paid back
• Scholarships—Money not paid back
• Loans—Money a student or parent borrows
and pays back to a lender
• Work Program—Job on-campus
Federal Sources
• Grants
– Pell
– SEOG
– Teach Grant/Loan
• Work Study
• Loans
– Subsidized
– Unsubsidized
– PLUS
– Perkins
Work Study
• Two Kinds
– Federal Work Study -- partially funded by
government money
– Regular Employment -- 100% funded by the
college
• May be required to apply for a job
• Jobs may not always be guaranteed
• Check is issued to the student
Student Loans
• Loan Limits for the Subsidized/Unsubsidized
per academic year for dependent students.
– $5500 Freshman
– $6500 Sophomore
– $7500 Junior
– $7500 Senior
• Career Maximum to borrow is $31,000
Student Loans Cont.
• Federal Subsidized
– Interest rate of 6.8%
– 6 months grace after college before repayment
begins
– 1% origination fee deducted by the federal
government from the gross amount of the loan
– government pays the interest while the student is
in college
– 1% federal default fee
Student Loans Cont.
• Federal Unsubsidized
– Interest rate is 6.8%
– 6 month grace period after college before
repayment begins
– 1% origination fee deducted by the federal
government from the gross amount of the loan
– The student is responsible for the interest on the
loan while in college
– 1% federal default fee
PLUS Loans
• Federal Parent Loan for Undergraduate
Students (PLUS)
– Loan for Parents
– Interest rate 7.90%
– 4% origination fee deducted from the gross
amount of the loan
PLUS Loans Cont.
• 1% federal default fee
• Credit check is performed—if denied, an
endorser can be obtained
• Payments begin 60 days after the latest
disbursement
– Parents can request to postpone payments while
the student is enrolled at least half-time.
State Sources
• Grants
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Wisconsin State Tuition Grant (Private)
Wisconsin Higher Education Grant (UW’s / Tech)
Wisconsin Covenant
Wisconsin Indian Grant
Talent Incentive Program (TIP)—Wisconsin Education
Opportunity Programs (WEOP)
http://dpi.state.wi.us/weop/index.html
– Minority Grant
http://www.heab.state.wi.us/
Wisconsin Covenant
2012-13
• Students MUST:
– 1. Complete FAFSA by April 1
– 2. Complete confirmation form by April 1
– 3. By July determine which college student will
attend.
– There are not exceptions to these deadlines.
– Appeal process—military, serious accident
with severe medical issues.
.
Wisconsin Covenant
Full-time (12 credits)
EFC
WI Covenant
Foundation Grant
WI Covenant
Scholars Grant
Yearly Total
$0
$1,500
$1,000
$2,500
$1-$3,499
$0
$1,500
$1,500
$3,500-$11,999
$0
$1000
$1000
$12,000-$99,999
$0
$250
$250
Wisconsin Covenant
Half-Time (6-11 credits)
EFC
WI Covenant
Foundation Grant
WI Covenant
Scholars Grant
Yearly Total
$0
$1,500
$750
$2,250
$1-$3,499
$0
$750
$750
$3,500-$11,999
$0
$500
$500
$12,000-$99,999
$0
$125
$125
Miscellaneous Sources
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College
Community, Foundations, Companies, Unions
DVR
Tribal Indian Grants
Workforce Development
Financial Institutions—Private Loans
Scholarships
• Outside Scholarships
– Must report scholarship(s) to financial aid offices
– Ask colleges if the scholarship affects the students
financial aid award
– loan or work-study can be affected
– National searches: www.fastweb.com
• www.gocollege.com
• www.finaid.org
• www.nextstudentloans.com/sse1
Scholarships Cont.
• When applying for Scholarships:
1. Type applications
2. Follow directions
3. Dress Up for Interviews
4. 20 hours completing applications and if
awarded $1000 equates to $50 per hour.
Alternative Loans
• Banks have been developing their own loan
programs for student.
• www.finaid.org--provides list of available
lenders.
• Schools can’t always recommend a lender
How Financial Aid is Determined
Budget …
- Expected Family
Contribution (EFC)…
= Financial Need…
Budget
• Tuition and Fees—Direct Cost
• Room and Board—May be direct or indirect
Cost
• Books—Indirect cost
• Transportation—Indirect cost
• Personal—Indirect cost
• Loan Fees—Indirect cost
Expected Family Contribution (EFC)
• Government Calculation
– student income and assets
– parent income and assets
– number of people in the family
– number of people in college
Two Components:
1. Parent Contribution
2. Student Contribution
Example of Financial Need
4-Year
Private
college
4-Year Public
College
2-Year Public
College
Budget
$35,000
$18,000
$7,000
EFC
$7,000
$7,000
$7,000
Financial
Need
$28,000
$11,000
$0
How to Apply for Financial Aid
• Complete the Free application for Federal
Student Aid (FAFSA) www.fafsa.ed.gov
• FAFSA on the Web (FOTW) worksheets
• Paper FAFSA’s can be obtained by calling
1-800-4-fed-aid (1-800-433-3243)
• Complete any other forms the financial aid
office may require
PIN Registration
• Web site: www.pin.ed.gov
• For student and parent
• Not required,
but speeds processing
• May be used
throughout financial
aid process
Documents Needed to complete FAFSA
• 2011 Federal Taxes—with 2 weeks after
electronic submission of taxes, on the FAFSA you
should be able to pull the data in through the IRS
Data Retrieval Tool.
• W’2’s
• Untaxed Income information
• Bank Statement
• Asset Values
• Driver’s License
• Social Security Number
Frequent FAFSA Errors
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Parent & student social security numbers
Divorced/remarried parental information
Income earned by parents/stepparents
Untaxed income
U.S. income taxes paid
Household size
Number of household members in college
Real estate & investment net worth
The 2012-2013
Corrections on the Web
• Talk with a financial aid office regarding
corrections. Some corrections are required to
be made while others may not be.
• If you marked “will file” for taxes you will be
required to submit corrections.
What Happens After the FAFSA is
Submitted?
• Student receives an e-mail that the FAFSA is
processed within 3-5 days if PIN’s are used.
• All colleges listed on the FAFSA should receive
an electronic copy
• A paper Student Aid Report is generated only
if the FAFSA was completed on paper and an
e-mail address was not entered.
Additional Forms
• Additional forms (these may not be required for everyone)
– Financial aid application
– Signed copies of 2011 federal tax returns transcripts *NEW
THIS YEAR
• Parent(s), Student
– W-2’s
– Verification worksheet
– Social security card
– Selective service card
(https://www4.sss.gov/regver/Register1.asp)
• File should be complete for an award to be determined
The Award Letter
• Lists each source of assistance
• Gives you the right to accept or decline any
type of aid
• May need to be signed and returned to the
Financial Aid Office
• Many colleges have the award letter available
on-line.
Award Letter is Accepted.
What’s Next?
• If the student accepted a loan, the necessary promissory
notes need to be completed.
• Students borrowing for the first time through the federal
programs must complete Entrance Counseling.
• Students should keep copies of the loan application, award
letters, and disclosure statements
• Be there to help you son/daughters. Many have never
borrowed money and need guidance determining which loan
program is best for them.
• 10 days prior to the term, we are allowed to disburse financial
aid funds to a students account.
Timetable
• This is very important. Be very aware of
deadlines. Some colleges have cut off dates
for different institutional grants or
scholarships.
Special Circumstances
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Involuntary loss of employment
Unusual and excessive paid medical expenses
Divorce/Separation
Death of parent or spouse
Others
Tax Benefits
• There are federal tax credits available while
students are in college. This is a good time to
talk with a tax advisor about these benefits
and how they may impact your tax filing in the
future.
College Goal Weekend
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www.wicollegegoalsunday.org
When: February 18 & 19 2012
Time: 2:00 p.m.
Location: various location around the state
What For: Help with completing the FAFSA
Net Price Calculator (NPC)
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Available on all college website
Strictly and estimate
Colleges must follow minimum guidelines
Net Prices can vary depending on the Cost of
Attendance (COA)
Good Luck!
Patty Taylor
920.565.1298
[email protected]