Transcript The Financial Aid Process 2008-2009

The Financial Aid Process
2011-2012
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
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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.
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$5500 Freshman
$6500 Sophomore
$7500 Junior
$7500 Senior
 Career Maximum to borrow is $31,000
Student Loans Cont.
 Federal Subsidized
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Interest rate of 3.4%
6 months grace after college before
repayment begins
0%-0.5% 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
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Interest rate is 6.8%
6 month grace period after college before
repayment begins
0%-0.5% 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)
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Loan for Parents
Interest rate 7.90%
3% 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
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
New for 2011-12
 Students MUST:
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1. Complete FAFSA by April 1
2. Complete confirmation form by April 1
3. By July determine which college student
will attend.
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There are not exceptions to these deadlines.

Appeal process—military, serious accident
with severe medical issues.
***There is no guarantee that this program will
be available beyond the 2011-12 year.
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
$250
$250
$12,000-$99,999 $0
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
 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
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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
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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
$30,000
$16,000
$7,000
EFC
$7,000
$7,000
$7,000
Financial
Need
$23,000
$9,000
$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
 2010 Federal Taxes—with 2 weeks after
electronic submission of taxes, on the FAFSA
you should be able to pull the data in.
 W’2’s
 Untaxed Income information
 Bank Statement
 Asset Values
 Driver’s License
 Social Security Number
Frequent FAFSA Errors
 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 2011-2012
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 2010 federal tax returns
 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
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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
 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
 www.wicollegegoalsunday.org
 When: February 20, 2011
 Time: 2:00 p.m.
 Location: UWC—Sheboygan
 What For: Help with completing the
FAFSA
Good Luck!
Patty Taylor
920.565.1298
[email protected]