Understanding Financial Aid and Applying for Scholarships

Understanding Financial Aidand

Applying for ScholarshipsFinancial Aid NightJanuary 30, 2014

Lynette Anderson, LakeView CounselorAnd

Blake TaylorFinancial Aid Counselor

Office of Scholarships & Financial AidUniversity of Wisconsin-Parkside

262-595-2291

Financial Aid Overview

College as an investment What is financial aid? How to apply Financial need Types of aid Other options Tax credits

COLLEGECOLLEGEIS AN INVESTMENT FOR AIS AN INVESTMENT FOR A

LIFETIMELIFETIME

Over a lifetime, the gap in earnings between those with a high school diploma and a B.A. or higher exceeds $1,000,000.

Basic Principles of Financial Aid

The family has primary

responsibility for financing post secondary education.

Financial aid is the BRIDGE.

Purpose of Financial Aid

• Provide opportunity and access to higher education.

• Bridge the gap between what college costs and your ability to pay.

• Access to your goal.

Financial Need Defined

Cost of Attendance (COA)

– Expected Family Contribution (EFC)

= Financial Need

What Are the Costs?Tuition and Fees+ Room and Board+ Transportation+ Books & Supplies+ Miscellaneous Living

Expenses= Cost of Attendance

(COA)

Direct Costs = Tuition + R&B (on campus)

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

Determined by filing the FAFSA.

(Free Application for Federal Student

Aid)

Main Determinants of the EFC

• Income• Assets• Family size• Number in

College• Age of the older

parent

Examples of Financial Need

Public College

Cost $24,000EFC -$9,000Need $15,000

Private CollegePrivate College

CostCost $38,000$38,000

EFCEFC -$9,000-$9,000

NeedNeed $29,000$29,000

To Register for a PIN: www.pin.ed.gov

What’s a PIN?www.pin.ed.gov Personal Identification Number Students and parents can get PINs Electronic signature for FAFSA on the Web PIN delivered by e-mail within 24-36 hours

(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)

Timeline

The earliest you may file the FAFSA for the 2014-2015 academic year –

January 1, 2014

Check with the colleges at which your child plans to apply for deadlines and institutional requirements.

You must re-apply for aid every year.

Financial Aid Regulations

• Are determined mainly by federal and state statutes and legislators

• Establish your eligibility for most types of aid

• Apply to all schools

Independent Student Definition At least 24 years old; Graduate or professional student; Married; Has legal dependents other than a spouse; Orphan or ward of the court; Veteran of the U.S. Armed Forces; or Hardship Circumstances (Determined to be

independent by the financial aid administrator) Parents refusal to provide support or financial data is

insufficient to make a student independent regardless of tax filing status

What happens after you file the FAFSA?• Results are sent electronically to the college(s)

your child selected.• You will receive the results of your FAFSA by

mail - Student Aid Report.• You may be required to verify the information

submitted on the FAFSA.• Contact the college with any Special

Circumstances.• After your child is admitted to a college, a

financial aid package (award) will be prepared.

Gift Scholarships and GrantsAcademic - merit basedTalentServiceROTCPrivate

www.fastweb.comwww.finaid.orgwww.collegeboard.org

Institutional - need based (based on FAFSA results)State GrantsFederal Grants

PellSEOG

Self HelpEmployment Two types:

• Federal Work Study• Regular Campus Employment

LOANSFederal StaffordFederal Stafford Subsidized= need basedSubsidized= need based Unsubsidized (anyone can borrow) Unsubsidized (anyone can borrow) Currently 6.8% during repaymentCurrently 6.8% during repayment Interest caps 8.25%Interest caps 8.25% 10 year repayment10 year repayment

Step 1 – Applying for Scholarships

Where should I look? School Civic Organization Church College/University Parent employer Other companies

Scholarship Opportunities What are scholarships for?

Merit Need-based Just for being you Involvement/Leadership/Activity related

Scholarship Preparation What information is needed?

Essay Application Supporting documentation

TIPS Scholarship Search Tips and Tidbits

Edit, edit, edit… and then edit again! Create secondary email address Don’t stop after first year! Do NOT ever PAY for scholarships!

Go On-line to Search Commonly Used Scholarship Websites:

College Board: CollegeBoard.org FastWeb: FastWeb.org College Connection: collegescholarships.com CollegeScholarships.org Go College: gocollege.com And many, many, many more!

Good Luck!

It’s not going to be easy but it will pay off! So, it’s time to get working paying for your future.

Any Questions?

Thank you!

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