RIVER VALLEY HIGH SCHOOL. Financial Aid Helping make college more affordable! Financial Aid Is: Money for college A supplement to family resources A.

RIVER VALLEYHIGH SCHOOL

Financial AidHelping make college more affordable!

Financial Aid Is:

Money for college

A supplement to family resources

A partnership between government, school, and family

You May Be Eligible For Aid, But…

Applying for financial aid is FREE

(fafsa.ed.gov or fafsa.gov vs. / .com -- $70- $80)

You must apply to find out.

Must be done on an annual basis.

Financial Aid Regulations

Are determined by the government

Establish your eligibility for aid

Apply equally to all schools

How Much $$$ Is Available?

Over $185 BILLION last year *

Nearly 90% more in the last decade.

Grant funding increased, but recipients did, too

Loans are increasing now in terms of total aid—as compared with a year or two ago—and comprise

70% of all federal aid.

Pell Grant levels have increased in the last year

* College Board Report

Applying

After January 1st

3-4 weeks prior to college priority date

(Missing a deadline - $$$)

BY APRIL 1 … for Wisconsin Covenant !

Be sure you’ve completed an admission application

Know which form(s) to use

** FAFSA—Paper / Not recommended

** FAFSA—Electronic fafsa.gov

** Institutional form / if there is one Can also access electronic application via college website

Federal School Code

For ALLUW Colleges

003897

NeedNeed is determined by Federal Methodology

Simple Formula:

Cost of Attendance (Tuition/Fees, Room/Board, etc.)

- Expected Family Contribution (EFC)*

NEED *Consideration of: income, non-home assets, family size, age of parents, #

of parents working, # in college, other resources [outside scholarships, benefits, H.S. awards]

ABILITY…not willingness…to contribute

Comparing Average CostsTypically…5-7% increases each year…

UW WTCS Private UWC

Tuition/Fees $8,210 $4,125 $25,882 $5,100

Room, Meal $6,970 $5,000# $7,454 $5,100#

*Books/Supplies $1,020 $1,020 $1,020 $1,020*

Personal $4,730 $4,730 $4,730 $4,730

TOTAL $20,930 $14,875 $39,026 $15,950

* Reduce if school has text rental; # allowance for rent off campus

3 Primary Types of Aid

GRANTS (Gift assistance/no repayment)

LOANS

WORK-STUDY

Grant Programs /Amounts

Pell $400 - $5,550

SEOG $100 - $4,000

WHEG $250 - $2,500 **

TIP $600-$1,800

WTG $250 - $2,900

Wisconsin Scholars Fund: ~ 3,500 Grants ($1800-3500K)

> Public institutions<

Wisconsin Covenant $250-$2,500

Note: Wisconsin grant programs for use only in WI

--Wisconsin-Minnesota Reciprocity—Must Apply

Loan Options Nearly 70% of all aid … from loans

Primary loan types:

Federal Direct Loan Program

Perkins Loan Program

PLUS Loan

> Private Student Alternative Loans

Compare the differences: PLUS / Alt.

Federal Family EducationLoan Program

FEDERAL DIRECT LOAN PROGRAM: Subsidized Unsubsidized

AMOUNTS:1st Year $3,500 + $2,000

2nd Year $4,500 + $2,000

3rd Year $5,500 + $2,000

Aggregate Maximum = $31,000 ($23,000 Sub)

Direct LoansSubsidized Loan

Government pays % -- in school, eligible deferment periods, but NO LONGER during the 6 month grace period

2013-14 interest set at 6.8% for both Sub & Unsub Pay % in effect at time repayment starts Origination fee (1% of loan amount deducted) Repayment begins

Unsubsidized Loan More than 1/3 of all loans Interest rate same as Subsidized Borrower responsible for interest from outset:

- Capitalize or pay 6 month grace period applies to principal only Unsub Stafford available to anyone.

--Separate application required. (MPN)--Must apply for financial aid to access subsidized student loans.

For those with greatest needMust be offered5% interest / 9 month grace$4,000 max

Parent is the borrower9% cap on interest: 7.9% / 4% orig. feeCan be deniedRepayment begins at disbursementDeferment available on principalSeparate application neededLoan Limit

Cost of Education - Other Financial Aid

Loan Limit

Private Alternative Loans

PERKINS

Other Loan Programs…

Home equity loans Borrow from life insurance 529 Savings Plans Etc.

P.L.U.S.

Other thoughts:

Student IndebtednessAt Graduation

Federal Family Education Loan Programs

4-Year Public $26,238 (all certified loans)4-Year Private $34,000+ (all certified loans)2-Year $8,500

(Survey does not include Alternative Loan or credit card debts.)

> 25% of undergrads report using credit cards to pay tuition/fees; average credit card debt for college students: ~$3,200 <

Noteworthy:In the last 10 years—Average debt has doubled.*

NEW: Calculate your monthly payments @ DOE website.

(* From “The Project on Student Debt”)

2013-14 Loan Comparison Chart

Federal Perkins Loan Direct Loan(Subsidized & Unsubsidized)

Direct PLUS Loan

Private Alternative Loan

Borrower Student Student Parent Student

Cosigner None None Only if declined credit

Probable

Credit Check No No Yes Yes

FAFSA required Yes Yes Yes Recommended

Interest Rate 5% Fixed 6.8% Fixed Subsidized6.8% Fixed Unsubsidized

7.9% Fixed Variable (Determined by lender based on credit check)

Fees None 1% of loan amount 4% of loan amount

Variable

Annual Loan Limits Determined by school based on need and available funds

Freshman - $5,500 (up to $3,500 sub)Sophomore - $6,500 (up to $4,500 sub)Junior/Senior - $7,500 (up to $5,500 sub)

Full amount can be unsubsidized

Cost of Attendance less Aid

Cost of Attendance less Aid

Repayment 9 months after leaving school or dropping below ½ time

6 months after leaving school or dropping below ½ time

60 days after fully disbursed (Upon request, may delay payments until after student graduates)

Check with lender

Borrower Benefits Not applicable .25% interest rate reduction for auto pay Not applicable Check with lender

Work-Study

Job assignments usually made in the Financial Aid Office.

Employment opportunities on/off campus.

Earn $$$ and also “connect”

Studies show—Work-study students do better.

Use earnings to meet college or personal expenses.

Scholarships Recognition for academic achievement Best sources of scholarship information:

High school guidance office

Your college

Parental affiliations / employer

Your employer

Reference library

Fastweb.com & other web-based FREE services

BEWARE of Scholarship Searches requiring $$$

A Lot Has Been Said About Students & Parents Getting Hooked By Fraudulent Scholarship Scams…

Beware False Claims:

“Guaranteed or your money back!”

“Give me your credit card or bank account to hold this scholarship!”

“The scholarship will cost some money!”

“You’ve been selected…”

“You’re a finalist in a contest (that you never entered)”

“Your ship has finally come in…”

CONCERN: Poor economy – more temptation …

www.scholarshipexperts.com

www.fastweb.com www.collegeboard.com

www.scholarshipmonkey.com

www.scholarships.com

www.collegexpress.com

Help Is At Hand …

COLLEGE GOAL WISCONSIN

Saturday & Sunday, February 23 & 24

2:00 p.m. 31 Locations in Wisconsin, including:

Platteville H.S., & Edgewood, UW-Baraboo—Saturday, February 23

MATC, UW-LaCrosse—Sunday, February 24

For more information:

www.collegegoalwi.org

General TipsRemember: fafsa.gov

Read instructions.Be neat / accurate w/paper application.

Include correct SS#If paper app, use black ink.

Parents: PurpleStudents: Green

Useful information to have:2012 federal tax information.

W-2 forms.Property tax & other financial records.

Completing The FAFSA

Keep all records.Make copies & keep them.

Keep copies of your tax returns & W-2’s.Establish a financial aid file.

Respond to correspondence, when required.Respond to requests for additional information.

Students:Away for the summer?

Be sure you make provisions for mail forwarding.QUESTIONS?

Contact your financial aid office.

Other Important Bits Of Advice:

Paper: 10 pages: 4 instruction / 6 application / 7 Steps

Online: Web Worksheet: 3 pages; directions embedded within formLength of application shortened; streamlined help text/instructions

Easy to follow: separate sections for student & parent

Intuitive web experience: decreased redundancy / more seamless

Easier to track processing; ease of access to PIN

Assets referred to as “net worth” (current value minus debt)

Database matches with federal agencies (Social Security, INS, Selective Service, Veterans Administration, National Student Loan Database, Child Support, Health & Human Services, IRS)

About The FAFSA

Data Retrieval Tool – Available as of February 3.

If you’ve filed your tax return PRIOR to doing your FAFSA—you’ll be able to retrieve the FAFSA-requested income tax info from the IRS site.

Wait 2-3 weeks after filing to attempt DRT.

E-mails will encourage use of the DRT for those eligible.

Use of the Data Retrieval Tool with IRS – encouraged!

Will streamline the process of providing tax information if you are verified.

Impact of tax filing Status Income < $23,000 and one of these:

rec’d means tested benefit (SS, free lunch) Were eligible to file 1040A or EZ Dislocated Worker

EFC set to Zero

Simplified Needs Test

Income <$50,000 and one of the following:

Received means tested benefit Eligible to file 1040A or EZ Dislocated worker

No Assets counted in EFC

Review Web Worksheet for accuracy / then enter data @ FAFSA website

Print a copy of the completed FAFSA on the Web Using electronic FAFSA entirely on-line / PIN acts as signature

If using paper FAFSA, be sure to place the ORIGINAL form in the envelope provided

If paper, be sure to mail the original app with nothing else (no margin notes, letters, tax forms …) – Make copy for your records.

Within 3 weeks – Student Aid Report arrives May need to submit additional information (verification) …

(1 in 3 selected) EFC appears on the form

Next Steps…

Income/asset protection about $45,000 of protection of net worth / 45 year old

(does not count home/farm assets) income/asset protection increases as parents age—need for retirement

income Student assets: 20% toward student contribution

Special Circumstances – divorce/separation, deployment, loss of income/benefits, death/disability, one-time income

Things not covered on the form you think should be? medical/dental expenses not covered by insurance

elementary/secondary tuition loss of income

other?

Contact your college financial aid office.

Additional Thoughts

More than 97% of applications electronic

Error rate for paper apps is over 12%; help button for each item!

Error rate for online apps is less than 1%

Edit checks built into online process; it’s safe!

Average time for paper app is 3-4 weeks for initial processing

Average time for online app is 3-4 days

Why File Electronically?

Student PIN also used in MPN

Parent only needs 1 PIN regardless how many children in college; can transfer information to add’l apps

Easy to check status of a submitted FAFSA

Corrections on the Web with corrections back within 72 hours or less

Real-time online chat for immediate answers

Instant access to EFC estimate AND Pell Estimate

Provide e-mail address & receive e-mails w/link to PIN and SAR

More Reasons For FOTW….

Paper SAR if paper app is filed and student e-mail address was NOT provided.

SAR Information Acknowledgement if filed via FAFSA on the Web and student e-mail NOT provided.

E-mail notification containing direct link to student’s SAR online if student or parent e-mail provided on paper or electronic FAFSA.

If student has a PIN, can view SAR online at www.fafsa.ed.gov/studentaccess.htm

Student Is Notified Of FAFSA Processing Results By…

Missing signatures/PIN Wrong SS# -- Can now be corrected online

Divorced/remarried parent info

Income earned by parents/stepparents

Untaxed income

U.S. income taxes paid

Household size

# of family members in college

Real Estate & investment net worth

Not using real name

NOT APPLYING ON TIME … OR AT ALL!

Frequent FAFSA Errors

If electronic:www.fafsa.ed.gov for ‘Follow up’

If paper:Call —

(1-800-4FED-AID)1-800-433-3243

Phone # on Page 1 of FAFSA.

Questions About Your Application?