How To Get Financial Aid For College

Transcription

1 Completing the FAFSA {Unlock money for college} Even if your parents won the Types of Financial Aid That Require the FAFSA 1

2 Types of financial aid that require the FAFSA Federal and state grants government funds for college that don t need to be repaid Work-study earn money to help cover college expenses Federal student loans money that is borrowed for college that is paid back later with interest Federal Grants Pell Grant up to $5,730 Supplemental Education Opportunity Grant (SEOG) up to $4,000 studentaid.gov Wisconsin State Grants Requires FAFSA apply early Amounts based on financial need Generally first-come, first-served 2

3 2015 graduates only Must have signed Wisconsin Covenant Pledge in 8 th or 9 th grade Must complete both confirmation process and FAFSA by April 1, 2015 $250 $1,500 per year Available for up to 4 years Use at 67 eligible Wisconsin colleges Federal Student Loans LOAN MAXIMUM AMOUNT FRESHMAN YEAR INTEREST RATE FOR WHO COVERS INTEREST WHILE IN COLLEGE GRACE PERIOD FEES FOR Perkins $5,500 5% Government 9 months 0% Subsidized $3, % Government 6 months 1.073% Unsubsidized $5,500 (max for subsidized and unsubsidized combined) 4.66% Student 6 months 1.073% 3

4 Additional Federal Loans PLUS Loan Borrowed by the parent 7.21% interest rate for the school year Can borrow up to the cost of attendance minus any other aid Requires a credit check Repayment begins once loan is fully paid-out 4.292% loan fee for the school year Non-FAFSA Financial Aid Non-FAFSA Financial Aid NON-FAFSA FINANCIAL AID Scholarships money for college that doesn t have to be repaid Non-federal loans money borrowed as a last resort for college that needs to be repaid with interest 4

5 Scholarships Donor sets criteria Academic merit Special skills and talents Membership and/or service Financial need (some scholarships may require filing the FAFSA) Scholarships Where to look: School counselor Faith-based organization Newspapers and magazines Employers Businesses and civic organizations Local searches College financial aid office Online searches: bigfuture.collegeboard.org zinch.com Non-Federal Loans Private loans Explore all other options first Credit check required Terms vary by lender High variable interest rates and loan limits Limited options for financial problems and repayment plans 5

6 1. What can you do on the FAFSA.gov website? (Circle all that apply.) A. Complete the FAFSA B. Make corrections C. Receive tax information from IRS D. Apply to college E. I don t know 2. What colleges should you send your FAFSA to? (Circle the one best answer.) A. Any college that you might attend B. Any college you have applied to C. Any college you have been accepted at D. Any college that asks you to E. I don t know 6

7 3. What assets MUST be reported on the FAFSA? (Circle all that apply.) A. Family home B. Retirement accounts C. Investment property D. Life insurance accounts E. I don t know After January 1 of your senior year Before your college s priority date Find priority dates on college financial aid websites If possible, complete your taxes before submitting the FAFSA Before you start your FAFSA, you need to create a PIN at pin.ed.gov Four-digit number that belongs to just you Acts as an electronic signature Student and parents each need to apply for their own PIN Don t forget your PIN! 7

8 NEW! Beginning April 25, 2015 PIN replaced by FSA ID Through April 25, 2015 Parent and student should apply for PIN to access and sign the FAFSA Beginning April 25, 2015 Students and parents must create FSA ID to access and sign the FAFSA FSA ID = user name and password What you ll need to complete the FAFSA: For students and parents: 1. Social security number (and alien registration number if you have one) 2. Dates: birth, death, marriage, and divorce W-2s and tax returns 4. Current bank account balance 5. Amounts of any other income 6. Value of any other assets 8

9 Both biological or adoptive parents if they are: Married Living together, regardless of marital status or gender In the case of divorce, separation, or parents who do not live together, provide parent information on the FAFSA for: The parent you lived with during the last 12 months OR Include your stepparent, if parent is remarried The parent who provided the most financial support, if you lived with each parent equally 7 Steps to Complete the FAFSA 9

10 Enter student s full, legal name Enter a valid address MALES must register with the Selective Service If you are between 18 and 26 years old, you must register to receive federal financial aid You can register as part of completing the FAFSA 10

11 Enter the name, city, and state of your high school Select your high school in the list of options List any college that you might attend List up to 10 colleges to receive your FAFSA Add additional colleges after FAFSA is submitted IMPORTANT: FAFSA is not a college admission application 11

12 For each school, choose a housing plan: With parent On campus Off campus If a student can check any of the following boxes, parents will not have to provide any information on the FAFSA Born before January 1, 1992 Both parents deceased since age 13 Dependent or ward of the court since age 13 In foster care since age 13 Have children and provide more than half of their support Currently in legal guardianship Have dependents (other than your children or spouse) who live with you and you provide more than half of their support Unaccompanied homeless youth Married Veteran or on active duty Marital status State of legal residence Household size 12

13 Find this information on: Imports student or parent tax information directly into the FAFSA Generally available 1 st Sunday in February After 2-3 weeks if you e-file After 8-11 weeks if paper filing Satisfies most colleges verification requirements 13

14 Not eligible to use if: The student/parent is married, and either the student/parent or his/her spouse filed as Married Filing Separately The student/parent is married, and either the student/parent or his/her spouse filed as Head of Household Not eligible to use if: The parents' marital status is "Unmarried and both parents living together" The student/parent filed an amended tax return The student/parent filed a Puerto Rican or foreign tax return Finances The FAFSA is a snapshot in time. What is your financial picture on the day you submit your FAFSA? 14

15 Finances Do not include: The home you live in A farm you live on Retirement accounts Life insurance Family-owned businesses with fewer than 100 employees Finances Do Include: Investment property Trust funds CDs Stocks and bonds UGMAs and UTMAs that you own 529 education savings plans (in parent s name) Verify your information Sign your FAFSA with PIN Submit your FAFSA with PIN 15

16 Received once your FAFSA is successfully submitted Sample College 74% 88% 44% NA Received once your FAFSA is successfully submitted FAFSA Do s & Don ts DO Complete the FAFSA online at FAFSA.gov it s faster, easier, and more accurate Prepare federal income taxes as early as possible much of the info on the FAFSA comes from federal tax forms Get a Personal Identification Number (PIN) now both student and parents need one Use your legal name as it appears on your social security card nicknames should not be used 16

17 FAFSA Do s & Don ts DON T Pay to complete the FAFSA the first F in FAFSA stands for Free Wait complete the online FAFSA as soon as possible after January 1 Assume you don t qualify for financial aid every year hundreds of thousands of students who are eligible don t apply Use decimal points decimal points are not recognized Use cents round up or down and use whole dollar amounts Forget to sign the form when filing online make sure to use correct PIN for both student and parents (up to April 25 th ) 4. What can you do at the FAFSA.gov website? (Circle all that apply.) A. Complete the FAFSA B. Make corrections C. Receive tax information from IRS D. Apply to college 5. What colleges should you send your FAFSA to? (Circle the one best answer.) A. Any college that you might attend B. Any college you have applied to C. Any college you have been accepted at D. Any college that asks you to 6. What assets MUST be reported on the FAFSA? (Circle all that apply.) A. Family home B. Retirement accounts C. Investment property D. Life insurance accounts 4. What can you do at the FAFSA.gov website? (Circle all that apply.) A. Complete the FAFSA B. Make corrections C. Receive tax information from IRS D. Apply to college 5. What colleges should you send your FAFSA to? (Circle the one best answer.) A. Any college that you might attend B. Any college you have applied to C. Any college you have been accepted at D. Any college that asks you to 6. What assets MUST be reported on the FAFSA? (Circle all that apply.) A. Family home B. Retirement accounts C. Investment property D. Life insurance accounts 17

18 Summary of your FAFSA in pdf or html format Go to FAFSA.gov, Returning User section Use PIN to retrieve Displays your information easily; helps identify mistakes Print or save a copy for your records 18

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20 REMEMBER: You need to complete an admissions application before you receive an award letter Grant total = $4,000 Work-study money = $4,200 John will need to work to earn this money. Total Financial Aid Student loans total = $8, Submit the FAFSA 2. Carefully review your SAR 3. Make FAFSA corrections 4. Review financial aid packages 5. Select a school 6. Accept financial aid package 20

21 Thank You! 2014 Great Lakes Higher Education Guaranty Corporation. All rights reserved. (10/14) 21