2016 FINANCIAL AID NIGHT 2016 FINANCIAL AID NIGHT

Transcription

1 2016 FINANCIAL AID NIGHT 2016 FINANCIAL AID NIGHT 1

2 Agenda What Does College Cost? What is the Expected Family Contribution? Filling out the FAFSA What s next? 2

3 What Does College Cost? Tuition + Room and Board + Transportation + Books & Supplies + Miscellaneous Living Expenses = Cost of Attendance (COA) 3

4 Direct vs Indirect Costs Direct costs the students will receive a BILL: Tuition and fees Room and Board if living on campus Indirect costs can be controlled by the student: Estimated so that the student can plan Not billed by the college Can vary depending on class enrollment (books and supplies) or the student s spending habits (cell phone, car, etc.) 4

5 What is Financial Aid? Scholarships Grants Work Study Employment Loans 5

6 How do you apply for Financial Aid? 6

7 What is the EFC? (Expected Family Contribution) Established by Congress The EFC is the amount a family can reasonably be expected to contribute, but not what the family will actually pay to the college. An index number used to calculate eligibility for aid. Stays the same regardless of college/university. 7

8 What the EFC formula includes? Income of both student and parents Assets of both student and parents Family size Number in College Age of the older parent Has income and asset protection allowances 8

9 Financial Need Defined Cost of Attendance (COA) Expected Family Contribution (EFC) = Financial Need 9

10 Comparing School Costs School 1 School 2 School 3 Cost of Attendance $ 39,028 $ 19,388 $ 14,285 Less EFC $ 3,823 $ 3,823 $ 3,823 Need $ 35,205 $ 15,565 $ 10,452 10

11 Net Price Calculator Federally mandated. Each college website has this tool. It is a tool for early financial planning for college. The calculator is an approximation of federal and state aid eligibility. This is for your information only. It is not an application for financial aid. The calculator provides an estimate only. Find ANY calculator for ANY college/university collegecost.ed.gov/netpricecenter.aspx 11

12 Where does financial aid come from? Federal-US Department of Education State- the Higher Educational Aids Board (HEAB) manages state aid in Wisconsin. Local-Colleges & Universities Schools may offer their own scholarship, grant, workstudy and loan programs, with each setting its own requirements. 12

13 Federal Grants Federal Pell Grant TEACH Grant Federal Supplemental Educational Opportunity Grant (SEOG) 13

14 State Grants Wisconsin Grant (aka WHEG and WTG) Hearing and Visually Handicapped Student Grant www. Minnesota-Wisconsin Reciprocity Agreement www. Talent Incentive Program (TIP) Grant 14

15 Fund for Wisconsin Scholars (FFWS) The FFWS is a private charitable foundation that has been funded with a $175 million founding gift. It will provide grants to talented, lower-income graduates of Wisconsin public high schools attending a public college, university or technical school in Wisconsin. Recipients are selected randomly out of those students that meet basic eligibility criteria. For More Information: 15 Contact: Mary Gulbrandsen, Executive Director P.O. Box 5506 Madison, WI Ph: mgulbrandsen@ffws.org

16 Employment and Scholarships Federal Work-Study Institutional Work Programs Off Campus Employment Scholarships 16

17 Direct Student Loan (subsidized & unsubsidized) Federal PLUS Loan Private Alternative Loan Student Loans (rates change 7/1/15) Borrower Student Parent Student Cosigner None Only if poor credit Probable Credit check No Yes Yes FAFSA required Yes Recommended Recommended Interest Rate 4.29% Fixed (undergraduate) 6.84% (graduate) Fees Origination Fee & Default Fee Origination and Default Fees Loan Limits 1 st year - $5500 (up to $3500 sub) 2 nd year - $6500 (up to $4500 sub) 3,4,5 years - $7500 (up to $5500 sub) $23,000 total sub $31,000 total sub and unsub 5.84% (Direct) Fixed Variable Cost of Attendance less Aid Vary by loan program and credit rating Cost of Attendance less Aid Repayment 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 17 Borrower Benefits Check with lender Check with lender Check with lender 17

18 Other Financing Options School Payment Plans (spread over several months) Home Equity Loans (longer repayment, tax deductible) Life Insurance Policy Loans Retirement Plan Loans 529 Plan withdrawals 18

19 Government Resources Corporation for National and Community Service Income Tax Benefits (check with your accountant) Veteran s benefits and tuition waivers Bureau of Indian Affairs (BIA) Grants State Divisions of Vocational Rehabilitation (DVR) 19

20 Other Sources of Funds Parental Affiliations Employers & Labor Unions Religious and Community Organizations Clubs and Civic groups Civic organization scholarships High School Local Public Library Private business scholarships Internet 20

21 Don t Get Scammed on Your Way to College Never pay a fee to complete your FAFSA to secure financial aid. Questions about a legitimate organization: Call (Federal Trade Commission) Call (US Department of Education Office of Inspector General) Or call your College Financial Aid office 21

22 Get Free FAFSA Help College Goal Wisconsin Free program to help families complete the FAFSA Saturdays: February 13, 20, and 27 starting at 10 a.m. Wednesday evenings: February 10, 17, and 24 starting at 6 p.m. $30,000 in scholarships will be given away Each site will have a scholarship winner 33 locations and 41 events throughout Wisconsin Various sites including 5 high schools, 12 technical colleges, 7 UW campuses, 4 private colleges, two libraries, two college access centers, and one reservation! Sponsored by WASFAA along with several other partners NTC - Wausau Saturday, February 27 at 10 a.m. For location information: visit or call

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24 Items you need to complete the FAFSA o Social Security Number. Be sure that it is correct! Parent(s) and student. o Records of income. Such as income earned from work and business, child support paid or received, and any other untaxed income. o Tax returns. W-2 Forms and the 2015 Federal Income Tax Return IRS 1040, 1040A, or 140EZ. o Information about assets. This includes savings, certificates of deposit, stock options, bonds, 529 plans and other college savings programs, and investment real estate, business, and farm. o Driver s license number, if the student has one. o Alien Registration Number, if not a U.S. citizen. o Parents month and year of marriage, separation, or divorce o Date of birth. Parent(s) and student.

25 Dependency Status StatusEPENDENCY If you can check ANY of the following boxes, you will not have to provide parental info. If you check NONE of the following boxes, you will be asked to provide parental info. I was born before January 1, 1993 STATUS I am married I will be working on a master s or doctorate program (e.g. MA, MBA, MD, JD, PhD, EdD, graduate certificate) I am serving on active duty in the U.S. Armed Forces I am a veteran of the U.S. Armed Forces. I now have or will have children for whom I will provide more than half of their support between July 1, 2016 and June 30, 2017 Since I turned aged 13, both of my parents were deceased I was in foster care since turning age 13 I have dependents (other than children or my spouse) who live with me and I provide more than half of their support I was a dependent or ward of the court since turning age I am currently or I was an emancipated minor I am currently or I was in legal guardianship I am homeless or am at risk of being homeless

26 Who is a Parent? Two biological or adoptive parents REGARDLESS of marital status OR gender, if those parents live together Divorced or separated parents Stepparent Widowed parent 26 Do not provide income information on: Legal guardians Grandparents Other relatives the student might live with Foster parents

27 Getting Started 27

28 Which School Year? Start FAFSA Be sure to click on FAFSA

29 29 New or Renewal FAFSA

30 Student/Parent Sections

31 31 Adding College Codes

32 32 College Codes Selected

33 33 Providing Parent Information

34 Completing your Federal Taxes Taxes filed electronically will take about 3-4 weeks before they are available for downloading. Taxes filed through the mail take about 6-8 weeks before available for downloading. Make sure you type in the identical information (your address) that is on the federal tax return. If you need to use estimated taxes, use your best estimate and return later to download the information from your 2015 federal tax return. 34

35 FAFSA ID 35 User name and password No longer a PIN number Used to log into fafsa.ed.gov Needed to complete IRS Data Retrieval Accessing National Student Loan Data System Completing entrance counseling for direct student loans or PLUS loans Student and one parent needs a FAFSA ID It is reused year after year Needed for the renewal application Needed to make corrections on your FAFSA

36 36 FAFSA ID WEBSITE

37 IRS Data Retrieval 3 Possible Responses You are not eligible to transfer information Too soon since taxes filed may not be available Recommend to try!

38 38 IRS Responses

39 39 IRS Responses

40 IRS Option-Be sure to use 2015 Federal Income Tax Returns 40

41 41 Non taxable income

42 Assets are not Net worth of the home you are living Qualified pension/retirement programs/annuities Life insurance policies Value of car, stereo, boat, etc. Family farm net worth Business net worth if there are less than 100 employees Non educational IRAs Keough Plans 42

43 Assets are Trust funds Certificate of deposits Mutual funds, stocks, and bonds 529 College Plans Rental property Second home/cottage Land not associated with farming Coverdell Saving Account UGMA/UTMA Accounts 43

44 44 Signing Electronically

45 45 FAFSA Summary Report

46 46 Confirmation Page

47 Student Aid Report SUZANNE SMITH 742 EVERGREEN TERRACE SPRINGFIELD, OH Dear SUZANNE SMITH, Your Student Aid Report (SAR) summarizes the information you submitted on your Free Application for Federal Student Aid (FAFSA). Application Status (review the checked boxes) Your FAFSA appears to be complete. Review the data on pages 3 10 of your SAR and make corrections or updates if necessary. The school(s) listed on your FAFSA will receive your information. Your FAFSA has been selected for verification. Verification is a process where your school confirms the data you reported on your FAFSA. Your school has the authority to contact you for documentation that supports income and other information that you reported on your FAFSA. 47

48 Tax Return Transcript If parent/student did not use IRS Data Retrieval or information retrieved was subsequently changed this is called the VERIFICATION PROCESS Some schools may still choose to request even if Data Retrieval used Has to be requested from the IRS Online By phone Complete and submit IRS Form 4506-T It is a FREE document and is usually received in about 7 10 days from request Can no longer accept copies of the 1040

49 Next Steps Be sure to Submit Results are sent electronically to the college(s) Check to see if the college(s) require an institutional financial aid application too Receive Student Aid Report (SAR) hours later Verification Process (Submit IRS Transcript) Receive Financial Aid Package 49

50 Special Circumstances? Contact the Financial Aid Office Divorce/Separation Loss of income or benefits One-time income Death or Disability of student or parent Medical/Dental expenses not covered by insurance Elementary or secondary school tuition Dependency override (Note: Professional Judgment is at the sole discretion of each institution and you must contact each college financial aid to make a request.) 50

51 Student Responsibility The Student Files the FAFSA Is selected for verification Receives an award notification Is responsible for notifying FAO of outside scholarships The Student Accepts/Declines aid offer Signs the Master Promissory Note for Stafford Loans Completes Loan Entrance Counseling The Student Is responsible for their bill with the institution Is responsible for their student loans May choose to share information with their parent, or others

52 FINANCIAL AID NOTIFICATION Cost of Attendance $19,900 EFC 0* Financial Need $19,900 Pell Grant 5,775 Wisconsin Grant 2,324 SEOG 1,300 Federal Direct Student Loan (subsidized) 3,500 Federal Direct Student Loan (unsubsidized) 2,000 College Work Study 2,000 Local scholarship 1,000 PLUS Loan 2,000 TOTAL 19,899 52

53 Prior, Prior Year New for students applying for financial aid in Can submit the FAFSA after October 1, You will use the 2015 federal income tax return to submit the FAFSA Reasons for it: Help students learn earlier their EFC number Colleges can make their financial aid award offers earlier Gives students time to reapply if they find their first choice is not affordable 53

54 QUESTIONS??? Presented by: Sharon Hunter DPI-WEOP 133 River Drive Wausau, WI /