Financial Aid Distribution at UWM: Types and trends

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1 funding your future

2 Financial Aid Distribution at UWM: Types and trends Undergraduate Financial Aid Source $250,000,000 $200,000,000 $150,000,000 $100,000,000 State Private Institutional Federal $50,000, Undergraduate Financial Aid Type $250,000,000 $200,000,000 Work Study $150,000,000 $100,000,000 Other Scholarship Loan Grants $50,000,

3 Welcome Faculty and staff of the University of Wisconsin-Milwaukee strive to provide access and the best possible service to students and their families. That s why the Department of Financial Aid, Student Employment and Military Education Benefits processes more than 30,000 applications each year. To provide the best financial aid package possible for each of our students, we administer an array of federal, state and institutional programs. If you are in need of financial assistance, we highly encourage you to complete the necessary forms by the appropriate deadlines. Our website, finaid.uwm.edu, has been designed to provide all the information you may need regarding types and sources of financial aid, deadlines, how to contact staff and links to other important resources. We understand that the thought of financing four years of college can be a daunting prospect for anyone, and we are eager to help you and your family understand our financial aid programs and assist you in finding ways to meet your college costs. We look forward to working with you! In the meantime, review the information and student profiles in the following pages. They can tell you much of what you need to know and everything you need to begin mapping out the financial roadmap that can help get you to graduation day. UWM Cost of Attendance Tuition & fees: $9,187 * Room & meals: $11,404 ** Books and supplies: $1,000 *** Transportation: $2,328 *** Personal expenses: $1,600 *** Loan fees: $66 *** Total: $25,585 * Tuition & fees reflect those of a Wisconsin resident who is a full-time, dependent undergraduate student. ** There are a number of room and meal plans. The amount listed reflects the high-end, on-campus plans. The estimated range of housing/meal plan options is $7,382-$11,580. *** Some expenses are fixed (tuition and fees), others vary by degree program and/or purchasing decisions. These figures are only estimates. Students can limit costs by using cash instead of credit cards, buying used books, and using free mass transportation, available to UWM students. FINANCIAL AID 1

4 College: Big investment, bigger rewards Colleges and universities hear the same question daily from new and prospective students: Can I really afford to go to college right now? Economic and employment trends increasingly offer one answer: You can t afford not to go to college. The U.S. Census Bureau finds that adults with bachelor s degrees have lower unemployment rates than those with two-year degrees or high-school diplomas Bachelor s degree holders earn on average $22,000 more yearly than workers with a high-school diploma More than 23,000, nearly 80%, of UWM students receive over $283 million in financial aid each academic year, averaging over $11,000 per student. While nearly 500 UWM students earn money through the federal work-study program, about 5,000 students hold on-campus jobs. Thousands more help finance their educations by connecting to the largest job market in Wisconsin: Metro Milwaukee, which employs more than 1 million people yearly. More than 600 local businesses, firms and nonprofits recruit UWM students for jobs and internships before graduation day. Contact the Department of Financial Aid, Student Employment and Military Education Benefits General financial aid questions can often be answered 24/7 via Ask the Panther an online tool at finaid.uwm.edu. Submit your questions anytime; The Panther will be able to answer most of them immediately. Other questions will be routed to a staff member, who will then follow up as quickly as possible. 2 FINANCIAL AID

5 Scholarships & study abroad shape future for double major Maria del Carmen Corpus Maria s financial aid advice: Encourage your parents to file their taxes early so you can complete your FAFSA early. Be informed about priority dates, as well as the different kinds of financial aid that are awarded. Maria s financial aid package: Thanks to the Chancellor s Scholarship for Diversity and Leadership, I am able to focus on my academics and take advantage of the many opportunities UWM offers. Her take: As a first-year student at UWM, there are endless opportunities yet to come. I will continue volunteering in the community and on campus. Highlights include my work with Our Next Generation nonprofit and the alternative spring break trip to New Orleans. In the next year, I hope to study, and potentially intern, in France. FINANCIAL AID 3

6 Types of Financial Assistance To be considered for most types of financial aid, students need to submit the Free Application for Federal Student Aid (FAFSA) online at fafsa.gov. Financial aid falls into three broad categories, any or all of which may be offered to a student as part of his or her financial aid package: scholarships and grants, work-study, and loans. Scholarships All students are encouraged to apply for scholarships. In , UWM students received more than $8.5 million in funding through private and institutional scholarships. Most scholarships are based on academic merit, do not require a FAFSA, and do not need to be repaid. Numerous scholarship opportunities, including some full-ride scholarships, are available through the Department of Financial Aid, Student Employment and Military Education Benefits and academic departments at UWM, as well as private scholarship sources. If you are currently a high school student, don t forget to check with your guidance counselor for potential scholarship opportunities. More information, including a list of free scholarship search websites and tips for applying, can be found online. scholarships.uwm.edu Grants A grant is generally based on financial need and does not have to be repaid. Grants are awarded to students who demonstrate the greatest financial need. Eligibility is often based on having a low Expected Family Contribution (EFC). The largest federal grant program is the Federal Pell Grant and the largest state grant is the Wisconsin Higher Education Grant. More information on these and other grants can be found online. grants.uwm.edu 4 FINANCIAL AID

7 Mom, educator and UWM senior ShaQuita Glenn Before graduating high school, I found myself in a predicament that would forever change my life. I was the mother of a handsome little guy whom I knew I had to provide for on my own someday. He became a huge part of the motivating factors pushing me towards success. UWM was the obvious first-choice university for me. It has the most diverse population, with impressive programs that I knew would really empower me with the tools I needed to stand out in my field. ShaQuita s financial aid advice: FAFSA is not as intimidating as it seems! Also, look for scholarships. There are so many available. ShaQuita s financial aid package: The Life Impact Scholarship Program saved my life by providing a scholarship, great resources, and support on both a professional and personal level. Her take: I graduate in December 12 and plan to attend grad school. I ll also focus on strengthening an organization I ve created to educate and empower young girls of color. FINANCIAL AID 5

8 Student Loans These are funds that you must repay. Federal loan programs offer a secure, government-regulated and reasonably affordable way to invest in yourself and your goal of a higher education. Even though some loans are based on financial need and there are limits to how much a student can borrow each year, there are programs available to all federally eligible students regardless of income. Federal loan products include the Perkins, Nursing, and Federal Direct Stafford (subsidized and unsubsidized) loans. We encourage families to think of borrowing for college as they might think of a home mortgage: loans are a way to ease the burden of paying for a major investment. Given the importance of a college education, most surveys show college students and parents are willing to take on a reasonable loan debt as part of an overall financial aid strategy. loans.uwm.edu Work-Study The Federal Work-Study Program provides employment opportunities to students who demonstrate significant financial need. Due to funding, workstudy placement is limited to approximately 500 UWM students. However, many UWM students find employment opportunities both on and around campus. Details and suggestions on how to find a job are available online. studentemployment.uwm.edu Additional Resources and Loans Federal Tax Incentives. Increase the affordability of a college education by using federal tax breaks aimed at families/students who are saving or paying for college. More information can be found on the IRS website and on the University s website. taxbenefits.uwm.edu Installment Payment Plan. Offered through the Bursar Office to those who are unable to pay their bill in full (including any financial aid) by the first due date. bursar.uwm.edu/installment-plan.cfm 6 FINANCIAL AID Parent PLUS Loan. A loan in the name of a student s parent. A FAFSA must be completed before this loan can be certified. Parent PLUS Loans have a fixed interest rate of 7.9 percent and must be borrowed through the Federal Direct Loan Program. A credit check is required. Parents can borrow up to the cost of attendance (COA) for any dependent child, minus any financial aid received. Repayment of principal and interest begins two months after the loan is fully disbursed, although payments may be deferred as long as the student is enrolled at least half-time. The application and master promissory note (MPN) can be found online. studentloans.gov

9 Private Education Loans. Also known as alternative loans, these are creditbased, usually in the student s name (co-signers often required), and are not guaranteed by the federal government. Many private-education loans are tied to the prime rate or another benchmark. Some lenders do offer fixed rates, ranging from 6-14 percent. Private lenders offering a fixed-rate, no-fee approach may provide a more cost-effective product than the Parent PLUS Loan. Research private loans thoroughly and carefully. Out-of-state students: welcome! Reciprocity, MSEP and Illinois Scholars Studying at UWM can be affordable, even if you are coming to us from outside of Wisconsin. Several programs are in place to help students from Minnesota, Illinois and Midwest Student Exchange Program (MSEP) states* become Panthers with a little less bite to their wallets. Minnesota Reciprocity Minnesota students planning to study at a public university like UWM can take advantage of the reciprocity agreement in place between Minnesota and Wisconsin. For , yearly tuition and fees for a Minnesota student to attend UWM is $12,815. Minnesota residents can also benefit from the MSEP, but currently reciprocity is a better benefit. Visit getreadyforcollege.org for more details. Illinois Scholar Award (ILSA) The ILSA offers an annual tuition remission award of up to $2,500 to students from Illinois who meet academic and other criteria. The award is renewable for four years as long as criteria is met. Students can receive both the ILSA and MSEP (listed below). ilsa.uwm.edu Midwest Student Exchange Program (MSEP) Students who are legal residents of any of the eight states (listed below) are eligible to participate in the MSEP. Participating institutions agree to charge students no more than 150% of the in-state resident tuition. Students must be bonafide residents of a participating state and meet all institution-specific eligibility criteria and deadlines. msep.uwm.edu *Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, Nebraska and North Dakota. FINANCIAL AID 7

10 Determining Your Costs To create a college financing plan, you ll need to know the costs: tuition, room & meals, books, fees and more. This process can be challenging, especially if you don t have the necessary funds to cover all expenses or if the actual costs differ from the estimates you used when you began preparing your financing plan. There are online tools available to take some of the guesswork and stress out of determining college costs. Our financial aid counselors recommend the online resources below: Estimated Cost of Attendance and Budget Worksheet (COA). The COA lists allowable costs that will be used in determining your budget if you apply for financial aid. The budget worksheet can help you calculate whether you have enough financial aid to cover tuition and fees or will need to use other funding resources. coa.uwm.edu Bursar Office. Review tuition charges from prior terms by selecting Tuition Information at the bursar s site. bursar.uwm.edu University Housing. Review various rates for housing and meal plans online. universityhousing.uwm.edu Award Calculators. Award-estimating and net-price calculators are available online. awardestimator.uwm.edu MILITARY EDUCATION BENEFITS UWM is proud to enroll the largest population of student veterans in the State of Wisconsin. More than 1,200 military veterans and dependents attend UWM using military education benefits. Federal Post-9/11 GI Bill: Up to 36 months of benefits to cover tuition/ fees, books and a living stipend. Eligibility: Students who served in the military after 9/11/01 or dependents and spouses of service members who served in the military after 9/11/01. 8 FINANCIAL AID Wisconsin GI Bill: Up to four years of free tuition/fees at any Wisconsin public school of higher education. Eligibility: Any student who joined the military from Wisconsin and served active duty during any period of service or dependents and spouses of disabled service-connected veterans.

11 Military education, work-study benefits keep solider-turned-engineer Nathan Zoch focused on his future. Nathan s financial aid advice: Fill out your VONAPP as soon as possible. Make sure you have some fallback money in case your benefits cannot be processed right away. Nathan s financial aid package: Chapter 30 and the WI GI bill for three years. Then I switched to Post-9/11 benefits. I also have a work-study position. His take: During summer 2012, I was an intern with the Junior Commissioned Officer Student Training and Extern Program, working with the Indian Health Service to design and improve water-sanitation systems on the reservations. I m now in my last undergraduate semester and should be able to use my benefits to pay for all my tuition and housing costs. Without the help of financial aid and my military benefits, I don t think I would have been able to be a full-time student since Military Education Benefits Office Online: uwm.edu/mebo On campus: Mellencamp Hall, Room 168A; 2442 E. Kenwood Blvd.; Milwaukee, WI Call: Fax: FINANCIAL AID 9

12 Financial Aid Timeline January Complete the Free Application for Federal Student Aid (FAFSA) for the upcoming academic year. All students are encouraged to apply. It is free, easy, and should be done online at fafsa.gov. March 1 is the annual UWM priority filing date. To receive the best aid package available, file as close to Jan. 1 as possible. Aid is awarded on a first-come, first-served basis. You (and a parent if you are dependent) will need a PIN, which can be requested at pin.ed.gov. You must be accepted for admission before we will import the results of your FAFSA. February Monitor your and PAWS accounts, as this is how we will communicate with you. If you are selected for verification (30 percent are), additional documentation will be required. Details will be ed to you as well as reflected on your PAWS To Do list. If you filed the FAFSA using estimates, go back two weeks after you ve filed your taxes electronically and use the IRS Data Retrieval Tool, which will satisfy any need to provide tax transcripts to us! Mid-March Awarding of financial aid for the upcoming year begins. We will send you an that includes important information and ask you to review your awards on your PAWS account in order to accept or decline any loan or work-study offers. You will also be asked to read the Financial Aid Handbook found on our website. Offers not accepted within 30 days are subject to being canceled. Be sure to watch your ! April If you are borrowing any loans, you will need to complete all necessary promissory notes and entrance loan counseling requirements. Details will be provided when you are awarded and reflected in your To Do list. May Finalize your financing plan. Although final tuition and fees aren t typically determined until late July, you should be able to determine whether you need to consider additional funding options. Even though the vast majority of students qualify for financial aid, many need to consider Parent PLUS and private alternative loans. June Apply for Parent PLUS or private alternative loan if needed. 10 FINANCIAL AID

13 Working on campus helps Alyssa Jicha make the most of UWM I did well in high school. I was interested in pursuing early childhood education. When it came time to select a college, I chose UWM as my school because, after looking at other colleges, I realized that it had a great school of education, the overall price was great, and it was closer to home. Alyssa s financial aid advice: Complete your FAFSA as soon as possible. Available grants tend to run out fast. Don t be afraid to ask questions. Check your To Do list on PAWS frequently, and if you are selected for verification, complete everything sooner than later. Alyssa s financial aid package: I receive work study and loans. As a junior, this comes closer to covering the entire cost of my tuition. I also work a second job on campus and my parents help out with what they can. Her take: Even though the price of college may seem overwhelming at first, it is manageable. It really helps to have at least one steady job. On-campus jobs are better because they are close to school and they are really flexible with the hours you work. I would definitely recommend UWM to future students because it has great classes and professors who teach them. Financially and educationally, the education value is definitely there. FINANCIAL AID 11

14 Financial Aid Myth vs. Reality Nearly 80 percent of all UWM students attend our university with the help of financial aid. We think even more of our students could receive financial aid if they knew the truth about common myths around fund availability and eligibility. What follows are some of the most stubborn misconceptions about financial aid and the real story behind financial situations that apply to many college-bound families today. Myth: My parents income is too high for me to qualify for financial aid. Reality: There are no income limitations on aid. Although not every student will qualify for need-based grants or scholarships, most students are at least eligible for a Federal Direct Unsubsidized Loan. There are limits on how much can be borrowed, however. Furthermore, there are multiple criteria on which financial aid allocations are based: the number of family members attending college, household size, age of older parent, etc. Myth: My parents saved money for my college education, so we won t qualify for aid. Reality: Families who have not saved at all will likely have to finance a larger portion of their expenses. It is true that the more money you save for college, the less you will probably receive in financial aid. However, the expected family contribution is determined more by income than by savings, meaning that you could still qualify for aid even if you have college savings. Myth: I will be attending college part time, so I won t be eligible for financial aid. 12 FINANCIAL AID

15 Reality: While we assume all students will enroll full time, financial aid is available for part-time students. Undergraduates must take at least six credits; graduate students must take at least four in order to qualify for any financial aid. Myth: My sibling wasn t eligible for much financial aid last year, so I won t be eligible this year. Reality: The number of family members in college has a big impact on your financial aid eligibility, so this may or may not be true. When both siblings are in school at the same time, parents contribution is divided almost in half for each thus each child has a better likelihood of being eligible for aid. It is always best for each sibling to apply for aid. Myth: The process of applying for financial aid is too complicated. Reality: The only step involved in applying for financial aid at UWM is to fill out the FAFSA. Filling out the FAFSA is actually very easy, especially if you fill it out online at fafsa.gov. There are detailed instructions for every question, as well as online help from customer service representatives if you need it. Depending on the time of year, you may also be able to pull in your income information directly from the IRS. Myth: My parents can simply say that they will not cooperate in the aid application process because I am 18 and supporting myself and I can be considered an independent student. Reality: The definition of an independent student is set in law. Unless you meet certain criteria, which include being an orphan or ward of the state, 24 years of age, a veteran, married, have a dependent you are supporting, or are a graduate student, you cannot be considered independent. If your parents want to sign off that they refuse to support you, you can be considered ONLY for a dependentlevel unsubsidized loan. Providing parent information on the FAFSA doesn t make them responsible for paying your bills, but it may allow you to qualify for additional funds.

16 For details about life on campus, videos of students, information on the city of Milwaukee and more. uwm.edu/look Connect. Look: fi naid.uwm.edu Tweet: Twitter.com/uwmfi naid Facebook: Facebook.com/uwmfi naid Call: