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Understanding Understanding Financial AidFinancial Aid
Grafton High SchoolMargaret ZitzerDecember 14, 2009
AgendaAgenda
Principles of Financial Aid Key Concepts Completing the FAFSA Types of Aid Available
Basic Principles of Financial Aid
Parents have primary responsibility to pay for the education of their dependent children.
Students also have a responsibility to help pay for their educational costs.
A family’s ability to pay for educational expenses must be evaluated in an equitable and consistent manner while recognizing that special circumstances can and do alter a family’s ability to pay.
Financial aid helps bridge the gap
between the cost of education and
what the family can pay.
Key Concepts
• Cost of Attendance (COA)• Expected Family Contribution (EFC)• Demonstrated Financial Need
(Need)
Cost of AttendanceCost of Attendance(Direct & Indirect Costs)(Direct & Indirect Costs)
• TuitionTuition• FeesFees• Room & BoardRoom & Board • Books & SuppliesBooks & Supplies • Personal/MiscellaneousPersonal/Miscellaneous• TravelTravel
Expected Family ContributionExpected Family Contribution(EFC)(EFC)
Determined by filing the FAFSADetermined by filing the FAFSA
Free Application for Federal Free Application for Federal
Student AidStudent Aid
EFCEFC• IncomeIncome• AssetsAssets• Family sizeFamily size• Number in CollegeNumber in College• Age of the older parentAge of the older parent
Demonstrated Financial NeedDemonstrated Financial Need
Financial Need is a simple equation:
COACOA
-EFC-EFC
=Need=Need
Examples of Financial Need
Public College
Cost $18,014EFC -$9,000Need $9,014
Source: The College Board
Private College
Cost $35,374
EFC - $9,000
Need $26,374
Average College Costs, 2007-08
Applying for Financial Aid
is as easy as
2211
Get OrganizedTo complete the FAFSA you will need to:
•Gather your and your parent’s 2009 tax information
•Apply for a Personal Identification Number (PIN)
•Parent must have his/her own PIN.
•PIN serves as electronic signatures for the FAFSA and promissory notes
www.PIN.ed.gov
Submit the FAFSA
www.FAFSA.ed.gov
•Select the appropriate school year
•Complete all sections about you, your school plans and financial information
•List your school code(s)
•Provide your electronic signatures (PINs)
•Submit your information
•Keep copies for your records
2010-11 FAFSA – 2010-11 FAFSA – “Simplified”“Simplified”
♦ Fewer Questions♦ Fewer Screens♦ Skip Logic ♦ Less Text♦ Possible to import tax info from IRS♦ Low income levels - do not report assets
Completing the FAFSACompleting the FAFSAPoints to Remember:
♦The earliest you may file the FAFSA for the 2010-2011 school year – January 1, 2010.
♦ May be able to download income from IRS web site
♦ Check with the colleges where you plan to apply for deadlines and institutional requirements.
♦ The FAFSA is student specific.♦ You do not need to wait until tax returns are
filed; It is o.k. to estimate.♦ Who is considered a parent?♦ You must re-apply for aid every year.
FAFSA Follow UpHere’s what happens after you file:
•Your EFC is calculated.•Results are sent electronically to the college(s) you selected. (List up to 10 schools on electronic FAFSA)•You will receive a Student Aid Report (SAR).•If you have extraordinary circumstances notify the Financial Aid office.•After you are admitted to a college, a financial aid award will be sent to you.•You may be required to verify the information submitted on your FAFSA.
Common ErrorsCommon Errors No signature(s) on FAFSANo signature(s) on FAFSA
Remember to electronically sign the FAFSA with PIN (student Remember to electronically sign the FAFSA with PIN (student & parent)& parent)
After submitting the FAFSA – scroll down to the bottom After submitting the FAFSA – scroll down to the bottom of the confirmation and read the whole messageof the confirmation and read the whole message
Make corrections to the FAFSA – clear up any Make corrections to the FAFSA – clear up any Rejected FAFSA errorsRejected FAFSA errors Missing signature(s)Missing signature(s) AGI equals tax paidAGI equals tax paid
Check with the school regarding any future deadlines – Check with the school regarding any future deadlines – You don’t want to miss out on any financial aid in You don’t want to miss out on any financial aid in subsequent yearssubsequent years
Types of Aid AvailableTypes of Aid Available
• GiftGift• ScholarshipsScholarships• GrantsGrants
• Self-helpSelf-help• EmploymentEmployment• LoansLoans
ScholarshipsScholarshipsAcademic - merit basedTalentServiceROTCPrivate
www.fastweb.comwww.finaid.orgwww.BrokeScholar.com
GrantGrantss
Need-BasedNeed-Based
Federal GrantsFederal Grants
PellPell
SEOGSEOG
ACGACG SMART SMART (National Science and Mathematics Access to Retain Talent (National Science and Mathematics Access to Retain Talent
Grant)Grant)
TEACHTEACH
Grants Cont.Grants Cont.
Need-BasedNeed-Based
State GrantsState Grants Institutional GrantsInstitutional Grants
EmploymentEmployment
• Two types:Two types:• Federal Work StudyFederal Work Study• Regular Campus EmploymentRegular Campus Employment
• Can be used for personal expensesCan be used for personal expenses• Does not adversely affect gradesDoes not adversely affect grades
Student LoansStudent LoansFederal StaffordFederal Stafford
SubsidizedSubsidizedUnsubsidizedUnsubsidized
(anyone can borrow)(anyone can borrow)
Sub fixed interest rate of Sub fixed interest rate of 4.5%4.5%Unsub fixed interest rate of Unsub fixed interest rate of 6.8%6.8%
Freshmen - $3500Freshmen - $3500Sophomores - $4500Sophomores - $4500
Juniors/Seniors - $5500Juniors/Seniors - $5500Additional Unsub $2000/yearAdditional Unsub $2000/year
(Loan Fee up to 2.5% (may receive rebate))(Loan Fee up to 2.5% (may receive rebate))
6 month grace period6 month grace period10 year repayment10 year repayment
Federal Perkins5% interest rate
interest deferred while in school
No loan fee
9 month grace period
10 year repayment
Other OptionsOther Options
• Parent PLUS LoanParent PLUS Loan• Student Alternative Loans – Student Alternative Loans – Private Private
LendersLenders
• Payment PlanPayment Plan• Tax CreditsTax Credits• EdVest (529 Plan) WithdrawalsEdVest (529 Plan) Withdrawals
““FAFSA 4 caster”FAFSA 4 caster” www.fafsa4caster.ed.gov Early financial aid estimation toolEarly financial aid estimation tool Estimate of EFCEstimate of EFC Not the official application, student still Not the official application, student still
must submit the actual FAFSA formmust submit the actual FAFSA form Bio Demo Information will transfer to Bio Demo Information will transfer to
FAFSAFAFSA
College Goal Sundayhttp://www.wicollegegoalsunday.org/ College Goal Sunday is a Statewide event College Goal Sunday is a Statewide event
that will offer free assistance to families in that will offer free assistance to families in completing the FAFSAcompleting the FAFSA
February 20, 2010 and February 21, 2010February 20, 2010 and February 21, 2010from 2:00-4:00pm from 2:00-4:00pm (“Weekend Edition”)(“Weekend Edition”)
Event is being held on behalf of WASFAAEvent is being held on behalf of WASFAA Assistance with paper and online FAFSAs Assistance with paper and online FAFSAs Scheduled at 25 sites throughout WisconsinScheduled at 25 sites throughout Wisconsin
Additional Additional InformationInformation
Marquette UniversityOffice of Student Financial Aid
(800) 222-6544 or (414) 288-7390
www.marquette.edu/financialaid
