Financial Aid Information Session

What is Financial Aid? 2 Financial aid is money intended to help students pay for their educational expenses. Typically, aid comes in one of the following forms: Scholarships Grants (Federal and State) Federal Work Study Loans The last three types of aid are all applied for in one single application – the Free Application for Federal Student Aid or the “FAFSA.”

Best Advice: APPLY!!! 3

3 Applying… Easy as 1, 2, 3 1.) 2.) 3.) Follow up: UW-Milwaukee Department of Financial Aid

Applying Online : Detects common errors before submission Skip logic: asks only what you must answer English or Spanish versions Electronic Signature notification of results Instant access to EFC estimate Faster Results Can list up to 10 different schools to receive your information 5

Frequent FAFSA Errors Missing Signatures/PIN Wrong Social Security Number Using nickname instead of name on SSN card U.S. Taxes Paid Divorced/remarried parent information Household size Number in postsecondary education NOT APPLYING AT ALL 6

What do you need to complete the FAFSA? Personal Information for Student and Parent(s) –Social Security Number –Driver’s License Financial Information for Student and Parent(s) –2010 taxes and W-2’s –Bank statements –Asset information 7 *If you are prepared before you start, the entire application can be completed in about 45 minutes.

Expected Family Contribution (EFC) (Federal Methodology established by U.S. Congress) 8 Determined by filing the FAFSA Main Determinants of the EFC Income Assets Family Size Number in College Age of Parent

Assets and the FAFSA Assets Not Included Home in which you live Value of life insurance and retirement plans (pensions, annuities, Keogh’s non-education IRA funds, etc.) Personal vehicles 9 Assets Included Cash, Savings & Checking Accounts Value of business land, buildings, equipment, inventory, etc. for companies with 100 or more employees. Education IRA’s College Savings Plans (529’s) ***Any questions about what should or should not be included, you may contact your school’s Financial Aid Office.

Myth #1: If I have savings I won’t get Financial Aid! Fact: FAFSA counts a fraction, not ALL of a family’s assets in determining financial need. A portion of assets are sheltered by an asset protection allowance. 10 Presentation Author, 2006

An Example: A typical family with college-age children would have about $50,000 of assets sheltered. In the end, 4% of dependent children have any contribution from parent asset in the EFC calculation Source: 11 Presentation Author, 2006

Myth #2: If I move my child’s 529 college savings plan to his name, he will be eligible for more aid. Fact: Child’s assets are assessed at a 20% rate; parent assets assessed at a rate of no more than 5.64% On average every $10,000 in a 529 plan may reduce need based aid by up to $564, but it still leaves you with at least $9,436 more available than if you hadn’t saved Source: 12 Presentation Author, 2006

Application Processing School usually receive the results and student the Student Aid Report (SAR) 1-2 weeks after submission Within 3-5 weeks: - You will get notification of your award via OR - Be asked via to submit additional information, * Verification process: 6-8 weeks 13

Paying for College: Financial aid was created as the “BRIDGE” to Higher education. All the information gathered on the FAFSA is to develop an understanding of the household information. 2

Cost of Attendance (COA) Tuition and Fees Room and Board Transportation Books & Supplies +Miscellaneous Living Expenses Cost of Attendance (COA) DO NOT confuse this with your bill – “Cost of Attendance” exceeds costs billed by the university and is meant as a “ceiling” to the amount of aid a student can receive. 15

Financial Need Defined Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need 16

What can we expect? Your EFC and “financial need” determine the types of aid you will be eligible for: –Grants –Subsidized Loans and Federal Work-Study –Unsubsidized Loans 17

Grants Grants are “gift money” from the federal and state government which are meant to help the neediest families Some grant funds are limited and they are awarded on a first come, first serve basis, so it is important to apply early every year! Our Priority deadline is March 1 st.

Federal Work Study Must have “financial need” Student is responsible for finding on-campus job Student receives a payroll check for money earned, does not get sent directly to pay for tuition 19 Presentation Author, 2006

Direct Stafford Loans Subsidized Stafford Loan –Interest rate 3.4% –Will not accrue interest while in school Unsubsidized Stafford Loan –Interest rate 6.8% –Will accrue interest Payments for BOTH loans are deferred until 6 months after graduation Freshman Max = $ $3500 Subsidized *As determined by “Need” - $2000 Unsubsidized

Is there anything else I have to do? Master Promissory Note (MPN) –Signed electronically with PIN –Entrance loan counseling Both items can be completed at studentloans.gov 21

What if it is not enough? Often, financial aid is not enough to cover all expenses ex: $8284 (Full-time tuition) (Minimum Freshman Award) That leaves, AT LEAST $2,784, without even considering housing, meals, and books. 22

Additional Options –Parent PLUS 7.9% interest rate Taken out in parent’s name Studentloans.gov –Alternative Education Loans Variable interest rate Co-signer needed Private lending institutions 23

REMEMBER: Re-apply early every year. FAFSA available every January 1 st. 24

My FAFSA does not reflect what is happening now!!! What should I do? Answer: Talk to the Financial Aid Office, please complete FAFSA with 2010 data Examples include: Divorce/SeparationLoss of Income/Benefits One-time Income Disability Medical/Dental Expense K-12 School Tuition 25

Graduate from a Wisconsin high school. Maintain at least a B average while in high school. Take classes in high school that will prepare me for entrance into higher education and will meet or exceed college entrance requirements. Demonstrate good citizenship and engage in activities that support my community. Apply for state and federal financial aid in a timely manner. Apply and do all that is necessary to gain admission to a University of Wisconsin System institution, a Wisconsin Technical College, and/or a Wisconsin private college or university.

Get Help College Goal Wisconsin Free program to help families complete the FAFSA February 19-20, 2011 Scholarship drawing at each site 30 sites throughout Wisconsin For location information: visit or call

28 College Goal Wisconsin Saturday Sites February 19, 2011 Appleton Fox Valley Technical College 1825 N Bluemound (Entrance 1, Room A105) Kenosha Gateway Technical College th Avenue The Center for Bioscience Madison Madison Area Technical College 3550 Anderson Street (Use Redsten Gym Entrance) Oshkosh UW Oshkosh 800 Algoma Blvd Wausau Northcentral Technical College 1000 Campus Drive (Main Entrance Rooms, E101 and E102) Beloit Beloit Memorial High School th Street Keshena College of Menominee Nation N172 State Hwy 47/55 Marinette UW Marinette 750 W Bay Shore Street (Enter Main Building) Platteville Platteville High School 710 E Madison Street Commons Area Wisconsin Rapids Mid State Technical College nd Street, Building A Elkhorn Gateway Technical College 400 County Road H Atrium – 200 Building Lac du Flambeau Lake of the Torches Hwy 47 N, Convention Center (Questions, contact the Education Dept.) Milwaukee Alverno College 3400 S 43 rd Street (Free parking in ramp. Enter rotunda.) Rice Lake UW Barron County 1800 College Drive Ritzinger Hall Janesville Hedberg Public Library 316 S Main Street Madison Edgewood College 1000 Edgewood College Avenue (Use Main Entrance) Milwaukee Custer High School 5075 N Sherman Blvd (Park on south side of school. Use Sherman Blvd entrance) Waukesha UW Waukesha 1500 N University Drive Commons Building

29 College Goal Wisconsin Sunday Sites February 20, 2011 Eau Claire Chippewa Valley Technical College 620 W Clairemont Avenue Business Education Center (Entrance by Parking Lot P1 at the front of the building or P9 on the west side) DeForest (Madison Area) DeForest High School 815 Jefferson Street Racine Gateway Technical College 1001 S Main Street Racine Conference Center (Parking in Lake Level Parking Lots. Lake Side Entrance.) Fond du Lac Marian University 45 S National Avenue Stayer Center Corner of 4 th and National Kenosha UW Parkside 900 Wood Road Student Center Rhinelander Rhinelander High School 665 Coolidge Avenue (Entrance 1) Green Bay East High School 1415 E Walnut Street (Use Front Entrance off of Walnut Street) Milwaukee Riverside High School 1615 E Locust Street (Main Entrance off of Locust) Sheboygan UW Sheboygan One University Drive (Use West Entrance) LaCrosse UW LaCrosse 1705 State Street Wing Technology Center Milwaukee Pulaski High School 2500 W Oklahoma Avenue (Use Main Entrance at 25th & Oklahoma) Superior Superior High School 2600 Catlin Avenue Library Computer Lab

Questions? Thank You for your time! 30