Scott Seibring Director of Financial Aid Illinois Wesleyan University

 Financial Aid Terminology  Factors used in determining eligibility  Review some of the questions on the FAFSA  Show a few financial aid scenarios  Open up to question

Scholarships are typically based on “merit” ◦ Academic, fine arts, athletic, leadership qualities ◦ Awarded by colleges and universities, organizations,businesses, clubs ◦ Requirements for renewal Grants typically based on “need” ◦ Awarded by state and Federal gov’t ◦ Colleges/universities ◦ Evaluated each year

 Free Application for Federal Student Aid (FAFSA)  Expected Family Contribution (EFC)  CSS PROFILE  Illinois Student Assistance Commission (ISAC)

 Read Instructions carefully  Know institutional deadlines and applications  Use a completed Tax Return if possible  Carefully review all of your figures  Make copies of all the forms you send

 Student’s Social Security Number  Dependency Questions  Parent’s Marital Status  Family Size  Taxes Paid (not amount withheld on W-2)

 Investments  carefully read what is included and excluded  Business/Farm  Additional Financial Information  Untaxed Income  College Selection  Signatures

Parent Contribution + Student Contribution Family Contribution

Cost of Education - Family Contribution Financial Need

 Family Income (AGI plus untaxed income)  Family Size  Number of Children in College  Parents Assets  Age of Parents  Student’s Income  Student’s Assets  Other…..

 Gift Assistance ◦ Grant in Aid ◦ Scholarships ◦ State Funds (MAP Grant) ◦ Federal Funds - Pell, SEOG  Loan Assistance ◦ Stafford Loans ◦ Perkins ◦ Private, PLUS, Home Equity loans  Employment ◦ Campus Work Study (On/Off Campus)

 Low-interest student loan  The FAFSA must be completed  Interest rate for is 4.66%  Repayment begins 6 months after the student graduates or falls below half-time

 Financial Need ◦ Subsidized = need based ◦ Unsubsidized = not based on need  Payment of interest ◦ Subsidized- Federal Government pays while student is in college ◦ Unsubsidized - interest is accruing

 Freshman$3500  Sophomore$4500  Junior$5500  Senior$5500  $2000 added opportunity for Stafford Unsubsidized Loan

Family Contribution Grant 16,500 33,000 50,500 Loan 3,500 4,000 4,500 Demonstrated Need 22,000 39,000 57,000 Job 2,000 2,000 2,000 Breakdown: Total Aid 22,000 39,000 57,000 A B C Cost of College 25,000 42,000 60,000

Number in College 1212 Family Contribution $10,000$5500

Family Contribution 25,000 25,000 25,000 Grant ,000 29,500 Subsidized Stafford Loan UnsubsidizedStafford Loan Demonstrated Need ,000 35,000 Job Breakdown: Total Aid ,500 37,000 A B C Cost of College 25,000 42,000 60,000

No Need Opportunities: University Scholarship $20,000 Local Scholarship 2,000 Campus Job 2,000 Unsubsidized Loan 5,500 Total non-need assistance29,500 Home Equity Loan+ 10,500 Total assistance 40,000 out of pocket contribution $10,000

 Stafford and PLUS Interest Rates ◦ 10 year treasury note plus 2.05 for Stafford and plus 4.6 for PLUS. ◦ rates were 4.66% for Stafford and 6.84% for PLUS. Cap of 8.25% for Stafford and 10.5% for PLUS  IRS Data Retrieval Tool ◦ Pulls data from IRS into FAFSA  Prior year income vs Prior Prior year income  Need based aid vs Merit based aid  Institutional Methodology vs Federal Methodology

Professional Judgment - with factual and verifiable information ◦ Early retirement ◦ Divorce, separation, widowed ◦ Private school expenses ◦ Medical expenses not covered by insurance ◦ One-Time taxable income ◦ Elder care

◦ Can accept or reject any portion of a FA proposal ◦ Understand scholarship renewal qualifications ◦ Be aware of scams ◦ Juniors or younger – use Net Price Calculators on school website for estimates. Don’t file FAFSA. ◦ Consider possibility of graduation in 4 vs 5 years

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 10. Disappointed to learn that students record on Playstation Madden 2015 is not asked on most scholarship applications.  9. Getting a full tuition academic scholarship to your first choice college is as likely as the White Sox winning the World Series this year.  8. You realize the Brady’s must have been full-need by the time Bobby and Cindy went to school.  7 FAFSA does not stand for Frightfully Agonizing Form for Student Aid  6. EFC does not stand for Exhausted Family Can’t

 5. Having the college waive your tuition based on your students good looks and charm is as likely as North losing to West Chicago in football.  4. New Years Eve and Super Bowl parties are pale compared to the celebration of completing your first FAFSA.  3. Financial Aid phone number replace family members on speed dial.  2. Buying $100 of Powerball and Lotto tickets a week before school starts is not considered financially planning for college.  1. The Department of Education will not accept your suggestion to replace the 100 question FAFSA with one simple question…. “How much do you want to pay for college?”