1. Financial Aid: Planning and Awareness Paxton-Buckley-Loda
Andrew Reddington
Associate Director of Financial Aid
Illinois Wesleyan University

2. Financial Aid Terms Free Application for Federal Student Aid (FAFSA)
Student Aid Report (SAR)
Institutional Student Information Record (ISIR)
Expected Family Contribution (EFC)
Prior-Prior Year (PPY)
Data Retrieval Tool (DRT)
CSS PROFILE
Illinois Student Assistance Commission (ISAC)

3. Principles of Financial Aid
Ability to Pay vs. Willingness to Pay
Parent’s Responsibility
Student’s Responsibility
A family’s ability to pay must be evaluated in an equitable and consistent manner.
Determining Financial ‘Need’

4. Merit vs Need-based Scholarships are typically based on “Merit”
Academic, fine arts, athletic, leadership qualities
Awarded by colleges and universities, organizations, businesses, clubs
Renewable and Non-renewable
Grants typically based on “Need”
State and Federal programs
Colleges/Universities
Evaluated each year

5. Filing the FAFSA Register for an FSA ID
Student Needs One
One Parent Needs One
Register at
Parent and Student Must use Separate Addresses
Use IRS Data Retrieval Tool (if possible)

6. Prior-Prior Year 2017-18 FAFSA is available Oct. 1, 2016
FAFSA previously wasn’t available until January 1st
will use 2015 tax information instead of 2016
FAFSA will then be based on the Prior-Prior Year’s (PPY) tax information

7. IRS Data Retrieval Tool
Imports Tax Info to the FAFSA
Available approx. 2 weeks after taxes are filed with IRS using electronic transmission
Not done after Congratulations Notice
Can be used as a component in verification
May not work in all family situations

8. Problematic FAFSA Questions
Student’s Social Security Number
Dependency Questions
Taxes Paid (not amount withheld on W-2)
Signatures
Untaxed Income
Investments and Business/Farm Value
carefully read what is included and excluded

9. Determining the Family Contribution
Parent Contribution
+ Student Contribution
Expected Family Contribution (EFC)

10. Determining Family Contribution
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…..

11. Special Circumstances: Appeals
Professional Judgments can be used by the school to modify FAFSA information for certain circumstances
Reduction of Income - (retirement, furloughs, etc…)
Loss of Employment
Medical Expenses - (not covered by insurance or FSA’s)
Non-Reoccurring or One-Time Income
Elder or Disability Care Expenses - (not covered by insurance or FSA’s)
Other

12. Determining Financial Need
Cost of Attendance - Expected Family Contribution Financial Need

13. Meeting the Need Gift Assistance Loan Assistance Employment Grants
Scholarships
State Grants (MAP Grant)
Federal Grants – Pell and SEOG
Loan Assistance
Federal Direct Loans
Other Loans
Employment
Campus Work Study (On/Off Campus)

14. Grants Federal Grants State Grants Institutional Need Based Grants
Pell Grant
SEOG Grant (Supplemental Education Opportunity Grant)
State Grants
MAP Grant (Monetary Award Program)
Other Programs
Institutional Need Based Grants
Need Based Grants from Colleges and Universities

15. Federal Direct Loans Seen as lowest interest rates on student loans
The FAFSA must be completed to qualify
Current interest rate is 3.76%
Repayment begins 6 months after the student graduates or falls below half-time
No Repayment While Student is in School

16. Subsidized vs Unsubsidized
Financial Need
Subsidized = need based
Unsubsidized = not based on need
Interest Accrual
Subsidized- Government pays interest while student is attending at least half-time status
Unsubsidized - Interest Always Accrues
Origination Fee = 1.069% (of the principle)

17. Federal Direct Loan Limits
Freshman- $5500 (Sub. max.$3500)
Sophomore- $6500 (Sub. max. $4500)
Junior- $7500 (Sub. max. $5500)
Senior- $7500 (Sub. max. $5500)

18. Other Payment Options Parent PLUS Loan Private/Alternative Loans
Fixed Interest Rate – Currently 6.31%
4.276% Origination Fee (Government Fee)
Ex: $1,000 Loan- School Receives $958
Repay While Student is in School (120 payments/10 years)
Private/Alternative Loans
Based on Student/Co-signer Credit Worthiness
Interest Rates are Variable or Fixed
Most do not Require Payment While Student is in School
Payment Plans
Breaks up Balance into Monthly Installments
May or May not Have a Fee to Set Up

19. College Savings Plans (529’s)
Billed by the University to the plan provider
College Illinois
529 Prepaid Plans
Out of State 529 Plans

20. Comparing Colleges and Costs
A B C
Cost of College , , ,000
EFC , , ,000
Remaining Cost , , ,000
Breakdown:
Grant , , ,500
Loan , , ,500
Job , , ,000
Total Aid , , ,000

21. Notes Can accept or decline any portion of a FA proposal
Understand scholarship renewal qualifications
Be aware of scholarship scams
Juniors - use calculators on websites, don’t file FAFSA
Consider possibility of graduation in 4 vs 5 years

22. Helpful Tips Use IRS Data Retrieval on FAFSA
Read Instructions carefully
Know state and institutional deadlines for applications (IWU is Nov. 1st)
Use a completed Tax Return if possible
Make copies of all the forms you send

23. Suggested Websites www.finaid.org www.collegezone.com

24. Andrew Reddington areddin1@iwu.edu (309) 556-3276
Contact Info
Andrew Reddington (309)

25. Question Time!!