1. Understanding Financial Aid Grafton High School Margaret Zitzer December 14, 2009

2. Agenda   Principles of Financial Aid   Key Concepts   Completing the FAFSA   Types of Aid Available

3. 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.

4. Financial aid helps bridge the gap between the cost of education and what the family can pay.

5. Key Concepts Cost of Attendance (COA) Expected Family Contribution (EFC) Demonstrated Financial Need (Need)

6. Cost of Attendance (Direct & Indirect Costs) TuitionTuition FeesFees Room & BoardRoom & Board Books & SuppliesBooks & Supplies Personal/MiscellaneousPersonal/Miscellaneous Travel Travel

7. Expected Family Contribution (EFC) Determined by filing the FAFSA Free Application for Federal Student Aid

8. EFC IncomeIncome AssetsAssets Family sizeFamily size Number in CollegeNumber in College Age of the older parentAge of the older parent

9. Demonstrated Financial Need Financial Need is a simple equation:COA-EFC=Need

10. Examples of Financial Need Public College Cost$18,014 EFC-$9,000 Need $9,014 Source: The College Board Private College Cost$35,374 EFC- $9,000 Need$26,374 Average College Costs, 2007-08

11. Applying for Financial Aid is as easy as 2 1

12. Get Organized To 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

14. 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

15. www.fafsa.ed.gov

16. 2010-11 FAFSA – “Simplified” ♦ Fewer Questions ♦ Fewer Screens ♦ Skip Logic ♦ Less Text ♦ Possible to import tax info from IRS ♦ Low income levels - do not report assets

17. Completing the FAFSA Completing the FAFSA Points 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.

18. FAFSA Follow Up Here’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.

19. Common Errors  No signature(s) on FAFSA  Remember to electronically sign the FAFSA with PIN (student & parent)  After submitting the FAFSA – scroll down to the bottom of the confirmation and read the whole message  Make corrections to the FAFSA – clear up any Rejected FAFSA errors  Missing signature(s)  AGI equals tax paid  Check with the school regarding any future deadlines – You don’t want to miss out on any financial aid in subsequent years

20. Types of Aid Available GiftGift ScholarshipsScholarships GrantsGrants Self-helpSelf-help EmploymentEmployment LoansLoans

21. Scholarships Academic - merit based Talent Service ROTC Private www.fastweb.com www.finaid.org www.BrokeScholar.com

22. Grants Need-Based Federal Grants PellSEOG ACG ACG SMART (National Science and Mathematics Access to Retain Talent Grant) SMART (National Science and Mathematics Access to Retain Talent Grant)TEACH

23. Grants Cont. Need-Based Need-Based  State Grants  Institutional Grants

24. Employment 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

25. Student Loans Federal Stafford SubsidizedUnsubsidized (anyone can borrow) Sub fixed interest rate of 4.5% Unsub fixed interest rate of 6.8% Freshmen - $3500 Sophomores - $4500 Juniors/Seniors - $5500 Additional Unsub $2000/year (Loan Fee up to 2.5% (may receive rebate)) 6 month grace period 10 year repayment Federal Perkins 5% interest rate interest deferred while in school No loan fee 9 month grace period 10 year repayment

26. Other Options Parent PLUS LoanParent PLUS Loan Student Alternative Loans – Private LendersStudent Alternative Loans – Private Lenders Payment PlanPayment Plan Tax CreditsTax Credits EdVest (529 Plan) WithdrawalsEdVest (529 Plan) Withdrawals

27. “FAFSA 4 caster”   www.fafsa4caster.ed.gov www.fafsa4caster.ed.gov  Early financial aid estimation tool  Estimate of EFC  Not the official application, student still must submit the actual FAFSA form  Bio Demo Information will transfer to FAFSA

29. College Goal Sunday http://www.wicollegegoalsunday.org/  College Goal Sunday is a Statewide event that will offer free assistance to families in completing the FAFSA  February 20, 2010 and February 21, 2010 from 2:00-4:00pm (“Weekend Edition”)  Event is being held on behalf of WASFAA  Assistance with paper and online FAFSAs  Scheduled at 25 sites throughout Wisconsin

30. Additional Information Marquette University Office of Student Financial Aid (800) 222-6544 or (414) 288-7390 financialaid@marquette.edu website: www.marquette.edu/financialaid