understanding financial aid grafton high school margaret zitzer monday, january 13, 2014
TRANSCRIPT
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Understanding Financial Aid
Grafton High SchoolMargaret Zitzer
Monday, January 13, 2014
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Agendao Principles of Financial Aido Key Conceptso Completing the FAFSAo Types of Aid Available
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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.
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Financial aid helps bridge the gap
between the cost of education and what the family can pay.
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Key ConceptsoCost of Attendance (COA)o Expected Family Contribution (EFC)oDemonstrated Financial Need (Need)
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Cost of Attendance(Direct & Indirect Costs)o Tuition
o Feeso Room & Board o Books & Supplies o Personal/Miscellaneous
o Travel
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Expected Family Contribution(EFC)
Determined by filing the FAFSA
Free Application for Federal Student Aid
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EFC
o Incomeo Assetso Family sizeo Number in Collegeo Age of the older parent
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Demonstrated Financial Need
Financial Need is a simple equation:
COA-EFC
=Need
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Examples of Financial Need
Public College
Cost $ 22,826EFC -$10,000
Need$12,826
Source: The College BoardAverage Estimated Budgets, 2013-14
Private College
Cost $44,750EFC -$10,000Need $34,750
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Get Organized o To complete the FAFSA you will need to:
o Gather your and your parent’s 2013 tax informationo File your taxes electronically and use the IRD Data Retrieval Tool
on FAFSA
o Apply for a Personal Identification Number (PIN)
o Parent must have his/her own PIN.
o PIN serves as electronic signatures for the FAFSA and promissory notes
www.pin.ed.gov
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Submit the FAFSA
www.FAFSA.gov
o FAFSA is student specifico Select the appropriate school yearo Complete all sections about you, your school
plans and the financial information (use the IRS Data Retrieval Tool)
o List your school code(s) (List up to 10 schools)o Provide electronic signatures (PINs)o Submit your informationo Keep copies for your records
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Completing the FAFSAPoints to Remember:
o The earliest you may file the FAFSA for the 2014-2015 school year – January 1, 2014.
o Check with the colleges where you plan to apply for deadlines and institutional requirements.
o You do not need to wait until tax returns are filed; It is o.k. to estimate.
o Must do the IRS Data Retrieval Process (with initial application or corrections) Available 7-10 days after federal tax returns are filed
o Who is considered a parent?o You must re-apply for aid every year.
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FAFSA Follow up
Here’s what happens after you file:o Your EFC is calculatedo Results are sent electronically to the college(s) you
selected. (You may list up to 10 schools on the electronic FAFSA)
o You will receive a Student Aid Report (SAR).o If you have special circumstances notify the Financial
Aid Office. (Extraordinary expenses and/or loss of income)
o After you are admitted to a college, a financial aid award will be sent to you.
o You may be required to verify information submitted on your FAFSA.
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Types of Aid Available
o Gifto Scholarshipso Grants
o Self-helpo Employmento Loans
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Scholarships
Academic - merit basedTalentServiceROTCPrivatewww.fastweb.comwww.thesalliemaefund.org https://bigfuture.collegeboard.org/college-search
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Grants
(Need-based)Federal Grants
PellSEOG
State GrantsWTG/WHEGWI Covenant Scholars
Institutional Grants
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Employmento Two types:
oFederal Work StudyoRegular Campus Employment
o Can be used for personal expenseso Does not adversely affect grades
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Student LoansFederal Stafford
SubsidizedUnsubsidized
(anyone can borrow)
2013-14 Variable/Fixed interest rate of 3.86%
(8.25% cap)
Freshmen - $3500Sophomores - $4500
Juniors/Seniors - $5500Additional Unsub $2000/year
(Loan Origination Fee of 1.072%)
6 month grace period10 year repayment
Federal Perkins*5% interest rate
interest deferred while in school
No loan fee
9 month grace period10 year repayment
Available funding determines loan amount
at each school
*Program set to expire 2015
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Other Optionso Parent PLUS Loan – 2013-14 Variable/Fixed
Rate = 6.41% (Cap=10.50%) (4.288% Origination Fee) – requires good credit
o Student Alternative Loans – Private Lenders – requires a credit-worthy cosigner
o Private ScholarshipoMUST be reported to the school
o Payment Plano Tax Creditso EdVest (529 Plan) Withdrawals
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Comparing Financial Aid Offers
Step 1Calculate your direct costs
(tuition, room & boards and fees)
$20,000 Tuition+ 3,000 Room+ 3,000 Board+ 500 Fees
$26,500 Direct Costs
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Comparing Financial Aid Offers
Step 2Subtract any gift aid
(grants and scholarships)
$26,500 Direct Costs -5,645 Pell Grant - 2,900 WI Grant
- 10,000 Institutional Grant$7,955 Remainder After Gift Aid
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Comparing Financial Aid Offers
Step 3The remainder after gift assistance will need to be covered by loans,
employment or personal resources(i.e. cash, savings, payment plans and etc.)
$7,955 Remainder After Gift Aid - 3,500 Stafford Loan
- 2,000 Unsubsidized Stafford Loan
$2,455*Remainder to be covered by Parent Loan, Alternative Loan, Payment Plan or Personal Resources, etc.
* You MUST have a plan to cover your remaining Balance
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Net Price Calculator
• Early financial aid estimation tool• The average yearly price actually charged to
full-time, first-year undergraduate students receiving student aid at an institution of higher education.
• Estimate net price=COA – grants & scholarships
• Not all NPCs are built equally
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Websites General Information
www.StudentAid.govwww.Finaid.orghttp://www.consumerfinance.gov/paying-for-collegehttp://nces.ed.gov/collegenavigator/?s=all&ct=2&ic=1
Scholarship Search Engineswww.Fastweb.comwww.Thesalliemaefund.orgwww.Bigfuture.collegeboard.org/college-search
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College Goal Wisconsinhttp://www.collegegoalwi.org/
• College Goal Wisconsin – is a Statewide event that offers free assistance to families in completing the FAFSA – Scholarship opportunity also
• Saturday or Sunday, February 22-23 (2 pm), and on Wednesday, February 26, 2014 (6 pm)
• Assistance with paper and online FAFSAs • Scheduled at 29 sites throughout Wisconsin
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Additional InformationMarquette University
Office of Student Financial Aid(414) 288-4000
www.marquette.edu/mucentral