Carroll University

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Financing EducationBeyondHigh School

• Carroll University
• Dawn Scott
• Carrie Kropp

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Topics We Will Discuss Tonight

• What is financial aid?
• Where does it come from?
• What aid is available?
• Definition of financial need and how it is
  determined
• How to apply for financial aid, including FAFSA
  how to avoid errors
• Where to look for information about private
  sources of aid, including how to avoid being
  scammed

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What is Financial Aid?

• Money available to families to help them pay for
  educational expenses.

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What is Cost of Attendance (COA)?

• Direct costs
• Indirect costs
• Direct and indirect costs combined into cost of
  attendance
• Vary widely from college to college

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What is the Expected Family Contribution (EFC)?

• Amount the family can reasonable be expected to
  contribute
• Stays the same regardless of college choice
• Colleges use EFC to award financial aid
• Two components
• Parent contribution
• Student contribution
• Calculated using FAFSA data and a federal
  formula. Main components are
• Family size
• in college
• Students income/assets
• Parents income/assets
• www.finaid.org/calculators/finaidestimate.phtml

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What is Financial Need?

• Cost of Attendance (COA)
• - Expected Family Contribution (EFC)
• Financial Need

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Types of Financial Aid

• Gift Assistance
• Scholarships
• Grants
• Self-help
• Loans
• Employment

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Goals of Financial Aid

• Primary goal is to assist students in paying for
  college and is achieved by
• Evaluating familys ability to pay for
  educational costs
• Distributing limited resources in an equitable
  manner
• Providing a balance of gift aid and self-help aid

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Sources of Financial Aid

• Federal Government Programs
• State Government Programs
• Community Programs
• Institutional Programs
• National Programs
• www.fastweb.monster.com
• www.finaid.org
• www.studentaid.ed.gov
• www.collegeboard.com
• www.gocollege.com
• www.scholarshipcoach.com

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Eligibility for Aid

• Based upon an analysis of data provided on the
  Free Application for Federal Student Aid (FAFSA).
• Some institutions may require additional
  information to determine eligibility for their
  institutional resources

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Common Federal Aid Programs

• Pell Grant
• Supplemental Education Opportunity Grant
• Academic Competitiveness Grant
• National SMART Grant
• TEACH Grant

• Federal Perkins Loan
• Federal Stafford Loans
• Federal PLUS Loans
• Federal Work Study

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Federal Government

• Largest source of financial aid
• Aid awarded primarily on the basis of financial
  need
• Must apply every year using the FAFSA

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State Programs

• Residency Requirements
• Award aid on the basis of merit and need
• Use information from the FAFSA
• Deadlines vary by state check for deadline on
  FAFSA website (www.fafsa.ed.gov).

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You may be eligible for aid, but...

• You must apply to find out!
• Everyone will be eligible for a form of student
  loan.
• Apply it is FREE!

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How to Apply for Financial Aid

• Easy as 1-2-3

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Free Application for Federal Student Aid (FAFSA)

• A standard form that collects familys
  demographic and financial information used to
  calculate the students EFC (available in English
  and Spanish)
• How to apply
• Paper FAFSA
• FAFSA on the web at www.fafsa.ed.gov

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FAFSA

• May be filed at any time during an academic year,
  but no earlier than the January 1st prior to the
  academic year for which the student requests aid.
• For the 2009-10 academic year, the FAFSA may be
  filed beginning January 1, 2009.
• Colleges may set FAFSA filing deadlines.

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FAFSA on the Web Worksheet

• 2009-10 FAFSA on the Web Worksheet
• 8-page booklet containing
• Instructions
• 104 questions in 5 steps

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FAFSA On the Web

• Web site www.fafsa.ed.gov
• 09-10 FAFSA available on 1/1/2009
• FAFSA on the Web
• Worksheet
• Used as a pre-application worksheet
• Questions follow order of
• FAFSA on the WEB

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List up to 10 schools to receive FAFSA data

• Federal School Code for each school
• 6 digit number for all schools
• Housing plans for each school

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FAFSA on the Web

• Good reasons to file electronically
• Built in edits to help prevent errors
• Skip-logic allows students/parents to skip
  unnecessary questions
• Detailed instructions and help for common
  questions
• Ability to check status and do corrections
  on-line
• Simplified renewal application process
• FASTER!!!

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Student Financial Aid Personal Identification
Number (SFA PIN)

• Web site www.pin.ed.gov
• Sign FAFSA electronically
• Can get PIN before January 1, 2009
• Not required, but speeds processing
• May be used by students and parents throughout
  aid process, including subsequent school years

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Student Aid Report (SAR)

• Sent to the student from the Dept. of Education
  after FAFSA has been processed
• Summarizes all information reported on FAFSA
• Informs family of the EFC (expected family
  contribution)

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FAFSA Processing Results

• Central Processing System (CPS) notifies student
  of FAFSA processing results by
• Paper Student Aid Report (SAR) if paper FAFSA was
  filed students e-mail address was not provided
• E-mail notification containing direct link to
  students on-line SAR if students e-mail was
  provided on paper FAFSA or FAFSA on the Web (view
  SAR at www.fafsa.ed.gov)
• Student with PIN can view SAR on-line at
  www.fafsa.ed.gov

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College Goal Sunday

• College Goal Sunday is a national event
• that provides free information and
• assistance to families who are filling
• out the FAFSA.
• College Goal Sunday (Wisconsin)
• February 21-22, 2009
• http//www.wicollegegoalsunday.org/

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EFC Components
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Financial Need Varies Based on Cost

• Cost of Education Tuition and fees
• Books and Supplies
• Room and Board
• Personal and Travel
• Miscellaneous Expenses
• Cost of Education - EFC (expected family
  contribution) Financial Need
• Example 1 ( EFC 8,000)
• 26,000 - 8,000 18,000
• 19,000 - 8,000 11,000
• 11,000 - 8,000 3,000

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Role of Financial Aid Office

• Determine aid eligibility using federal formula
• Colleges use EFC to award financial aid
• Packages aid depending on availability of funds
• Sends award notifications including
• Award amount for each program for which the
  student is eligible

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Financial Aid Award Example

• Family Size - 4 Students Income - 3,000 Parents
  Income - 55,000
• in college - 1 Students Assets -
  1,000 Parents Assets - 10,000
• Cost of Education - Family Contribution
  Need
• 26,000 8,000
  18,000
• College Scholarship 8,000
• WI Tuition Grant 2,900
• Carroll Grant 3,300
• Stafford Loan 3,500
• Work Study 2,000
• Total Aid 19,700

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Financial Aid Timeline

• October December
• Complete admissions application
• Complete any other documents from colleges
• Discuss any items with your admissions counselor
• Watch mail for 2009-2010 FAFSA in late December

• January May
• Complete FAFSA as soon as possible after January
  1, 2009.
• Make sure you send the results to the colleges
  you are looking at using their school code.
• Watch mail for your financial aid award
  approximately 4-6 weeks after you submit your
  FAFSA

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Dependent vs. Independent Students

• At least 24 years old by Dec. 31st of award year
• Graduate or professional student
• Married
• Has children or dependents (in which the student
  provides over 50 of their support)
• Veteran of the U.S. Armed forces or currently
  serving on active duty
• At age 13 or older, both parents deceased, in
  foster care or a ward/dependent of the court
• Emancipated minor (determined by court in state
  of legal residence)
• In legal guardianship (determined by a court in
  state of legal residence)
• Homeless

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Tips for Applying for Financial Aid

• Apply as early as possible
• Meet college filing deadline/priority dates
• Find out what forms are required at each
  institution
• Used completed tax returns
• Read the instructions - dont assume
• Complete all questions
• Keep a copy of all records

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Frequent FAFSA Errors

• Parent and student social security numbers
• Missing signatures/PIN
• Divorce/remarried parent information
• Income earned by parents/stepparents
• Untaxed Income
• Household size number in college
• Real estate and investment net worth
• Not using real name

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CAUTION

• Avoid Scams
• Dont pay a fee to file the FAFSA
• First F means FREE
• www.fafsa.ed.gov
• Watch the scholarship searches
• Dont pay a fee

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Special Circumstances

• Cannot report on FAFSA
• Send explanation to Financial Aid Office at each
  school
• College will review special circumstances
• May have a specific form
• May request additional documentation

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Special Circumstances

• Change in employment status
• Medical expenses not covered by insurance
• Change in parental marital status

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Financial Aid Awards

• Look at the college selection process in terms of
  4-5 years
• Find out what happens to your award in the
  second, third and fourth year
• Find out cost increases for tuition, room and
  board for past few years
• Find out what happens if student receives funding
  from an outside source

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Federal Student Loans

• Stafford Loans
• Subsidized Stafford Must demonstrate need
• Unsubsidized Stafford Not based on need
• Undergraduate annual loan limits (Sub/Unsub)
• 5,500 for 1st year
• 6,500 for 2nd year
• 7,500 for each remaining
• Fixed interest rate
• 6-month grace period
• 10 year repayment period

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Federal PLUS Loans

• Loan program for parents of dependent,
  undergraduate students
• Fixed interest rate
• Depends on loan program (FFEL or Direct Loan)
• Repayment begins 60 days after loan is fully
  disbursed
• Annual loan limit Cost of Attendance minus all
  other aid

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Alternative/Private Loans

• Private loans
• Students loan
• Co-signers
• Variable Interest rates
• Typically based on Prime or T-bill
• Repayment typically after education ends

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Questions?Thank You!

• Dawn Scott
• Director of Financial Aid
• dscott_at_carrollu.edu
• Carrie Kropp
• Associate Director of Financial Aid
• ckropp_at_carrollu.edu