Financing Education Beyond High School

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Financing Education Beyond High School

• 2007-08

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Goals of Financial Aid

• Assist students in paying for college by
• Evaluating familys ability to pay educational
  costs using the federal formula
• Distributing limited resources in an equitable
  manner
• Providing balance of gift aid and self-help aid
• Send award notification including
• Award amount for each program for which student
  is eligible
• Disbursement methods and time frames
• Terms and conditions of each award

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Types of Aid

• Gift aid Grants and scholarships (need-based or
  merit-based)
• Self-help aid Loans and employment (need-based
  or non-need-based)

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Definition of Need

• Cost of attendance (COA)
• Expected family contribution (EFC)
• Need

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Cost of Attendance

• Tuition fees
• Room board
• Books, supplies, transportation, miscellaneous
  personal expenses
• Loan fees

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EFC for a Dependent Student

• Parental contribution from income and assets
  (as adjusted, if more than one household member
  in college)
• Student contribution from available income and
  assets
• EFC

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Principles of Need Analysis

• To extent they are able, parents have primary
  responsibility to pay for dependent childs
  education
• Students have a responsibility to contribute to
  educational costs
• Families should be evaluated in their present
  financial condition
• Familys estimated ability to pay educational
  costs must be evaluated in equitable and
  consistent manner, recognizing that special
  circumstances may affect familys ability to pay
• Formula is called Congressional Methodology

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Independent Student Definition

• At least 24 years old by December 31 of award
  year covered by the FAFSA
• Graduate or professional student
• Married
• Has children or dependents (other than a spouse)
  for whom the student provides more than half
  support
• Orphan or ward/dependent of the court
• Veteran of U.S. Armed Forces or serving on active
  duty
• Determined to be independent by financial aid
  administrator based on unusual circumstances

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Grants

• Pell Grant Based on EFC and Enrollment
• 2007-2008 Award ranges from 400 - 4310/ year
• Supplemental Educational Opportunity Grant
  Based on EFC
• 2007-2008 Award ranges from 100 1,000/ year
  (at UWW)
• WI Higher Education Grant Based on EFC
• 2007-2008 Award ranges from 674 2,730/year
• State Indian Grant
• 2007-2008 Award ranges from 250 1,100/year
• Federal Indian Grant
• 2007-2008 Awards vary Based on Tribe
• Academic Competitiveness Grant Based on EFC and
  HS courses
• 2007-2008 Award is 750 for 1st year and 1300
  for 2nd year

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Student Employment

• Employment may be on or off campus
• Work Study
• Considered financial aid and is based on need and
  availability of funds
• Funds earned by rate of pay and hours worked
• Jobs are on campus
• Regular Payroll Employers
• School (Whitewater has Student Jobline database)
• Federal, state, or local public agency
• Private nonprofit organization
• For-profit organizations

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Loans

• Perkins Loan
• Award amounts based on financial need
• Government pays interest as long as student
  enrolled at least half time
• Subsidized FFEL/Direct loan
• Award amounts vary based on grade level and
  financial need
• Government pays interest as long as student
  enrolled at least half time
• Unsubsidized FFEL/Direct loan
• Award amounts vary based on grade level
• Student charged interest while in school

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Federal Perkins Loans

• Interest rate 5
• 9-month grace period
• Repayment period may be up to 10 years
• Deferment and cancellation provisions available

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Stafford Loans

• Available under
• Federal Family Education Loan (FFEL) Program with
  funds provided by lender (e.g., bank or credit
  union)
• William D. Ford Federal Direct Loan Program
  (Direct Loan Program) with funds provided
  directly by the federal government

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Stafford Loans

• Base annual loan limits (combined subsidized and
  unsubsidized)
• 3,500 for 1st year undergraduates as of 7/1/07
• 4,500 for 2nd year undergraduates as of 7/1/07
• 5,500 for each remaining undergraduate year
• Career Maximum Dependent student 23,000
• Career Maximum Independent student 46,000

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Stafford Loans

• Additional unsubsidized loan eligibility for
  independent undergraduates and dependent students
  whose parents are unable to borrow under the PLUS
  Program
• 4,000 per year for first and second years of
  undergraduate study
• 5,000 per year for remaining years of
  undergraduate study

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Cost of Borrowing Stafford Loans

• Fixed interest rate of 6.8
• Loan fees based on principal amount of each loan
• FFEL Up to 1.5 origination fee and 1 insurance
  premium
• Direct Loan Up to 2.5 loan fee

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Stafford Loans

• Repayment begins after 6-month grace period
• Maximum repayment period between 10 and 30 years
  depending on repayment plan chosen
• Deferment and cancellation provisions available

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PLUS Loans

• Borrowers are parents of dependent undergraduate
  students
• Annual loan limit cost of attendance minus other
  aid
• Fixed interest rate (subject to change on July1)
• Direct Loan rate 7.9
• FFEL Loan rate 8.50
• Loan fees based on principal amount of each loan
• FFEL Program 1 insurance premium and 3
  origination fee
• Direct Loan Program 4 loan fee
• Repayment begins 60 days after loan is fully
  disbursed
• Only principal may be deferred under certain
  conditions interest may be capitalized

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Alternative Loans (Private Education Loans)

• Loans borrowed from private lending institutions
  (Citibank, Wells Fargo, etc.)
• Terms and conditions vary by lender
• Based on credit score students usually need
  co-signer
• Interest accumulates while student is in school
• Repayment usually begins 6 month grace period

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Other Government Resources

• Corporation for National Community Service
  (AmeriCorps) http//www.americorps.gov
• Veterans benefits http//www.gibill.va.gov
• ROTC scholarships or stipends
• Bureau of Indian Affairs (BIA)
• State Division of Vocational Rehabilitation
• Private Business or Civic Organization
  Scholarships

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Private Scholarship Search

• Free Internet scholarship search engines
• FinAid on the Web www.finaid.org
• College Board www.collegeboard.com
• FastWeb www.fastweb.monster.com
• Scholarship Resource Network Express
  www.srnexpress.com
• GoCollege The Collegiate Websource
  www.gocollege.com

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FAFSA(Free Application for Federal Student Aid)

• Collects familys personal and financial
  information used to calculate students EFC
• Available every January 1 for the upcoming
  academic year
• Must be filed every year
• May file FAFSA in one of two ways
• Electronically via FAFSA on the Web
  (www.fafsa.ed.gov)
• Paper FAFSA

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PIN Registration

• Web site www.pin.ed.gov
• Can request PIN before filing FAFSA
• Not required, but speeds processing

• May be used by students and parents throughout
  aid process to sign promissory notes
  electronically, review loan information on the
  web, and sign FAFSA for subsequent school years

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CAUTION!

• Avoid being charged a fee to file the Free
  Application for Federal Student Aid
• Completion and processing of the FAFSA are FREE
• If filing via FAFSA on the Web, be sure to go
  directly to www.fafsa.ed.gov
• Contact financial aid office for help completing
  the FAFSA

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ERRORS can be COSTLY!

• Errors on the FAFSA or supplemental forms may
  DELAY application processing and result in the
  LOSS of financial aid funds.
• Read the instructions and complete all forms
  carefully!
• Priority Deadline for Whitewater is March 15!
  All documentation must be received by this date
  to guarantee best aid package possible.

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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 and students e-mail address was not
  provided
• SAR Acknowledgement if filed electronically via
  FAFSA on the Web and students e-mail address was
  not provided
• E-mail notification containing a direct link to
  students on-line SAR if students e-mail was
  provided on paper or electronic FAFSA

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FAFSA Processing Results

• Central Processing System (CPS) submits ISIR
  (Institutional Student Information Record) to all
  schools listed on the FAFSA
• Notifies school if student is chosen for
  verification
• ISIR records contain comment codes if there is
  anything the financial aid administrator needs to
  review

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Verification

• Verification is a process where the Financial Aid
  Office is required to review certain tax
  information that was reported on the FAFSA
• 33 of students who file the FAFSA are chosen for
  verification by the federal government
• Whitewater also has an edit process to choose
  certain students for verification based on their
  FAFSA answers

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Follow Up Information

• If the student needs to turn in additional
  documentation, we send a Missing Information
  Letter (or email)
• Documents for verification
• Dependent childs birth certificate
• Marriage certificate
• Proof of citizenship
• Students can view their missing documentation
  under the To Do list on WINS

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Making Corrections

• If necessary, student can make corrections to
  FAFSA data may be made by
• Using FAFSA on the Web (www.fafsa.ed.gov) if
  student has a PIN
• Updating paper SAR (SAR Information
  Acknowledgement cannot be used to make
  corrections) or
• Submitting documentation to schools financial
  aid office

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Award Letter

• Once the FAO has received all necessary
  documentation from a student, the student will be
  packaged.
• All students with a Whitewater email address will
  be sent a notification indicating their award is
  available to view on WINS.
• All new/transfer students are sent a paper award
  letter.
• Students must notify our office of any enrollment
  changes or outside sources of aid
• Students have 3 weeks to accept the aid or it
  will be cancelled.

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Award Letter

• COA 13,950
• EFC 0
• Need 13,950
• Pell 4,310
• Seog 1000
• Wheg 2730
• Perk 1500
• WS 1200
• DL 3210
• Total 13950

• COA 13,950
• EFC 0
• Need 13,950
• Pell 4310
• DL 3500
• Total 7810

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Award Letter

• COA 13,950
• EFC 4241
• Need 9709
• Perk 1500
• WS 1200
• DL 3500
• Total 6200

• COA 21,646
• EFC 4111
• Need 17,535
• NR Grant 2500
• Perk 1500
• WS 1200
• DL 3500
• Total 8700

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Special Circumstances

• Financial Aid Administrators have the option of
  adjusting the students information in certain
  situations
• In order to verify the special circumstances, the
  FAO requires documentation dependent upon the
  individual case
• These adjustments do not necessarily change the
  aid the student may receive

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COA Adjustments

• Online fees above tuition
• Mileage costs for commuting students
• One time purchase of a computer up to 2000
• Study abroad expenses
• Dependent child care costs
• Unusual medical/dental expenses for student
• Disability related costs
• Low Income Budget Adjustment
• Winterim course

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EFC Adjustments

• Change in job situation
• One time IRA distribution on taxes
• Students sibling attending private school
• Parents unusual medical expenses
• Divorce
• Death of a parent

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Other important points

• Aid will be revised if a student receives
  additional resources
• Aid will be revised if enrollment status changes
• Students must maintain Satisfactory Academic
  Progress to continue receiving financial aid
• GPA 2.0
• Less than 180 credit attempts
• Complete 67 of classes each year
• If a student withdraws, they may be required to
  pay back their financial aid

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Questions??
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For Financial Aid information, please contact the
following number 262-472-1130