Financial Aid 101

PRESENTED BY:

KATIE SPRUNGER

EDGEWOOD COLLEGE

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November 2023 Spanish Translation

Financing A College Education

A successful experience requires a collaborative effort by:

• Student
• Parent
• Institution
• Government

Where do I start…

Complete your Free Application for Federal Student Aid (FAFSA), so the Department of Education can determine your Student Aid Index (SAI).

www.studentaid.gov

December 2023

What is the SAI?

Federal Methodology:

• A formula created by Congress to determine your Student Aid Index(SAI)
• The same formula applies to all applicants.
• Measures your ability, not willingness to pay.
• SAI components:
• Parent Income and Assets
• Student Income and Assets
• Things not considered: value of primary residence, consumer debt, or retirement accounts.

What is Financial Need?

Cost of Attendance (COA) = A

• Tuition, Fees, Room, Board, Transportation, and Misc.

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Student Aid Index(SAI)from FAFSA = B

• Income, Assets, Number in Family

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A – B = (C) Your Financial Need

Your need depends �on the cost!

Scholarships

• Academic

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• Creative Talent

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• Athletic Talent

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• Ethnicity/Religion

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Need-Based Grants

Federal Government

• Pell
• SEOG
• TEACH Grant

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State Government

• Wisconsin Grant

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Institutional

• Varies by institution

Loans

Federal Direct Loan (23-24 UG rates)

• Subsidized and Unsubsidized 5.5%
• $3,500 Subsidized
• $2,000 Unsubsidized

PLUS: Parent Loan for Undergraduate Students

• 8.05%

Alternative Loans (vary)

Institutional (vary)

Financial Aid Limitations

Federal Pell Grant

• 6 years at full time status

Wisconsin Grant

• 10 semesters

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**Usage is cumulative throughout college career.**

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**Other programs may also have additional limitations – check with the aid office for further details.**

Student Employment

Part-time employment

• On campus
• Designated off-campus locations

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Questions to ask

• When are jobs available?
• How does a student secure a job?
• Does the student get paid directly or is it applied to their account?

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Be prepared to complete new hire paperwork

• I9, WT4, W4
• Bring 2 original forms of identification

Eligibility for Financial Aid

• Don’t eliminate yourself! Remember it’s

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• There is no income cutoff for financial aid.

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• Complete admission process.

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• Contact the Aid Office if financial circumstances change.

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Before FAFSA filing….�FSA ID tips

FSA ID = electronic signature for student and parent

• Separate email and mobile phone required

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Create at least 3 days prior to FAFSA filing.

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Write down usernames, passwords, security question answers.

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Will need access to email and/or mobile phone during this process.

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Create Your FSA ID�www.studentaid.gov�

Email:

• Each FSA ID must have a unique email address (you and your parent cannot use the same email address).
• You must have access to this email account.

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Username:

• Don’t include personal info such as date of birth or name.
• If you see a message “Username taken, create a different username,” then someone has already used that username.

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2024-2025 FAFSA

Who is completing the FAFSA?

FAFSA Overview

FAFSA Contributors

Student Status

If student answers “NO” to all questions, then at least one parent’s information and signature is required.

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If student answers “Yes” to any question, then student is Independent only their income and assets will be considered.

Parent Info

Which parent’s information must be included on the FAFSA?

• Parents are married – Both parents
• Parents are divorced (not remarried) - Only parent who provides most support
• Parents are divorced (remarried) - Parent and step parent who provides most support
• Parents were never married (don’t live together) – Only parent who provides most support
• Parents are not married (DO live together) – Both parents

Student Invites Parents to FAFSA

Student Information

• Student’s Name

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• Date of Birth

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• Citizenship Status

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• Marital Status

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• Email Address

Student Financial Information

Select Colleges

• Select up to 20 schools
• Housing choice
• On Campus
• Off Campus
• With Parents

Student Section Complete!

• Review of information
• Signature

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Almost done…

Parent Invitation

• Email invitation to complete parent portion of student’s FAFSA
• Parents must use FSA ID to access FAFSA
• If parents/step-parents file a joint tax return both will receive invitation

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Parent email invitation sample

Parent Information

• Identity and contact information
• Consent for FTI (Federal Tax Information) transfer from IRS
• Marital status
• State of legal residence
• Assets

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Parent Section Complete

Frequent FAFSA Errors

• Failing to file the FAFSA annually

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• Filing the wrong year’s FAFSA

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• Missing financial aid deadlines

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• Using the wrong Social Security Number (SSN) or date of birth

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• Errors in student or parent marital status

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• Incorrect data related to divorced parents

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• Reporting wrong tax filing status (e.g., head of household)

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• Reporting retirement plans and the net worth of the family home as investments

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Special Circumstances? ��Contact the Financial Aid Office

• Divorce/Separation
• Loss of income or benefits
• One-time income
• Death or Disability of student or parent
• Substantial medical/dental expenses not covered by insurance
• Elementary or secondary school tuition
• Dependency override

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(Note: Professional Judgment is at the sole discretion of each institution.)

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The Application Process

Student submits FAFSA

ED calculates SAI and returns results to student

ED sends copy of result to state & schools of choice

School follows up with student

Verification

The Department of Education picks about 30% of students randomly for verification.

Provide documentation to school

• Verification Worksheet
• Asset Statements
• Child Support Paid Documentation
• Others items as determined by the school

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Response from Schools

The Financial Aid Office issues a:

FINANCIAL AID PACKAGE

*Processing times vary*

*Delivery methods vary*

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Consisting Of:

• The Cost of Attendance
• Your Financial Aid Eligibility
• A description of each program
• What to do next

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If you feel you have special circumstances, let the aid office know!

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Questions to consider

Are the scholarships renewable?

• Requirements?
• GPA, participation, major, max number of terms

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Grant/Loan combination

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Will the student graduate in 4 or 5 years? What is the additional cost?

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Are there additional fees for specific majors?

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How is student employment handled?

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Actual cost minus aid – not just the most aid

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How are we going to pay?

Direct Costs (tuition, room & board, fees, books)

- Financial aid

= Remaining balance due

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• Am I billed for the year or by the term?

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• What are my payment options?

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• When are payments due?

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• Do I need an additional loan? If yes, ensure that loans are finalized 1 month prior to the start of the term.

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Net Price Calculator (NPC)

Aid estimate prior to actual financial aid package

• Located on individual college’s website (all schools are required to have this)
• Families provide basic financial information
• Parent and student income and assets

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Changes in actual aid packages may result if information used on the NPC is significantly different than that on the FAFSA

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Other Resources

• Parent or Student Employer Scholarships
• Corporation for National and Community Service
• Veterans/ROTC Benefits
• Bureau of Indian Affairs (BIA) Grants
• Division of Vocational Rehabilitation (DVR)
• Higher Educational Aids Board (HEAB)

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Scholarship Searches

www.fastweb.com

bigfuture.collegeboard.org

www.collegeexpress.com

www.salliemae.com/college-planning/tools/scholarship-search/

www.finaid.org

www.cappex.com

Avoid Being Scammed�APPLYING FOR AID IS A FREE PROCESS!

Department of Education Office

studentaid.gov/resources/scams

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Better Business Bureau

www.bbb.org

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• Financial aid scam notices
• Tips to avoid scams
• Check legitimacy of scholarship agencies

College Goal Wisconsin�

Free FAFSA filing assistance from aid experts

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• 95.7 percent of the families felt it was worth participating

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• College Goal Wisconsin events will take place virtually and in person during October and November.

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Go to www.collegegoalwi.org for dates and details.

Final

• Apply early – watch deadlines

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• Schools may have additional aid forms

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• Each school evaluates the student differently

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• Read ALL materials issued by the school

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• Inform your school of any “special circumstances”

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• Always keep copies

Questions?