Financial Aid 101

Triena Bodart

Moraine Park Technical College

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AGENDA

• What is Financial Aid
• The FAFSA
• What do I need to file the application?
• When do I do this?
• The application
• Awarding Financial Aid
• What does this all mean?
• Comparing Offers
• Additional Assistance

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WHAT IS FINANCIAL AID:

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SCHOLARSHIPS

• Self help aid
• Scams
• Where to apply
• Foundation vs Private
• How it gets reported to the school
• Application process

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STUDENT LOANS

• SUBSIDIZED LOAN
• Need based
• No interest until the student graduates or stops attending
• UNSUBSIDIZED LOAN
• Does not require need
• Has interest from the point of disbursement
• May pay interest while going to school to keep debt level down
• PARENT PLUS LOAN
• Parent is the borrower and uses to assist student with costs
• Has interest while student goes to school
• Begin repayment 60 days after full disbursement

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STUDENT LOANS CONTINUED

• Builds credit for the student
• Lowest interest rate on the market
• Interest rates this year: 6.39%
• Alternative loans typically vary between 8%-15%
• Interest rate is fixed
• Multiple repayment options
• Can begin repayment with out penalty at any time
• There are forgiveness options

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THE FAFSA

• WHERE DO I DO THIS?
• WHEN DO I DO THIS?
• WHAT DO I NEED TO FILE THE APPLICATION?
• THE APPLICATION

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WHERE DO I NEED TO DO THIS?

STUDENTAID.GOV

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WHEN DO I NEED TO DO IT?

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FAFSA

• October of every year

May be filed at any time during an academic year, but no earlier than October, prior to the academic year for which the student requests aid

• Institutional deadlines
• Apply early
• Reapply each year

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WHAT DO I NEED TO DO?

• STEP 1: Complete College Application(s)
• STEP 2: Create your personal FSA ID
• STEP 3: Submit your FAFSA
• STEP 4: Submit documentation requested by schools

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What is an FSA ID

• Used to sign the FAFSA
• Also used for corrections
• Sign your Master Promissory note and Entrance Loan Counseling
• Sign for Parent PLUS loan

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Who needs to �create an FSA ID

• The Student and any “contributors”.
• This is a the term for parent or someone who is required to put their information on their student’s FAFSA.

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WHO IS CONSIDERED A CONTRIBUTOR?

• Anyone who is required to provide information on a student’s FAFSA form, including the student, the student’s spouse, a biological or adopted parent, or the parent’s spouse. Being a contributor does not imply responsibility for the student’s college costs.
• If your parents are divorced or separated, the contributing parent(s) is the parent (and their spouse, if remarried) who provided the greater portion of your financial support during the 12 months immediately prior to filing the FAFSA. It is not automatically the parent you primarily lived with during the past 12 months.

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FSA ID HELPFUL HINTS

• Student and any contributors must have their own FSA ID
• You must have separate email addresses
• Do not use High School email
• May be used by students and parents throughout aid process, including subsequent school year
• ONLY THE OWNER SHOULD CREATE A FSA ID

WHAT TO LOOK FOR

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WHAT will you �need to complete �the FAFSA?

• Verified account username and password (FSA ID)
• Parent or spouse contributor name and email address
• Income and asset information for the student and their contributors such as:
• Tax returns
• Records of child support received
• Current balances of cash, savings, and checking accounts
• Net worth of investments, businesses, and farms

Dependent VS Independent

• Independent if:

Homeless, orphan, ward of the court, foster care, legal guardianship, veteran, married, have children you are supporting 50% or more, in graduate school or turning 24.

• Otherwise you must provide parent information.

Who is your parent? Biological parents, not grandparents or foster parents

• They are referred to as “Contributors” on the FAFSA.

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FUTURE Act �Direct Data Exchange (FA-DDX)

• Allows for an individual’s federal tax information (FTI) to be directly transferred from the IRS to the FAFSA
• Consent is required by all contributors on FAFSA (unless filed joint taxes)
• IRS transfers information to populate FAFSA income questions for most tax filers
• Eliminates manual entry of tax and income information

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Student Onboarding

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Completing Student Information Section

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Parent Email

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Contributor(s) Identified

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Parent Contributor Accepts

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Parent�Onboarding

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AWARDING FINANCIAL AID

• WHAT DOES THIS ALL MEAN?
• COMPARING OFFERS

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Principles of Need Analysis

1. Government’s Assumption:

Parents and students have a certain level of financial responsibility for education.

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• The Government has established an equitable formula to evaluate present financial situation.

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• Special Circumstances – The government authorizes Financial Aid Offices to make professional judgment decisions.

STUDENT AID INDEX (SAI)�(FEDERAL METHODOLOGY ESTABLISHED BY U.S. CONGRESS)

Adjustments to SAI may be made due to Verification

and/or Special Circumstances that limit ability to pay

What are the Costs?

FINANCIAL NEED DEFINED

�

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Tuition and Fees

+Room and Board

-Grant/Scholarships

= Net Cost

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How to Compare College Financial Aid Offers

WHAT DOES IT LOOK LIKE TO COMPARE:

1. Compare college aid offers
2. Decide which school will be the best for you
3. Submit accepted aid offer to the school you wish to enroll in

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GET FAFSA HELP

COLLEGE GOAL WISCONSIN

• Free program to help families complete the FAFSA (Free Application for Federal Student Aid)
• 45 in person events will be held across the state in October and November
• 4 virtual events will be held in October
• ATTEND AN EVENT TO BE ENTERED TO WIN A SCHOLARSHIP!
• 97 percent of the families felt it was worth attending

For location information and to register visit: https://collegegoalwi.org

WHAT TO BRING?

• FSA ID
• Cell phone (if you have one)
• 2024 Federal Tax Return and W2s or income estimates
• 2024 Untaxed income records
• Information on savings, investments, business assets and farm assets (if applicable)
• Driver’s License (if you have one)
• Social Security Number
• Alien Registration Card or Permanent Resident Card (if you are not a U.S. citizen)
• For Parent(s): date of birth, social security number, month and Year of parents’ marriage/divorce or separation, email address

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Triena Bodart�Moraine Park Technical College

tbodart@morainepark.edu

(920)924-6347