1/2/2014 Karla Weber Financial Aid Advisor Office of Student Financial Aid University of Wisconsin – Madison Karla.weber@finaid.wisc.edu PAYING ING FOR HIGHER ER EDUC UCATIO TION 2014-2015 Academic Year Tonight’s Discussion • Financial Aid & College Cost Basics • Types of Financial Aid Available • The FAFSA & Application Process • Questions 1
1/2/2014 Fin inancial ncial Aid id Reg egul ulati tion ons • Federal and state statues and legislation • Establish unique eligibility requirements • Applicable to ALL schools that receive funding 2
1/2/2014 FIN INANCIAL CIAL AID ID & COLLEGE EGE COST ST BASI SICS Need Analysis Cost of Attendance Expected Family Contribution Financial Need Gui uidin ing g Pr Prin inci cipals pals of Aid id • Financial aid narrows the gap between what the family can pay and the cost of education • To extent they are able, parents have the primary responsibility to pay for their dependent children’s education. • Students have a responsibility to contribute • Evaluated in current financial situation • Ability to pay evaluated in an equitable and consistent manner • Recognize that special circumstances can have major financial implications. 3
1/2/2014 What are the costs? s? Tuition and Fees + Room and Board + Transportation + Books and Supplies + Miscellaneous Living Expenses = Cost of Attendance (COA) ** Direct versus Indirect Costs** 2013/14 3/14 Estimate mated Costs ts of Attend endanc ance e (app pprox ox) College/University Living @ Home On/Off Campus UW-Madison $16,541 $24,221 UW-Milwaukee $16,454 $22,580 UW-Eau Claire $13,740 $18,980 Madison College $12,988 $17,812 UW Colleges $13,510 $18,590 Edgewood College $33,294 Marquette University $45,508 $48,178 UM-Twin Cities $25,124 Iowa State $31,470 Northwestern $63,228 4
1/2/2014 Expe pected cted Family ly Con ontri tributio bution n (EFC FC) • Determined by filing the FREE Application for Federal Student Aid (FAFSA) at www.fafsa.gov (NOT .com!) • Ways to think about the purpose of the EFC • An index number used to calculate eligibility for aid • NOT an estimate of “extra” cash available • NOT what you will pay for school • Stays the same regardless of college/university • What WILL you be expected to contribute? • Whatever costs the financial aid is unable to cover EFC C Calculat lculatio ion • A complicated formula established by Assets Congress – sometimes referred to as Federal Methodology • Uses both parent AND student FAFSA information ( for dependent students ) • Has income and asset protection allowances • EFC ranges from 0 to 999,999 Expected Family Contribution (EFC) 5
1/2/2014 Fin inanc ncial ial Need Cost of Attendance (COA) - Expected Family Contribution (EFC) = Financial Need Nee eed Va Varie ies School #1 School #2 School #3 Cost of $39,028 $19,388 $14,285 Attendance Less EFC $6,355 $6,355 $6,355 Need $32,673 $13,033 $7,930 6
1/2/2014 TYP YPES ES OF FINAN ANCI CIAL AL AI AID Sources of Aid Gift Aid Versus Self Help Three Th ee Pr Prim imary ary So Sour urces ces • US Department of Education • State • Higher Educational Aids Board (HEAB) manages aid for Wisconsin • Colleges & Universities • Availability eligibility varies WIDELY between schools 7
1/2/2014 Ty Types s of Fin inancial ncial Aid id • Grants • Federal – Pell Grant, Supplemental Educational Opportunity Grant (SEOG) • State – WI Higher Ed Grant, WI Tuition Grant Gift Aid - FREE • Scholarships – Institutional, Community, Business, Organizational • Work Study/Other Employment • Loans • Subsidized/Unsubsidized Federal Direct Loans Self-Help Aid • Perkins Loan • Parent Loan for Undergraduate Students (PLUS) • Private/Alternative Loans Fed eder eral al Pe Pell ll Grant nt • Based on EFC range ; this current year 0 – 5,081 • Award amount varies based on EFC and enrollment status • Maximum award for 2013/14 - $5,645 • Lifetime Pell Grant eligibility • decreased from 18 semesters (900%) to 12 semesters (600%) 8
1/2/2014 State te of WI Fun unding ing - HEAB • Wisconsin Higher Education Grant (WHEG) or Wisconsin Tuition Grant (WTG) • UW System, Technical and Tribal Colleges • Independent Colleges & Universities (does NOT include for-profit institutions) • Academic Excellence Scholarship • Questions/Issues? Nancy.wilkison@wisconsin.gov • WI Covenant • Questions/Issues? Garth.beyer@wisconsin.gov • Minnesota-Wisconsin Reciprocity – MUST apply • http://heab.state.wi.gov/reciprocity • Other various programs – most require add’l application – see website • http://heab.state.wi.us Wis isco consin nsin Co Covenant enant • Senior Checklist • A confirmation form signed by student, a parent, and the Primary Contact (School Counselor/Principal) • A record of service form • Two letters of recommendation, if necessary due to a suspension • Make copies! Certify mail! • Min award $250, Max award $2,500 for full-time enrollment • Important Dates • December 1 st – Confirmation forms made available • January 1 st – Confirmation process begins • April 1 st – Confirmation/FAFSA deadline! 9
1/2/2014 Sc Schola larships hips • Colleges/Universities • Need-based & non-need based: Academic, athletic, music, or other talent • Alumni Organizations • Civic/Community Organizations • Churches, PTA, Elks, Kiwanis, cultural leagues, etc • Private businesses • Wal-mart, Best Buy, Dell, Gates Foundation, etc • Parents’ and/or students’ employers or labor unions FREE E Sc Scholar larship ship Se Searches ches • Department of Labor, Employment, and Training • www.careerinfonet.org/scholarshipsearch • College Scholarships: • www.collegescholarships.org • FastWeb : • www.fastweb.com • High School Counselors • Local community or library resources 10
1/2/2014 Emplo loyme yment nt • Federal Work Study (FWS) • Must show a specified amount of need • Part-time employment may be on or off campus (public/private non- profit) • Receive funds through a regular paycheck • Earnings do not count against future aid eligibility • Institutional Work Programs • Off campus/summer employment Loans ns • Perkins Loan • Priority given to “exceptional need” as defined by the school and the amount received varies • Subsidized – Gov’t. covers interest as long as student is at least ½ time. • Fixed Interest Rate: 5% • 9 month grace period /10 year standard repayment period • State Loans • Institutional Loans • Vary in availability and eligibility depending on college/university • Private/Alternative Loans 11
1/2/2014 Federal ral Dir irect t Loans ns Regardless of income, EVERY student qualifies if they meet the basic eligibility requirements! • William D Ford Federal Direct Loan Program (DL) • Subsidized : MUST demonstrate financial need • Unsubsidized : Not based on need ( EVERY student is eligible – no matter what!!) • EFFECTIVE July 1,2013 for NEW BORROWERS 150% Rule for Subsidized Direct Loans • If a borrower exceeds the total enrollment allowed for their program, they become ineligible for any additional subsidized loans, AND • They become responsible for the accruing interest on all previously borrowed subsidized loans from that point forward. Feder eral al Dire rect ct Loans s - Benef efits its • No credit score or co-signer requirements • Currently low and fixed interest rate • In-School Deferment: student must maintain at least ½ time enrollment • 6 month grace period • Repayment period between 10 & 30 years depending on repayment plan • Deferment and cancellation provisions available 12
1/2/2014 Direct ect Lo Loan n Am Amou ount nts • Annual Loan Limits Freshmen - $5,500 total ($3,500 max subsidized) • Sophomore - $6,500 total ($4,500 max subsidized) • Junior/Seniors - $7,500 ($5,500 max subsidized) • Grad Student - $20,500 (as of 12/13 no longer have subsidized eligibility) • • Career Maximums • Dependent Undergrads - $31,000 ($23,000 max subsidized) • Independent Undergrads - $57,500 ($23,000 max subsidized) • Grad & Law - $138,500 • Med, Vet Med, Pharm, Dentist - $224,000 Dire rect ct Loan n Inter erest est – NEW! EFFECTIVE July 1, 2013 – Bipartisan Student Loan Certainty Act of 2013 • ALL federal loan interest rates will be tied to the 10-Year Treasury note with a statutorily defined add-on • Fixed/Variable Rate – interest rate will adjust each year, but will remain fixed once applied to a specific loan. • There are interest rate caps • Undergrad Direct Loans 8.25% • Graduate Direct Loans 9.50% • PLUS Loans 10.50% 13
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