Financial Aid Overview

Stacy DoranFox Valley Technical College

Director of Student Financial Services

Common Questions What is financial aid? How does a student apply? Who is eligible? How many credits does the student need

to be enrolled in to be eligible for aid? When is the money disbursed? What if a student drops or fails a class? What is financial aid warning status? What is financial aid suspension status?

Basic Principles of Financial Aid•The family has the primary responsibility for financing a student’s post-secondary education to the extent they are able

•Students also have a responsibility to contribute to their education costs

•Financial Aid is the bridge

Goal of Financial Aid•To assist students in paying for school

•To provide opportunity & access to higher education

•To help narrow the gap between what a family can pay & the cost of education

•To take into consideration the present financial condition of the family

Financial Aid Regulations

•Determined by federal and state statutes and legislators

•Establish eligibility for most types of aid

•Apply to all schools

What is financial aid?

“Free” FundsGrants

Federal (Pell, SEOG)State (WHEG, TIP)

Self-Help FundsWork-study

Loans (must be repaid) Perkins Subsidized Stafford Unsubsidized Stafford PLUS Private / Alternative

“Other Funding”Agency Funding

DVR, TRA, WI GI Bill, etc.

Scholarships

How to Apply?1. Request a PIN

• www.pin.ed.gov2. Complete the FAFSA

• www.fafsa.gov• School Code for College(s)

that the student is interested in attending

Note• Student must be admitted into a

financial aid-eligible program at their college before funds can be disbursed

How to Apply?•PIN (Personal Identification Number)

•www.pin.ed.gov

Why have a PIN?•Students and parents can get PINs

•Parents can use same PIN for all students

•Electronic signature for FAFSA•Can also be used for:

•Renewal•Corrections•Check application status•Request duplicate SAR (Student Aid Report)•National Student Loan database•Signing promissory note for student/parent loans

How to Apply?•FAFSA (Free Application for Federal Student Aid)

•www.fafsa.gov•1-800-4FED-AID•Real-time online chat for immediate answers•English and Spanish options•Instant access to EFC (Expected Family Contribution) estimate•Email notification of results•Be aware of “scams”

WWW.FAFSA.GOV

Who is eligible? Students who are admitted to an eligible

program:Bachelor’s degree programsAssociate degree programsOne & two year technical diploma

programs*Certificates & <one year technical

diplomas are not eligible for financial aid. Be a U.S. citizen, a national, or a

permanent resident of the United States Not be in default or owe a repayment

Tips on Applying for Financial Aid

FAFSA becomes available on January 1 each year

Once your taxes are completed and submitted to the IRSTwo weeks after filing, you are able to use the

“link to IRS” option on the FAFSA Meet college filing deadline and priority

datesFailure to apply early may result in less aid,

even if eligible You can still complete the FAFSA after the

“priority” date, but you may not be eligible for certain types of funding at that point.

Tips on Applying for Financial Aid

Read the instructions. Don’t assume. Complete all questions Keep or save a copy of all documents

submitted Respond promptly to any requests for

information from your financial aid office Students must re-apply for aid every

year. Renewal notification is sent to students towards the end of each calendar year.Aid yearAcademic year

Verification If you don’t / can’t use the “link to IRS”

option, you may need to request a Tax Return Transcript from the IRSstudentparentsContact your college’s Financial Aid Office if

you encounter issues Colleges can no longer accept paper tax

returns Various other items may need to be

verified:Confirmation of child support paid, food

stamp benefits, number of people in household, etc.

Frequent FAFSA Errors Missing signatures / PIN Using nicknames Divorced / remarried parent

information Income earned by parents /

stepparents Untaxed income US income taxes paid Household size Number in college

Who is a parent?Two biological parents married to

each otherDivorced or separated parents

FAFSA is to be completed by parent with whom the student is living

If parent has remarried, stepparent information must be included on the FAFSA

StepparentWidowed parentLegal adoptive parent

Independent Student Determination

At least 24 years oldMarriedHas child or other dependent for whom

student provides more than half supportOrphan, foster child, ward of the court,

homeless youth or under legal guardianship

Veteran of the US Armed ForcesDetermined to be independent by the

financial aid administratorParent refusal to provide support or

financial data is insufficient to make a student independent regardless of tax filing status

©Wisconsin Association of Student Financial Aid Administrators, 1999

FAFSA Central ProcessingCalculates EFC

Student will submitadditional documentation to

school, as requested.

Results sent to student (SAR)

Results sent to school

(ISIR)

Delivery System Overview

After you file the FAFSA Results are sent electronically to the

college(s) the student selected (school codes)

Student and parent will receive the results of their FAFSA by email and/or regular mail. This is the SAR (Student Aid Report)

Student may be required to supply documentation to verify the information submitted on the FAFSA.

A financial aid package (award) will be prepared after the student is admitted to a college and the FAFSA information has been processed

Contact the college with any special circumstances (loss of income, etc.)

How is need determined?

Cost of Attendance (COA)

minus (-)

Expected Family Contribution (EFC)

equals (=)

Unmet Financial Need

Cost of Attendance Components

Tuition and Fees

Room and Board

Books and

Supplies

Transportation

Personal

Expenses

Dependent

Care

Study Abroad Disability

Related Expenses

Expected Family Contribution (EFC)

Is the sum of four separate calculations, based on the information contained in the FAFSA:

Contribution from parental income

Contribution from parental assets

Contribution from student income

Contribution from student assets

What determines the EFC?

Incomeparent and student

Taxes paidparent and student

Assets (cash, savings, investments, etc.)parent and student

Family size

Number in college

Special Circumstances

ExamplesLoss of income / jobDivorce or separationDeath of parentUnusual medical or dental expensesPrivate elementary/secondary tuitionParent in college

Must submit FAFSA Consult with the financial aid office to

determine what additional information is required. The override must recognize the unique situation of the student and must be documented.

(note: Professional judgment is at the sole discretion of each institution.)

When are funds disbursed?

What is the census date?The actual amount of financial aid funding is

determined by the fundable number of credits on the census date.

The census date is quite often the 10th business day of a term, but can vary by institution.

After this date: Adjustments will not be made to Pell amounts for

additional enrollment Awards may be recalculated for classes with no

attendance A repayment may be charged for all or a portion

of funds received

Credit Load A student must be enrolled at least

half-time by the census date to receive most types of Federal or State financial aid funds, with the exception of the PELL grantPell Grant credit requirements:Credits Status

1 – 5 Less-than-half time

6 – 8 Half-time

9 – 11 Three-quarter time

12 or more Full time

WHAT IF A STUDENT DROPS OR FAILS A CLASS?

Financial Aid Satisfactory Academic Progress (FA SAP)Review cumulative financial aid grade

point average (FA GPA) All attempted credits are included

Review cumulative pace of progression Number of credits passed versus number of

credits attemptedPotentially review term financial aid grade

point average Review 150% rule

The maximum time frame that a student may receive federal and state financial aid cannot exceed 150% of the number of credits required to earn their degree.

Financial Aid Warning

Financial Aid Warning Students will be placed on Financial Aid Warning

for the next term of enrollment if the FA SAP requirements haven’t been met. 

While on Financial Aid Warning, a student may receive financial aid, but must be able to meet satisfactory progress for cumulative standards at the end of the warning term. 

Students who meet satisfactory academic progress standards at the end of the term while on Financial Aid Warning will have their status updated to reflect their good standing.

Financial Aid Suspension

Financial Aid Suspension If a student is on Financial Aid Warning and does not

meet FA SAP at the end of the Financial Aid Warning term, the student will be suspended from further receipt of financial aid.  A student who has been suspended must pay for future classes on their own until they meet the FA SAP requirements or successfully appeal.  A change of program will not eliminate this suspension.

Appeal Optional based on institution’s decision A student who believes their Financial Aid Suspension

is due to extenuating circumstances beyond their control can submit an appeal. Death of an immediate relative of the student Injury or illness of the student Other circumstances that result in undue hardship to the

student

Role of the Financial Aid Office

Answer your questions Determine financial need eligibility for

various types of financial aid Verify applicant data when required Award aid from all available sources Develop policies and procedures to

distribute aid Send award notification letters/e-mails

with information about:CostsAmount awarded from each aid programHow and when aid will be disbursedTerms and conditions of student’s award

Role of the Business Office

Calculate tuition, meals, housing and other fees

Send billing statements Set up payment plans, if available Collect payments for charges on

student’s account Credit financial aid to the student account Process student excess funds Return financial aid funds that are

unearned Send out 1098T for tax purposes

Scholarships Free scholarship search firms

www.fastweb.comwww.brokescholar.comwww.wiredscholar.comwww.collegeboard.comwww.absolutelyscholarships.com

High school guidance offices Post-secondary schools Parent organizations Parent’s employer Community organizations and groups Libraries

Scholarships Scams “A list of scholarships is guaranteed” “I just need your credit card number” “Please enclose a $5 processing fee” “You’ve been selected” by a group you’ve

never heard of “You’re a finalist” in a contest you never

entered

National Fraud Information Center1-877-382-4357

Scholarships Scams For information about financial aid scams

and tips to avoid being scammed, please check:Department of Education

http://studentaid.ed.gov/students/publications/lsa/index.html

Federal Trade Commissionhttp://www.ftc.gov/bcp/

To check the legitimacy of scholarship search organizations or individuals, check the Better Business Bureau at www.bbb.com.

Other financing options?

School payment plansspread over several months

529 plan withdrawalsOther loan options

Reminders APPLY! Reapply yearly Don’t be afraid to ask questions Promptly review items from the Financial

Aid Office Search for scholarships College Goal Wisconsin

QUESTIONS?