Financial Aid Information Session

Paying for College:

Financial aid was created as the BRIDGE to Higher education.

All the information gathered on the FAFSA is to develop an

understanding of the household information.

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Websites:– www.PIN.ed.gov– www.FAFSA.ed.gov

• - Apply online• - It is Free and Fast!

– UWM Department of Financial Aid www4.uwm.edu/financialaid

Best Advice:

APPLY!!!

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Applying Online is so Easy:• Complete and send FAFSA on the internet directly to

federal processor

• Automatically edits data as you enter it and detects errors before submission

• Skip logic: asks only what you must answer

• English or Spanish versions

• Electronic Signature

• E-mail notification of results

• Detailed online help screens

• Real-time online chat for immediate answers

• Instant access to EFC estimate

• Parents with more than one child in college only need to enter parental information once.

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Frequent FAFSA Errors• Missing Signatures/PIN

• Wrong Social Security Number

• Divorced/remarried parent information

• Untaxed income

• U.S. income taxes paid

• Household size

• Number in postsecondary education

• Not using real name

• NOT APPLYING AT ALL

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Assets and the FAFSA Assets Not Included

• Home in which you live• Family farm which you live on

and operate• Value of Business land, buildings,

equipment, inventory, etc. for companies with under 100 employees.

• Value of life insurance and retirement plans (pensions, annuities, Keogh’s non-education IRA funds, etc.)

• Value of prepaid college tuition plans

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Assets Included•Cash, Savings & Checking Accounts•Rental Real Estate equity•Value of Business land, buildings, equipment, inventory, etc. for companies with 100 or more employees.•Trust Funds, Mutual FundsCD’s, Money Market FundsStocks, Bonds•Education IRA’s•College Savings Plans (529’s)

Application Processing1. FAFSA is submitted and processed by

Federal Department of Education

2. UWM retrieves the info (1-2 weeks)

3. UWM sends notification of award - OR - missing/inaccurate information (3-5 weeks)

- Verification process: Average of 6 weeks

- Admission Match (Name, DOB, SSN)

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Expected Family Contribution (EFC)

(Federal Methodology established by U.S. Congress)

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Determined by filing the FAFSA www.FAFSA.ed.gov

Financial Need DefinedCost of Attendance (COA)

– Expected Family Contribution (EFC)

= Financial Need

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What Are the Costs?

Tuition and Fees+ Room and Board+ Transportation+ Books & Supplies+ Miscellaneous Living Expenses

= Cost of Attendance (COA)11

What is Financial Aid?

– Gift Aid (Grants and Scholarships)

–Federal Work Study

–Loans

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FFELP Stafford LoansSubsidized

Non-interest bearing while in school

Unsubsidized

Interest bearing while in school

Interest rates 2009-2010:

– 4.5% Sub and $3500 FR max

– 6.8% Unsub and $2000 FR max

– $5500 total maximum loan as Freshman

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Master Promissory Note (MPN) & Entrance Loan Counseling:

•www4.uwm.edu/financialaid

• Click on“Online Loan Applications”, then click on “Stafford Loan Borrower”

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Additional Options– PLUS (interest 8.5% fixed) – Alternative Education

Loans (interest varies)– Which is better?

Apply for both from our website:

www4.uwm.edu/financialaid

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REMEMBER:

Re-apply every year between

January 1st and March 1st

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Don’t Get Scammed on Your Way to CollegeConsumer complaints are mainly about business practices:

• College prep/financial aid advice services

• FAFSA for a fee

Be aware of tactics used to convince students to buy services:

• “If you use our services, you’re guaranteed to get at least $2000 in student aid for college, or we’ll give you your money back.”

• “Applying for aid is complicated. We’re the only ones who can help you through the process and find all the aid for which you’re eligible.”

• “I’d like to offer you a scholarship (or grant). All I need is your bank account information so the money can be deposited and a processing fee charged.”

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Contact your nearest college financial aid office if you have questions regarding the legitimacy of any questionable offer

Unusual Circumstances

• Examples: Divorce, unemployment, death, high medical expenses

• Call or set up an appointment with an advisor to discuss

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Questions?

Thank You for your time!

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