Financial Aid 101

The Minnesota Association of Financial Aid Administrators presents… : 

September 2009 The Minnesota Association of Financial Aid Administrators presents… Financial Aid 101 …an introduction to financial aid

Financing Your Future : 

September 2009 Financing Your Future What does college cost? How do I apply for financial aid? What types of aid are available? Where can I get more information?

What does college cost?(annual tuition and fees) : 

September 2009 What does college cost?(annual tuition and fees) Private Colleges: $29,023 Private Career Colleges: $13,254 University of Minnesota: $11,466 State Universities: $6,639 Community & Technical Colleges: $4,708 Source – MN Office of Higher Education

Cost of Attendance (COA) : 

Cost of Attendance (COA) The cost of attending an institution includes more than just tuition and fees. Also included are: Room and Board Books and Supplies Transportation Personal Expenses September 2009

How will I pay for it? : 

September 2009 How will I pay for it? Family support Savings Work Grants Scholarships Loans

What is financial aid? : 

September 2009 What is financial aid? Merit-based aid Grants Loans Employment Opportunities Outside Scholarships

Where does it come from? : 

September 2009 Where does it come from? Federal Government State Government Colleges and Universities Private and public sources

How do I apply for financial aid? : 

September 2009 How do I apply for financial aid? Obtain a Federal Personal Identification Number Complete the Free Application for Federal Student Aid (FAFSA) Complete school financial aid application (if required) Meet application deadlines Apply for scholarships Contact your financial aid administrator if you have special circumstances

PIN Registrationwww.PIN.ed.gov : 

September 2009 PIN Registrationwww.PIN.ed.gov

FAFSA on the Webwww.fafsa.ed.gov : 

September 2009 FAFSA on the Webwww.fafsa.ed.gov Completing and processing the FAFSA are free! Never pay a fee to file the FAFSA. Contact your school’s financial aid office if you need help.

FAFSA on the Webwww.fafsa.ed.gov : 

September 2009 FAFSA on the Webwww.fafsa.ed.gov

Be careful… : 

September 2009 Be careful… Put your name and SSN on FAFSA exactly how it appears on your social security card Refer to completed federal income tax return and consult instructions for proper line references If entry is zero or none, enter 0--don’t leave blank Enter school code(s) Student and one parent must both sign dependent student’s FAFSA

What makes a student “independent”? : 

September 2009 What makes a student “independent”? At least 24 years old by December 31st of the award year covered by the FAFSA Graduate or professional student Married Has legal dependents other than a spouse who receive more than one half of their support from the student Is an orphan, in foster care, or ward of the court On active duty or veteran of the U.S. Armed Forces Emancipated minor or in legal guardianship as determined by a court Has been determined to be homeless by an authorized official

Expected Family Contribution (EFC) : 

September 2009 Expected Family Contribution (EFC) The EFC is calculated from the information you provide on the FAFSA according to a formula established by law. You can get an estimate of your EFC using the FAFSA 4-caster tool at www.fafsa.ed.gov.

EFC Components : 

September 2009 EFC Components Dependent Student Parents’ income and assets Household size Number of dependents attending college Student’s income and assets Independent Student Student’s (and spouse’s) income and assets Household size Number in household attending college

How does a school determine my financial aid award? : 

September 2009 How does a school determine my financial aid award? Cost of Attendance (COA) - Expected Family Contribution (EFC) = Eligibility for need-based financial aid

Grants : 

September 2009 Grants Federal Pell Grant: need-based; annual award range for a full-time student is $976 - $5,350 Federal SEOG Grant: limited funding; priority given to students with exceptional need; annual award range is $100 - $4,000 Academic Competitiveness Grant (ACG): completed rigorous secondary curriculum; GPA requirement; freshman/sophomore award range is $750 - $1,300

…more on grants : 

September 2009 …more on grants Minnesota State Grant: MN resident enrolled at eligible MN school; for students from low and moderate income families; annual award range is $100 - $9,444 Minnesota Achieve Scholarship: MN resident enrolled for 15 or more credits at eligible MN School; must be Pell Grant or Minnesota State Grant eligible; must complete a rigorous high school curriculum; one-time award of $1,200 - $4,022 to be used within the first academic year immediately following high school graduation; apply on-line no later than 30 days after the term starts at: www.getreadyforcollege.org/achieve Institutional Grant: college or university funds awarded to students with financial need

Types of Loans : 

September 2009 Types of Loans

Minimize your debt : 

September 2009 Minimize your debt Graduate on time Create a budget and stick to it Avoid credit card debt Look for ways to limit spending (Coffee shop vs. Coffee maker; Bus/Bike vs. Car) Get help if you get into debt trouble For most students borrowing is part of making college affordable. Here are some strategies for responsible borrowing:

Work-Study : 

September 2009 Work-Study Part-time student employment Earnings paid to student Work-Study earnings not included when determining EFC on next year’s FAFSA

Scholarship Searching : 

September 2009 Scholarship Searching High school counselor’s office or career center Community, church, civic, and business organizations Employers Colleges and universities On the Web

Avoid Scholarship Scams : 

September 2009 Avoid Scholarship Scams Legitimate scholarships never charge fees and the application information is available to everyone Don’t fall for guarantees or claims that someone has information you can’t get anywhere else

MNCollegeGoalSunday.org : 

September 2009 MNCollegeGoalSunday.org Get free help completing the FAFSA. Visit the web site for dates and locations.

Other Resources : 

September 2009 Other Resources Reciprocity Programs Wisconsin, North and South Dakota, Manitoba Midwest Student Exchange Program (MSEP): Kansas, Michigan, Missouri, Nebraska Federal Tax Benefits for Higher Education Deduction for Qualified Education Expenses Employer Paid Tuition Assistance Hope and Lifetime Learning Tax Credits Student Loan Interest Deduction

Other Resources, cont. : 

September 2009 Other Resources, cont. Other Government Programs Americorps Program Bureau of Indian Affairs Grants Dislocated Worker Programs ROTC Scholarships and/or Stipends Veterans Benefits Vocational Rehabilitation Programs

Where can I get more information? : 

September 2009 Where can I get more information? U.S. Department of Education: www.ed.gov and www.college.gov Minnesota Office of Higher Education: www.ohe.state.mn.us Internet System for Education & Employment Knowledge: www.iseek.org FinAid! - The Financial Aid Information Page: www.finaid.org Minnsota Association of Financial Aid Administrators: www.mafaa.org The College Board: www.collegeboard.org

What should I do and when? : 

What should I do and when? Apply for scholarships now and throughout college Apply for admission to your school(s) of choice Apply for your PIN number Complete the FAFSA each year and be aware of school financial aid deadlines September 2009

What should I do and when? : 

September 2009 What should I do and when? Review your Student Aid Report (SAR) for accuracy Respond promptly if your school requests more information Respond to financial aid award notice Complete loan promissory notes and work-study forms

Financing Your Future…an investment in you ! : 

Financing Your Future…an investment in you ! September 2009