Paying for My Education 101 A Focus on Financial and Federal Aid Information

Paying for My Education “101”  Welcome to the Financial and Federal Aid awareness learning module!  What is this?  A quick and easy way to learn more about financial aid and federal loan processes  A place to start developing skills and knowledge to help you be successful!  Review the information in this presentation to learn more about the topic of paying for your education.  Thanks for participating!  Welcome to the Financial and Federal Aid awareness learning module!  What is this?  A quick and easy way to learn more about financial aid and federal loan processes  A place to start developing skills and knowledge to help you be successful!  Review the information in this presentation to learn more about the topic of paying for your education.  Thanks for participating!

What is the FAFSA? Why is it important? “FAFSA” stands for: Free Application for Federal Student Aid The FAFSA is the first step you take to apply for Financial Aid. Your FAFSA helps you apply for federal, state, and school Financial Aid! The school uses this information to figure out how much aid you are eligible to receive. CLICK HERE TO FIND OUT MORE!

When do I complete the FAFSA? You can complete a FAFSA between January 1, 2016 and June 30, 2017 for the aid year. Priority Deadline for NDSU is April 15, 2016 Some federal student aid programs have limited funds so be sure to apply as soon as you can. CLICK HERE TO FIND OUT MORE!

What is it? Why is it Important? CLICK HERE TO FIND OUT MORE! FSA ID The FSA ID replaced the Federal Student Aid PIN number! [effective May 10, 2015] It is a “username” and “password” that you use to log in to U.S. Department of Education websites. The FSA ID is your personal ID and is unique to YOU! You use the FSA ID to sign legally binding documents related to federal aid IMPORTANT! BE SURE TO: link your PIN number to an FSA ID OR create a new FSA ID if you did not previously have a PIN number

After the FAFSA: What Happens Next? The information you entered in to the FAFSA will be: Submitted to the U.S. Department of Education’s Office of Federal Student Aid Information will also go to the colleges you indicated in your FAFSA will be notified Watch for the Student Aid Report (SAR) Provides a summary of all the information you submitted in the FAFSA Check the SAR and make corrections if needed Each school you submitted information to will make awards based on your information Grants and loans are applied to your student account Work-Study provides opportunity for you to earn money while you go to school Contact the Financial Aid Office if you have questions about any awards you have received CLICK HERE TO FIND OUT MORE!

What is FEDERAL AID? Federal Aid includes: Grants – Money you receive that doesn’t have to be repaid. Loans – Money borrowed to help pay for attending college or career school. Loans must be repaid with interest. Work-Study – Money that’s earned while attending school. It’s money that doesn’t have to be repaid. Jobs are available on and off campus and employers work around your academic schedule. CLICK HERE TO FIND OUT MORE!

What types of Federal Loans are available? Direct Subsidized Loan: Loans made to eligible undergraduate students who demonstrate “financial need” to help cover the costs of college. The Government pays the interest while you are attending school and during grace and deferment periods. Student must be enrolled at least half-time Direct Unsubsidized Loan: Loans made to undergraduate and graduate students. Financial need is not required for this type of loan. The borrower is responsible for all interest Student must be enrolled at least half-time Direct PLUS Loan: Loans for parents of dependent undergraduate students and for graduate or professional students. Financial need is not required for this type of loan. Borrower is responsible for all interest Student must be enrolled at least half-time CLICK HERE TO FIND OUT MORE!

Federal Loans? Be a Responsible Borrower! Do you need to take out a Federal Loan to help pay for your college education? By completing the FAFSA you are submitting your request to be considered for federal aid which includes federal loans. It’s important to understand what you are getting and be a responsible borrower. Take your time to decide on what you need and only borrow what you need! CLICK HERE TO FIND OUT MORE!

How much money can I borrow in Federal Loans? ANNUAL LIMITS DEPENDENTFRESHMANSOPHOMOREJUNIORSENIOR SUBSIDIZED*$3500$4500$5500 UNSUBSIDIZED$2000 TOTAL$5500$6500$7500 *Amount of subsidized loan allowed is based on federal need as calculated using data collected in the FAFSA. If not eligible for full amount of subsidized loan, that amount is transferred to the unsubsidized loan. Total amount represents the annual amount available to a student annually. CLICK HERE TO FIND OUT MORE!

When do I start repaying my loans? You don’t have to begin repaying most federal student loans until after you leave college or drop below half-time enrollment. Your loan may offer you a grace period – a period of time (usually 6 months).  Note: for most loans, interest will accrue during grace periods  PLUS loans enter repayment once your loan is fully paid out to you. The loan servicer (or lender) must provide you with a loan repayment schedule stating when your first payment is due. CLICK HERE TO FIND OUT MORE!

How do I find out what my rate of interest is on my school loan? The interest rate can vary depending on the type of loan you receive and when it was disbursed to you. LOAN TYPE BORROWER TYPE *Loans first disbursed on or after 7/1/15 and before 7/1/16 SubsidizedUndergraduate4.29% UnsubsidizedUndergraduate4.29% UnsubsidizedGraduate or Professional5.84% Direct PLUSParents and Graduate or Professional 6.84% Perkins Loans have 5% fixed interest rate regardless of the first disbursement date. Congress sets the interest rates on federal student loans. CLICK HERE TO FIND OUT MORE!

Student loan fees: What are they? How much are they? Most federal student loans have loan fees based on a percentage of the total loan amount. The fees are deducted from each loan disbursement you receive. The money you receive will be less than the amount you borrow, but you are responsible to repay the entire amount borrowed not just the amount you received. CLICK HERE TO FIND OUT MORE! LOAN TYPEFIRST DISBURSEMENT DATELOAN FEE Direct Subsidized and Direct Unsubsidized Loans On or after 10/1/14 and before 10/1/ % On or after 10/1/15 and before 10/1/ % Direct PLUS Loans On or after 10/1/14 and before 10/1/ % On or after 10/1/15 and before 10/1/ %

What is a loan servicer and why is this important to know? A loan servicer is a company that handles the billing and other services related to your federal student loan. They provide you with help to manage your loan repayment and loan consolidation (if needed). Your loan is assigned to a servicer by the U.S. Department of Education after your loan is disbursed to your school account. It’s important to know who services your loans and maintain contact with them, so, in case your circumstances change during the course of your repayment, they will be able to help you manage your loan and provide you with guidance and available options. CLICK HERE TO FIND OUT MORE!

Who is my loan servicer? To view information about all of the federal student loans you have received and to find contact information for the loan servicer, or lender for your loans – visit the following web site: or click on the link below to find more information about other topics related to managing repayment of your federal loan. CLICK HERE TO FIND OUT MORE!

What is the difference between a federal and a private educational loan? Federal Student Educational Loan: Funded by the federal government Offer fixed interest rates and income-based repayment plans Do not require a co-signer Subsidized and Unsubsidized loans Direct PLUS loan Perkins loan Private Educational Loan: Nonfederal loan made by a lender such as a bank, credit union or state agency Offer fixed or variable interest rates In many cases private loans require a co-signer CLICK HERE TO FIND OUT MORE!

Can I pay the interest on my loan while I’m still in school? Yes! You can pay the interest on your Unsubsidized or Direct PLUS loans while you are attending school. In fact, it will save you money in the long run if you are making those interest payments along the way! If you choose not to make the interest payments, it will be added to the unpaid principal amount of your loan. Not making interest payments can substantially increase the amount you need to repay. Remember, on subsidized loans, the federal government is paying the interest for you except during grace or forbearance periods. CLICK HERE TO FIND OUT MORE!

How much loan debt do I already have? By logging in to the National Student Loan Data System (NSLDS) you will be able to find out your loan amounts, when they were issued, and your remaining balance(s). NSLDS is the central database for the U.S. Department of Education. You will need to log in using your FSA ID. CLICK HERE TO FIND OUT MORE!

Budgeting – Is it REALLY important? YES! It is important! Budgeting keeps YOU in charge – you decide where your money goes instead of wondering where it went! Know where your money goes Find ways to spend less / save more Can you handle unexpected expenses (broken cell phone, car repairs, etc?) CLICK HERE TO FIND OUT MORE!

Resources and Contact Information RESOURCECONTACT INFORMATION Student Aid on the Webwww.studentaid.gov FAFSA on the Webwww.fafsa.ed.gov National Student Loan Data System (NSLDS) Federal Student Aid Information Center (FSAIC) TTY users call: Callers without access to numbers call: FED-AID

Thank you for participating! We hope this presentation has been helpful and has provided you with resources to help you be more financially successful. More Financial Aid Information is available at: If you have additional questions, please contact staff at NDSU Bison Connection or make an appointment to see a financial aid counselor! We are here to help! Tammie Reger, NDSU Student Financial Services (701)