The Minnesota Association of Financial Aid Administrators presents… Financial Aid 101: The Basics … an introduction to financial aid December 13

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? December 13

What does college cost? ( annual tuition and fees for MN colleges) Technical & Community College $5,365 State Universities $7,681 University of Minnesota $13,620 Private Career Colleges $14,270 Private Colleges and Universities $34,534 Source – MN Office of Higher Education December 13

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 December 13

The College Pay-Off December 13

How will I pay for it? Family support Savings Financial Aid December 13

Where does financial aid come from? Federal Government State Government Colleges and Universities Private and public sources December 13

What is financial aid? Merit-based aid (Scholarships) – From within the college/university – From private/public sources outside the college/university Grants Loans Employment Opportunities December 13

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 – The earlier the better Apply for scholarships both within and outside of the college/university Contact your financial aid administrator if you have special circumstances How do I apply for financial aid? December 13

PIN Registration PIN Registration * both student and parent need a pin Apply for PIN in real- time Make sure name/dob match what is on Social Security Card PIN can be used: As electronic signature on FAFSA on Web Check application status Make corrections Sign master promissory note for federal loans Look up student’s student loan and grant history December 13

FAFSA on the Web FAFSA on the Web Why FAFSA on the Web? Faster, built in edits and skip-logic, fewer errors 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. December 13

Apply Retrieve IRS data Reapply Apply for PIN Find college codes Check status of FAFSA Make corrections Add additional colleges Print SARs FAFSA on the Web FAFSA on the Web December 13

FAFSA on the Web December 13

FAFSA on the Web IRS Interface Can access IRS tax data if select “Already Completed” for FAFSA tax status question and tax forms have been filed Exceptions: married filing separately, changed marital status December 13

FAFSA on the Web IRS Interface IRS data retrieval screen showing tax figures pulled from IRS December 13

Put your name and SSN on FAFSA exactly how it appears on your social security card Use IRS retrieval tool if possible - Refer to completed federal income tax return and consult instructions for proper line references Enter school code(s) Student and one parent must both sign dependent student’s FAFSA Be careful… December 13

At least 24 years old by December 31 st 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 What makes a student “independent”? December 13

State Grant Questions New MN State interface with FAFSA on the web MN residents submitting a FOTW will be directed to OHE secure web site for state eligibility questions. This will happen at the confirmation page of FOTW MN Colleges listed on the FAFSA will receive MN question results December 13

FAFSA Results Student notified of FAFSA processing results by: – notification with link to student’s SAR online if student’s address provided on: Paper FAFSA (takes 2 weeks) FAFSA on the Web (takes 1-2 days if electronically signed with PIN; 2 weeks if mailed in signature page) Make sure student adds federal address to address book to avoid delivery problems – If student has a PIN, can view SAR online at School may ask for additional information December 13

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 December 13

FAFSA data that tends to have the most impact on EFC calculation 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 December 13

How does a school determine my financial aid award? How does a school determine my financial aid award? Cost of Attendance (COA) - Expected Family Contribution (EFC) = Eligibility for need-based financial aid December 13

Grants Federal Pell Grant: need-based; annual award range for a full-time student is $555 - $5,645 NEW- 12 Semester limit Federal SEOG Grant: limited funding; priority given to students with exceptional need; annual award range is $100 - $4,000 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 TEACH Grant: Not need based. Becomes an unsubsidized loan if 4 year teaching requirement is not met Institutional Grant: college or university funds awarded to students with financial need December 13

Types of Loans Interest RateRepaymentAdditional Info Federal Perkins Loan5% Fixed 9 months after school Federal Stafford Direct Loan Subsidized & Unsubsidized 3.86% Fixed = 10 year Treasury Note Interest Rate Cap = 8.25% 6 months after school Subsidized: no interest charged while in school Unsubsidized: interest accrues while in school Federal Parent PLUS Loan6.41% Fixed May be deferred until 6 months after school Interest accrues while student is in school Minnesota SELF Loan Variable rate12 months after school Must pay quarterly interest while in school Requires a co-signer Alternative/ Private LoansVariable rate Variable repayment terms Interest accrues while student is in school December 13

Work-Study Need Based Part-time student employment Earnings paid to student Work-Study earnings not included when determining EFC on next year’s FAFSA Resume Builder Retention December 13

High school counselor’s office or career center Community, church, civic, and business organizations Employers Colleges and universities On the Web Scholarship Searching December 13

Scholarships Related by C. Edward Kerestly, Director of Scholarships and Financial Aid at Calvin College of Grand Rapids, Michigan: One of my staff is reviewing scholarship applications. Within the essay section a student wrote that she did not have time to complete the essay but that we should feel free to contact her if we wanted any additional information. She then provided her . Needless to say, she will not get the scholarship. December 13

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 December 13

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 American Opportunity Tax Credit Student Loan Interest Deduction December 13

Where can I get more information? U.S. Department of Education: andwww.ed.gov Minnesota Office of Higher Education: andwww.ohe.state.mn.us Internet System for Education & Employment Knowledge: FinAid! - The Financial Aid Information Page: The College Board: December 13

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 What should I do and when? December 13

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 (if applicable) December 13

Financing Your Future … an investment in you ! December 13