Introduction to financial aid Natalie Dillon – NDSU Twin Cities Admission Representative On Behalf of Twin Cities Regional Admission Representatives Fall 2017

DISCUSSION TOPICS Understanding Financial Aid Different Types of Financial Aid Why Cost of Attendance Matters What is the Estimated Family Contribution? Filing the FAFSA and What Happens Next Your Questions

Goal of financial aid Primary goal is to assist students in paying for college. This is achieved by: Evaluating the ability of a family to pay for educational costs Distributing limited resources in an equitable manner Providing a balance of gift and self-help aid

Cost of attendance will vary from college to college Direct Costs: Tuition and fees Room and board Indirect Costs: Books/supplies (varies by major/class load) Personal expenses (ex: laundry, gas, hygiene products, discretionary spending money, transportation, etc.) Cost of attendance will vary from college to college

Cost of attendance and aid awarded

the estimated family contribution The amount of money you could reasonably be expected to contribute to your child’s education Federal formula Some of the largest factors in determining EFC are: Student contribution (income & assets) Parent/guardian contribution (income & assets) Number of family members currently in college Household size EFC will remain the same college to college

Why do cost of attendance and estimated family contribution matter?

Financial Need defined Cost of Attendance - Expected Family Contribution Financial Need Financial need will vary from college to college

Types of aid Gift Aid: Scholarships Grants Self Help Aid: Loans Employment Opportunities

scholarships Your high school Colleges you have applied to or will apply to Employers – parent and student Individuals Non-profits Companies Religious groups/churches Professional associations Community organizations National searches

grants Awarded based on financial need determined by the FAFSA Do not need to be repaid Types of Grants: Institutional grants State grants Federal Pell Grant

Student employment On-campus vs. Off-campus Work-Study: Form of need-based aid No guarantee of job Receive a paycheck Non-monetary compensation

loans Federal loans: available regardless of financial need Private loans are available Types of federal loans: Stafford Direct Loans Perkins Loan; need based Parent Loan (PLUS); non-need based MN Office of Higher Education Loan: SELF Loan; requires credit worthy cosigner Interest Rates: Stafford – 4.29% fixed for undergraduates Perkins – fixed @ 5% interest PLUS – 6.84% fixed SELF – 3.3 variable the federal government pays the interest on subsidized loans during periods of authorized deferment, such as the in-school and economic hardship deferments, while the interest remains the responsibility of the borrower on an unsubsidized loan. This makes subsidized loans a less-expensive option for students. Sources: https://studentaid.ed.gov/sa/types/loans/interest-rates https://www.selfloan.state.mn.us/index.cfm

General eligibility for federal loans You must: Be a citizen or eligible non-citizen of the U.S. Must have a valid Social Security number Have a high school diploma or GED Be enrolled at least half-time (six credits) Register with the Selective Service (males only) Maintain satisfactory academic progress as determined by your college Eligibility for federal aid Also may include: not in default on a federal student loan, may not owe repayment of a federal grant

HOW DO YOU GET THESE DIFFERENT TYPES OF AID?

FREE APPLICATION FOR FEDERAL student AID This is the fun part.

What is the fafsa? FREE Application for Federal Student Aid: fafsa.gov or fafsa.ed.gov May be filed at anytime during an academic year but no earlier than January 1st prior to the academic year for which students request aid For the 2016-2017 academic year, the FAFSA may be filed beginning January 1, 2016. Colleges may have institutional filing deadlines.

What is the fafsa? Standard form that collects demographic and financial information about the student and family Electronic or paper forms available Available in English and Spanish Information is used to calculate the expected family contribution (EFC) EFC is used by colleges to award financial aid Recommend electronic: built in edits, skip logic, IRS data retrieval, timely submission, help for questions, easy to revisit

Federal student aid id FSA ID: fsaid.ed.gov Sign FAFSA No PIN

fafsa process Start the FAFSA 2015 Tax Information

Information needed for the FAFSA Student identification and college plans Parent and student income information Parent and student asset information Parent household information Recommend electronic: built in edits, skip logic, IRS data retrieval, timely submission, help for questions, easy to revisit

What happens after the fafsa is submitted? Student receives a Student Aid Report (SAR) Schools listed on FAFSA will receive electronic copy of FAFSA information Schools may request additional information Schools use this information to determine your financial aid package Schools mail student their initial financial aid package Recommend electronic: built in edits, skip logic, IRS data retrieval, timely submission, help for questions, easy to revisit

What is a Financial aid package? the federal government pays the interest on subsidized loans during periods of authorized deferment, such as the in-school and economic hardship deferments, while the interest remains the responsibility of the borrower on an unsubsidized loan. This makes subsidized loans a less-expensive option for students. Details Cost of Attendance Information Details Gift Aid and Self-Help Aid Awarded May give a breakdown of what isn’t covered Provides information on how to accept, deny, or change awards

Special circumstances Not documented using the FAFSA Send written explanation and documentation to financial aid office at each college Each institution may have a different form/process to complete Each college will review and request additional information is necessary No guarantee of additional support Change in employment status Unusual medical expenses not covered by insurance Change in parent marital status Unusual dependent care expenses Parochial education costs Student cannot obtain parental information

FAFSA moving forward Source: http://www.nacacnet.org/issues-action/LegislativeNews/Pages/PPY.aspx

Financial aid and college choice Costs are a major factor; but not the only factor Ask questions to get the entire picture Take your time