The Minnesota Association of Financial Aid Administrators presents… Financial Aid 101: The Basics …an introduction to financial aid October 2010

What does college cost? (2011-2012 annual tuition and fees for MN colleges) Private colleges and universities: $31,862 Private career schools: $14,042 University of Minnesota: $13,062 Minnesota state universities: $7,323 MN community & technical colleges: $5,173 Source – MN Office of Higher Education This is 2010-11 information from the OHE website http://www.ohe.state.mn.us/mPg.cfm?pageID=949#2 October 2010

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? October 2010

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 October 2010

How will I pay for it? Family support Savings Financial Aid October 2010

Where does financial aid come from? Federal Government State Government Colleges and Universities Private and public sources October 2010 6

What is financial aid? Merit-based aid (Scholarships) Grants Loans From within the college/university From private/public sources outside the college/university Grants Loans Employment Opportunities October 2010

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 both within and outside of the college/university Contact your financial aid administrator if you have special circumstances October 2010

PIN Registration www.pin.ed.gov October 2010 9

FAFSA on the Web www.fafsa.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. October 2010 10

FAFSA on the Web www.fafsa.gov October 2010

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 October 2010

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 October 2010

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.gov . October 2010

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 October 2010

Parents Income and Assets Parents Net Worth and Assets do NOT include: - family home - retirement or life insurance accounts - non-educational IRA’s - small business - family farm October 2010

How does a school determine my financial aid award? Cost of Attendance (COA) - Expected Family Contribution (EFC) = Eligibility for need-based financial aid October 2010

Net Price Calculator You can estimate the amount of financial aid you will receive by going to your college web site and using the Net Price Calculator. Example: ..\Gustavus Adolphus - Gustavus Financial Aid (Net Price) Calculator.pdf October 2010

Grants Federal Pell Grant: need-based; annual award range for a full-time student is $555 - $5,550 Federal SEOG Grant: limited funding; priority given to students with exceptional need; annual award range is $100 - $4,000 Do not include any reference to ACG ! Unless congress acts, program is set to expire as of July 1, 2011. Academic Competitiveness Grant (ACG): completed rigorous secondary curriculum; GPA requirement; freshman/sophomore award range is $750 - $1,300 October 2010

…more on grants and scholarships Minnesota State Grant: MN resident enrolled at eligible MN school; for students from low and moderate income families; annual award range is $100 - $9,391 Minnesota Indian Scholarship: ¼ American Indian ancestry. Show need for Pell or State Grant. Award amount up to $4000 Institutional Grant: college or university funds awarded to students with financial need Minnesota GI Bill: Cost minus Pell Grant, State Grant, and federal military benefits. Military service requirements. Award amount $1,000 semester - $3,000 year October 2010

Types of Loans Interest Rate Repayment Additional Info   Interest Rate Repayment Additional Info Federal Perkins Loan 5% Fixed 9 months after school Federal Stafford Direct Loan Subsidized 6.8% Fixed Unsubsidized 6.8% Fixed 6 months after school Subsidized: no interest charged while in school Unsubsidized: interest accrues while in school Federal Parent PLUS Loan 7.9% Fixed May be deferred until 6 months after school Interest accrues while student is in school Minnesota SELF Loan Variable rate 12 months after school Must pay quarterly interest while in school Requires a co-signer Alternative/ Private Loans Variable repayment terms October 2010

Loan Repayment Chart at 6.8% Interest Amount Monthly Payment Estimated Income Borrowed (10 years) Level Needed__ $10,000 $115 $14,400 $15,000 $173 $21,600 $20,000 $230 $28,000 $23,000 $265 $33,100 $30,000 $345 $43,200 $40,000 $460 $57,500 $50,000 $575 $71,900 $65,000 $754 $94,200 Note: monthly payments shown are 8% of total income October 2010

Work-Study Part-time student employment Earnings paid to student Work-Study earnings not included when determining EFC on next year’s FAFSA October 2010

Scholarship Searching High school counselor’s office or career center Community, church, civic, and business organizations Employers Colleges and universities On the Web October 2010

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 October 2010

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 October 2010

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 October 2010 27

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 and www.getreadyforcollege.org Internet System for Education & Employment Knowledge: www.iseek.org FinAid! - The Financial Aid Information Page: www.finaid.org The College Board: www.collegeboard.org October 2010

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 October 2010

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 October 2010 30

Financing Your Future …an investment in you ! October 2010