Financial Aid 101: The Basics Mayo High School Rochester, MN Natasha Boe

Financing your future What does college cost? agenda Financing your future What does college cost? Paying for College… How do I apply for financial aid? What types of aid are available? Where can I get more information?

What Does College cost? 2015-2016 MN Colleges Average Annual Tuition and Fees for Full-Time Students Private Colleges $35,465 Private Career Schools $16,695 University of MN $13,790 Minnesota State Universities $8,366 MN Community and Technical Colleges $5,712

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

How will I pay for college? Family Support Savings (College Savings Plan) Scholarships / Merit Based Aid Aid based on academic performance or other talents, not on financial need Financial Aid State, Federal and Institutional

Where does financial aid come from? Merit Based Aid (Scholarships) The College/University Private/public sources outside the College/University Employers Grants Federal State College/University Loans Federal Government Private Lenders Employment Opportunities Student Employment On campus Off campus

How do I apply for financial aid? Obtain FSA ID – https://fsaid.ed.gov/npas/index.htm Complete the Free Application for Federal Student Aid (FAFSA) Undocumented students apply using the state online financial aid application 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 Apply with MN Dream Act state financial aid application for DACA and undocumented students www.ohe.state.mn.us/MNDreamAct

FSA ID FSA ID gives you access to Federal Student Aid’s online systems and serves as your legally binding signature Create a username and password Set up 5 challenge questions to retrieve your username and password if you forget them Both parents and students will need an FSA ID

Fafsa on the web www.fafsa.gov Completing and processing the FAFSA is free! NEVER pay a fee to file a FAFSA Contact your school’s financial aid office if you need help

Documents needed to fill out FAFSA Social Security number Alien registration number/Permanent Resident card if you are not U.S. citizen Student and parent Federal Income Tax Information IRS 1040, 1040A, 1040EZ Data Retrieval Tool (DRT) Transfers data from IRS into the FAFSA application W-2 forms Records of untaxed incomes Child support paid/received Veterans non-education benefits Worker’s Compensation Current bank statements Information about real estate, businesses or investments that you or your parents own

Who is considered a parent? A legal parent includes a biological or adoptive parent, Grandparents, foster parents, legal guardians, older brothers or sisters, widowed step-parents and aunts or uncles are not considered parents unless they legally adopted you *Parent Marital Status Provide Information for Never Married Parent you lived with most during the last 12 months. If neither, use parent who provided more financial support during the last 12 months, or most recent year support received. Married Both of your parents Unmarried and both parents living together Divorced or Separated The parent you lived with most during the last 12 months Remarried (after being widowed or divorced) Parent and Stepparent Widowed Your parent

Be Careful … Put your name and SSN on FAFSA exactly how it appears on your social security card – Don’t take it from an income tax return! Refer to completed federal income tax returns and consult instructions for proper line references. Better yet – use the IRS Data Retrieval Tool (DRT) if you have already filed your income tax returns If amount is zero or none, enter 0 – don’t leave blank Enter school code(s) (up to 10 schools) Student and one parent of a dependent student must sign FAFSA

MN dream act www.ohe.state.mn.us/MNDreamAct Certain undocumented (not citizens or permanent residents) students are eligible for state financial aid if they: Attended a MN high school for 3 or more years Graduated from high school of got GED in MN Registered with Selective Service (males 18-25) These students shouldn’t complete FAFSA Apply with MN Dream Act state financial aid application at www.ohe.state.mn.us/MNDreamAct

When is a student “Independent”? Born before January 1, 1993 (24 or older) Graduate or professional student Married Has legal dependents who receive more than 50% of their support from the student Is an orphan, in foster care, or dependent or ward of the court since age 13 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 without parents by an authorized official

Expected Family Contribution (EFC) Expected Family Contribution (EFC) The EFC is a measure of how much the student and family is expected to contribute to the cost of education for the year. The EFC is calculated according to a formula specified in the law. It is not how much you pay; it’s an index schools use to determine how much and what type of aid you may be eligible to receive. Your family's taxed and untaxed income, assets, and benefits (e.g. such as unemployment) are considered in the formula. Also considered are your family size and the number of family members who will attend college during the year.

Information used for EFC Calculation Dependent Student Independent Student Parents’ income and assets Student’s (and spouse’s) income and assets Household Size Number of dependents attending college Number in household attending college Student’s income and assets Business Assets

How does a school determine my financial aid

Grants Federal Pell Grant Federal SEOG Grant Minnesota State Grant Need based Annual award for full-time student $588 - $5,775 Federal SEOG Grant Limited funding; determined by school Priority given to students with exceptional need $100 - $4,000 Minnesota State Grant MN Resident enrolled at eligible MN School For student from low and moderate income families $100 - $10,745 The average award is approximately $1,735 Institutional Funds College or University funds awarded to students with financial need

Work-study program Part-time student employment Earnings paid to student Work-Study earnings not included when determining EFC on next year’s FAFSA. Note: They are reportable to the IRS if you file an income tax return.

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 Legitimate scholarships never charge fees and the application information is available to everyone. Don’t fall for guarantees or claims that someone has information that you can’t get anywhere else. See consumer.ftc.gov/scholarshipscams

MinnesotaCollegGoal.org Get free help completing the FAFSA. Visit the web site for dates and locations.

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 Tuition and Fees Tax Deduction American Opportunity Tax Credit Student Loan Interest Deduction Lifetime Learning Tax Credit See www.irs.gov

Other Government Programs 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 to 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 Federal Student Aid www.studentaid.gov Internet System for Education & Employment Knowledge www.iseek.org FinAid! The Financial Aid Information Page www.finaid.org The College Board www.collegeboard.org

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 FSA ID Complete the FAFSA each year and be aware of school financial aid deadlines After January 1st 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 loan entrance counseling.

Thursday, February 11th – FAFSA Completion at Mayo High School Jamie Johnson is available at your high school to assist you with the steps to get to college: College Applications, Financial Aid Applications, Scholarships, Program Information and more! Tuesday: Century High School Wednesday: John Marshall High School Thursday: Mayo High School Location: Guidance office Friday: RCTC/Meetings Thursday, February 11th – FAFSA Completion at Mayo High School Jamie.johnson@rctc.edu

Questions & answers

Thank you!