PAYING FOR COLLEGE Scholarships and Federal/State Financial Aid Processes Dr. Deborah Below Director of Enrollment Management & Admissions Southeast Missouri State University

Aid Awards in Missouri (FY05) $2,105,376,640 All Aid $877,873,770 Need-Based Aid (42%) SOURCES $1,233,865,395Federal (59%) $702,427,941Institutions (33%) $66,751,215 State of Missouri (3%)

Determining Financial Need… COA -EFC NEED

Need Example One… 15,000 (COA) -18,000 (EFC) -3,000 (NEED)

Need Example Two… 25,000 (COA) -18,000 (EFC) 7,000 (NEED)

Financial Aid TYPES Grants Scholarships Loans Work Tax Benefits SOURCES Federal State Institution Private

Possible Awards in Your Financial Aid Package FEDERAL Pell Grant Academic Competitiveness Grant SMART Grant SEOG Perkins Loan Subsidized and/or Unsubsidized Loan Parent (PLUS) Loan Federal Work-Study STATE Missouri Bright Flight Missouri College Guarantee Charles Gallagher Grant INSTITUTION Need-Based Grant Scholarship(s) College Work-Study Institutional Loan

Maximizing ‘Affordability’…  Know ALL costs…for a four-year degree  Take advantage of tax breaks  Avoid paying by credit card  Select a lender w/low interest rates during repayment  Apply early – you may qualify you for more  Take advantage of dual credit in high school

INSTITUTIONAL SCHOLARSHIPS Merit (GPA/Rank/Test Scores) Involvement/Leadership Endowments Need/Merit-Based Programs Special Interest Transfer Departmental

Application Process For Federal, State, and Need-Based Aid Step 1: Get a contact at each college you are considering Step 2: Apply for Admission and Scholarships Step 3: FAFSA Step 4: Review Student Aid Report ( ed to you) Step 5: Institution(s) determine your eligibility and sends an award letter or request for additional information Step 6: Read and respond to all mail; accept/decline offers

FAFSA Free Application for Federal Student Aid The process… 1. Register for a PIN # for Parent and Student 2. Apply on/after January 1, Choose to apply with estimated or actual 2006 income. If using actual, have taxes completed. 4. When submitting FAFSA, print results and keep a copy for your records.

When to do What… By December 1: Apply for Admission & Scholarships By February 15: Mail FAFSA or apply on-line By March 1: Have FAFSA processed* In April: Review and evaluate financial aid offers By May 1: Accept/Decline scholarship offer and finalize college selection *some schools may require an earlier FAFSA processed date and/or additional financial information.

A tax benefit you won’t see in your financial aid package HOPE Tax Credit $1500 per year for first two years of college A direct tax credit (not a tax deduction) Eligibility is phased out at certain income limits Additional tax benefits exist for the remainder of a student’s college education and during loan repayment.

MOHELA Rate Relief & Reward Programs Rate Relief Borrowing $15,000 at 6% and participating in Rate Relief will reduce the interest rate by 2.5% and save you $2556 during repayment. Reward Programs Reduces interest rate to 3.25% MO Peace Officer MO Teacher MO Social Worker MO National Guard MO Nurse Reward Program Recipients are also eligible for the Rate Relief - Direct Payment Program reduction of 2.0%. Rate Relief - Direct Payment Program Note: These programs may or may not be available at the time of your loan repayment.

Cost Cutters  Limit eating out to once a week/choose inexpensive restaurants.  Avoid the pressure of using credit cards for the things you want vs. the things you need.  Choose your course load wisely and avoid dropping classes unless you really aren’t doing well – the cost of a 3 hour class is $500-$1000 or more. Dropping classes can affect financial aid eligibility.  If you want to graduate in four years, plan accordingly with your academic advisor. It is possible!  Know your monthly expenses for cell phone, gas, insurance, socializing, clothing, etc. Assess what you need and what you can live without.

Something to Think About… Choose to live like a college student now…or plan to live like one the rest of your life. The average student now borrows more than $20,000.

INTERNET RESOURCES Government Programs Application Search Aid Info