Paying for College Financial Aid Overview North Dakota Association of Student Financial Aid Administrators

Plan & Save RUReadyND.com – Choices Explorer – Choices Planner – testGEAR for ACT College SAVE – State tax deduction – Matching grant program – Upromise Rewards program

College Expenses It’s not free Tuition & Fees Room & Board Books & Supplies Transportation Miscellaneous Personal Expenses

What is Financial Aid Scholarships Assistance Programs State Grants Federal Grants Federal Work Study Student Loans

Where to Find Scholarships Local businesses & organizations Library Colleges/Universities Religious Organizations Fraternal Organizations Employers Tribal Agencies State Agencies Large Corporations Internet

Internet Addresses www

Assistance Programs ND Job Corps Vocational Rehabilitation Employee Assistance Military Tuition Benefits Tribal Higher Education Individual Development Accounts −North Dakota Community Action Partnership −Call or visit

State Grants Scholars Program Indian Scholarship: $800 Academic or Career/Tech Ed Scholarship: $1,500 State Student Incentive Grant: $1,500 – Complete FAFSA by April 15 Amounts are subject to change!

FAFSA Free Application for Federal Student Aid Basic application for federal student aid Collects student and family information School determines financial aid Completed online – fafsa.gov

FAFSA4caster.ed.gov Federal aid estimator Any student of any age Reminder to fill out the FAFSA Won’t have to retype

Frequent FAFSA Questions Who is a parent? Who is included in household size? What assets to report?

FAFSA Tips Complete as soon as possible after January 1 – By April 1 for best results. Complete taxes 1 month prior Follow up with the financial aid office Must submit a FAFSA each year

Get FAFSA Help March 25, 2012 Receive hands-on assistance Eleven North Dakota locations: – Belcourt, Bismarck, Dickinson, Fargo, Fort Yates, Fort Totten, Grafton, Grand Forks, Minot, New Town & Williston Chance to win prizes

Financial Aid Process Apply to Schools Complete FAFSA Review SAR Receive Award Letter Choose School Sign MPN Money sent to school

Federal Work Study Say “yes” on FAFSA Employment may be on or off campus Eligible employers: – School – Federal, state, or local public agencies – Private nonprofit and for-profit organizations

Federal Grants Pell Grant: – Up to $5,550 FSEOG: – Up to $4,000 TEACH Grant: – $4,000

Student Loans Federal Perkins Federal Stafford Federal PLUS State Loan Program Alternative Loans

Federal Stafford Loans Subsidized: Government pays interest for student while in-school, grace or deferment status Unsubsidized: Government does not pay interest for student; the interest is billed quarterly

Federal Stafford Loans Student is the borrower Must be enrolled at least half-time School determines loan eligibility Must sign Master Promissory Note (MPN) Fixed interest rate ( ) – 3.4% subsidized loans – 6.8% unsubsidized loans 1% loan fee

Federal Stafford Loan Limits Dependent Students $5,500 – Year 1 $6,500 – Year 2 $7,500 – Years 3-5 Aggregate Sub & Unsub Limits $31,000 ($23,000 Sub) – Dependent Undergraduate $57,500 ($23,000 Sub) – Independent Undergraduate $138,000 ($65,500 Sub) – Graduate/Professional Repayment Begins 6 months after student graduates, withdraws or drops below half-time enrollment Independent Students $ 9,500 – Year 1 $10,500 – Year 2 $12,500 – Years 3-5 $20,500 – Graduates

Federal PLUS Loans Loan in parent’s name Parent responsible for repaying loan Credit application required Fixed rate = 7.9% 4% loan fees Repayment begins after 60 days Must sign Master Promissory Note (MPN)

State DEAL Loan Dakota Education Alternative Loan FAFSA required Low interest rate Fixed or variable No tiers Credit worthy cosigner if under 24 Deferment options

Alternative Loans Variable interest rates Tiers based on credit Cosigner may be required Terms vary among private lenders Wells Fargo US Bank Citi Bank

How much should I borrow? 10% of anticipated gross income Example $30,000 – Anticipated annual income $2500 – Monthly income $250 – Monthly student loan payment

Who Can Help High School Counselor College Financial Aid Office College Goal Sunday North Dakota College Access Network (NDCAN)