Melvin Monette, MSEd Director UMN School of Public Health Recruitment and Diversity Investing In Your Future … an introduction to financial aid

Financing Your Future What does college cost?What does college cost? What is financial aid?What is financial aid? How do I apply for financial aid?How do I apply for financial aid? Where can I get more information?Where can I get more information?

What does college cost? (annual tuition and fees) Private Colleges: $29,023 Private Career Colleges: $12,233 University of Minnesota: $11,466 State Universities: $6,639 Community & Technical Colleges: $4,708

Estimated Annual Cost of Attendance (COA) Ex. Community College COA Ex. Private College COA Tuition & Fees4,70836,504 Books & Supplies6501,000 Room & Boardlive with parents8,472 Transportation1242,000 Personal Expenses1,000 Total$6,482$48,976

How will I pay for it? Family support Savings Work Grants Scholarships Loans

What is financial aid? Scholarships Grants Loans Employment Opportunities Where does it come from? Federal and state government, schools, employers, and other public and private sources like clubs and organizations.

Search for scholarships on the Web at the library high school counselor’s office or career center in the community: church, civic, and business organizations, parent’s employer your college(s) of choice

Avoid scholarship scams Know that 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.

Grants Federal Pell Grant: need-based; annual award range is $400 - $5350 Federal SEOG Grant: limited funding; priority given to students with exceptional need; annual award range is $100 - $4,000 Minnesota State Grant: MN resident enrolled at eligible MN school; for students from low and moderate income families; annual award range is $100 - $9,444

...more on grants Minnesota Achieve Scholarship: MN resident with family income of < $75,000; must complete a rigorous high school curriculum; one-time award of up to $4,022; apply on-line at: Institutional Grant: college or university funds awarded to students with financial need

Loans Interest RateRepaymentAdditional Info Federal Perkins Loan 5% 9 months after school Federal Stafford/Direct Loan 5.6% subsidized 6.8% unsubsidized 6 months after school Subsidized: no interest charged while in school Unsubsidized: interest accrue while in school Federal Parent PLUS Loan 7.9% Direct lending schools 8.5% FFEL schools May be deferred until 6 months after school Minnesota SELF Loan Variable interest rate Currently 5.8% 12 months after school Must pay quarterly interest while in school Requires a credit worthy co-signer Alternative/ Private Loans Variable

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

How do I apply for financial aid? Complete the Free Application for Federal Student Aid (FAFSA) Complete school financial aid application (if required) Meet application deadlines Apply for scholarships Contact your financial aid administrator if you have special circumstances

FAFSA on the Web Completing and processing the FAFSA are free! Avoid being charged a fee to file the FAFSA. Contact your school’s financial aid office if you need help.

Avoid Errors! 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.

What makes a student “independent”? At least 24 years old by December 31 st 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 Both parents deceased, in foster care, homeless 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

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

Expected Family Contribution (EFC) What is the EFC? –Indicates how much of your and your family’s financial resources should be available to help pay for your education. –The EFC is calculated from your FAFSA according to a formula established by law. The COA is different at each school, but a student’s EFC stays the same. A student’s need will be different from school to school.

EFC Components Dependent Student Parents’ income and assets Number in family Number in college Student’s income and assets Independent Student Student’s income and assets Number in family Number in college

Get free help with the FAFSA MNCollegeGoalSunday.org It’ll take more than good luck and best intentions to pay for college. You need a plan. Begin with College Goal Sunday.

Other Resources Reciprocity Programs –Wisconsin, North and South Dakota, Manitoba –MSEP: Kansas, Michigan, Missouri, Nebraska Federal Tax Benefits for Higher Education –Deduction for Qualified Education Expenses –Employer Paid Tuition Assistance –Hope and Lifetime Learning Tax Credits –Student Loan Interest Deduction Other Government Programs –Americorps Program –Bureau of Indian Affairs Grants –Dislocated Worker Programs –ROTC Scholarships and/or Stipends –Veterans Benefits –Vocational Rehabilitation Programs

Where can I get more information? U.S. Department of Education: Minnesota Office of Higher Education: Internet System for Education & Employment Knowledge: FinAid! - The Financial Aid Information Page: FastWEB scholarship search: The College Board:

Money management for students Graduate on time! Create a budget and stick to it. Avoid credit card pushers. Plug everyday spending leaks. Do you really need a car on campus? Live like a student.

What do I do…and when? Apply for scholarships now and throughout college. Apply for admission to your school(s) of choice. Complete the FAFSA (each year) as soon as possible after January 1. Review your Student Aid Report (SAR) for accuracy. Respond promptly if your school requests more information. Respond to financial aid award notice and complete any loan promissory notes. If awarded work-study, obtain work-study job and begin working once school begins.

Scholarship Application Advice Keep records – they all ask for similar information Keep electronic records of essays – they can always be easily reworked to apply to specific scholarships ANSWER the Question!! Think of it as a job – what are you willing to do for $X per Hour??

Investing In Your Future … an investment in you!