Financial Aid 101: The Basics

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? 2

3 WHAT DOES COLLEGE COST?  MN Colleges Average Annual Tuition and Fees for Full-Time Students Private Colleges$36,002 Private Career Schools$18,013 University of MN$13,840 Minnesota State Universities$8,049 MN Community and Technical Colleges $5,397

4 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

5 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

6 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

7 HOW DO I APPLY FOR FINANCIAL AID?  Obtain FSA ID  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

8 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 4 challenge questions to retrieve your username and password if you forget them  Both parents and students will need an FSA ID

9 FAFSA ON THE WEB   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

10 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

11 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 StatusProvide Information for Never MarriedParent 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. MarriedBoth of your parents Unmarried and both parents living together Both of your parents Divorced or SeparatedThe parent you lived with most during the last 12 months Remarried (after being widowed or divorced) Parent and Stepparent WidowedYour parent

12 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

13 MN DREAM ACT  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 or received 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

14 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

15 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 (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. EXPECTED FAMILY CONTRIBUTION (EFC)

16 INFORMATION USED FOR EFC CALCULATION Dependent StudentIndependent Student Parents’ income and assetsStudent’s (and spouse’s) income and assets Household Size Number of dependents attending college Number in household attending college Student’s income and assetsBusiness Assets

17 HOW DOES A SCHOOL DETERMINE MY FINANCIAL AID

18 GRANTS  Federal Pell 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 - $11,335  The average award is approximately $1,859  Institutional Funds  College or University funds awarded to students with financial need

19  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. WORK-STUDY PROGRAM

20 SCHOLARSHIP SEARCHING  High School Counselor’s office or Career Center  Community, Church, Civic, and Business Organizations  Employers  Colleges and Universities  On the Web

21 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 consumer.ftc.gov/scholarshipscams

22 MINNESOTACOLLEGGOAL.ORG  Get free help completing the FAFSA.  Visit the web site for dates and locations.

23 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

24 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

25 WHERE TO GET MORE INFORMATION  U.S. Department of Education  and  Minnesota Office of Higher Education   Federal Student Aid   Internet System for Education & Employment Knowledge   FinAid! The Financial Aid Information Page   The College Board 

26 WHAT SHOULD I DO NEXT?  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 1 st  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.

QUESTIONS & ANSWERS 27

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