1. Introduction to financial aid
Natalie Dillon – NDSU Twin Cities Admission Representative
On Behalf of Twin Cities Regional Admission Representatives
Fall 2017

3. DISCUSSION TOPICS Understanding Financial Aid
Different Types of Financial Aid
Why Cost of Attendance Matters
What is the Estimated Family Contribution?
Filing the FAFSA and What Happens Next
Your Questions

4. Goal of financial aid
Primary goal is to assist students in paying for college. This is achieved by:
Evaluating the ability of a family to pay for educational costs
Distributing limited resources in an equitable manner
Providing a balance of gift and self-help aid

5. Cost of attendance will vary from college to college
Direct Costs:
Tuition and fees
Room and board
Indirect Costs:
Books/supplies (varies by major/class load)
Personal expenses (ex: laundry, gas, hygiene products, discretionary spending money, transportation, etc.)
Cost of attendance will vary from college to college

6. Cost of attendance and aid awarded

7. the estimated family contribution
The amount of money you could reasonably be expected to contribute to your child’s education
Federal formula
Some of the largest factors in determining EFC are:
Student contribution (income & assets)
Parent/guardian contribution (income & assets)
Number of family members currently in college
Household size
EFC will remain the same college to college

8. Why do cost of attendance and estimated family contribution matter?

9. Financial Need defined
Cost of Attendance Expected Family Contribution
Financial Need
Financial need will vary from college to college

10. Types of aid Gift Aid: Scholarships Grants Self Help Aid: Loans
Employment Opportunities

11. scholarships Your high school
Colleges you have applied to or will apply to
Employers – parent and student
Individuals
Non-profits
Companies
Religious groups/churches
Professional associations
Community organizations
National searches

12. grants Awarded based on financial need determined by the FAFSA
Do not need to be repaid
Types of Grants:
Institutional grants
State grants
Federal Pell Grant

13. Student employment On-campus vs. Off-campus Work-Study:
Form of need-based aid
No guarantee of job
Receive a paycheck
Non-monetary compensation

14. loans Federal loans: available regardless of financial need
Private loans are available
Types of federal loans:
Stafford Direct Loans
Perkins Loan; need based
Parent Loan (PLUS); non-need based
MN Office of Higher Education Loan:
SELF Loan; requires credit worthy cosigner
Interest Rates:
Stafford – 4.29% fixed for undergraduates
Perkins – 5% interest
PLUS – 6.84% fixed
SELF – 3.3 variable
the federal government pays the interest on subsidized loans during periods of authorized deferment, such as the in-school and economic hardship deferments, while the interest remains the responsibility of the borrower on an unsubsidized loan. This makes subsidized loans a less-expensive option for students.
Sources:

15. General eligibility for federal loans
You must:
Be a citizen or eligible non-citizen of the U.S.
Must have a valid Social Security number
Have a high school diploma or GED
Be enrolled at least half-time (six credits)
Register with the Selective Service (males only)
Maintain satisfactory academic progress as determined by your college
Eligibility for federal aid
Also may include: not in default on a federal student loan, may not owe repayment of a federal grant

16. HOW DO YOU GET THESE DIFFERENT TYPES OF AID?

17. FREE APPLICATION FOR FEDERAL student AID
This is the fun part.

18. What is the fafsa?
FREE Application for Federal Student Aid: fafsa.gov or fafsa.ed.gov
May be filed at anytime during an academic year but no earlier than January 1st prior to the academic year for which students request aid
For the academic year, the FAFSA may be filed beginning January 1, 2016.
Colleges may have institutional filing deadlines.

19. What is the fafsa?
Standard form that collects demographic and financial information about the student and family
Electronic or paper forms available
Available in English and Spanish
Information is used to calculate the expected family contribution (EFC)
EFC is used by colleges to award financial aid
Recommend electronic: built in edits, skip logic, IRS data retrieval, timely submission, help for questions, easy to revisit

20. Federal student aid id
FSA ID: fsaid.ed.gov
Sign FAFSA
No PIN

21. fafsa process
Start the FAFSA
2015 Tax Information

22. Information needed for the FAFSA
Student identification and college plans
Parent and student income information
Parent and student asset information
Parent household information
Recommend electronic: built in edits, skip logic, IRS data retrieval, timely submission, help for questions, easy to revisit

23. What happens after the fafsa is submitted?
Student receives a Student Aid Report (SAR)
Schools listed on FAFSA will receive electronic copy of FAFSA information
Schools may request additional information
Schools use this information to determine your financial aid package
Schools mail student their initial financial aid package
Recommend electronic: built in edits, skip logic, IRS data retrieval, timely submission, help for questions, easy to revisit

24. What is a Financial aid package?
the federal government pays the interest on subsidized loans during periods of authorized deferment, such as the in-school and economic hardship deferments, while the interest remains the responsibility of the borrower on an unsubsidized loan. This makes subsidized loans a less-expensive option for students.
Details Cost of Attendance Information
Details Gift Aid and Self-Help Aid Awarded
May give a breakdown of what isn’t covered
Provides information on how to accept, deny, or change awards

25. Special circumstances
Not documented using the FAFSA
Send written explanation and documentation to financial aid office at each college
Each institution may have a different form/process to complete
Each college will review and request additional information is necessary
No guarantee of additional support
Change in employment status
Unusual medical expenses not covered by insurance
Change in parent marital status
Unusual dependent care expenses
Parochial education costs
Student cannot obtain parental information

26. FAFSA moving forward
Source:

27. Financial aid and college choice
Costs are a major factor; but not the only factor
Ask questions to get the entire picture
Take your time