1. The Minnesota Association of Financial Aid Administrators presents…
Financial Aid 101: The Basics
…an introduction to financial aid
October 2010

2. What does college cost? (2011-2012 annual tuition and fees for MN colleges)
Private colleges and universities: $31,862
Private career schools: $14,042
University of Minnesota: $13,062
Minnesota state universities: $7,323
MN community & technical colleges: $5,173
Source – MN Office of Higher Education
This is information from the OHE website
October 2010

3. Financing Your Future What does college cost?
How do I apply for financial aid?
What types of aid are available?
Where can I get more information?
October 2010

4. Cost of Attendance (COA)
The cost of attending an institution includes more than just tuition and fees. Also included are:
Room and Board Books and Supplies
Transportation Personal Expenses
October 2010

5. How will I pay for it? Family support Savings Financial Aid
October 2010

6. Where does financial aid come from?
Federal Government
State Government
Colleges and Universities
Private and public sources
October 2010 6

7. What is financial aid? Merit-based aid (Scholarships) Grants Loans
From within the college/university
From private/public sources outside the college/university
Grants
Loans
Employment Opportunities
October 2010

8. How do I apply for financial aid?
Obtain a Federal Personal Identification Number
Complete the Free Application for Federal Student Aid (FAFSA)
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
October 2010

9. PIN Registration www.pin.ed.gov
October 2010 9

10. FAFSA on the Web
Completing and processing the FAFSA
are free!
Never pay a fee to file the FAFSA.
Contact your school’s financial aid office if you need help.
October 2010 10

11. FAFSA on the Web
October 2010

12. Be careful…
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
October 2010

13. What makes a student “independent”?
At least 24 years old by December 31st 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
Is an orphan, in foster care, 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
Has been determined to be homeless by an authorized official
October 2010

14. Expected Family Contribution (EFC)
The EFC is calculated from the information you provide on the FAFSA according to a formula established by law.
You can get an estimate of your EFC using the FAFSA 4-caster tool at .
October 2010

15. FAFSA data that tends to have the most impact on EFC calculation
Dependent Student
Parents’ income and assets
Household size
Number of dependents attending college
Student’s income and assets
Independent Student
Student’s (and spouse’s) income and assets
Household size
Number in household attending college
October 2010

16. Parents Income and Assets
Parents Net Worth and Assets do NOT include: - family home - retirement or life insurance accounts - non-educational IRA’s - small business - family farm
October 2010

17. How does a school determine my financial aid award?
Cost of Attendance (COA)
- Expected Family Contribution (EFC)
= Eligibility for need-based financial aid
October 2010

18. Net Price Calculator
You can estimate the amount of financial aid you will receive by going to your college web site and using the Net Price Calculator. Example: ..\Gustavus Adolphus - Gustavus Financial Aid (Net Price) Calculator.pdf
October 2010

19. Grants
Federal Pell Grant: need-based; annual award range for a full-time student is $555 - $5,550
Federal SEOG Grant: limited funding; priority given to students with exceptional need; annual award range is $100 - $4,000
Do not include any reference to ACG !
Unless congress acts, program is set to expire as of July 1, 2011.
Academic Competitiveness Grant (ACG): completed rigorous secondary curriculum; GPA requirement; freshman/sophomore award range is $750 - $1,300
October 2010

20. …more on grants and scholarships
Minnesota State Grant: MN resident enrolled at eligible MN school; for students from low and moderate income families; annual award range is $100 - $9,391
Minnesota Indian Scholarship: ¼ American Indian ancestry. Show need for Pell or State Grant. Award amount up to $4000
Institutional Grant: college or university funds awarded to students with financial need
Minnesota GI Bill: Cost minus Pell Grant, State Grant, and federal military benefits. Military service requirements. Award amount $1,000 semester - $3,000 year
October 2010

21. Types of Loans Interest Rate Repayment Additional Info
Interest Rate
Repayment
Additional Info
Federal Perkins Loan
5% Fixed
9 months after school
Federal Stafford Direct Loan
Subsidized 6.8% Fixed Unsubsidized 6.8% Fixed
6 months after school
Subsidized: no interest charged while in school Unsubsidized: interest accrues while in school
Federal Parent PLUS Loan
7.9% Fixed
May be deferred until 6 months after school
Interest accrues while student is in school
Minnesota SELF Loan
Variable rate
12 months after school
Must pay quarterly interest while in school
Requires a co-signer
Alternative/ Private Loans
Variable repayment terms
October 2010

22. Loan Repayment Chart at 6.8% Interest
Amount Monthly Payment Estimated Income
Borrowed (10 years) Level Needed__
$10, $ $14,400
$15, $ $21,600
$20, $ $28,000
$23, $ $33,100
$30, $ $43,200
$40, $ $57,500
$50, $ $71,900
$65, $ $94,200
Note: monthly payments shown are 8% of total income
October 2010

23. Work-Study Part-time student employment Earnings paid to student
Work-Study earnings not included when determining EFC on next year’s FAFSA
October 2010

24. Scholarship Searching
High school counselor’s office or career center
Community, church, civic, and business organizations
Employers
Colleges and universities
On the Web
October 2010

25. 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 you can’t get anywhere else
October 2010

26. 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
Deduction for Qualified Education Expenses
Employer Paid Tuition Assistance
American Opportunity Tax Credit
Student Loan Interest Deduction
October 2010

27. 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
October 2010 27

28. Where can I get more information?
U.S. Department of Education: and
Minnesota Office of Higher Education: and
Internet System for Education & Employment Knowledge:
FinAid! - The Financial Aid Information Page:
The College Board:
October 2010

29. What should I do and when?
Apply for scholarships now and throughout college
Apply for admission to your school(s) of choice
Apply for your PIN number
Complete the FAFSA each year and be aware of school financial aid deadlines
October 2010

30. What should I do and when?
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 work-study forms
October 2010 30

31. Financing Your Future …an investment in you !
October 2010