1. Financing Education after High School A Financial Aid Information Session provided by the North Dakota Association of Student Financial Aid Administrators Prepared by: Student Loans of North Dakota Including information from the National Association of Student Financial Aid Administrators (NASFAA)

2. Cost of Attendance Tuition & Fees Room & Board Books & Supplies Loan Fees Transportation Miscellaneous Personal Expenses

3. Financial Aid How do I apply? Who is eligible? What is financial aid? mystudentloanonline.nd.gov

4. FAFSA Free Application for Federal Student Aid Basic application for federal and state aid Collects information about the student and family Used by school to determine student’s financial aid eligibility Can be completed online or on paper –fafsa.ed.gov –fafsa.gov

6. Definition of Independent Student At least 24 years old Married Graduate or professional student Veteran of U.S. Armed Forces or Active Duty Has children or dependents (other than a spouse) who receive more than half of their support from you Orphan, foster child or ward of the court Emancipated minor Unaccompanied homeless youth Determined to be “independent” by financial aid administrator based on unusual circumstances

7. Frequent FAFSA Errors Parent and student Social Security Numbers Divorced/remarried parental information Income earned by parents/stepparents Untaxed income U.S. income taxes paid Household size Number of household members in college Real estate and investment net worth mystudentloanonline.nd.gov

8. FAFSA Tips Gather documents you need –Use Web Worksheet Complete as soon as possible after January 1 –By March 1 for best results. Follow up with the financial aid office You must submit a FAFSA each year while in school

9. Special Circumstances Contact Financial Aid Administrator: Divorce/separation after filing FAFSA Loss of income or unemployment Unusually high medical expenses One time income Other unusual circumstances Documentation: Paid receipts Tax returns Divorce decree Others as requested mystudentloanonline.nd.gov

10. Student Aid Report (SAR) Summary of FAFSA Review for accuracy Reports EFC (expected family contribution) –Calculated from FASFA information –Benchmark used to determine eligibility for financial aid –Students with lower numbers may receive more money

11. College Financial Aid Award Letter

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

13. Financial Aid How do I apply? Who is eligible? What is financial aid? mystudentloanonline.nd.gov

14. General Student Eligibility U.S. citizen or eligible noncitizen Valid Social Security Number (SSN) Registered with Selective Service (if male and required) Enrolled or accepted for enrollment in eligible program of study Pursuing degree, certificate, or other recognized credential mystudentloanonline.nd.gov

15. General Student Eligibility (cont.) Must be making satisfactory academic progress Not convicted of a drug-related offense which occurred while receiving Title IV Funds May not be in default on a federal student loan Must not owe an overpayment of federal grant or loan funds mystudentloanonline.nd.gov

16. Financial Aid How do I apply? Who is eligible? What is financial aid? mystudentloanonline.nd.gov

17. What is financial aid? mystudentloanonline.nd.gov Scholarships Grants Work Study Student Loans Other Resources

18. Where to find scholarships Local businesses & organizations Library Colleges/Universities Call College Information Service at SLND Religious Organizations Fraternal Organizations Employers Tribal Agencies State Agencies Large Corporations Internet mystudentloanonline.nd.gov

19. Internet Addresses www.mystudentloanonline.nd.gov www.fastweb.com www.finaid.org www.scholarships.com www.collegenet.com www.srnexpress.com www.cashe.com www.winscholarships.com mystudentloanonline.nd.gov

20. Don’t get scammed! Several hundred thousand students & parents are victims of scholarship search scams! mystudentloanonline.nd.gov

21. North Dakota State Grants State Grant: $1,200 –Complete FAFSA by March 15 Academic or Career/Tech Ed Scholarship: $1,500 –Application deadline June 1 –24 ACT (by February 6, 2010) –2.75 GPA to renew Indian Scholarship: $800 –Application deadline July1 Scholars Program –Top 5% of ND students taking ACT –Full tuition scholarship

22. Federal Grants Pell Grant: Up to $5,550 –ACG: $750 Freshman $1,300 Sophomore (3.0 GPA) –SMART Grant: $4,000 (3.0 GPA) Juniors & Seniors in eligible major –SEOG: Up to $4,000 TEACH Grant: $4,000 –(3.25 GPA) –Agree to teach at least 4 years

23. Federal Work Study Undergraduate, graduate, and professional students Employment may be on or off campus Eligible employers: – Schools – Federal, state, or local public agencies – Certain private nonprofit and for- profit organizations mystudentloanonline.nd.gov

24. Types of Loans Federal Perkins Federal Stafford Federal PLUS Alternative –BND: Dakota Education Alternative Loan (DEAL) mystudentloanonline.nd.gov

25. Perkins Loan Undergraduate and graduate students 5% fixed interest –Interest free in school Institution is the lender Schools establish awarding criteria –Loan amount varies, but cannot exceed $4,000 per year 9-month grace period $40 minimum payment mystudentloanonline.nd.gov

26. Federal Stafford Loans Subsidized or Unsubsidized –Subsidized: Interest is paid by the government while the student is in- school, grace, or deferment status –Unsubsidized: Interest is paid by the student during all loan statuses; the interest is billed quarterly mystudentloanonline.nd.gov

27. Federal Stafford Loans Student is the borrower Must be enrolled at least half-time School determines loan eligibility and delivers loan proceeds to students Requires a signed Master Promissory Note (MPN) Fixed interest rate –4.5% subsidized loans –6.8% unsubsidized loans 1% Default fee –BND currently pays origination & default fee!!

28. Federal Stafford Loan Limits Dependent Students $5,500 – Year 1 $6,500 – Year 2 $7,500 – Years 3-5 Independent Students $9,500 – Year 1 $10,500 – Year 2 $12,500 – Years 3-5 $20,500 – Graduates 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

29. Ways to Reduce Student Loans Graduate in 4 years Take advantage of free credits Work & save Buy your own books Trim expenses Avoid credit cards Pay interest as it accrues Don’t borrow the max mystudentloanonline.nd.gov

30. Federal PLUS Loans Parent Loan for Undergraduate Students Loan in parent’s name Parent responsible for repaying loan Credit application required Fixed rate = 8.5% 3.0% Origination fee + 1% Default fee Maximum loan amount is cost of education less other financial aid Repayment begins 60 days after final disbursement Requires a signed Master Promissory Note (MPN)

31. Alternative Student Loans Extra funding for school expenses Alternative or Non-federal Loans Lenders set terms School certified or Direct to Consumer FAFSA is sometimes not required mystudentloanonline.nd.gov

32. Choosing a Lender Use a mainstream lender –Borrow maximum Federal and institutional aid first Consult the financial aid office Think before you borrow Ask questions –Interest rate & fees –Repayment: when & how much –Deferments mystudentloanonline.nd.gov

33. DEAL Loan Dakota Education Alternative Loan Alternative loan for students Student responsible for payments –Payment deferred while in school No loan fees Co-signer may be needed –Required if under the age of 24 –Possible co-signer release after 24 on-time payments Choose interest rate –current fixed rate is 5.99% –current variable rate is 1.79% (Oct 1, 2009 – Dec 31, 2009)

34. College SAVE 529 Plan Administered by BND In-state tax deduction Matching grant Upromise Investments Plan Manager –Investment Options through Vanguard Group Start account with as little as $25 Open an account at collegesave4u.com

35. Tax Benefits for Education Hope Tax Credit Lifetime Learning Credit Deduction for Student Loan Interest Tuition and Fees Deduction You generally cannot claim more than one benefit for the same education expense. Go to IRS.gov for more information on tax benefits. mystudentloanonline.nd.gov

36. Who can help? High School Counselor College Financial Aid Office College Information Service @ Student Loans of North Dakota mystudentloanonline.nd.gov

37. Need More Help? February 21, 2010 Receive hands-on assistance to complete your FAFSA Eleven North Dakota locations: –Belcourt, Bismarck, Dickinson, Fargo, Fort Yates, Fort Totten, Grafton, Grand Forks, Minot, New Town & Williston Chance to win a computer or $500 scholarship www.collegegoalnd.org

38. Find Us At… mystudentloanonline.nd.gov 1-800-554-2717