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The Minnesota Association of Financial Aid Administrators presents…. Financial Aid 101: The Basics … an introduction to financial aid. Financing Your Future. What does college cost? How do I apply for financial aid? What types of aid are available? - PowerPoint PPT Presentation
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2012
The Minnesota Association of Financial Aid Administrators presents…
Financial Aid 101: The Basics
…an introduction to financial aid
2012
Financing Your FutureFinancing 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?
2012
What does college cost?What does college cost?(2011-2012 annual tuition and fees for MN colleges)(2011-2012 annual tuition and fees for MN colleges)
• Private colleges: $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
2012
Cost of AttendanceCost of AttendanceThe cost of attending an institution includes
more than just tuition and fees.
Also included are:
Room and Board Books and Supplies
Transportation Personal Expenses
2012
How will I pay for it?How will I pay for it?
• Family support• Savings• Financial Aid
2012
Where does financial aidWhere does financial aid come from? come from?
• Federal Government
• State Government
• Colleges and Universities
• Private and public sources
2012
What is financial aid?What is financial aid?
• Merit-based aid (Scholarships)– From within the
college/university– From private/public sources
outside the college/university
• Grants
• Loans
• Employment Opportunities
2012
• Obtain a Federal Personal Identification Number (PIN)• 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
How do I apply for financial How do I apply for financial aid?aid?
2012
PIN RegistrationPIN Registrationwww.pin.ed.gov
2012
FAFSA on the WebFAFSA on the Webwww.fafsa.gov
• Completing and processing the FAFSA is free!
• Never pay a fee to file the FAFSA.
• Contact your school’s financial aid office - if you need help.
2012
FAFSA on the WebFAFSA on the Webwww.fafsa.gov
October 2010
2012
• 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
Be careful…Be careful…
2012
• 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
What makes a student What makes a student “independent”?“independent”?
2012
Expected Family Expected Family Contribution (EFC)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: www.fafsa.gov
2012
FAFSA data that tends to have FAFSA data that tends to have the most impact on EFC the most impact on EFC
calculationcalculationDependent 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
2012
How does a school determine How does a school determine my financial aid award?my financial aid award?
Cost of Attendance (COA) - Expected Family Contribution (EFC) = Eligibility for need-based financial aid
2012
GrantsGrantsFederal Pell Grant: need-based; annual award range for a full-time
student is $976 - $5,550
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 - $9,620
Institutional Grant: college or university funds awarded to students
with financial need
2012
Types of LoansTypes of Loans Interest Rate Repayment Additional Info
Federal Perkins Loan 5% Fixed9 months after school
Federal Stafford Direct Loan
Subsidized 3.4% 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 rateAND/or 7.25% Fixed
12 months after school
Must pay quarterly interest while in schoolRequires a co-signer
Alternative/ Private Loans
Variable rate AND/or Fixed rate options
Variable repayment terms
Interest accrues while student is in school
2012
Work-StudyWork-Study
Part-time student employment
Earnings paid to student
Work-Study earnings not included when determining EFC on next year’s FAFSA
2012
• High school counselor’s office or career center
• Community, church, civic, and business organizations
• Employers
• Colleges and universities
• On the Web
Scholarship SearchingScholarship Searching
2012
Avoid Scholarship ScamsAvoid Scholarship ScamsLegitimate 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.
2012
MNCollegeGoalSunday.orgMNCollegeGoalSunday.org
October 2010
Get free help completing the FAFSA. Visit the web site for dates and locations.
2012
Other ResourcesOther Resources
Reciprocity ProgramsWisconsin, North and South Dakota, ManitobaMidwest Student Exchange Program (MSEP):
Kansas, Michigan, Missouri, Nebraska
Federal Tax Benefits for Higher EducationTuition and Fees Tax Deduction American Opportunity Tax CreditStudent Loan Interest Deduction
Lifetime Learning Tax Credit
2012
Other Resources, cont.Other Resources, cont.
Other Government Programs
Americorps ProgramBureau of Indian Affairs GrantsDislocated Worker Programs
ROTC Scholarships and/or StipendsVeterans Benefits
Vocational Rehabilitation Programs
2012
Where can I get more information?Where can I get more information?• U.S. Department of Education: www.ed.gov and
www.college.gov
• Minnesota Office of Higher Education: www.ohe.state.mn.us
• Internet System for Education & Employment Knowledge: www.iseek.org
• FinAid! - The Financial Aid Information Page: www.finaid.org
• Minnesota Association of Financial Aid Administrators: www.mafaa.org
• The College Board: www.collegeboard.org
2012
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
What should I do and when?What should I do and when?
2012
What should I do and when? 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
2012
Financing Your FutureFinancing Your Future……an investment in you !an investment in you !