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					  Financing Education
  Beyond
  High School 2008-2009
Presented by:
Carmen Marohl
NDSCS

Excerpts and Graphics Provided by:
National Association of Student Financial Aid Administrators
North Dakota Association of Student Financial Aid Administrators
Student Loans of North Dakota

                                                                   1
       Tonight’s Agenda

   Definition of financial aid
   Definition of financial need
   Description of financial aid programs
   How to apply for financial aid
   Tips: common application errors,
    private resources, and scams!

                                            2
 Financing Your Education
What is financial aid?

Who is eligible?

How do I apply?

Where does it come from?

What aid is available?
                            3
        What is Financial Aid?

   Scholarships

   Grants

   Loans

   Employment opportunities


                                 4
              Types of Aid
 Merit Based



 Self-Help





 Need Based



 Non-Need Based

                             5
       Definition of Need

    Cost of Attendance (COA)
– Expected Family Contribution (EFC)

=     Financial Need



                                       6
       Definition of Need

    Cost of Attendance (COA)
– Expected Family Contribution (EFC)

=     Financial Need



                                       7
Cost of Attendance

  Tuition
  & Fees              Room &
                      Board



 Daycare and
 Miscellaneous       Books &
 Personal Expenses   Supplies
                                8
        Definition of Need

    Cost of Attendance (COA)
– Expected Family Contribution (EFC)

=     Financial Need




                                       9
       Definition of Need

    Cost of Attendance (COA)
– Expected Family Contribution (EFC)

=     Financial Need




                                       10
     Definition of EFC for a
     Dependent Student


    Parent Contribution
+   Student Contribution

= Estimated Family Contribution



                                  11
        Estimated Family Contribution

   ―Federal Methodology‖ is the
 formula created by Congress to
  determine the expected family
       contribution (EFC).

Information provided on the FAFSA
    is used to calculate the EFC.

  Stays the same regardless of
          college choice
                                        12
     Is the student “dependent” or
     “independent?”
Independent Students are:
   At least 24 years old by December 31 of award year
    covered by FAFSA; or...
   Graduate or professional student; or...
   Married; or...
   Has legal dependents other than a spouse; or...
   Orphan or ward/dependent of the court; or...
   Veteran of U.S. Armed Forces;


                                                         13
       Need Varies Based on Cost

$20,000
 1    $15,000                              X

         2                                          Y
               $10,000
                3                                           Z


                               EFC                EFC


  Cost of                Expected Family        Need
Attendance                Contribution         (Variable)
  (Variable)                (Constant)
                                                                14
  Financing Your Education

What is financial aid?

Who is eligible?

How do I apply?

Where does it come from?

What aid is available?
                             15
    General Eligibility Criteria
   Degree-seeking
   U.S. citizen or eligible noncitizen
   Registered with Selective Service, if male
   Valid Social Security Number
   Must be in good academic standing with
    College
   May not be in default on any previous student
    loans
   May not have certain drug-related convictions
                                                    16
         The Role of the Financial
         Aid Office
   Determines aid eligibility
   Sends notification indicating when and where a
    student will be able to view online or a paper
    award notification including the following:
        Student’s COA
        Student’s EFC
        Amount of student’s financial need
        Award amount for each program for which student
         is eligible
        Disbursement methods & time frames
        Terms & conditions of each award                17
  Financing Your Education
What is financial aid?

Who is eligible?

How do I apply?

Where does it come from?

What aid is available?
                             18
   How do I apply for financial aid?

      As soon as possible complete a:

Free Application for Federal Student Aid
                (FAFSA)




                                           19
               Application Process

   Submit a Free Application for Federal Student
    Aid (FAFSA)
   Check with each school’s:
       Required application materials
       Application priority deadlines




                                                    20
                     FAFSA
   Calculates Estimated Family
    Contribution (EFC)
   May file FAFSA:
        Electronically
        Paper



                                  21
Electronic FAFSA



  www.fafsa.ed.gov


       1 to 2 weeks to process!
                                  22
     Student Financial Aid (SFA) Pin

Student and Parent register
for a PIN before completing
the FAFSA on the Web
Receive PIN via email or
online (real-time) or U.S.
Postal Service (7 to 10 days)
The PIN acts as the
                                www.pin.ed.gov
student’s and parent’s
electronic signature
                                             23
      Reasons to Electronically File

   Built-in edits to prevent costly errors
   Skip-logic allows student and/or parent to skip
    unnecessary questions
   More timely submission of original application
    and any necessary corrections
   More detailed instructions and ―help‖ for common
    questions
   Ability to check application status on-line
   Simplified renewal application process
                                                       24
Paper FAFSA
 Paper FAFSA




               25
                             Paper FAFSA Tips
                                        Student Information only on this page!

 Use black/dark ink or #2 pencil
 Avoid stray marks
 Enter 1 letter/number per box
                                                                                         No Nicknames!
 Fill in ovals, don’t check mark or X
  Don’t leave any blanks, unless                          Use Parent’s Mailing Address
instructions indicate otherwise
 Print in CAPITAL letters
 Leave space between words                       Use correct SSN

 Round all figures to the nearest $ dollar
 Keep a copy for your own records
 Complete EVERY YEAR




                                                                                                         26
        Frequent FAFSA Errors

   Parent & 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
                                               27
                         FAFSA Process
                                         The student will receive a Student Aid
                                         Report (SAR). The school will receive
                                         the same information. Student may be
            The student (and parents)    selected for “verification.”
            complete the Free
            Application for Federal
            Student Aid (FAFSA)

                             FAFSA data is received by U.S. Department of
                             Education Central Processing Service (CPS). The
                             CPS calculates an Expected Family Contribution
                             (EFC), and performs verification checks and edits.
Send a paper FAFSA
or submit an
electronic FAFSA.
                                                                              28
         And then. . .
                                         Student receives
                                         notification that
                                         his/her award
                                         information is
                                         available online



The student reviews and accepts the
award online, indicating a preferred lender
(if needed) and any necessary changes.
                                                             29
Sample Finances Page on
CampusConnection




                          30
           Special Circumstances

Contact your Financial Aid Office:
•Divorce/separation after filing FAFSA
•Significant Loss of Income or Benefits
•Death
•Foreclosure/Liquidation

Documentation, if needed:
•Paid receipts
•Tax returns
•Divorce decree
                                          31
 Financing Your Education

What is financial aid?

Who is eligible?

How do I apply?

Where does it come from?

What aid is available?
                            32
              Sources of Financial Aid

   Federal
       Pell Grant              State
       FSEOG Grant*             Grant
       AC/SMART
        Grant
       Work-Study*
       Perkins Loans*          Private/Local/Institutional
       Stafford Loans               Loans
       PLUS Loans                   Scholarships*

        * Colleges have a limited amount of these funds.      33
     1) Federal Pell Grant

   Portable
   Actual award amount based on COA,
    EFC, & full- or part-time
   Maximum award for 2008-09 = $4,731



                                         34
         2) Federal Supplemental
         Educational Opportunity Grant
         (FSEOG)

   Eligible students
        Awarded first to students with exceptional
         financial need (i.e., students with lowest
         EFC’s at that school)
   Annual award amounts
      $100 minimum
      $4,000 maximum


                                                      35
3) Academic Competitiveness
Grant (ACG)
   First and second year undergraduate students
   Federal Pell Grant recipient
   U.S. citizen
   Full time
   Completed rigorous secondary school
    program
   Portable
   Award amounts:
       $750 first year students
       $1300 second year students
                                              36
        National Science and
        Mathematics Access to Retain
        Talent (SMART) Grant
   Third and fourth year undergraduate students
   Federal Pell Grant recipient
   U.S. citizen
   Full time
   Eligible major
   3.0 GPA
   Award amount:
       $4,000 for third and fourth year of study
   Portable
                                                    37
       4) Federal Work-Study (FWS)

   Employment may be on- or off- campus
   Students may receive paycheck or put towards
    tuition/housing costs




                                                   38
          5) Federal Perkins Loan
   Eligible students
       Priority to students who show
        ―exceptional need,‖ as defined by school
   Loan amount varies
   Maximum annual loan
       $4,000—undergraduate students
       $6,000—graduate & professional
        students
                                                   39
Federal Perkins Loan (cont’d)

   Interest rate: 5%
   9-month grace period
   Repayment period may be
    up to 10 years




                              40
          6) Stafford Loans
   Subsidized (interest is paid by the government):
    Must demonstrate ―need‖
   Unsubsidized (interest can be paid by the student
    or can accrue): Need is not considered
   Base annual loan limits (combined subsidized
    & unsubsidized):
        $3,500 for 1st year undergraduates
        $4,500 for 2nd year undergraduates
        $5,500 for each remaining undergraduate year
        $8,500 for each year of graduate/professional study
                                                           41
          Stafford Loans (cont’d)
   Additional unsubsidized loan eligibility for
    independent undergraduate, graduate, &
    dependent students whose parents are unable
    to borrow PLUS:
        $4,000 per year for first & second years of
         undergraduate study
        $5,000 per year for remaining years of
         undergraduate study
        $10,000 per year for graduate & professional
         students
                                                        42
    Stafford Loans: Repayment
   6-month grace period after the student
    leaves college
   Maximum repayment period between 10
    & 30 years depending on repayment plan
    chosen
   Deferment & cancellation provisions
    available
   Fixed interest rate of 6.8%

                                             43
    7) PLUS
 Parent loan program for parents of
  dependent undergraduate students
 Annual loan limit: COA minus other aid

 Fixed interest rate of 8.5%

 Up to 4% loan fees based on principal




                                           44
     PLUS (cont’d)

   Repayment begins 60 days after
    loan is fully disbursed

   Only principal may be deferred
    under certain conditions; interest
    may be capitalized


                                         45
          Minnesota State Programs

•Minnesota residents attending a Minnesota college/univ.
•FAFSA must be processed within 30 days of the term start
date
•Maximum award for 07-08 was $5,575 at public and tech
colleges ($8,499 at private colleges)


The state of Minnesota also has a Child
Care Grant available.
                                         www.getreadyforcollege.org

                                                                 47
Additional Sources for Aid:
Grants and Scholarships
AmeriCorps             Vocational Rehabilitation
www.AmeriCorps.gov

Reserve Officer        Workforce Investment
Training Corp (ROTC)   Act (WIA)
Veteran’s              Health Professions/Nursing
Benefits               www.bhpr.hrsa.gov/dsa

Bureau of Indian        Community Awards &
Affairs (BIA)           Foundations
Private Business        Civic Organization
Scholarships            Scholarships
                                                   48
                 Avoid Being Scammed

       You shouldn’t have to pay to get free money.
       The only paying that should be done
           is paying attention!
       Ask questions and do some research.
   Better Business Bureau: http://www.bbb.com
   U.S. Department of Education:
    http://studentaid.ed.gov/students/publications/lsa/index.html
   Federal Trade Commission:
    www.ftc.gov/bcp/conline/publs/alerts/ouchart.htm                49
               Private Scholarship Searches

   Free Internet scholarship search engines:
       FinAid.org – http://www.finaid.org
       The College Board – http://www.collegeboard.com
       FastWeb.com – www.fastweb.com
       Scholarship Resource Network Express –
        www.srnexpress.com
       GoCollege.com: The Collegiate Websource –
        http://www.gocollege.com
                                                     50
     Private Scholarship Search

   Local library resources

   Local businesses &
    civic organizations

   Parents’ employers



                                  51
   Additional Sources for Aid: Loans
Bank of ND DEAL Loan - www.mystudentloanonline.nd.gov
Wells Fargo Collegiate Loan – www.wellsfargo.com/Student
US Bank Goal II Loan – www.usbank.com
Bremer Education II Loan – www.bremer.com
College Loan Corp Undergraduate Loan – www.collegeloan.com
Minnesota Self Loan – www.mheso.state.mn.us/self/self.cfm
CitiAssist Loan – www.studentloan.citibank.com


                                                            52
   Tax benefits for college costs
Tax Incentives:

      Hope Tax Credit – taxpayers can claim a credit of up to $1,650 for each of a
       student’s first two years of college.

      Lifetime Learning Credit – families can claim $2,000 per year in tax credits
       for tuition expenses. Designed for credit beyond first two years of study.

      Deduction for Student Loan Interest -You can deduct up to $2,500 in
       student loan interest. The deduction is taken as an adjustment to income.

      Limited Deduction for Tuition Expenses (2002-2005) - Taxpayers can
       deduct approximately $4,000 in tuition expenses as an exclusion from income.

      Coverdell Education Savings Account – taxpayers can contribute $2,000 per
       year for each student under age 18.

      529 Savings Plans – College SAVE plan

                                                                                   53
Thank You & Good Luck!




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