Promissory Notes State of Washington

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					Financial Aid Jeopardy
A Montana Perspective

Presentation Concepts to High School
     Students and their Parents

Regional Conference
 February 15, 2005
   developed and
    provided by:

The Montana Association of
   Student Financial Aid
 The University of Montana
Record Keeper
Montana Career Information System
(MCIS) Flyer
The Basics of Funding Your Education
Annual College Planning Worksheet
2005-06 Paper FAFSA application
   (Gather information and use to enter on-line)
Presentation/Discussion Papers
 The Quiz Show Answer is:

A realistic opportunity for
most Americans regardless
    of family income

Apply to the colleges or other post-
secondary schools of your choice
including a “safety net” school.
   “Dream schools”
   “Reality school”

Pay close attention to institution

You DO NOT need to be admitted before
applying for aid. However, you may need
to be admitted before an official financial
aid award can be made.
          Average Earnings Over Life Span
                (Millions of Dollars)

       HS Diploma             $1.2
 Bachelor's Degree                       $2.1
   Master's Degree                          $2.5
   Doctoral Degree                                  $3.4
Professional Degree                                        $4.4

                      0   1          2          3      4      5
  The Quiz Show Answer is:

 Most academically bright
students will benefit if they
 meet deadlines for these
 Scholarship Searches



Free, Free, Free
Avoid Scams
       Scholarship Applications
UM Presidential Scholarship Program (merit)
   … or…
UM General Scholarship Program (merit, need)
   Deadline December 31, 2004
   Late applications are NOT considered
   Applications: Web, Counselor, or call UM FAO

UM Departmental Scholarships
   Check with each school or department
   Merit, Need & Skill (eg. athletic, music, drama)
   Deadlines vary
  Scholarship Applications

Local, State and National Scholarships
     Churches, fraternal organizations, banks, credit
      unions and associations etc.
     Review family contacts
     See high school counselor
     “The Basics of Funding your Education” booklet
What is the federal PIN?
      [For both student & parent(s)]

    Access to private information
       Student Federal Aid (SFA) systems

Electronic signature:
    FAFSA on the Web
    New applications, corrections, renewals
     for next year
    E-mail and address changes for FAFSA
    Federal student & parent loan promissory
        PIN Registration

May be used
aid process --
including on-
line signing
of loan

Recommendation: get PIN Now!

     Web Site:
      Needs Analysis
(Defining Cost of Attendance)

  Cost of Attendance (COA)

  Expected Family Contribution (EFC)

 The Quiz Show Answer is:

Cost of Attendance, Direct
Costs, and Tuition/Fees --
representing college costs
    What’s in the Cost of
Tuition & fees
Books & supplies
Room & board
Personal expenses, transportation,
Loan fees
Other possible components:
   Study abroad costs
   Dependent or elder care expenses
   Expenses associated with a disability
   Expenses for cooperative education
Total Average Costs for Full Time Attendance
               Current Year -- 2004-05
                            In-State          State
Tuition/Fees        $ 4,614        $12,872
Books/Supplies                800               800
Room/Board                   5,500            5,500
All other Living Exp.        3,180            3,180
TOTALS                    $14,094        $ 22,352

COT (2 yr program)
      Totals              $12,426        $17,214
   Estimated range of increase is 3%-10% per year
 Average 2004-05 Direct Costs – UM-Missoula
 (On-Campus Double Room & Premium Meal Plan)

                   Tuition/Fees:                $ 4,614
                   Room/Board:                    5,500
                     Total                     $ 10,114
                   Tuition/Fees:                $12,872
                   Room/Board:                    5,500
                     Total                      $18,372

In the last ten years:
    Tuition/Fee increases have ranged from 3.8% to 13.7% per year
    Room/Board increases have ranged from 0% to 8.9% per year
Tuition Only Costs for Montana Students
 Arizona State University*                          $12,919
 University of Colorado*                            $21,462
 Colorado State University*                         $14,552
 University of Idaho*                               $11,652
 The University of Montana                            $4,614
 University of North Dakota*                          $6,832
 University of Oregon*                              $17,424
 University of Washington*                          $17,916
 Washington State University*                       $14,046
 University of Wyoming*                       $4,865*/$9,273

 Carroll College                                    $15,750
 Concordia College, MN                              $17,770
 Notre Dame                                         $29,510
  * Western Undergraduate Exchange (WUE) (150% of in-state)
     Room/Board charges range from $4,000 -- $8,000
  The Quiz Show Answer is:

It is the definition for “need-
      based” financial aid
     Needs Analysis
     (Defining the EFC)

Cost of Attendance (COA)

Expected Family Contribution (EFC)


Financial Aid Estimator (EFC etc.)
     Web Site:
 Expected Family
Contribution (EFC)
  What is it?              How is it
   It is the official
    federal figure
     (established            The EFC is
through Congress),       determined by the
 that your family is      income and asset
     expected to          information of the
 contribute toward       student, (& parents
 the student’s total      when dependent),
 cost of school and     that is submitted on
living expenses for           the FAFSA
       one year.              application.
            Need Varies
           Based on Cost

A                                                  B
       B                                                   C
                           EFC                     EFC
                         Expected Family
Cost of Attendance
                     -     Contribution    =   Need (Variable)
  The Quiz Show Answer is:

 The ultimate result of this
  effort is a 5-digit number
that represents the Expected
     Family Contribution
Free Application for Federal
   Student Aid (FAFSA)
 Family’s personal and financial information is
 collected on the FAFSA and is required to perform
 EFC calculation

 Electronic version of the FAFSA
   FAFSA on the Web
   Department of Education PIN

 Paper versions of the FAFSA
   Regular FAFSA
   Renewal FAFSA
    Filling Out the FAFSA

Use 2004 tax information
Do not send any other forms with the FAFSA
Make sure SSN’s are correct
   Student and parents
   Names must match SS records also
Make sure the school(s) are identified
Contact the college Financial Aid Office for
If using paper, mail the paper form in the
envelope provided
Submit as early as possible after January 1
  Use estimates to submit by school’s
   priority date. UM priority is Feb. 15 –
   FAFSA must be processed by March 1.
  Completed tax returns are best

Electronic -- 2 - 4 weeks
Paper -- 4 - 6 weeks

If you haven’t received any information by
the 4th week contact
   1-800-4-FedAid (1-800-433-3243) or
   Your financial aid office
 Why Is All This Information
  Needed? – The Federal
 To the extent they are able, parents have the
  primary responsibility to pay for their
  dependent children’s education
 Students also have a responsibility to
  contribute to their educational costs
 Families should be evaluated in their present
  financial condition
 A family’s ability to pay for educational costs
  must be evaluated in an equitable and
  consistent manner, recognizing that special
  circumstances can and do affect the ability
  to pay
2005-2006 FAFSA
2005-2006 FAFSA
2005-2006 FAFSA
2005-2006 FAFSA
   Income Tax Information
  Applies to Student & Parent
In order to meet the priority
deadline of the school you
want to attend, use projected
tax information!
Better to file with good
answers in February than
guessing in January.
You can also update the
information with FAFSA on the
web or with the school after
you file your taxes.
2005-2006 FAFSA
2005-2006 FAFSA
2005-2006 FAFSA
2005-2006 FAFSA
2005-2006 FAFSA
        2005-2006 FAFSA

Reminder: Parent questions are always purple.
All other questions refer to the student.

Remember, the student and parent income and
asset questions are the same for each section.

If the parents and students are filling out Step
Four -- skip Step Five.
2005-2006 FAFSA
2005-2006 FAFSA
    Ready to go Online!

Have Your:
 Completed FAFSA or On-line

File your FAFSA after January 1, 2005
but before February 15th for best
results at UM
   Note: Other schools may have different
   UM-Missoula school code: 002536
Web Site:
    Needs Analysis
    (Defining “Need”)

Cost of Attendance (COA)

Expected Family Contribution (EFC)

Potential Types of Aid
Offered by filing FAFSA
      Need Based
       Free or gift aid -- Grants
       Employment – Work Study

       Student Loans

      Non-Need Based
       Student Loans
       Parent Loans
  The Quiz Show Answer is:

Grants, Work Study & Loans
Grants – The “Free” money
(About 30% of UM aid applicants)

 Federal Pell Grant
 Federal Supplemental
 Opportunity Grant
 Montana Higher
 Education Grant
 Baker Grant (fka MTAP)
 Acce$$ Grant
Employment Aid (Self Help Money)
               Work Study

  Work Study Employment (need-
        Most employment on-campus

        Limited to 19 hours per week

        Community Service &
         America Reads
        May be a federal or state

Notice: Non-Work Study is Regular
          Not Financial Aid !!
Student Loans – Need Based
Primary Need Based Loans
   Repayment after 9 month grace period
   Interest rate 5%
 Stafford / Direct
   Origination fees and Insurance
   charges up to 4%
   Repayment after 6 month grace period
   Interest Rate 8.25% cap (current 3.37%)
Student Loans – Non-Need
Non-Need Based Loans
 Unsubsidized Stafford/Direct
      Repayment after 6 months grace
      (cap 8.25%)
      Interest charged immediately
      Same fees/rates as Stafford
      (in-school rate 2.77%)
 PLUS (Parent Loan for
     Interest Rate 9.00% cap
      (current 4.17%)
     Repayment begins 60 days after fully
 Subsidized (need) or Unsubsidized (non-need)

    Class Level                Amount
    Freshmen                    $ 2,625
    Sophomore                   $ 3,500
    Junior / Senior             $ 5,500
    Graduate                   $18,500

    Independent Students:
    May have additional Unsubsidized eligibility:
    $4,000 (Fr/Soph) $5,000 (Jr/Sr)
The Quiz Show Answer is:

      Excess debt
(After the College Years)

Estimated 10-YEAR REPAY @ 8.25%

      $10,000        $122

      $20,000        $245

      $30,000        $368

      $40,000        $491

      $50,000        $613
 How Much Aid Could I Be
      Eligible For?
                    A            B                C
Cost           $18,500       $ 9,800          $7,500
EFC            $ 2,000       $ 2,000          $2,000
Need           $16,500        $7,800          $5,500
Pell           $ 1,800       $ 1,800          $1,800
Other Grant    $ 8,000       $   500          $ 250
Work Study     $ 1,500       $ 1,500          $1,500
Loan           $ 2,625       $ 2,625          $1,950
Unmet Need     $ 2,575       $ 1,375          $       0
PLUS           $ 4,575 *     $ 3,375 *        $2,000 *

       *PLUS borrower can borrow EFC amount
                        INITIAL NOTIFICATON LETTER
                            An Estimate of Financial Aid

Joseph Montana                SS# 111-22-3333

COA: $14,000                  EFC: 002000

Description of Award              Amount                    Accept Amt
   Alumni/License Sch.            $ 750                     ___________
   Federal Pell Grant             $ 1,800                   ___________
   Montana Grant                  $ 500                     ___________
   College Work Study             $ 2,400                   ___________
   Federal Stafford Loan          $ 2,625                   ___________
   Outside Scholarship            $ 1,000                   ___________
Lender Name/Code ____________________________
Signature ____________________________________

PLUS (application available to parent of a dependent student up to $4,925)

(Note: Maximum PLUS amount = Total COA minus All Other Aid)
   Other Resources

Health & Human Services
Veteran’s Benefits
Military Service Scholarship
Bureau of Indian Affairs (BIA)
Vocational Rehabilitation
  Taxpayer Relief Act
(Eligibility determined on Income Tax forms)

Hope Scholarship
Lifetime Learning
Previous Student Loan
Interest Deduction
Education IRA (federal)
Montana College
Savings Trust (MT only)
           Web Sites
The Basics of Funding Your Education
(page 12)
   Scholarship searches, College searches,
    Career choices
   EFC Calculator
   Federal Links
University of Montana
529 College Educational Savings Plans
   Action Steps for
Autumn 2005 Enrollment

    Get your PIN
 As soon as possible
    Get Admitted
 After January 1 – by February 15
    File a complete FAFSA
     Your state financial aid
       association & The
     University of Montana

Thank you for your time and attention!
The Quiz Show Answer is:


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