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

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How will I pay for it?How will I pay for it?

• Family support• Savings• Financial Aid

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Where does financial aidWhere does financial aid come from? come from?

• Federal Government

• State Government

• Colleges and Universities

• Private and public sources

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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

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• 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

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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

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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

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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

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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

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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

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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 !