Stafford Loan Entrance Counseling

Stafford Loan Entrance Counseling It is the student’s responsibility to understand the following information

Parents • Parents are welcome at this presentation, but a parent attending this session will not satisfy the student’s loan counseling requirement • If your student is unable to be at this session, he or she can complete the counseling requirement at: www.mnsu.edu/campushub

Table of Contents • Privacy and Minnesota State Mankato • Free Application for Federal Student Aid • Financial Aid Process • Financial Aid Package • Stafford Loans • Living the College Life • Satisfactory Academic Progress • Rights and Responsibilities • Odds and Ends

Family Education Rights and Privacy Act (FERPA) Information regarding a student’s financial aid cannot be given to any individual other than the student regardless of their relationship to the student The student may sign a release of information at the Campus Hub to allow information disclosure to specific individuals

Campus Hub • First point of contact for Student Financial Services • Fastest way to get answers, and where to turn in your forms for Student Financial Services

Free Application for Federal Student Aid (FAFSA) 1. FAFSAOnline is available at: http://fafsa.ed.gov 2. Paper FAFSA 3. Renewal FAFSA You can access your renewal FAFSA on the web. The federal processing center will email you a PIN reminder. The Federal Processor only sends a paper Renewal Application if you previously filed a paper FAFSA and did not provide an email address. The FAFSA must be completed every year

Student Aid Report (SAR) The SAR will report the information from your application and give your Expected Family Contribution (EFC) You receive the SAR by an email link if you filed online or provided an email address on a paper FAFSA: • Review it carefully to ensure correct data. • If there are errors, you can correct them online. If you receive a paper SAR, you can correct and mail in to the federal processor.

Requests for Information • Once you submit your FAFSA, the Federal Processor sends Minnesota State Mankato a copy of information you submitted • When Minnesota State Mankato receives your data, it is reviewed. If there are any questions, Student Financial Services will send a letter requesting additional information. • You must respond to these requests for information, or your application cannot be processed

The Financial Aid Process Determining Cost of Attendance (COA): What an education costs Each year, Student Financial Services determines average costs for attending Minnesota State Mankato and living in Mankato for nine months

Direct Costs Expenses resulting from enrollment in an educational institution Tuition Fees Books Indirect Costs Expenses not directly a result of enrollment in an educational institution Rent Laundry Parking Entertainment Food Direct vs. Indirect Costs

Cost of Attendance The direct costs + The indirect costs The Cost of Attendance (COA)

How is Need Assessed? Cost of Attendance minus the Expected Family Contribution (EFC) equals Need $ 14,098 2006-2007 MN Undergrad COA - 2,000 (Sample EFC) $ 12,098 Financial Aid Need

State Grants • The FAFSA application is the application the State of Minnesota uses to determine State Grant eligibility • Other states may have grant options for their residents; students are encouraged to inquire as to the availability of those funds MN 800.657.3866 SD 605.773.3455 IA 800.383.45222 WI 608.267.2206 ND 701.328.2960 IL 800.899.4722

Financial Aid Package • Sent to you by Student Financial Services • Award Letter • Necessary Forms for Loan Processing • Additional Information Requests as Needed • Relevant Financial Aid Information

Definitions Guarantor:Guarantees to the Federal Government that they will repay the loan if it is not paid by the student (as a result of disability, death, or default) Lender: Provides the money for the loan Servicer: Company that maintains the loan for the lender. This organization will send bills, interest statements, disclosure statements, and any other paperwork that is needed

Award Letter • Gives breakdown of aid by term and enrollment status • Keep a copy for your records

Response Form / LAF If accepting Federal Stafford Loans, complete both sides of the Response Form / Loan Acceptance Form (LAF)

Response Form • Indicate the types of aid that you would like to accept • Please only accept the aid types which have been awarded to you • Indicate any additional funding not listed on your award letter RESPONSE FORM

Loan Acceptance Form (LAF) • Indicate the Lender Code of the Lender you have chosen • Indicate the amounts of Stafford Loans you would like to accept equal or less than what you were awarded LTF

Choosing a Lender • All lenders follow the same guidelines • We highly recommend that you choose one of the lenders from the list of recommended lenders in your “Award Letter Information & Instructions” folder

Master Promissory Note (MPN) • First time borrowers at Minnesota State Mankato • Must complete MPN online at: http://www.mnsu.edu/campushubOnce there click on “Master Promissory Note”

Recap Send Response Form / LAF to the Campus Hub Complete MPN online at: http://www.mnsu.edu/campushub Once there click on “Stafford Master Promissory Note (MPN)”

Disclosure Statement Sent by Guaranty Agency Includes: • Loan Amounts • Loan Fees (if any) • Lender and Servicer Information

Subsidized v. Unsubsidized Subsidized: Need-Based Aid No interest while you are in school Unsubsidized: • Non Need-Based Aid • Accrues interest while you are in school. The interest can be paid quarterly or capitalized. Payment on principal begins six months after you are finished with school (graduate, withdraw or drop below half-time)

Capitalizing Interest Student A • $8,000 in loans over 4 years • Pays $1360 interest while in school • Begins payment on the principal of $8000 • Repays a total of $11,047 Student B • $8,000 in loans over 4 years • Pays $0 interest while in school • Begins payment on the principal of $9,360 • Repays a total of $11,565 Savings of $518 for Student A who paid interest while in school

Stafford Loan Entrance Counseling