Paying for College Financial Aid Overview

1. Paying for College Financial Aid Overview

2. Plan for Success • College Planning Center • Banknd.nd.gov • Discover your interests • RUReadyND.com • Find a School • College Navigator • Save for college • College SAVE

3. College Expenses • Tuition & Fees • Room & Board • Books & Supplies • Transportation • Miscellaneous Personal Expenses

4. What is Financial Aid • Scholarships • Assistance Programs • State Grants • Federal Grants • Federal Work Study • Student Loans

5. Where to Find Scholarships • Local businesses & organizations • Library • Colleges/Universities • Religious Organizations • Fraternal Organizations • Employers • Tribal Agencies • State Agencies • Large Corporations • Internet

6. Internet Addresses • nddfs.org • fastweb.com • finaid.org • scholarships.com • collegenet.com • cashe.com • winscholarships.com

7. Assistance Programs • ND Job Corps • Vocational Rehabilitation • Employee Assistance • Military Tuition Benefits • Tribal Higher Education • Individual Development Accounts • ND Community Action Partnership • Call 701-232-2452 or visit www.capnd.org

8. State Grants • Scholars Program • Indian Scholarship: $2,000 • Academic or Career &Tech Ed Scholarship: $1,500/yr • State Student Incentive Grant: $1,648

9. FAFSAFree Application for Federal Student Aid • Basic application for student aid • Collects student and family info • School determines financial aid • Completed online • fafsa.gov

12. FAFSA Tips • Complete as soon as possible • By April 15 for best results • Complete taxes 1 month prior • Follow up with financial aid office • Must do FAFSA each year

13. Frequent FAFSA Questions • Who is a parent? • Who to include in household? • What assets to report?

14. FAFSA4caster.ed.gov • Federal aid estimator • Any student of any age • Reminder to fill out the FAFSA • Won’t have to retype

15. Financial Aid Process

16. Federal Work Study • Say “yes” on FAFSA • Jobs may be on or off campus • Eligible employers: • School • Agencies • Organizations

17. Federal Grants • Pell Grant: • Up to $5,645 • FSEOG: • Up to $4,000 • TEACH Grant: • $4,000

18. Pell Grants2008-09 Pell Grant Recipients by Family Income

19. Student Loans • Federal Perkins • Federal Direct • Federal PLUS • State DEAL Loan Program • Alternative Loans

20. Federal Direct Loans • Subsidized: • Government pays interest for student while in-school, grace or deferment status • Unsubsidized: • Government does not pay interest for student; the interest is billed quarterly

21. Federal Direct Loan Limits Dependent Students • $5,500 – Year 1 • $6,500 – Year 2 • $7,500 – Years 3-5 Independent Students • $ 9,500 – Year 1 • $10,500 – Year 2 • $12,500 – Years 3-5 • $20,500 – Graduates

22. Federal Direct Loan Details • Student is the borrower • Must be enrolled at least half-time • Sign Master Promissory Note (MPN) • Fixed interest rate (2013-14) • 3.86% undergraduate loans • 1% loan fee • Repayment begins after out of school for 6 months

23. Federal PLUS Loan • Loan in parent’s name • Parent responsible for repaying • Credit application required • Fixed rate = 6.41% • 4% loan fees • Repayment begins after 60 days • Must sign Master Promissory Note (MPN)

24. State DEAL Loan • Dakota Education Alternative Loan • FAFSA required • Low interest rate • Fixed or variable • No tiers • Credit worthy cosigner if under 24 • Deferment options

25. Alternative Loans • Variable interest rates • Tiers based on credit • Cosigner may be required • Terms vary among lenders • Wells Fargo • Discover • Sallie Mae

26. What is the average student loan debt in North Dakota? • $27,400 • $37,400 • $47,400

27. How much should I borrow? • 10% of anticipated gross income • Example • $30,000 – Anticipated annual income • $2500 – Monthly income • $250 – Monthly student loan payment

28. Who Can Help • High School Counselor • College Financial Aid Office • BND College Planning Center

31. 800.554.2717 banknd.nd.gov