Financial Aid and the FAFSA

1. Financial Aid and the FAFSA Presented by SMSU

2. What is Financial Aid? • Grants • Scholarships • Employment Opportunities • Loans

3. 2013-14 Average MN Tuition and Fees Community and Technical Colleges - $5,373 State Universities - $7,681 University of MN - $13,620 Private Career Colleges - $14,000 Private Colleges and Universities - $34,000

4. The College Pay-off

5. General Eligibility Requirements • Must be enrolled or accepted for enrollment in an eligible institution • Must be admitted in a degree, certificate, or other recognized credential program • Must be a U.S. citizen or eligible non-citizen • Must be registered with Selective Service (males age 18-25)

6. General Eligibility Requirements (continued) • Must have a valid Social Security Number • Must be making satisfactory academic progress as defined by the school • Must not have eligibility suspended due to a drug related conviction while attending college

7. Definition of Financial Need Cost of Attendance (COA for one year) - Expected Family Contribution (EFC) = Financial Need

8. Cost of Attendance • Tuition and fees • Room and board • Books and supplies, equipment, transportation, and miscellaneous personal expenses • Loan fees • Study abroad costs • Dependent care expenses • Expenses related to a disability • Expenses for cooperative education program

9. EXPECTED FAMILY CONTRIBUTION FOR DEPENDENT STUDENT • Parent Income • Student Income • Untaxed Income • Exclusions • Assets • Family Size • Number Attending College

10. Need Varies Based on Cost

11. Principles of Need Analysis • To the extent they are able, parents have 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 its ability to pay

12. Types of Financial Aid • Gift Aid Grants & Scholarships • Federal Grants • State Grants • Institutional Grants & Scholarships • Private Grants & Scholarships

13. Types of Financial Aid • Self Help Aid Loans & Employment • Work-Study • Stafford Loans • Perkins Loans • PLUS Loans • Private Loans

14. GIFT AID

15. Federal Pell Grant Program • Awarded to eligible undergraduates pursuing first undergraduate certificate or degree • Actual award amount based on Cost of Attendance, Expected Family Contribution (EFC), and enrollment status. • For 2013-14 the Pell Grant range is $582-$5,645. • Limited to a total of 12 semesters of FT enrollment.

16. Federal Supplemental Education Opportunity Grant(FSEOG) • Campus-based aid • For undergraduates pursuing first undergraduate degree or certificate • Must be Federal Pell grant eligible • Priority to students with exceptional financial need (i. e. students with the lowest EFCs at that school) • Award Range: $100 - $4,000

17. Minnesota State Programs • Eligibility Requirements Include: • Minnesota Residency • Demonstrate financial need • Enroll for at least 3 credits at a Minnesota college or university • Apply within 30 days of start of term • Limited to 8 semesters of Full-Time Enrollment • For further requirements, go to: www.ohe.state.mn.us

18. Scholarship Resources • School need-based and non-need based programs • Academic, athletic, and other talent-based scholarships and grants • Private business scholarships • Civic organization scholarships • Local library resources • Local businesses and civic organizations • Parents’ places of employment

19. SELF HELP AID

20. Work Study • Undergraduate or graduate students are eligible • Employment on or off campus (most are on campus) • Eligible employers • School • Federal, state, or local public agency • Private non-profit organization • For-profit organization

21. Watch What You Borrow Live like a college student while in college so you don’t have to live like a college student for the rest of your life! Student loan debt has now went over 1 Trillion dollars and is now more than credit card debt in the U.S. www.studentloans.gov – loan and financial awareness counseling

22. Federal Perkins Loan • Interest rate: 5% (principal and interest deferred while in-school) • Subject to school’s FA priority application deadline • Eligible Students • Undergraduate or graduate students • Priority to exceptional need • Loan amount varies • Maximum annual loan • $5,500 undergraduate students • $8,000 graduate and professional degree students

23. Federal Stafford LoanSubsidized and Unsubsidized • School determines loan eligibility and delivers loan proceeds to the student • Subsidized Stafford: Must demonstrate “need” – no interest or principal payments while in school – currently 3.86 (8.25% cap) • Unsubsidized Stafford: Need is not a consideration – no principal payments while in school but interest does accrue – currently 3.86% (8.25% cap) • Annual loan limits (combined subsidized and unsubsidized): • $3,500 base + $2,000 unsub for 1st Year Students • $4,500 base + $2,000 unsub for 2nd Year Students • $5,500 base + $2,000 unsub for 3rd Year and beyond

24. Federal Plus Loan • Parent Loan for Undergraduate Students • Parent of a dependent undergraduate student • Annual loan limit = COA minus other aid • Repayment begins 60 days after disbursement • 4% in fees, based on the principal • Interest rate – 6.41% (10.50% cap)

25. Student Education Loan Fund (SELF) • Minnesota Office of Higher Education (MOHE) is the lender • Minnesota resident at participating schools • Out of state resident at Minnesota school • Credit worthy co-signer required • Interest rate - 3.3% minimum variable or 6.9% fixed • Not need-based; students at any income level can qualify • Loan limits per grade classification: • Undergraduate Student: $10,000 • Graduate Student: $10,000

26. Federal Tax Benefits for Higher Education • American Opportunity Tax Credit • Lifetime Learning Tax Credit • Student Loan Interest Deduction • Employer Paid Tuition Assistance • Deduction for Qualified Higher Education Expenses • More info at: www.irs.gov • For further information, go to www.ohe.state.mn.us

27. How to Apply for Financial Aid • Apply for a PIN • Go to: www.pin.ed.gov • Both one parent and student need it to sign application online • Complete FAFSA online at: www.fafsa.gov • Complete Free Application for Federal Student Aid--available beginning January 1st of the year for which you are applying • At FAFSA website, print out “FAFSA on the Web Worksheet” to assist in completing online application • Make sure to meet school determined priority dates

28. To Register for a PIN: www.pin.ed.gov

29. FOTW – www.FAFSA.gov

30. CAUTION! • Avoid being charged a fee to file the FAFSA • Processes of completing and processing the FAFSA are FREE • When filing FAFSA on the Web, make sure you go directly to: www.fafsa.gov NOT www.fafsa.com • Contact the financial aid office if you need help in completing the FAFSA

31. FAFSA InstructionsYou (the student) • Must have a Social Security Number to apply for federal aid • Put your name and SSN exactly how it appears on your social security card

32. Student Status • If all answers are “no”, proceed to parent section, where your parents will furnish income information • If you answer “yes” to any question, you are independent – skip Parent Section

33. Independent Student Definition • Born before January 1, 1991 (at least age 24) • As of today are you married; • Are you working toward a masters/doctorate; • Are you currently on Active Duty Military; • Are you a veteran of the Armed Forces; • Do you have children – must receive >50% of support; • Do you have Dependents other than children or a spouse;

34. Independent Student Definition • At any time since you turned age 13, were both of your parents deceased, were you in foster care or were you a dependent ward of the state; • Are you an emancipated minor; • Are you in a legal guardianship; or • After July 1, 2013 have you been an unaccompanied youth who is homeless as determined by school district homeless liason or HUD or director of a runaway shelter.

35. Parents Divorced or Separated: • Complete Parent Section for the parent with whom the student has lived, or from whom the student has received the most support, for the past 12 months • If your parent is remarried, step-parent information must be included, whether or not that person is actually “supporting” the student • Any child support received must be included on FAFSA in parent section

36. Income, Earnings, and Assets(Student and Parents) • Refer to completed 2013 Federal income tax return and consult instructions for proper line references. • If entry is zero or none, enter 0. Do not leave blank. • Carefully read instructions and questions • HELPFUL HINT: Round off your $ amounts. Do not use cents.

37. IRS Data Share 2014-15 • FAFSA on the Web users allowed to access tax data from IRS to populate FAFSA • Will be operational for 2014-15 FAFSA on the Web on February 3, 2014 • Optional – family can choose to enter data directly on FAFSA on the Web • 84% of families are eligible to use this process

38. Income, Earnings, and Assets, continued • Net worth = current value of assets minus debt • Separate net worth among “investments”, “business”, and “farm” to answer the three questions • Do not include the value of your home. • See FAFSA instructions for further detail on what to count as an investment

39. Investment Farm Question • Refers to an investment farm - # 92 for parents and #42 for students • Do Not include the value of a family farm that you live on and operate. Only include one that is owned solely for investment purposes • A farm that has been incorporated is not a family farm if non-family members own shares in the corporation

40. Family Business • Question #92 for Parents and #42 for students • Do Not include the value of a small business that you own and control if it has 100 or fewer full-time or full-time equivalent employees.

41. Who Should Receive Your Information? • Enter up to 10 different school codes on FOW. • For every school code listed, students will see retention, graduation and transfer rates for each school. • Check appropriate housing plans for each school.

42. Signatures • Sign electronically using PINs (Student and Parent or • Print and mail parent’s signature page

43. FAFSA Processing Results • FAFSA processed – results electronically sent to all listed schools • E-mail notification with link to student’s SAR online if student’s email address provided on: • FAFSA on the Web (takes 1-2 days if electronically signed with pin; 2 weeks if mailed in signature page) • Make sure student adds federal email address to address book to avoid delivery problems

44. What’s Next? • After you have received your SAR (either via the web, or on paper), • The schools you listed on the FAFSA may send you a request for further documentation (taxtranscript, citizenship verification, etc.) • You will then receive an award packet from your college indicating the type of aid you are being offered.

45. Helpful Resources • College Financial Aid Administrator knows best!! • Minnesota Office of Higher Ed Staff – 651-642-0567 or 800-657-3866

46. Helpful Websites • Scholarship Searches • www.fastweb.com • www.finaid.org • www.bigfuture.collegeboard.org • www.gocollege.com • www.scholarship.com

47. Scholarship Tips For tips on applying for scholarships, writing essays, and letters of recommendation go to: www.scholarshiphelp.org

48. Helpful Websites • General Financial Aid Information • www.studentaid.ed.gov • www.ed.gov

49. Helpful Websites • www.ohe.state.mn.us – MN OHE website for students and parents • FA programs and application process • Preparing for college • MN College Tuition Costs • EFC/FA Estimator for families • On-line reciprocity application

50. Helpful Websites • Education and Career Choice Information • www.petersons.com • www.mappingyourfuture.org • www.iseek.org