1/22/2015 Financial Aid Information Session 2015-2016 January 22, - PDF document

1/22/2015 Financial Aid Information Session 2015-2016 January 22, 2015 Farmington High School Tina Kukowski Assistant Director of Student Financial Services Carleton College What is “Financial Aid”? • Financial Aid refers to specific borrowed, given, or earned money that can be obtained from various sources to help pay for college • It is intended to make up the difference between what your family can afford to pay and what college costs Need Based Aid • Grants � Awarded based on the basis of financial need • Scholarships � Awarded based on merit, skill or unique characteristics • Federal or State Work-Study � A need based employment program that provides on and off campus jobs to students � Allows a student to earn money to help pay educational costs • Federal Perkins Loan & Federal Direct Subsidized Loans � Awarded based on the basis of financial need � Interested is covered by government while student is in school 1

1/22/2015 Non Need Based Aid • Federal Direct Unsubsidized Loans • Federal Direct Parent Loan for Undergraduate Student (PLUS) Loans • MN SELF Loan • Private Loans Repayment usually begins after student is out of school Only borrow what is needed! Cost of Attendance (COA) • The cost of attendance for a student is an estimate of that student’s educational expenses for the period of enrollment. � Direct Expenses (paid to the � Indirect Expenses (may vary by student, estimated for the institution) “average” student expenses) � Tuition and fees � Book & Supplies � Campus Room & Board � Transportation � Living Expenses � Miscellaneous • COA varies from school to school What does it cost to go to college? Comprehensive Cost 2014-15 (tuition, room, board, and required fees) � St. Cloud State: $16,302 � University of Minnesota (Twin Cities): $25,374 � Metro State: $25,556 � St. Catherine’s: $41,027 � St. Olaf: $51,200 � Carleton College: $60,102 2

1/22/2015 Expected Family Contribution (EFC) • Result of the FAFSA calculation – determines eligibility for federal, state and institutional need- based grants, loans and work-study. • Parent and Student Component • Factors in income, net assets, number in the family, number in college • Assumes that you need some money left for expenses other than college • EFC is a constant for each student- does not change based on the cost of the school Determining Financial Need � The Formula Cost of Attendance (COA) - Expected Family Contribution (EFC) Financial Need Financial Aid Examples School A School B School C COA $16,500 $25,000 $55,000 EFC - $4,000 - $4,000 - $4,000 Need $14,500 $21,000 $51,000 Federal Pell Grant - $2,000 - $2,000 - $2,000 Work Study 0 - $1,000 - $2,000 Institutional Grant 0 - $3,000 - $43,500 Student Loan - $5,500 - $5,500 - $3,500 PLUS Loan - $4,000 - $9,500 0 Remaining 0 0 0 3

1/22/2015 How to Apply � To be considered for student aid, a student must complete all forms required by a college. � Free Application for Federal Student Aid (FAFSA) � Institutional Forms or requirements (such as CSS/Financial Aid PROFILE � Respond promptly for any requests for additional information (such as verification documents) Communicate with each college to find out what is required for a complete application and any school specific deadlines. Completing the FAFSA – www.fafsa.gov Completing the FAFSA � What information is needed? • Social Security Number – Be sure this is correct! • Alien Registration Number/Permanent Resident card if you are not a US Citizen • Driver’s License Number if you have one 4

1/22/2015 Completing the FAFSA � What information is needed? • You (and your spouse’s) signed 2014 Federal Income Tax Return • IRS 1040, 1040A, 1040EZ forms • W-2 forms • Use the IRS Data Retrieval feature on the FAFSA to transmit your 2014 taxes into your FAFSA. • Available 2-3 weeks after filing taxes online, 8-11 weeks after filing on paper Completing the FAFSA � What information is needed? • Records of untaxed income, such as: • Child support paid/received • Veterans non-educational benefits • Worker’s Compensation • Any other untaxed income information • Asset information • Bank statements • Investment real estate, business, and farm Completing the FAFSA � What information is needed? • Asset information • Stock/Bond options • 529 plans and other college savings programs � Parental information is required unless a student is at least 24 years of age or meets the criteria for filing as an independent student 5

1/22/2015 Avoid FAFSA Errors � Name must be the same as it is on your social security card. � If entry is zero or none, enter 0. Don’t leave blank. � Enter your school’s code � Make sure student and parent sign the FAFSA. Dependent or Independent � A student is Independent if they can answer “yes” to any of the following: � Born before 1/1/1992 � Homeless or at the risk of being homeless � Married as of the day the FAFSA is filed � In Legal guardianship � Have dependent children � Are a veteran of the Armed who they support Forces � Are an orphan or ward of the � Will be working on a Graduate court Degree during the 2015-2016 school year � Emancipated Minor � Students who cannot answer yes are considered dependent and must include parental information. Dependent Student – Who Is Considered a Parent? � Grandparents, foster parents, other relatives and legal guardians are NOT considered parents on the FAFSA unless the student has been legally adopted � If biological/adoptive parents are married OR are living together but not married, provide information for both parents � If biological/adoptive parents are divorced or separated, provide information for the parent with whom the student lives for the majority of the time � If that parent is remarried, include stepparent information, even if the stepparent did not adopt the student 6

1/22/2015 FAFSA PIN Registration www.pin.ed.gov Personal Identification Number (PIN) � Serves as an electronic signature and provides access to personal records � PIN is conditional until relevant information is verified with Social Security Administration (1-3 days) � Parents and students need separate PINs to sign the FAFSA � New FSA ID coming April 26, 2015 Types of Aid - Grants � Federal Pell Grant - awards from $602 - $5,730/year in 2014-15 – based on EFC. � Federal Supplemental Educational Opportunity Grant (FSEOG) – Limited funding, priority given to student with exceptional need, awards from $100- $4000/year. � Minnesota State Grant – Must be a MN resident enrolled at an eligible MN school. Awarded to students from low and moderate income families, the maximum award per year at a public 2-year college is $6,927 and at a 4- year private $10,745 in 2014-15. � Minnesota Dream Act – For undocumented students that attended a MN high school for at least 3 years, or graduated from a MN high school or earned a GED in MN. Allows the student who can’t fill out a FAFSA possible MN state aid and instate tuition rates. See the MN Office of Higher Education website for more details www.ohe.state.mn.us/MNDreamAct � Institutional Grants – Can me need based or merit based and awarded from funds the college or university has. 7

1/22/2015 Types of Aid - Scholarships Scholarships Count! � Scholarships help fill the financial gap � Scholarships do not have to be paid back � Never pay for a scholarship search � There are scholarships with deadlines in every month of the year � Apply regularly and apply often � Continue searching for scholarships after you have enrolled in college � Notify your college of any scholarships received Scholarships Search � Don’t forget to check in your local area as well � High School and College Counselors � College Fairs/Events � College websites � Employer’s � Church, Unions, Clubs, etc. � Word of mouth • Do you know anyone who received scholarships? Ask them about their search. 8

1/22/2015 Scholarships Search � Internet Resources • Fastweb.com • Scholarshipsamerica.com • Scholarships.com • Zinch.com • Collegesholarships.org • Collegeboard.com Types of Aid – Work Study � Part-time student employment � Earnings paid to student � Work study earnings not included when determining EFC on the next years FAFSA � Funded by Federal, State, or Institution Types of Aid - Loans Only borrow what is needed! � Federal Perkins Loan – 5% interest rate, no fees, interest and repayment begins after leaving school. � Federal Stafford/Direct Loan – low interest loans (4.66% for the 2014-2015) repayment on principal starts after leaving school. Interest may or may not be charged while in school. � Federal Direct Parent Loan for Undergraduate Student (PLUS) – Loan in parents name for their child's education. Interest rate of 7.21% in the 2014- 15 year. Credit check is required and repayment starts 60 days after last disbursement. � MN SELF Loan – For any MN Resident attending any school. Requires co- signer. Please see the MN Office of Higher Education website for more details on interest and repayments. www.ohe.state.mn.us � Alternative Loan – Through a bank or credit union, requires credit check, interest varies. Most will require co-signer. Repayment may be required in school or after. 9