financing education after high school a financial aid information session provided by the north...
TRANSCRIPT
Financing Education
after High School
A Financial Aid Information Session provided by the
North Dakota Association
of Student Financial Aid Administrators
Prepared by:Student Loans of North Dakota Including information from the National Association of Student Financial Aid Administrators (NASFAA)
Cost of Attendance
• Tuition & Fees
• Room & Board
• Books & Supplies
• Loan Fees
• Transportation
• Miscellaneous Personal Expenses
Financial Aid
• How do I apply?
• Who is eligible?
• What is financial aid?
mystudentloanonline.nd.gov
FAFSAFree Application for Federal Student Aid
• Basic application for federal and state aid
• Collects information about the student and family
• Used by school to determine student’s financial aid eligibility
• Can be completed online or on paper
– fafsa.ed.gov– fafsa.gov
Definition of Independent Student
• At least 24 years old
• Married
• Graduate or professional student
• Veteran of U.S. Armed Forces or Active Duty
• Has children or dependents (other than a spouse) who receive more than half of their support from you
• Orphan, foster child or ward of the court
• Emancipated minor
• Unaccompanied homeless youth
• Determined to be “independent” by financial aid administrator based on unusual circumstances
Frequent FAFSA Errors
• Parent and student Social Security Numbers
• Divorced/remarried parental information
• Income earned by parents/stepparents
• Untaxed income
• U.S. income taxes paid
• Household size
• Number of household members in college
• Real estate and investment net worth
mystudentloanonline.nd.gov
FAFSA Tips
• Gather documents you need– Use Web Worksheet
• Complete as soon as possible after January 1
– By March 1 for best results.
• Follow up with the financial aid office
• You must submit a FAFSA each year while in school
Special Circumstances
Contact Financial Aid Administrator:
• Divorce/separation after filing FAFSA
• Loss of income or unemployment
• Unusually high medical expenses
• One time income
• Other unusual circumstances
Documentation:
• Paid receipts
• Tax returns
• Divorce decree
• Others as requested
mystudentloanonline.nd.gov
Student Aid Report (SAR)
• Summary of FAFSA
• Review for accuracy
• Reports EFC (expected family contribution) – Calculated from FASFA information– Benchmark used to determine
eligibility for financial aid– Students with lower numbers
may receive more money
College Financial Aid Award Letter
Financial Aid Process
Financial Aid
• How do I apply?
• Who is eligible?
• What is financial aid?
mystudentloanonline.nd.gov
General Student Eligibility
• U.S. citizen or eligible noncitizen
• Valid Social Security Number (SSN)
• Registered with Selective Service (if male and required)
• Enrolled or accepted for enrollment in eligible program of study
• Pursuing degree, certificate, or other recognized credential
mystudentloanonline.nd.gov
General Student Eligibility(cont.)
• Must be making satisfactory academic progress
• Not convicted of a drug-related offense which occurred while receiving Title IV Funds
• May not be in default on a federal student loan
• Must not owe an overpayment of federal grant or loan funds
mystudentloanonline.nd.gov
Financial Aid
• How do I apply?
• Who is eligible?
• What is financial aid?
mystudentloanonline.nd.gov
What is financial aid?
mystudentloanonline.nd.gov
• Scholarships
• Grants
• Work Study
• Student Loans
• Other Resources
Where to find scholarships
• Local businesses & organizations• Library• Colleges/Universities• Call College Information Service at SLND• Religious Organizations• Fraternal Organizations• Employers• Tribal Agencies• State Agencies• Large Corporations• Internet
mystudentloanonline.nd.gov
Internet Addresses
• www.mystudentloanonline.nd.gov
• www.fastweb.com
• www.finaid.org
• www.scholarships.com
• www.collegenet.com
• www.srnexpress.com
• www.cashe.com
• www.winscholarships.commystudentloanonline.nd.gov
Don’t get scammed!
Several hundred thousand students & parents are victims of scholarship search scams!
mystudentloanonline.nd.gov
North Dakota State Grants
• State Grant: $1,200– Complete FAFSA by March 15
• Academic or Career/Tech Ed Scholarship: $1,500– Application deadline June 1– 24 ACT (by February 6, 2010)– 2.75 GPA to renew
• Indian Scholarship: $800– Application deadline July1
• Scholars Program– Top 5% of ND students taking ACT– Full tuition scholarship
Federal Grants
• Pell Grant: Up to $5,550– ACG:
• $750 Freshman• $1,300 Sophomore (3.0 GPA)
– SMART Grant: $4,000 (3.0 GPA) • Juniors & Seniors in eligible major
– SEOG: Up to $4,000
• TEACH Grant: $4,000 – (3.25 GPA) – Agree to teach at least 4 years
Federal Work Study
• Undergraduate, graduate, and professional students
• Employment may be on or off campus
• Eligible employers:– Schools– Federal, state, or local public agencies– Certain private nonprofit and for-profit
organizations
mystudentloanonline.nd.gov
Types of Loans
• Federal Perkins• Federal Stafford• Federal PLUS• Alternative
– BND: Dakota Education Alternative Loan
(DEAL)
mystudentloanonline.nd.gov
Perkins Loan
• Undergraduate and graduate students
• 5% fixed interest– Interest free in school
• Institution is the lender
• Schools establish awarding criteria– Loan amount varies, but cannot
exceed $4,000 per year
• 9-month grace period
• $40 minimum paymentmystudentloanonline.nd.gov
Federal Stafford Loans
• Subsidized or Unsubsidized
– Subsidized: Interest is paid by the government while the student is in-school, grace, or deferment status
– Unsubsidized: Interest is paid by the student during all loan statuses; the interest is billed quarterly
mystudentloanonline.nd.gov
Federal Stafford Loans
• Student is the borrower
• Must be enrolled at least half-time
• School determines loan eligibility and delivers loan proceeds to students
• Requires a signed Master Promissory Note (MPN)
• Fixed interest rate – 4.5% subsidized loans– 6.8% unsubsidized loans
• 1% Default fee– BND currently pays origination &
default fee!!
Federal Stafford 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
Aggregate Sub & Unsub Limits
$31,000 ($23,000 Sub) – Dependent Undergraduate
$57,500 ($23,000 Sub) – Independent Undergraduate
$138,000 ($65,500 Sub) – Graduate/Professional
Repayment• Begins 6 months after student graduates,
withdraws or drops below half-time enrollment
Ways to Reduce Student Loans
• Graduate in 4 years
• Take advantage of free credits
• Work & save
• Buy your own books
• Trim expenses
• Avoid credit cards
• Pay interest as it accrues
• Don’t borrow the maxmystudentloanonline.nd.gov
Federal PLUS LoansParent Loan for Undergraduate Students
• Loan in parent’s name• Parent responsible for repaying loan• Credit application required• Fixed rate = 8.5%• 3.0% Origination fee + 1% Default fee• Maximum loan amount is cost of
education less other financial aid• Repayment begins 60 days after final
disbursement • Requires a signed Master
Promissory Note (MPN)
Alternative Student Loans
• Extra funding for school expenses
• Alternative or Non-federal Loans
• Lenders set terms
• School certified or Direct to Consumer
• FAFSA is sometimes not required
mystudentloanonline.nd.gov
Choosing a Lender
• Use a mainstream lender– Borrow maximum Federal and institutional
aid first
• Consult the financial aid office
• Think before you borrow
• Ask questions– Interest rate & fees
– Repayment: when & how much
– Deferments
mystudentloanonline.nd.gov
DEAL Loan Dakota Education Alternative Loan
• Alternative loan for students• Student responsible for payments
– Payment deferred while in school
• No loan fees• Co-signer may be needed
– Required if under the age of 24– Possible co-signer release after 24
on-time payments
• Choose interest rate– current fixed rate is 5.99%– current variable rate is 1.79%
(Oct 1, 2009 – Dec 31, 2009)
College SAVE 529 Plan
• Administered by BND
• In-state tax deduction
• Matching grant
• Upromise Investments Plan Manager – Investment Options through Vanguard Group
• Start account with as little as $25
• Open an account at collegesave4u.com
Tax Benefits for Education
• Hope Tax Credit
• Lifetime Learning Credit
• Deduction for Student Loan Interest
• Tuition and Fees Deduction
You generally cannot claim more than one benefit for the same education expense.Go to IRS.gov for more information on tax benefits.
mystudentloanonline.nd.gov
Who can help?
• High School Counselor
• College Financial Aid Office
• College Information Service @ Student Loans of North Dakota
mystudentloanonline.nd.gov
Need More Help?
• February 21, 2010
• Receive hands-on assistance to complete your FAFSA
• Eleven North Dakota locations:– Belcourt, Bismarck, Dickinson,
Fargo, Fort Yates, Fort Totten, Grafton, Grand Forks, Minot, New Town & Williston
• Chance to win a computer or $500 scholarship
• www.collegegoalnd.org
Find Us At…
mystudentloanonline.nd.gov
1-800-554-2717