Transcript Document

Melvin Monette, MSEd
Director
UMN School of Public Health Recruitment and Diversity
Investing In
Your Future
…an introduction to financial aid
Financing Your Future
• What does college cost?
• What is financial aid?
• How do I apply for financial aid?
• Where can I get more information?
What does college cost?
(annual tuition and fees)
• Private Colleges: $29,023
• Private Career Colleges: $12,233
• University of Minnesota: $11,466
• State Universities: $6,639
• Community & Technical Colleges: $4,708
Estimated Annual
Cost of Attendance (COA)
Ex. Community
College COA
Tuition & Fees
Ex. Private College
COA
4,708
36,504
650
1,000
Room & Board
live with parents
8,472
Transportation
124
2,000
1,000
1,000
$6,482
$48,976
Books & Supplies
Personal Expenses
Total
How will I pay for it?
•
•
•
•
•
•
Family support
Savings
Work
Grants
Scholarships
Loans
What is financial aid?
• Scholarships
• Grants
• Loans
• Employment Opportunities
Where does it come from?
Federal and state government, schools,
employers, and other public and private
sources like clubs and organizations.
Search for scholarships
• on the Web
• at the library
• high school counselor’s office or career
center
• in the community: church, civic, and business
organizations, parent’s employer
• your college(s) of choice
Avoid scholarship scams
• Know that legitimate
scholarships never charge
fees and the application
information is available to
everyone.
• Don’t fall for guarantees or
claims that someone has
information you can’t get
anywhere else.
Grants
• Federal Pell Grant: need-based; annual award
range is $400 - $5350
• Federal SEOG Grant: limited funding; priority
given to students with exceptional need;
annual award range is $100 - $4,000
• Minnesota State Grant: MN resident enrolled at
eligible MN school; for students from low and
moderate income families; annual award range
is $100 - $9,444
...more on grants
• Minnesota Achieve Scholarship: MN resident with
family income of < $75,000; must complete a
rigorous high school curriculum; one-time award of
up to $4,022; apply on-line at:
www.getreadyforcollege.org/achieve
• Institutional Grant: college or university funds
awarded to students with financial need
Loans
Interest Rate
Repayment
Federal Perkins
Loan
5%
9 months after
school
Federal
Stafford/Direct
Loan
5.6% subsidized
6.8%
unsubsidized
6 months after
school
Federal Parent
PLUS Loan
7.9% Direct
lending schools
8.5% FFEL
schools
May be deferred
until 6 months
after school
Minnesota SELF
Loan
Variable interest
rate
Currently 5.8%
12 months after
school
Alternative/
Private Loans
Variable
Variable
Additional Info
• Subsidized: no interest
charged while in school
• Unsubsidized: interest
accrue while in school
• Must pay quarterly
interest while in school
• Requires a credit worthy
co-signer
Work Study
• Part-time student employment
• Earnings paid to student
• Work-study earnings not included
when determining EFC on next
year’s FAFSA
How do I apply for financial aid?
• Complete the Free Application for Federal Student Aid
(FAFSA)
• Complete school financial aid application (if required)
• Meet application deadlines
• Apply for scholarships
• Contact your financial aid administrator if you have
special circumstances
FAFSA on the Web
www.fafsa.gov
• Completing and
processing the FAFSA
are free!
• Avoid being charged a
fee to file the FAFSA.
• Contact your school’s
financial aid office if you
need help.
Avoid Errors!
• Put your name and SSN on FAFSA exactly how it
appears on your social security card.
• Refer to completed federal income tax return and
consult instructions for proper line references.
• If entry is zero or none, enter 0. Don’t leave blank.
• Enter school code(s).
• Student and one parent must both sign
dependent student’s FAFSA.
What makes a student
“independent”?
• At least 24 years old by December 31st of the award year
covered by the FAFSA
• Graduate or professional student
• Married
• Has legal dependents other than a spouse who receive
more than one half of their support from the student
• Both parents deceased, in foster care, homeless or ward
of the court
• On active duty or veteran of the U.S. Armed Forces
• Emancipated minor or in legal guardianship as
determined by a court
How does the school determine
my financial aid awards?
Cost of Attendance (COA)
- Expected Family Contribution (EFC)
= Eligibility for need-based financial aid
Expected Family
Contribution (EFC)
• What is the EFC?
– Indicates how much of your and your family’s
financial resources should be available to help
pay for your education.
– The EFC is calculated from your FAFSA
according to a formula established by law.
• The COA is different at each school, but a
student’s EFC stays the same. A student’s
need will be different from school to
school.
EFC Components
Dependent Student
• Parents’ income
and assets
• Number in family
• Number in college
• Student’s income
and assets
Independent Student
• Student’s income
and assets
• Number in family
• Number in college
Get free help with the FAFSA
MNCollegeGoalSunday.org
It’ll take more than good luck and best
intentions to pay for college. You need a
plan. Begin with College Goal Sunday.
Other Resources
• Reciprocity Programs
– Wisconsin, North and South Dakota, Manitoba
– MSEP: Kansas, Michigan, Missouri, Nebraska
• Federal Tax Benefits for Higher Education
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–
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Deduction for Qualified Education Expenses
Employer Paid Tuition Assistance
Hope and Lifetime Learning Tax Credits
Student Loan Interest Deduction
• Other Government Programs
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Americorps Program
Bureau of Indian Affairs Grants
Dislocated Worker Programs
ROTC Scholarships and/or Stipends
Veterans Benefits
Vocational Rehabilitation Programs
Where can I get more
information?
• U.S. Department of Education: www.ed.gov
• Minnesota Office of Higher Education: www.ohe.state.mn.us
• Internet System for Education & Employment Knowledge:
www.iseek.org
• FinAid! - The Financial Aid Information Page: www.finaid.org
• FastWEB scholarship search: www.fastweb.com
• The College Board: www.collegeboard.org
Money management
for students
• Graduate on time!
• Create a budget and stick to it.
• Avoid credit card pushers.
• Plug everyday spending leaks.
• Do you really need a car on campus?
• Live like a student.
What do I do…and when?
• Apply for scholarships now and throughout college.
• Apply for admission to your school(s) of choice.
• Complete the FAFSA (each year) as soon as possible after
January 1.
• Review your Student Aid Report (SAR) for accuracy.
• Respond promptly if your school requests more information.
• Respond to financial aid award notice and complete any
loan promissory notes.
• If awarded work-study, obtain work-study job and begin
working once school begins.
Scholarship Application Advice
• Keep records – they all ask for similar
information
• Keep electronic records of essays – they
can always be easily reworked to apply to
specific scholarships
• ANSWER the Question!!
• Think of it as a job – what are you willing
to do for $X per Hour??
Investing In Your Future
…an investment in you!