Student Financial Services

Summer Orientation 2007

Financing Your Education

  

Student Financial Services—The Details

Where are we?

 In the Centennial Student Union… Campus Hub/MavCard Offices When are we open?

  Monday-Thurs 8am to 6pm Friday 9:30am to 5pm Summer hours: Monday-Friday 8:00am to 4pm How to reach us  1-800-722-0544    (507)389-1866 (Campus Hub) www.mnsu.edu/campushub [email protected]

The Financial Aid Process

Determining Cost of Attendance (COA) (Institutional Budget)

 Each year, Student Financial Services determines average costs for living expenses and tuition 

It is NOT the amount you will be billed from MSU

2007-2008 COA for a MN Resident =

$14,774

2007-2008 COA for a Non Resident =

$20,834

Your Award Letter

 Review your award letter carefully and decide which loans you would like to accept and/or decline  Make sure to submit in all requested response forms promptly  Can also be completed online  Minnesota Grant considers 15 credits full-time

Cost of Attendance Cont’d (Institutional Budget)

COA= Direct Costs + Indirect Costs 

Direct Costs



Indirect Costs

 Expenses resulting from enrollment in an educational institution  Tuition  Fees  Books  Expenses not directly a result of enrollment in an educational institution  Rent  Laundry  Parking  Misc.

Stafford Borrowers

 Must complete Entrance Counseling, fill out a Master Promissory Note, and complete a Loan Transmittal Form  Can be completed online  Disbursement takes place approximately 10 days after the first day of classes for each semester

“Other Loan Options”



Alternative Loans

Terms of Alternative loans vary from one lender to another  Most have fees attached to the loan along with interest  Most loans require a creditworthy co-signer  MSU requires that a FAFSA be on file in order to process an alternative loan  You are allowed to borrow up to the COA minus any financial aid you are already receiving.

 You fill out the lender’s application and MSU will certify the loan.

Understanding Work-Study

 Awarded on a first come first serve basis depending on financial need  The average award is $1,280-$3,840 per year  Students must complete the online work-study questionnaire before they can be assigned  Minimum wage is $8.00 an hour and students are paid bi-weekly  Students should budget their money for the school year

Keeping Track of Your Loans

■ ■ ■ ■ ■ Start a file for all your financial aid paperwork File your FAFSA each year by March 15 th financial aid. for full consideration of available New school year= new financial aid file Borrow smart…stay within your means Use your PIN to check your loan amounts-go to: www.nslds.ed.gov

and click on “financial aid review”

Satisfactory Academic Progress(SAPS)

 In order to remain eligible to receive funds from us, undergraduate students must maintain SAPS requirements which are:  2.0 or higher GPA  67% completion rate  Maximum of 192 attempted undergrad credits

 Consequences of Not Meeting SAP Standards Financial Aid Probation- A student who does not meet one or more of the SAP standards will be placed on probation for one academic term provided that s/he has not been placed on financial aid probation or suspension for a prior term.

 Financial Aid Suspension- Students who do not meet SAP Standards after the probation period has ended, will be ineligible for financial aid.  All students who have been suspended have the right to appeal their suspension.  Submitting an appeal does not guarantee re-instatement of financial aid

Budget Your Money, Including Your Financial Aid

 Look at your income (savings, financial aid, paychecks)  Plot your expenses…Fixed and variable  Do the math and live within your means

Budget Busters...No Matter How Well You Plan

 The late night snack favorite…  The 8:00 class rush  Clubs and organizations at MSU  Going out---and the mall  Things you can’t live without…

Credit Cards 101: A Lesson in Plastic

   

Credit Cards and the College Student

76% of undergraduate students have at least one credit card 48% of students carry average credit card debt of $3,176 Two-thirds of undergraduates make only the minimum payments Students double their average credit card debt and triple the number of cards in their wallet from the time they arrive on campus until graduation Source: Nellie Mae, April 2005; College Board, 2005

College Students: Why and How You are the Target  You are a large group of consumers  To establish relationships with you at a younger age  Look where they set up their tables: Sporting events, stores and even in the Student Union…  FREE STUFF: T-shirts, CD holders, bags of candy, coupon books

How Credit Cards Can Get You in Trouble…Without Realizing it!

Throughout college, Jill decided to put certain education expenses on her credit card. Here is what is what it would cost Jill to payoff her credit card balance IF she makes no further credit purchases and makes only the minimum required monthly payment (which decreases over time as the outstanding balance decreases):

Principal Loan Amount Borrowed Interest Rate Monthly Payment # of Monthly payments Total Amount Repaid

$5,000 19% 3% of balance (Initially $150) 238 (20 years) $10,360

What about Educational Financial Aid Loans?

Sam decides to take out a student loan for his educational expenses. Keep in mind that most students like Sam will borrow loans for each school year. If he made the minimum monthly payment on his loan for the next 10 years, he would end up paying $1,904 in interest. Additionally, he would not be required to make any payments on the loan until 6 months after he graduates.

Principal Loan Amount Borrowed Interest Rate Monthly Payment # of Monthly Payments Total Amount Repaid

120 (approx. 10 years) $5,000 6.8% $57 $6,904

Do Your Research Before You Charge

    Look for low interest rates (Aim for 15% APR at the most)  Look out for low intro rates Watch your finance charges (late fee no higher than $29) Low or no annual fee Make sure your credit card has a grace period before finance charges are incurred (at least 25 days)

Once You Have a Credit Card…

      Pay off your balance in FULL, every month Set your own credit limit READ all fine print Keep your wallet trim… Limit the number of direct mail credit card offers you get…Call1-888-5OPTOUT to have your name removed BE SMART WITH YOUR CREDIT…IT WILL AFFECT YOU FOR THE REST OF YOUR LIFE!!

Money Management Tips

 Be clear of your needs and wants  Use your credit card wisely  Watch your checkbook  Buy used books  Buy supplies at discount stores  Find a roommate (or two) to share costs  Determine a food budget, plan your meals and USE COUPONS  Borrow only what you need in student loans



Don’t Get Phished

Internet “Phishing” scams are one of the fastest-growing frauds today  Involves a bogus e-mail message using legitimate material (company’s logo) in an attempt to get a person’s personal financial information  Never give out personal information (SSN, credit card number, etc.) in an unsolicited e mail  If you’ve been Phished, immediately contact your financial institution

Scholarships

 www.mnsu.edu/campushub/scholarships  This website includes information on university scholarships, departmental scholarships and links to other resources.

FERPA and MSU

 Parents are not permitted under the Family Education Rights and Privacy Act to access their son or daughter’s education record at the post-secondary level.

 However, with written permission from the student, the University can release information to the student’s parent, guardian or other individuals acting in a parental role in the absence of a parent or guardian. Authorization for Release of Information is available at The Campus Hub or on the web at: www.mnsu.edu/campushub/ .

 Only public information will be released to a parent without written authorization from the student unless it is an emergency situation.

Stafford Loan Counseling

 All first time Stafford Loan borrowers are REQUIRED to complete Stafford Loan Entrance Counseling.

 Session today from 10-11 in right here in Ostrander Auditorium.

 Parents are welcome to attend but only the student’s attendance counts towards meeting the requirement.

Too Much Information?

 All of this information can be found on our website www.mnsu.edu/campushub  This presentation can be found at www.mnsu.edu/campushub/presentations

Questions?

Stop by the Campus Hub if you have financial aid questions or want to talk to someone about money management.



Call us from home 1-800-722-0544 (507) 389-1866 (Campus Hub)



Check out our web site www.mnsu.edu/campushub



Email us at: [email protected]