Spatial Model of Flood Inundations in Moorhead and East Grand Forks Minnesota
2014 – 2015 Financial Aid Presented by Minnesota State University Moorhead Questions are welcome...
-
Upload
derek-booker -
Category
Documents
-
view
215 -
download
1
Transcript of 2014 – 2015 Financial Aid Presented by Minnesota State University Moorhead Questions are welcome...
2014 – 2015Financial Aid
Presented byMinnesota State University Moorhead
Questions are welcome before the session begins
Who Pays for Postsecondary Education?
• Student• Spouse, if applicable• Parents• State & federal financial aid• Private funds (scholarships)
General Financial Aid Eligibility Requirements
• Admitted or enrolled in a degree, certificate or other recognized credential program at an eligible school
• U.S. citizen or eligible non-citizen
• Registered with Selective Service (males age 18-25)
• No conviction for an illegal drug-related offense while attending college and receiving federal financial aid
General Eligibility Requirements (Cont.)
• Valid Social Security Number
• Not in default on a federal student loan
• Does not owe repayment of a federal grant
• Making satisfactory academic progress as defined by the school
Pell and Loan Limits
• Pell Grant limited to six years full-time attendance (12 full-time semesters; 600% rule)
• Subsidized Direct Loan limited to 150% of time required to complete degree (example: Bachelor’s Degree requires four years; Subsidized Direct Loan limited to six years. Associate Degree requires two years; Subsidized Direct Loan limited to three years)
Cost of Attendance
• Tuition and fees• Room and board• Books, supplies, equipment• Transportation and miscellaneous personal
expenses
• Study abroad costs• Dependent care expenses• Expenses related to a disability
Expected Family Contribution for Dependent Students
• Parent income• Student income• Untaxed income (SNAP, child support)• Assets• Age of older parent• Household size• Number attending college• Allowable exclusions
What is Financial Aid?
• Grants
• Scholarships
• Employment opportunities (Work Study)
• Educational Loans
• Available for full-time or part-time enrollment!
Types of Grant Programs
• Federal Pell Grant• Federal Supplemental Educational Opportunity
Grant (FSEOG)• TEACH (grant/loan possible)• State Grant
• Available only for undergraduate study (except TEACH)
Federal Pell Grant
• Awarded to eligible undergraduates pursuing first bachelor’s degree• Portable• Actual award amount is based on the school’s Cost of Attendance, student’s Expected Family Contribution (EFC) and enrollment status (full-time or part-time)• Maximum award: $5,730 (2014-15 est.)• 600% limit
Federal Supplemental Educational Opportunity Grant (SEOG)
• Eligible student:• Undergraduate pursuing first bachelor’s degree• Awarded by school to students with exceptional
financial need (lowest EFC)
• Annual amounts: Minimum = $ 100 Maximum= $4,000 (or amount set by school)
TEACH• Amount: $4,000 per year/$16,000 undergraduate
maximum
• Grant, with a teaching obligation in a high demand field at a school eligible for Title I assistance
• Teach 4 years within 8 years of graduation
• If teaching obligation is not met, grant becomes an unsubsidized loan with interest accruing from the date grant is first disbursed
State Grant
Awarded to eligible students who are residents of the state, for attendance at a college or university within the state in which they reside.
Federal Work Study (FWS)
• Eligible students: Undergraduate and graduate/professional students
• Eligible employers, on- or off-campus:– School– Federal, state, or local public agency– Private non-profit organization– For-profit organization in academically relevant
jobs• Emphasis on community service
Types of Educational Loan Programs
• Perkins Loan• Stafford/Direct Loans– Subsidized– Unsubsidized– Parent Loan for Undergraduate Students
(PLUS)
• Private Educational LoansDEAL, SELF, etc.
Perkins Loan
• Priority to “exceptional need” students• Priority to Pell eligible students• $5,500 annual maximum (undergraduates)• $27,500 aggregate maximum• 9 month grace period• 5% interest (during repayment)
Federal Direct Loan(Subsidized & Unsubsidized• Largest source of low interest loans administered by
Department of Education• Available to both undergraduate and graduate
students enrolled at least half-time• Lender is the U.S. Department of Education and U.S.
Treasury• Student’s Pell Grant eligibility must be determined
first
Federal Direct Loan
• Annual base loan limits– $5,500* for the first year of undergraduate study– $6,500* per year for student who has successfully
completed first year of an undergraduate program (sophomore)
– $7,500* per year for student who has successfully completed second year of undergraduate program (junior and senior)
– $20,500 per year for graduate and professional students
* Includes $2000 Federal Unsubsidized Loan
Federal Direct Loan
• “Subsidized” and “Unsubsidized” are essentially the same, except interest rate; and interest charges are paid for the student in the subsidized Direct Loan program and charged to the student for the unsubsidized Direct Loan program.
NoCo-Signer Required!
Subsidized Loans
• Must demonstrate “Need”• Interest is paid by the federal government
while the student is enrolled at least half-time
• Six-month grace period before repayments begins
• Interest rate during repayment: Fixed at 3.86%
Unsubsidized Loans
• Need is not a factor• Interest accrues beginning the day the loan is
disbursed; until the loan is paid in full• 3.86% fixed interest rate (from date of
disbursement)• The student may choose to capitalize interest• Six month grace period before repayment begins
Federal PLUS Loan
• Parent Loan for Undergraduate Students• Parent of a dependent undergraduate student• Annual loan limit = cost of attendance at the
school, minus other aid• Repayment begins 60 days after disbursement• Payment deferment available while student is
enrolled at least half time (parent must request)
• Fixed interest rate of 6.41%
How to Apply for Financial Aid
Submit a Free Application for Federal Student Aid (FAFSA) every year
Available January 1
Free Application for Federal Student Aid (FAFSA)
• FAFSA is required for the federal (and state) student financial aid application process
• Collects family’s financial and demographic information
• Used to calculate an Expected Family Contribution (EFC)
• Used to confirm student eligibility via database matches with federal agencies
Caution!
• Avoid being charged a fee to file the FAFSA– Completing and processing the FAFSA is FREE– If filing FAFSA on the Web: www.fafsa.gov– Contact the financial aid office if you need help
in completing the FAFSA. A paper version (PDF) is available for students without computer access.
FAFSA on the Web• Internet application used to complete electronic
FAFSA: www.fafsa.gov• Most browsers are supported by the FAFSA site (a
browser check and compatibility confirmation is automatically performed at login)
• Application information is sent directly to Central Processing System (CPS)
• Student and parent must sign electronically with the PINs (obtain for student and parent at www.pin.ed.gov)
• OR, without PINs, print, sign, and submit the signature page to FAFSA-CPS
Independent Student Definition
• At least 24 years old by December 31 of the award year covered by the FAFSA; or
• Graduate or professional student; or• Married; or• Have children student supports; or• Have legal dependents other than a spouse supported by student; or• Orphan or ward of the court at age 13 or older; or• Currently serving on active duty or a veteran of the U.S. Armed
Forces; or • Court emancipated minor or in legal guardianship; or• Documented as homeless, or a homeless unaccompanied youth; OR• Determined to be independent by the financial aid administrator
Parents Separated or Divorced?
• Complete “parent” sections for the parent with whom the student has lived with more in the last 12 months. If equal, use the parent from whom the student has received the most financial support in the past 12 months.
• If that parent is remarried, step-parent information must be included, whether or not the step-parent is actually “supporting” the student
• Any child support received must be included as income
Income, Earnings & Assets(Student & Parents)
• Use submitted 2013 Federal income tax information Estimated figures may be used for early FAFSA submission,
followed by corrections with actual figures when income tax returns are completed. Best solution is to do a correction to the FAFSA and use the IRS Data Retrieval tool to update early estimates to actual income data.
• If entry is zero or none, enter 0. Do not leave blank
• Carefully read the “Additional Financial Information” and “2013 Untaxed Income” sections to correctly answer questions for both the student and parent(s)
• Round off dollar amounts. Do not use cents
Estimating Income
3 weeks after electronic filing; 8 weeks after paper filing of 2013 taxes Start up is late February 2014
Providing IRS Data: IRS Data Retrieval
Tool Initial FAFSA or FAFSA Corrections English and Spanish
Available late February 2014 (for processed tax returns)
Assets
• Net worth = current value of assets minus debt • Separate net worth of savings and checking
accounts from other types of investments• Retirement investments such as 401K or pensions
are exempt• Do not include the value of your home• Business net worth is excluded if family owned and
controlled with no more than 100 employees
Investment Farm Question
• Do not include the value of a family farm you live on and operate. Include value of a farm that is owned but not operated by parents or student
• A farm that has been incorporated is not a family farm if non-family members own shares in the corporation
Who Should Receive Your Information?
• Select school(s) from the pick list (may list up to ten) if filing electronically
• Name, address, and state of college may be entered if you do not know the code (on paper version)
• Check appropriate housing plans for each school
Signatures
• Web filers can sign electronically with student and parent PIN (get at www.pin.ed.gov)
• If student or parent does not have a PIN, print the signature page, student and parent sign and mail
• Paper filers: Student and parent must sign the FAFSA
FAFSA Processing Results• FAFSA processed – results electronically sent to all
listed schools.• You will be notified of the FAFSA’s processing
results by:– E-mail acknowledgement if student’s e-mail
address was provided. Generally, this is sent within 72 hours if filed on the web.
– Paper Student Aid Report (SAR) if student’s e-mail address was not provided. This can take 3-6 weeks from when the federal processor received the application if a paper application is filed.
Most Common Mistakes
• Incorrect Social Security Number• Incorrect parents’ income or taxes paid (use DRT!)• Incorrect amounts of untaxed income• Incorrect information for divorced or remarried parents
(step-parent information missing or incorrect)• Incorrect household size or number in college for the
application year (7/1/14 - 6/30/15 for 2014-15 application)• Missing signatures• Incomplete FAFSA• Not reading the instructions – may result in a rejected
FAFSA (corrections required)
Verification
• Confirms accuracy of information reported on FAFSA by students and parents
• Certain data elements selected by the FAFSA processor or school
• Common documents requested:– 2013 IRS Tax Transcript only (copy of tax return is not
acceptable)– W-2’s (may be requested by some schools)– Household size and number in college– SNAP– Child support received
High School CompletionIdentity/Statement of Educational Purpose
• Some students required to verify their high school completion status (final high school transcript, GED or home school completion)
• Some students required to verify their identity and submit a Statement of Educational Purpose: “I certify that I am the individual signing this Statement of Educational Purpose and that the federal student financial assistance I may receive will only be used for educational purposes and to pay the cost of attending _______ for 2014-2015.”
Financial Aid Notifications• Students should:– Accept or decline offer– Sign and return award notification to financial aid
office, if required– Complete Federal Direct Loan acceptance and/or
application(s), if applicable– Sign promissory notes for educational loan, if
applicable– First timeborrowers must complete Entrance Loan
Counseling (school will inform of process to complete)
Evaluating Aid Packages
• Biggest is not always best; unmet need must be considered
• Are cost estimates realistic?• Grant/loan balance• What are terms and conditions of loans
offered?• Renewable vs. non-renewable scholarships• Types of aid offered in view of student’s:
– Career objectives– Work expectations
Special Circumstances
Student should contact financial aid administrator if there is a loss or reduction of family income due to:– Loss or reduction of child support payments to
“custodial” parent– A family death or illness– Unusual high medical or dental expenses not
covered by insurance and paid out-of-pocket– Other unusual circumstances
May result in revised award
Reciprocity
• Receive tuition close to or same as resident tuition rate
• Remember to apply through your home state!
• In some cases, no additional application is needed
• Obtain the application from your high school counselor in the spring (if required)
• North Dakota
• Minnesota
• South Dakota
• Wisconsin
More Ways to Finance Education
• IRA Early Withdrawal Provision for Education– No penalty for early withdrawal of IRA funds to pay qualified
educational expenses
• Education IRA – Contributions are made until the beneficiary reaches age 18
• 529 Savings Plans– State-sponsored college savings plan with designated beneficiaries
Speak with your financial adviser for family-specific information
Scholarship Resources• College awarded need-based and non-need based programs
– Academic, athletic and other talent-based scholarships and grants
• High School Counselors• Parents’ places of employment• Private business scholarships• Civic organization scholarships• Local businesses and civic organizations
• Internet Scholarship Searches (such as fastweb.com)• Local library resources
• To check the legitimacy of scholarship search organizations or individuals, check Better Business Bureau website at www.bbb.com/
Student Borrowing & Money Management Tips
Warning:Students can get hooked into excessive borrowing for non-educational expenses. Students and parents should borrow wisely and minimize credit card and student loan debt.
Student Borrowing & Money Management Tips (Cont.)
• Cut Costs by Curbing Expenses– Take advantage of campus activities– Purchase used textbooks– Minimize excessive travel– Keep phone expenses to a minimum– Carpool or take a bus when going home– Go with the basics in fashion– Exercise credit card restraint
Student Borrowing & Money Management Tips (Cont.)
• Manage money wisely– Make a budget and stick to it– Be a student worker – Student workers typically
do better in their studies– Earn and save as much as possible from a
summer job– Work part-time while in school (but don’t
jeopardize studies!)
Questions?
Office of Scholarship and Financial AidMinnesota State University Moorhead
107 Owens Hall(218) 477-2251