Paying for College Financial Aid Overview
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Transcript of Paying for College Financial Aid Overview
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Paying for CollegeFinancial Aid Overview
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College Expenses
• Tuition & Fees• Room & Board• Books & Supplies• Transportation• Miscellaneous Personal
Expenses
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What is Financial Aid
• Scholarships• Assistance Programs• State Grants• Federal Grants• Federal Work Study• Student Loans
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Where to Find Scholarships• Local businesses & organizations• Library• Colleges/Universities• Religious Organizations• Fraternal Organizations• Employers• Tribal Agencies• State Agencies• Large Corporations• Internet
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Internet Addresses
• nddfs.org• fastweb.com• finaid.org• scholarships.com• collegenet.com• cashe.com• winscholarships.com
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Assistance Programs
• ND Job Corps• Vocational Rehabilitation• Employee Assistance• Military Tuition Benefits• Tribal Higher Education • Individual Development Accounts
− ND Community Action Partnership− Call 701-232-2452 or visit www.capnd.org
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State Grants
• Scholars Program• Indian Scholarship: $1,200• Academic or Career/Tech Ed
Scholarship: $1,500• State Student Incentive Grant:
$1,500
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How much federal financial aid
will be awarded this year?
A. $156 millionB. $156 billionC. $156 trillion
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FAFSAFree Application for Federal Student Aid
• Basic application for student aid• Collects student and family info• School determines financial aid• Completed online– fafsa.gov
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FAFSA Tips
• Complete as soon as possible–By April 15 for best results
• Complete taxes 1 month prior• Follow up with financial aid office• Must do FAFSA each year
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Frequent FAFSA Questions
• Who is a parent?• Who to include in household?• What assets to report?
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FAFSA4caster.ed.gov
• Federal aid estimator• Any student of any age• Reminder to fill out the FAFSA• Won’t have to retype
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How many FAFSAs are processed each year?
A. 1 millionB. 5 millionC. 14 million
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Financial Aid Process
Apply to Schools
Complete FAFSA
Review SAR
Receive Award Letter
• Choose School
Sign MPN
Money sent to school
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Federal Work Study
• Say “yes” on FAFSA• Jobs may be on or off campus• Eligible employers:– School–Agencies–Organizations
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Federal Grants
• Pell Grant: –Up to $5,550
• FSEOG: –Up to $4,000
• TEACH Grant: –$4,000
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Pell Grants2008-09 Pell Grant Recipients by Family Income
$20,000 or less
$20,001-$30,000
$30,001-$40,000
$40,001-$50,000
$50,000 or more
0% 5% 10% 15% 20% 25% 30% 35% 40%
37%
24%
20%
11%
7%
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Student Loans
• Federal Perkins• Federal Stafford• Federal PLUS• State DEAL Loan Program• Alternative Loans
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Can all studentsget a loan?
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Federal Stafford Loans
• Subsidized: –Government pays interest for
student while in-school, grace or deferment status
• Unsubsidized: –Government does not pay
interest for student; the interest is billed quarterly
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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
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Federal Stafford Loan Details
• Student is the borrower• Must be enrolled at least half-time• Sign Master Promissory Note (MPN)• Fixed interest rate (2012-13)–3.4% subsidized loans–6.8% unsubsidized loans
• 1% loan fee• Repayment begins after out of school
for 6 months
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Federal PLUS Loan
• Loan in parent’s name• Parent responsible for repaying• Credit application required• Fixed rate = 7.9%• 4% loan fees•Repayment begins after 60 days •Must sign Master Promissory
Note (MPN)
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State DEAL Loan
• Dakota Education Alternative Loan• FAFSA required• Low interest rate• Fixed or variable• No tiers
• Credit worthy cosigner if under 24• Deferment options
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Alternative Loans
• Variable interest rates• Tiers based on credit• Cosigner may be required• Terms vary among lenders• Wells Fargo• Discover• Sallie Mae
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What is the average student loan debt in North Dakota?
A. $25,000B. $35,000C. $45,000
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How much should I borrow?
• 10% of anticipated gross income
• Example• $30,000 – Anticipated annual income • $2500 – Monthly income• $250 – Monthly student loan payment
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Who Can Help
• High School Counselor• College Financial Aid Office• College Goal Sunday
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800.554.2717banknd.nd.gov