Financial Aid 101: The Basics

AGENDAFinancing your futureWhat does college cost?• Paying for College…• How do I apply for financial aid?• What types of aid are available?• Where can I get more information?

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WHAT DOES COLLEGE COST?2015-2016 MN Colleges Average Annual Tuition

and Fees for Full-Time Students

Private Colleges $36,002

Private Career Schools $18,013

University of MN $13,840

Minnesota State Universities $8,049

MN Community and Technical Colleges

$5,397

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COST OF ATTENDANCE (BUDGET)The cost of attending an institution includes more than just tuition and fees.Also included are:

Room and Board Transportation Books and Supplies Personal Expenses

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HOW WILL I PAY FOR COLLEGE? Family Support Savings (College Savings Plan) Scholarships / Merit Based Aid

Aid based on academic performance or other talents, not on financial need

Financial Aid State, Federal and Institutional

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WHERE DOES FINANCIAL AID COME FROM? Merit Based Aid (Scholarships)

The College/University Private/public sources outside the College/University Employers

Grants Federal State College/University

Loans Federal Government Private Lenders

Employment Opportunities Student Employment

On campus Off campus

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HOW DO I APPLY FOR FINANCIAL AID? Obtain FSA ID Complete the Free Application for Federal Student Aid

(FAFSA) Undocumented students apply using the state online financial

aid application Complete school financial aid application (if required) Meet application deadlines Apply for scholarships both within and outside of the

college/university Contact your financial aid administrator if you have

special circumstances Apply with MN Dream Act state financial aid

application for DACA and undocumented students

www.ohe.state.mn.us/MNDreamAct

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FSA ID FSA ID gives you access to Federal Student Aid’s

online systems and serves as your legally binding signature

Create a username and password Set up 4 challenge questions to retrieve your

username and password if you forget them Both parents and students will need an FSA ID

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FAFSA ON THE WEB www.fafsa.gov Completing and processing the FAFSA is free! NEVER pay a fee to file a FAFSA Contact your school’s financial aid office if you need

help

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DOCUMENTS NEEDED TO FILL OUT FAFSA Social Security number Alien registration number/Permanent Resident card

if you are not U.S. citizen Student and parent Federal Income Tax Information

IRS 1040, 1040A, 1040EZ Data Retrieval Tool (DRT)

Transfers data from IRS into the FAFSA application W-2 forms

Records of untaxed incomes Child support paid/received Veterans non-education benefits Worker’s Compensation

Current bank statements Information about real estate, businesses or

investments that you or your parents own

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WHO IS CONSIDERED A PARENT? A legal parent includes a biological or adoptive parent, Grandparents, foster parents, legal guardians, older

brothers or sisters, widowed step-parents and aunts or uncles are not considered parents unless they legally adopted you

*Parent Marital Status

Provide Information for

Never Married Parent you lived with most during the last 12 months. If neither, use parent who provided more financial support during the last 12 months, or most recent year support received.

Married Both of your parentsUnmarried and both parents living together

Both of your parents

Divorced or Separated The parent you lived with most during the last 12 months

Remarried (after being widowed or divorced)

Parent and Stepparent

Widowed Your parent

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BE CAREFUL … Put your name and SSN on FAFSA exactly how it

appears on your social security card – Don’t take it from an income tax return!

Refer to completed federal income tax returns and consult instructions for proper line references. Better yet – use the IRS Data Retrieval Tool (DRT) if you have already filed your income tax returns

If amount is zero or none, enter 0 – don’t leave blank Enter school code(s) (up to 10 schools) Student and one parent of a dependent student must

sign FAFSA

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MN DREAM ACT Certain undocumented (not citizens or permanent

residents) students are eligible for state financial aid if they: Attended a MN high school for 3 or more years Graduated from high school or received GED in MN Registered with Selective Service (males 18-25)

These students shouldn’t complete FAFSA Apply with MN Dream Act state financial aid application

at

www.ohe.state.mn.us/MNDreamAct

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WHEN IS A STUDENT “INDEPENDENT”? Born before January 1, 1993 (24 or older) Graduate or professional student Married Has legal dependents who receive more than

50% of their support from the student Is an orphan, in foster care, or dependent or

ward of the court since age 13 On active duty or veteran of the U.S. Armed

Forces Emancipated minor or in legal guardianship as

determined by a court Has been determined to be homeless without

parents by an authorized official

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EXPECTED FAMILY CONTRIBUTION (EFC)

The EFC is a measure of how much the student and family is expected to contribute to the cost of education for the year. The EFC is calculated according to a formula specified in the law.

It is not how much you pay; it’s an index schools use to determine how much and what type of aid you may be eligible to receive.

Your family's taxed and untaxed income, assets, and benefits (such as unemployment) are considered in the formula.

Also considered are your family size and the number of family members who will attend college during the year.

EXPECTED FAMILY CONTRIBUTION (EFC)

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INFORMATION USED FOR EFC CALCULATIONDependent Student Independent Student

Parents’ income and assets Student’s (and spouse’s) income and assets

Household Size Household Size

Number of dependents attending college

Number in household attending college

Student’s income and assets

Business Assets

Business Assets

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HOW DOES A SCHOOL DETERMINE MY FINANCIAL AID

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GRANTS Federal Pell Grant

Need based Annual award for full-time student

$588 - $5,775 Federal SEOG Grant

Limited funding; determined by school Priority given to students with exceptional need

$100 - $4,000 Minnesota State Grant

MN Resident enrolled at eligible MN School For student from low and moderate income families

$100 - $11,335 The average award is approximately $1,859

Institutional Funds College or University funds awarded to students

with financial need

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Part-time student employment Earnings paid to student Work-Study earnings not included when

determining EFC on next year’s FAFSA. Note: They are reportable to the IRS if you file an income tax return.

WORK-STUDY PROGRAM

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SCHOLARSHIP SEARCHING High School Counselor’s office or

Career Center Community, Church, Civic, and

Business Organizations Employers Colleges and Universities On the Web

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AVOID SCHOLARSHIP SCAMS Legitimate scholarships never

charge fees and the application information is available to everyone.

Don’t fall for guarantees or claims that someone has information that you can’t get anywhere else.

See consumer.ftc.gov/scholarshipscams

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MINNESOTACOLLEGGOAL.ORG Get free help completing the FAFSA. Visit the web site for dates and

locations.

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OTHER RESOURCES Reciprocity Programs

Wisconsin, North and South Dakota, Manitoba

Midwest Student Exchange Program (MSEP): Kansas, Michigan, Missouri, Nebraska

Federal Tax Benefits for Higher Education Tuition and Fees Tax Deduction American Opportunity Tax Credit Student Loan Interest Deduction Lifetime Learning Tax Credit See www.irs.gov

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OTHER RESOURCES, CONT. Other Government Programs

AmeriCorps Program Bureau of Indian Affairs Grants Dislocated Worker Programs ROTC Scholarships and/or Stipends Veterans Benefits Vocational Rehabilitation Programs

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WHERE TO GET MORE INFORMATION U.S. Department of Education

www.ed.gov and www.college.gov Minnesota Office of Higher Education

www.ohe.state.mn.us Federal Student Aid

www.studentaid.gov Internet System for Education & Employment

Knowledge www.iseek.org

FinAid! The Financial Aid Information Page www.finaid.org

The College Board www.collegeboard.org

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WHAT SHOULD I DO NEXT? Apply for scholarships now and throughout

college Apply for admission to your school(s) of choice Apply for your FSA ID Complete the FAFSA each year and be aware of

school financial aid deadlines After January 1st

Review your Student Aid Report (SAR) for accuracy

Respond promptly if your school requests more information

Respond to financial aid award notice Complete loan promissory notes and loan

entrance counseling.

QUESTIONS & ANSWERS

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THANK YOU!