Financial Aid 101: The Basics. AGENDA Financing your future What does college cost? Paying for...
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Transcript of Financial Aid 101: The Basics. AGENDA Financing your future What does college cost? Paying for...
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!