Financing Education

after High School

A Financial Aid Information Session provided by the

North Dakota Association

of Student Financial Aid Administrators

Prepared by:Student Loans of North Dakota Including information from the National Association of Student Financial Aid Administrators (NASFAA)

Cost of Attendance

• Tuition & Fees

• Room & Board

• Books & Supplies

• Loan Fees

• Transportation

• Miscellaneous Personal Expenses

Financial Aid

• How do I apply?

• Who is eligible?

• What is financial aid?

mystudentloanonline.nd.gov

FAFSAFree Application for Federal Student Aid

• Basic application for federal and state aid

• Collects information about the student and family

• Used by school to determine student’s financial aid eligibility

• Can be completed online or on paper

– fafsa.ed.gov– fafsa.gov

Definition of Independent Student

• At least 24 years old

• Married

• Graduate or professional student

• Veteran of U.S. Armed Forces or Active Duty

• Has children or dependents (other than a spouse) who receive more than half of their support from you

• Orphan, foster child or ward of the court

• Emancipated minor

• Unaccompanied homeless youth

• Determined to be “independent” by financial aid administrator based on unusual circumstances

Frequent FAFSA Errors

• Parent and student Social Security Numbers

• Divorced/remarried parental information

• Income earned by parents/stepparents

• Untaxed income

• U.S. income taxes paid

• Household size

• Number of household members in college

• Real estate and investment net worth

mystudentloanonline.nd.gov

FAFSA Tips

• Gather documents you need– Use Web Worksheet

• Complete as soon as possible after January 1

– By March 1 for best results.

• Follow up with the financial aid office

• You must submit a FAFSA each year while in school

Special Circumstances

Contact Financial Aid Administrator:

• Divorce/separation after filing FAFSA

• Loss of income or unemployment

• Unusually high medical expenses

• One time income

• Other unusual circumstances

Documentation:

• Paid receipts

• Tax returns

• Divorce decree

• Others as requested

mystudentloanonline.nd.gov

Student Aid Report (SAR)

• Summary of FAFSA

• Review for accuracy

• Reports EFC (expected family contribution) – Calculated from FASFA information– Benchmark used to determine

eligibility for financial aid– Students with lower numbers

may receive more money

College Financial Aid Award Letter

Financial Aid Process

Financial Aid

• How do I apply?

• Who is eligible?

• What is financial aid?

mystudentloanonline.nd.gov

General Student Eligibility

• U.S. citizen or eligible noncitizen

• Valid Social Security Number (SSN)

• Registered with Selective Service (if male and required)

• Enrolled or accepted for enrollment in eligible program of study

• Pursuing degree, certificate, or other recognized credential

mystudentloanonline.nd.gov

General Student Eligibility(cont.)

• Must be making satisfactory academic progress

• Not convicted of a drug-related offense which occurred while receiving Title IV Funds

• May not be in default on a federal student loan

• Must not owe an overpayment of federal grant or loan funds

mystudentloanonline.nd.gov

Financial Aid

• How do I apply?

• Who is eligible?

• What is financial aid?

mystudentloanonline.nd.gov

What is financial aid?

mystudentloanonline.nd.gov

• Scholarships

• Grants

• Work Study

• Student Loans

• Other Resources

Where to find scholarships

• Local businesses & organizations• Library• Colleges/Universities• Call College Information Service at SLND• Religious Organizations• Fraternal Organizations• Employers• Tribal Agencies• State Agencies• Large Corporations• Internet

mystudentloanonline.nd.gov

Internet Addresses

• www.mystudentloanonline.nd.gov

• www.fastweb.com

• www.finaid.org

• www.scholarships.com

• www.collegenet.com

• www.srnexpress.com

• www.cashe.com

• www.winscholarships.commystudentloanonline.nd.gov

Don’t get scammed!

Several hundred thousand students & parents are victims of scholarship search scams!

mystudentloanonline.nd.gov

North Dakota State Grants

• State Grant: $1,200– Complete FAFSA by March 15

• Academic or Career/Tech Ed Scholarship: $1,500– Application deadline June 1– 24 ACT (by February 6, 2010)– 2.75 GPA to renew

• Indian Scholarship: $800– Application deadline July1

• Scholars Program– Top 5% of ND students taking ACT– Full tuition scholarship

Federal Grants

• Pell Grant: Up to $5,550– ACG:

• $750 Freshman• $1,300 Sophomore (3.0 GPA)

– SMART Grant: $4,000 (3.0 GPA) • Juniors & Seniors in eligible major

– SEOG: Up to $4,000

• TEACH Grant: $4,000 – (3.25 GPA) – Agree to teach at least 4 years

Federal Work Study

• Undergraduate, graduate, and professional students

• Employment may be on or off campus

• Eligible employers:– Schools– Federal, state, or local public agencies– Certain private nonprofit and for-profit

organizations

mystudentloanonline.nd.gov

Types of Loans

• Federal Perkins• Federal Stafford• Federal PLUS• Alternative

– BND: Dakota Education Alternative Loan

(DEAL)

mystudentloanonline.nd.gov

Perkins Loan

• Undergraduate and graduate students

• 5% fixed interest– Interest free in school

• Institution is the lender

• Schools establish awarding criteria– Loan amount varies, but cannot

exceed $4,000 per year

• 9-month grace period

• $40 minimum paymentmystudentloanonline.nd.gov

Federal Stafford Loans

• Subsidized or Unsubsidized

– Subsidized: Interest is paid by the government while the student is in-school, grace, or deferment status

– Unsubsidized: Interest is paid by the student during all loan statuses; the interest is billed quarterly

mystudentloanonline.nd.gov

Federal Stafford Loans

• Student is the borrower

• Must be enrolled at least half-time

• School determines loan eligibility and delivers loan proceeds to students

• Requires a signed Master Promissory Note (MPN)

• Fixed interest rate – 4.5% subsidized loans– 6.8% unsubsidized loans

• 1% Default fee– BND currently pays origination &

default fee!!

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

Aggregate Sub & Unsub Limits

$31,000 ($23,000 Sub) – Dependent Undergraduate

$57,500 ($23,000 Sub) – Independent Undergraduate

$138,000 ($65,500 Sub) – Graduate/Professional

Repayment• Begins 6 months after student graduates,

withdraws or drops below half-time enrollment

Ways to Reduce Student Loans

• Graduate in 4 years

• Take advantage of free credits

• Work & save

• Buy your own books

• Trim expenses

• Avoid credit cards

• Pay interest as it accrues

• Don’t borrow the maxmystudentloanonline.nd.gov

Federal PLUS LoansParent Loan for Undergraduate Students

• Loan in parent’s name• Parent responsible for repaying loan• Credit application required• Fixed rate = 8.5%• 3.0% Origination fee + 1% Default fee• Maximum loan amount is cost of

education less other financial aid• Repayment begins 60 days after final

disbursement • Requires a signed Master

Promissory Note (MPN)

Alternative Student Loans

• Extra funding for school expenses

• Alternative or Non-federal Loans

• Lenders set terms

• School certified or Direct to Consumer

• FAFSA is sometimes not required

mystudentloanonline.nd.gov

Choosing a Lender

• Use a mainstream lender– Borrow maximum Federal and institutional

aid first

• Consult the financial aid office

• Think before you borrow

• Ask questions– Interest rate & fees

– Repayment: when & how much

– Deferments

mystudentloanonline.nd.gov

DEAL Loan Dakota Education Alternative Loan

• Alternative loan for students• Student responsible for payments

– Payment deferred while in school

• No loan fees• Co-signer may be needed

– Required if under the age of 24– Possible co-signer release after 24

on-time payments

• Choose interest rate– current fixed rate is 5.99%– current variable rate is 1.79%

(Oct 1, 2009 – Dec 31, 2009)

College SAVE 529 Plan

• Administered by BND

• In-state tax deduction

• Matching grant

• Upromise Investments Plan Manager – Investment Options through Vanguard Group

• Start account with as little as $25

• Open an account at collegesave4u.com

Tax Benefits for Education

• Hope Tax Credit

• Lifetime Learning Credit

• Deduction for Student Loan Interest

• Tuition and Fees Deduction

You generally cannot claim more than one benefit for the same education expense.Go to IRS.gov for more information on tax benefits.

mystudentloanonline.nd.gov

Who can help?

• High School Counselor

• College Financial Aid Office

• College Information Service @ Student Loans of North Dakota

mystudentloanonline.nd.gov

Need More Help?

• February 21, 2010

• Receive hands-on assistance to complete your FAFSA

• Eleven North Dakota locations:– Belcourt, Bismarck, Dickinson,

Fargo, Fort Yates, Fort Totten, Grafton, Grand Forks, Minot, New Town & Williston

• Chance to win a computer or $500 scholarship

• www.collegegoalnd.org

Find Us At…

mystudentloanonline.nd.gov

1-800-554-2717