Student

Financial

ServicesSummer Orientation 2005

Financing Your Education

Student Financial Services—The Details

• Where are we?– In the Centennial Student Union…

Campus Hub/MavCard Offices• When are we open?

– Monday-Thurs 8am to 6pm

Friday 9:30am to 5pm – Summer hours: Monday-Friday

8:30am to 4pm• How to reach us

– 1-800-722-0544– (507)389-1866 (Campus Hub)– www.mnsu.edu/campushub– campushub@mnsu.edu

The Financial Aid ProcessDetermining Cost of Attendance (COA)

• Each year, Student Financial Services determines average costs for living expenses and tuition

• It is NOT the amount you will be billed from MSU

• 2005-2006 COA for a MN Resident = $13,6762005-2006 COA for a non Resident = $18,782

Cost of Attendance Cont’d

• Direct Costs

• Expenses resulting from enrollment in an educational institution

– Tuition– Fees– Books

• Indirect Costs

• Expenses not directly a result of enrollment in an educational institution– Rent – Laundry– Parking– Entertainment

COA= Direct Costs + Indirect Costs

Your Award Letter

• Review your award letter carefully and decide which loans you would like to accept and/or decline

• Make sure to turn in all requested paperwork promptly

• Minnesota Grant considers 15 credits full-time

Stafford Borrowers

• Must complete Entrance Counseling and fill out a Master Promissory Note

• All first-year, first-time borrowers will get their Stafford money disbursed 30 days into the term

Keeping Track of Your Loan Amounts

■ Start a file for all your financial aid paperwork■ File your FAFSA each year

as soon as possible after January 1st

■ New school year= new financial aid file■ Borrow smart…stay within your means■ Use your PIN to check your

loan amounts-go to: www.nslds.ed.gov and click on “financial aid review”

Budget setting and making your money work for you

• Look at your income (savings, financial aid, paychecks)

• Plot your expenses…Fixed and variable• Do the math and live within your means

Budget Busters...No Matter How Well You Plan

• The late night snack favorite…

• The 8:00 class rush• Clubs and

organizations at MSU• Going out---and the

mall• Things you can’t live

without…

Credit Cards 101: A Lesson in Plastic

Credit Cards and the College Student

• 76% of undergraduate students have at least one credit card

• Average credit card debt $2,169

• Two-thirds of undergraduates make only the minimum payments

• Students double their average credit card debt and triple the number of cards in their wallet from the time they arrive on-campus until graduation

Source: Nellie Mae, April 2005

College Students: Why and How You are the Target

• You are a large group of consumers

• To establish relationships with you at a younger age

• Look where they set up their tables: Sporting events, stores and even in the Student Union…

• FREE STUFF: T-shirts, CD holders, bags of candy, coupon books

How Credit Cards Can Get You in Trouble…Without Realizing it!

Principal Loan

Amount Borrowed

Interest Rate

Monthly Payment

# of Monthly payments

Total Amount Repaid

$5,000 19%

3% of balance

(Initially $150)238 (20 years) $10,360

Throughout college, Jill decided to put certain education expenses on her credit card. Here is what is what it would cost Jill to payoff her credit card balance IF she makes no further credit purchases and makes only the minimum required monthly payment (which decreases over time as the outstanding balance decreases):

What about Educational Financial Aid Loans?

Principal Loan

Amount Borrowed

Interest Rate Monthly Payment

# of Monthly Payments

Total Amount Repaid

$5,000 3.5% $50

119 (approx. 10 years) $5,920

Sam decides to take out a student loan for his educational expenses. Keep in mind that most students like Sam will borrow loans for each school year. If he made the minimum monthly payment on his loan for the next 10 years, he would end up paying $950 in interest. Additionally, he would not be required to make any payments on the loan until 6 months after he graduates.

Do Your Research Before You Charge

• Look for low interest rates (Aim for 15% APR)

• Watch your finance charges (late fee no higher than $29)

• Low or no annual fee• Make sure your credit

card has a grace period before finance charges are incurred (at least 25 days)

Once You Have a Credit Card…• Pay off your balance in

FULL, every month • Set your own credit limit• READ all fine print• Keep your wallet trim…• Limit the number of direct

mail credit card offers you get…Call1-888-5OPTOUT to have your name removed

• BE SMART WITH YOUR CREDIT…IT WILL AFFECT YOU FOR THE REST OF YOUR LIFE!!

Money Management Tips

• Be clear of your needs and wants• Use your credit card wisely• Watch your checkbook• Buy used books• Buy supplies at discount stores• Find a roommate (or two) to share costs • Determine a food budget, plan your meals

and USE COUPONS• Borrow only what you need in student

loans

Don’t Get Phished• Internet “Phishing” scams are one

of the fastest-growing frauds today

• Involves a bogus e-mail message using legitimate material (company’s logo) in an attempt to get a person’s personal financial information

• Never give out personal information (SSN, credit card number, etc.) in an unsolicited e-mail

• If you’ve been Phished, immediately contact your financial institution

FERPA and MSU• Parents are not permitted under the Family Educational

Rights and Privacy Act to access their son or daughter’s education record at the post-secondary level.

• However, with written permission from the student, the University can release information to the student’s parent, guardian or other individuals acting in a parental role in the absence of a parent or guardian. Authorization for Release of Information is available at The Campus Hub or on the web at: www.mnsu.edu/campushub/.

• Only public information will be released to a parent without written authorization from the student unless it is an emergency situation.

Questions?Stop by the Campus Hub if you have financial aid questions or want to talk to someone about money management.

• Call us from home 1-800-722-0544

(507) 389-1866 (Campus Hub)

• Check out our web site www.mnsu.edu/campushub/

• Email us at:campushub@mnsu.edu