MWSC Financial Information Seminar

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Financing Your Education
2006-2007
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So Many Questions???
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Find Answers to Your Questions
www.studentaid.ed.gov
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How do I Fund My Education?
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What is Financial Aid?
Financial Aid is money supplied by a source other
than your family to assist with the costs of
education.

• Grants
• Scholarships
• Loans
• Employment

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Two Categories of Aid
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How is Financial Need Determined?
Calculation Components

• Cost of Attendance (COA) Budget Tuition/Fees,
  Room/Board, Books/Supplies, Transportation,
  Miscellaneous Living Expenses, Loan Fees,
  Dependent Care Expenses, Etc.
• Expected Family Contribution (EFC) FAFSA results.
  
• Estimated Financial Assistance (EFA) Total of all
  sources of assistance.

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Financial Need
Cost of Attendance (COA) - Expected Family
Contribution (EFC) Gross Financial Need -
Estimated Financial Assistance (EFA) Unmet Need
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How do I Apply for Aid?
Begin by Completing the
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What is the FAFSA?
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Why Should I Do The FAFSA??
Of the 4 million students who did not complete
the FAFSA, 850,000 would have been eligible for
the Pell Grant and countless more would have been
eligible for other programs.
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What do I do first?
Before the FAFSA may be completed electronically
the student and parent must each request a PIN.
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How do I request a PIN?
www.pin.ed.gov
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I have my PIN, What Next?
www.fafsa.ed.gov
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What Info do I Need?

• W2 Forms
• Copies of 2005 Income Tax Returns
• Asset/Investment Info
• Other Financial Information
• SS Numbers and Birthdates

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What Questions are Asked?

• Questions 1 thru 47 - Student Personal and
  Financial Information

• Question 1 thru 3 Name SSN
• Question 21 22 Selective Service
• Question 31 Drug Conviction

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Independent or Dependent?

• Question 48 thru 54

If you cant answer yes to one or more of these
questions, you are considered a dependent student.

• Were you born before 1-1-83?
• Are you a grad or professional student?
• As of today, are you married?
• Do you have dependents who receive more than 50
  of their support from you?
• Are you an orphan or ward of the court?
• Are you a veteran of the U.S. Armed Forces?

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What about Parents Info?

• Questions 55 thru 83 Parent(s) Personal and
  Financial Information.

Before completing this section, you must
determine who is considered a parent for FAFSA
purposes.
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What about Assets/Investments?

• Net Worth Current Value Related Debt.
• Investments Include real estate, trust funds,
  money market funds, mutual funds, certificates of
  deposit, stocks, bonds, college savings plans,
  etc.
• Investments DO NOT include the home you live
  in, the value of life insurance, retirements
  plans, prepaid tuition plans, etc.

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Businesses/Investment Farms

• Net Worth Current Value Related Debt.
• Include the market value of land, buildings,
  machinery, equipment, inventory, etc.
• DO NOT include your primary residence or the
  family farm you live on and operate.

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What other info is needed?
Question 84 85

• Household Size
• Number in College

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One more thing
Question 86 thru 96

• List all College you are considering.
• Housing Plans

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How will I know the Results?
FAFSA results are reported to the student using
the Student Aid Report (SAR).
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Be Aware of Deadlines

• Deadlines for Federal Aid.
• Priority Deadlines for Campus Based Federal
  Programs.
• Deadlines for State Aid Programs (April 1st).
• Scholarship Application Deadlines.

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What if I make a mistake?
If corrections to the applicant data are
required, they may be made

• Using FAFSA Corrections on the Web if the student
  has a PIN
• By the Financial Aid Staff or
• On the paper SAR.

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What is Verification?
The U.S. Department of Education uses a
quality-control method called verification to
check the accuracy of application data.
If you are selected, you will be notified in
writing of the documents required to complete the
process.
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What About Special Circumstances?
Contact the Financial Aid Office if you
experience

• Loss or reduction of family income
• Unusual medical or dental expenses not covered by
  insurance
• Death or illness or
• Other unusual circumstances.

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What Programs are Available?

• Federal Aid Programs
• State Aid Programs
• Institutional Programs
• Outside Sources

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Federal Pell Grant
Need based grant which does not need to be repaid.
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Federal SEOG
Need based grant which does not need to be repaid.

• Awarded to students with exceptional financial
  need.
• Must complete the FAFSA by the Priority Deadline
  Date.
• Maximum award for 2006-07 is 4,000.

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Federal Work-Study
Need-based program providing on and off campus
job opportunities.

• Must complete the FAFSA by the Priority Deadline.
• Compensation is at least the current minimum wage.

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Federal Perkins Loan
Need based loan that must be repaid with priority
to students showing exceptional need.

• The school is the lender. Interest rate is 5.
• Loan Limit 4000 per year.
• Repayment begins 9 months after you graduate or
  drop below half-time.
• Deferment and cancellation provisions may apply
  for Teaching, Early Intervention Services, Law
  Enforcement or Corrections Officer, Nurse or
  Medical Technician, Child or Family Service
  Agency or Head Start.

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State Aid Programs
www.dhe.mo.gov
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Aid Programs - Missouri
Charles Gallagher Student Financial Assistance
Need-based grant for full-time undergraduate
students. Higher Education Academic "Bright
Flight" Scholarship Merit-based scholarship for
full-time undergraduate students.
Midwest Student Exchange Reduced out-of-state
tuition rate program. Missouri College
Guarantee Merit and need-based grant for
full-time undergraduate students.
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Satisfactory Academic Progress
In order to be eligible to receive federal aid,
regulations require a student to be making
Satisfactory Academic Progress.
Both student grade point average, and the time
that a student takes to reach his/her educational
degree are factors in determining SAP.
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Return of Title IV Funds
Before you withdrawal or Stop attending
classes Be aware that

• Federal regulations require schools to calculate
  the amount of Title IV aid that a student did not
  earn.
• Unearned Title IV funds must be returned to the
  appropriate Title IV programs.

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What about Scholarships?
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Look at Some Possibilities
Local Churches Local Businesses Military
Sources College Websites Parents Employer Civic
Organizations High School Counselor Local Library
Resources Professional Organizations
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Searching On-Line
FREE Scholarship Search Site fastweb.com
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Dont Get Stung!!
For information concerning financial aid scams or
to check the legitimacy of scholarship search
organizations

• Department of Education website at
  www.ed.gov/prog_info/SFA/LSA.
• The Better Business Bureau website at
  http//search.bbb.org/search.html
• Federal Trade Commission website at
  www.ftc.gov/bcp/conline/publs/alerts/ouchart.htm.

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Top 10 Scholarship Tips
Ever wonder what the folks who award the
scholarships want to see? Heres a few tips.
1 Give concrete examples. 2 Apply only if you
are eligible. 3 Identify the sponsor's goals. 4
Complete the application in full and follow
directions. 5 Neatness counts. 6 Write an
accomplishments resume. 7 Watch all deadlines.
8 Make sure your application gets where it
needs to go. 9 Ask for help if you need
it. 10Remember - your application represents
YOU!
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What about Student Loans?
You may also want, or need, to consider low
interest Federal Student and/or Parent Loans to
help meet college expenses.
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Federal Stafford Loans
Available under Federal Family Education Loan
(FFEL) or Direct Stafford Loan Programs.

• The student is the borrower.
• School determines loan eligibility.
• Variable interest rate caps at 8.25
  (current/4.70).
• Loan fees may apply (up to 4).
• Repayment begins six months after you drop below
  6 hours, withdraw or graduate from school.
• Deferment and cancellation provisions may apply.

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Federal Stafford Loans

• Subsidized Loans - based on financial need
  government pays interest while you are in school.

• Un-Subsidized Loans not based on financial
  need student pays interest while in school.

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Stafford Loan Limits
There is additional unsubsidized loan
eligibility for independent undergraduates,
graduate students, and dependent students whose
parents are unable to borrow under the PLUS
Program.
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Parent Plus Loans
Borrowers are parents of dependent undergraduate
students.

• Annual loan limit equals the cost of attendance
  minus other aid.
• Variable interest rate caps at 9 (currently
  6.10).
• Loan fees may apply (up to 4 of the amount of
  the loan).
• Repayment begins sixty days after the loan is
  fully disbursed.

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Notes for 1st-Time Borrowers
Before loan funds will be disbursed, 1st time
freshman borrowers must

• Complete a Master Promissory Note (MPN)
• Complete Entrance Loan Counseling

NOTE There is a 30-day delay after classes
begin for loan disbursement. Be sure to have
other funds available to purchase book and
supplies.
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Smart Borrowing
If you decide to take out a federal student loan
to help pay for school, you are taking on certain
serious obligations. Be sure you know what they
are and how to maintain your account in good
standing.
Borrow Responsibly!!
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Want to
Reduce and even avoid loan debt?
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Establish a Budget

• Open doors to better paying positions.
• Expand your possibilities and career choices.

Set your College Education as your TOP FINANCIAL
PRIORITY!!
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What Expenses Do You Have?
Determine and prioritize all of your
necessary/fixed expenses. Be sure to consider
the following

• Tuition Fees
• Books Supplies
• Housing Food
• Utilities

• Personal Expenses
• Transportation
• Savings
• Other

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What are your Income Sources?
Where will the money come from to cover these
expenses?

• Assistance from Parents
• Prior Savings
• Employment
• Grants/Scholarships
• Student Loans
• Other resources

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The Bottom Line
Income Sources (Dollars In) Expenses/Savings
(Dollars Out) Discretionary Income (Fun Money)

• Entertainment
• Clothes/Shoes
• Vacations

• Cell Phones
• Nice Cars
• Stereo Equipment

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Keys to Financial Well Being

• Stick to your budgetlive within your means.
• Think before you buy.
• Avoid Credit Cards. Charging can double,
  triplethe cost of an item and can wreck your
  budget.
• Borrow responsibly and only when necessary.
• Pay your bills on-time. Be a responsible citizen
  / build a good credit rating for future
  purchases.
• Always save for unexpected expenses.

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Questions