Understanding Financial Aid in the Kellogg PartTime MBA Program

1
Understanding Financial Aid in the Kellogg
Part-Time MBA Program

• Chicago Office of Financial Aid

2
Financial Aid and You

• All Kellogg Part-Time MBA students can apply for
  financial aid regardless of their income.
• Financial aid for the Kellogg Part-Time MBA
  program is in the form of loans.
• You are eligible for financial aid throughout the
  entire program unless there is an extenuating
  circumstance.
• Chicago Office of Financial Aid processes all
  financial aid for Part-Time MBA students, whereas
  the full-time Kellogg program is handled on the
  Evanston campus.

3
Outlook for the availability of financial aid
funds

• Northwestern University participates in the
  Federal Education Loan Program (FELP) for Federal
  Stafford and GradPLUS loans. This means that our
  students borrow Federal loan funds through a
  lender (not directly from the federal
  government). Currently, all of the lenders on
  our lender list continue to be able to provide
  loans to our students. They are all also
  confident that they will be able to provide
  federal loans to our students in the 2009-2010
  academic year as well.
• The biggest impact on federal student loans has
  been a reduction in borrower benefits and a
  reinstatement of origination fees.
• Most lenders now only offer a .25 interest rate
  reduction for using auto-payment during
  repayment.
• Origination fees for the Federal Stafford Loan
  are 1 for 2008-2009 and will be reduced to .50
  for 2009-2010. Origination fees for the GradPLUS
  loan are 3. These fees are charged at the time
  of disbursement (for example, a loan of 1000 is
  charged a 1 origination fee, thus 990 disburses
  to the students account)
• Private educational loan funds have become more
  restrictive and many lenders are increasing
  interest rates and fees. Private educational
  loan funding may become more difficult to secure
  without a cosigner or excellent credit. Please
  check with your lender for details on interest
  rates, fees (at both disbursement and repayment)
  and other terms and conditions of their loans.

4
Federal Stafford Loan Program

• Must be a US citizen or permanent resident.
• Must be enrolled at least half-time 2 classes
  per quarter.
• 6 month grace period before repayment.
• As of July 1, 2008, the interest rate is fixed at
  6.8.
• SUBSIDIZED
• Govt. pays interest while youre in school
• Can receive maximum of 8,500 per academic year
• NEED-based
• UNSUBSIDIZED
• You pay the interest while youre in school
• Can receive maximum of 20,500 per academic year
  (if you received the full subsidized Stafford
  amount, then this equals 12,000)
• NON-need based
• Students are eligible for a TOTAL of 20,500 in
  Stafford Loans
• every academic year.

5
NEED vs. NON-NEED

• Cost of attendance (COA)
• - Expected Family Contribution
• Need
• If Need is 0 or a negative number, then there is
  no need.
• EXAMPLE COA 8,000
• Student A Student B
• 8,000 COA 8,000 COA
• -10,000 EFC -3,000 EFC
• -2,000 5,000
• NO NEED NEED

• Expected Family Contribution (EFC)
• The amount of money that the family (student) is
  expected to be able to contribute to their
  education, as determined by the Federal
  Methodology need analysis formula approved by
  Congress.
• For Part-Time MBA, this depends on the student's
  marital status, number of dependents, number of
  dependents in school, taxable and nontaxable
  income and assets.
• The difference between the cost of attendance
  (COA) and the EFC is the student's financial
  need, and is used in determining the student's
  eligibility for need-based financial aid.

6
How do you find out your EFC?

• Complete a FAFSA (Free Application for Federal
  Student Aid) and apply for financial aid.
• http//www.fafsa.ed.gov/
• School Code - 001739

7
Federal Graduate PLUS Loan Program

• Federal GradPLUS Loan
• Supplements the cost of tuition and books after
  the Stafford loan has been taken into
  consideration.
• Must be enrolled at least half-time 2 classes
  per quarter.
• Have a good credit rating.
• Students can apply with a co-signer.
• As of July 1, 2008, the interest rate is fixed at
  8.5.

8
Private Student Loans

• Offered to students that are not eligible for
  federal loans.
• Students enrolled less than half-time (2 courses
  per quarter).
• International Students.
• Students must apply directly through the lender.
• Loans are subject to credit approval and may
  require a co-signer.
• The lender determines the interest rate for each
  individual borrower.
• Interests rates vary and typically have no cap.
• The interest begins to accrue at the time of
  disbursement.
• Repayment options vary with each lender.

9
The Financial Aid Process for New Students
10
Where do you begin???

• From beginning to end, the entire process takes
  about 4-6 weeks if you adhere to the deadlines!
• You must initiate the process. Just like in a
  game of tennis, the ball will be in your court.
• In the following pages, look for the tennis icon
  in the right upper corner for steps that involve
  action on your part.
• STEP 1 APPLY FOR FINANCIAL AID
• STEP 2 AWARD PACKAGING
• STEP 3 LOAN PROCESSING
• STEP 4 MONEY ON YOUR ACCOUNT

11
Step 1 Apply for Fin. Aid

• Go to http//chicagofinancialaid.northwestern.edu/
  tmp/ to access all the application materials.
• University Aid Application
• Verification of Student Income (SIGNED taxes
  W-2s)
• Verification of Employer Educational Assistance
• FAFSA (Free Application for Federal Student Aid)
• Verification of Household Size and Number of
  Family Members Enrolled in Postsecondary
  Education
• if you are married with children OR if we
  contact you for this.

12
Step 2 Award Packaging

• We review your taxes, W-2 forms, University Aid
  Application, Employer Educational Assistance plan
  and award you a financial aid package.
• We generate an award notice that typically offers
  student enough to cover tuition and books.
• The award notice is sent to your current address
  on file with Northwestern.
• Please complete and return award notice along
  with other required documents to the Financial
  Aid Office as soon as possible.

13
Step 3 Certifying Loans

• The school certifies the applicants eligibility,
  and the lender selected by the student approves
  the loan.
• Your student loans cannot be certified without
  the returned award notice.
• There are additional forms that must be completed
  by First-time Borrowers
• Master Promissory Notes (Stafford and GradPLUS)
• Loan Entrance Interview (Stafford and GradPLUS
• Check your email account regularly for any
  communication from our office. We will contact
  you via your personal email address until you are
  assigned an NU email address. Once you have been
  assigned a NU email address, it is Northwestern
  policy that we will only contact you using the NU
  email address.

14
Step 3 Processing Loans

• Now, we wait for the lenders to send the funds to
  Northwestern.
• This takes about 2 weeks.
• Loans typically will disburse on the first day of
  classes.
• Once you have received your NetID and password
  (approx. Dec 5), you can monitor your loan
  disbursements through your CAESAR account.

15
Step 4 DONE! (sort of)

• The loan funds are applied to your account.
• Student Accounts will deduct your tuition
  automatically.
• If you have a credit on your account, you can
  apply for your refund (either check or direct
  deposit) from the Office of Student Accounts.
• If your loans do not fully cover your tuition
  expenses, you will need to pay the balance.
• If you change your enrollment from 2 classes to
  one, let our office know ASAP!

16
CAESAR

• CAESAR (Computer Assisted Electronic Student
  Access Route) is the online system used by
  Northwestern to allow students to view their
  Student Account, Financial Aid, and other
  important information.
• A NetID and password are necessary to access
  CAESAR and these will be assigned to all
  deposited students in early December.
• Once you have received your NetID and password,
  you can access CAESAR by visiting
  www.northwestern.edu/caesar

17
International Students

• The University Aid Application must be completed.
• Private student loans, subject to credit
  approval, are the main source of financial aid.
• Lenders require US co-signer
• International students should have an alternate
  method of payment as private student loans
  are not guaranteed.

18
Whats next?

• Let us know if there are any changes to your
  enrollment.
• Kellogg Part-Time MBA students often change their
  enrollment which affects their financial aid
  eligibility.
• You must re-apply for financial aid at the start
  of every academic year.
• Summer Quarter starts the new academic year.
• Enjoy classes!

19
Any advice when applying for aid?

• DO
• your FAFSA early and utilize the PIN feature to
  electronically sign your Student Aid Report
  (SAR).
• Contact us if you will be getting married for
  further instructions.
• Read the FAFSA directions.
• Follow-up with your HR dept. so they FULLY
  complete the Verification of Employer Educational
  Assistance form.
• Turn in your application before the deadlines!
• Once you receive your NetID and password, make
  sure to check your NU email account and CAESAR on
  a regular basis.
• DONT
• Include retirement plans, such as 401(K)s or
  403(B)s, in the investment net worth section in
  your FAFSA.
• Include the home in which you live in as a part
  of your investments.
• Include your state tax return.
• Wait until the last minute to apply for financial
  aid.
• Forget to include spousal information (taxes and
  W-2s).

20
Helpful Websites

• Our website is a portal to all the sites you
  need- http//chicagofinancialaid.northwestern.edu/
  tmp/
• General financial aid information and loan
  calculators - http//www.finaid.org/
• Information on credit rating - http//www.myfico.c
  om/

21
FAQs

• Ive already accepted my aid package, but Ive
  changed my mind and no longer want financial aid.
  How can I do that?
• Contact our office in writing (an email is
  acceptable) letting us know that you wish to
  reject your aid package.
• Make certain you specify which quarters you want
  cancelled.
• Are Grants and Scholarships available for Kellogg
  Part-time MBA students.?
• Federal and State grants are not available on the
  graduate level.
• Check with outside sources such as scholarship
  search engines and local libraries regarding
  outside scholarship opportunities.
• scholarships.com
• fastweb.com
• What happens if I drop to one class from two
  classes per quarter?
• Contact us immediately!
• If you were awarded a federal Stafford loan, you
  are no longer eligible for it as you are at less
  than half-time status.
• We will return federal loans to your lender if
  they have already been disbursed to your account.
• You may potentially be eligible for a private
  loan.

22
FAQs

• I changed jobs, Ive had a baby, and I want to
  take three classes.
• Can my aid be adjusted?
• Contact us immediately (once you have minute to
  breathe!)
• We may require additional documentation, however
  we will adjust your award package to reflect the
  change in your budget and household size.
• How can I find out how much money I have
  borrowed?
• Check the National Student Loan Database System
  (NSLDS) for loans borrowed prior to enrollment
• Check CAESAR (once you receive your NetID and
  password)
• Call your lenders.
• Call our office and we can let you know.
• Can I receive financial aid if I participate in
  the Global Initiatives in Management (GIM) trip?
• You must first notify the financial aid office
  that they are interested in financial aid to fund
  the GIM trip.
• Once your file is reviewed, you may be eligible
  for federal loans or private loans to cover your
  trip.

23
FAQs

• Ive applied for aid and I havent heard
  anything.
• Can you tell me the status?
• You might have an outstanding document, which is
  holding up your award.
• You can contact us as well, but remember that it
  takes about 4-6 weeks to be processed for aid
  from when the file is complete.
• I have a registration hold on my account. Why and
  how do I fix it?
• Check CAESAR!
• You may have outstanding loan documents,
  outstanding financial aid application documents,
  and/or an outstanding balance from unpaid
  tuition.
• This will require you to either contact our
  office or the Office of Student Accounts,
  depending on the source of the hold.
• There is some extra money on my account after my
  tuition was paid with my loan money. How can I
  access it?
• Contact the Office of Student Accounts and they
  can issue you a refund check for the credit on
  your account.
• You can also establish direct deposit by filling
  out a form with the Office of Student Accounts.
• You can also let the money sit on your account
  and have it roll over to help cover the next
  quarters costs.

24
Chicago Financial Aid

• Website http//chicagofinancialaid.northwestern.e
  du
• Email financial-aid-chicago_at_northwestern.edu
• Phone [phone]
• Fax [phone]
• Office Abbot Hall
• 710 N. Lake Shore Drive, Rm 629 Chicago, IL
  60611

25
OFFICE HOURS

• Monday Friday
• 830 am 500 pm
• We understand that these are standard work hours
  for most Kellogg Part Time students and so
  encourage you to contact us via email or leave a
  message if you are contacting us after business
  hours. We will return your email/call within 1-2
  business days.