Understanding Financial Aid in the Part-Time MBA Program

1. Understanding Financial Aid in the Part-Time MBA Program Chicago Office of Financial Aid

2. Financial Aid and You • All Part-Time MBA students can apply for financial aid regardless of their income. • Financial aid for the 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 the Part-Time MBA program whereas the full-time Kellogg program is handled on the Evanston campus.

3. Federal Stafford Loan Program • Must be a US citizen or permanent resident. • Must be enrolled at least half-time = 2 classes. • 6 month grace period before repayment. • As of July 1, 2007, the interest rate is fixed at 6.8%. • The interest rate on all new loans is subject to change July 1st of every year. • SUBSIDIZED • Govt. pays interest while you’re in school • Can receive maximum of $8,500 per academic year • NEED-based • UNSUBSIDIZED • You pay the interest while you’re 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.

4. 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. NEED vs. NON-NEED

5. 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

6. Federal Graduate Plus Loan Program • Federal: Grad Plus 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. • Have a good credit rating. • Students can apply with a co-signer. • As of July 1, 2007, the interest rate is fixed at 8.5%. • The interest rate on new loans is subject to change July 1st of every year.

7. Private Student Loans • Offered to students that are not eligible for federal loans. • Student’s enrolled less than half-time (2 courses). • 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. • The interest accrues while the student is in school. • Repayment options vary with each lender.

8. 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

9. 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. • Check CAESAR (Computer Assisted Electronic Student Access Route) for outstanding documents once your are admitted.

10. Step 1: Apply for Fin. Aid • When you complete your FAFSA, you will be sent a Student Aid Report (SAR). • It is your responsibility for reviewing your SAR for errors. • Submit your SAR if you are making changes to the FAFSA information. • (If you use a PIN number, you can sign electronically and thus speed up the process). • Make certain to submit any necessary documentation to our office only if requested on your SAR or by us. • Citizenship • Selective Service (http://www.sss.gov/fsmen.htm or call 847-688-6888) • Family Size • Social Security Number

11. 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. • You can periodically check CAESAR to see if you need to submit any additional documentation.

12. Step 2: Award Packaging • Once you return your Award Notice to our office we will adjust the aid package to reflect your wishes.

13. Step 3: Certifying Loans • The school certifies the applicant’s 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 Grad Plus) • Stafford loan entrance interview (mapping-your-future.org) • Check your NU email account regularly for any communication from our office.

14. Step 3: Processing Loans • Now, we wait for the lenders to send the actual funds to your account. • This takes about 2 weeks. • Loans typically will disburse on the first day of classes. • You can monitor your loan disbursements through your CAESAR account.

15. Step 4: DONE! (sort of…) • The money is finally 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. 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 or • The Borrower must have at least four years of established credit in the US. • Students should have an alternate method of payment as private student loans are not guaranteed.

17. What’s next? • Let us know if there are any changes to your enrollment. • 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!

18. 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! • Check your NU email account and CAESAR on a regular basis. DON’T… • 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).

19. 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.com/

20. FAQs I’ve already accepted my aid package, but I’ve changed my mind. I don’t 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.

21. FAQs Are Grants and Scholarships available for Part-time MBA students.? • Federal and State grants are not available on the graduate level. • Please contact Kellogg regarding any grants and scholarships they may offer. • Check with outside sources such as scholarship search engines and local libraries regarding outside scholarship opportunities. • The Office of Financial Aid does have a reference book with scholarship announcements from various agencies.

22. FAQs What happens if I drop to one class from two classes? • 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 beeligible for a private loan.

23. FAQs I changed jobs, I’ve 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.

24. FAQs How can I find out how much money I have borrowed? • Check CAESAR. • Call your lenders. • Call our office and we can let you know.

25. FAQs 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.

26. FAQs I’ve applied for aid and I haven’t heard anything. Can you tell me the status? • Check CAESAR as you can see the current status of your application. • 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.

27. FAQs 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.

28. FAQs 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 quarter’s costs.

29. Chicago Financial Aid • Website: http://chicagofinancialaid.northwestern.edu • Email: financial-aid-chicago@northwestern.edu • Phone: 312-503-8722 • Fax: 312-503-8700 • Office: Abbot Hall 710 N. Lake Shore Drive, Rm 629 Chicago, IL 60611

30. OFFICE HOURS Monday – Friday 8:30 am – 5:00 pm