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Financing Education after High School

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  1. Financing Education after High School A FinancialAid Information Sessionprovided 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)

  2. Cost of Attendance • Tuition & Fees • Room & Board • Books & Supplies • Loan Fees • Transportation • Miscellaneous Personal Expenses

  3. mystudentloanonline.nd.gov Financial Aid • How do I apply? • Who is eligible? • What is financial aid?

  4. 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


  5. 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

  6. mystudentloanonline.nd.gov 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

  7. 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

  8. mystudentloanonline.nd.gov 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

  9. 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

  10. College Financial Aid Award Letter

  11. Financial Aid Process

  12. mystudentloanonline.nd.gov Financial Aid • How do I apply? • Who is eligible? • What is financial aid?

  13. 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

  14. 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

  15. mystudentloanonline.nd.gov Financial Aid • How do I apply? • Who is eligible? • What is financial aid?

  16. mystudentloanonline.nd.gov What is financial aid? • Scholarships • Grants • Work Study • Student Loans • Other Resources

  17. mystudentloanonline.nd.gov 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

  18. 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.com

  19. mystudentloanonline.nd.gov Don’t get scammed! Several hundred thousand students & parents are victims of scholarship search scams!

  20. 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

  21. 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

  22. mystudentloanonline.nd.gov 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

  23. mystudentloanonline.nd.gov Types of Loans • Federal Perkins • Federal Stafford • Federal PLUS • Alternative • BND: Dakota Education Alternative Loan (DEAL)

  24. 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 payment

  25. mystudentloanonline.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

  26. 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!!

  27. 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

  28. mystudentloanonline.nd.gov 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 max

  29. 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)

  30. mystudentloanonline.nd.gov 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

  31. 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

  32. 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)

  33. 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 atcollegesave4u.com

  34. mystudentloanonline.nd.gov 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.

  35. mystudentloanonline.nd.gov Who can help? • High School Counselor • College Financial Aid Office • College Information Service @ Student Loans of North Dakota

  36. 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

  37. Find Us At… mystudentloanonline.nd.gov 1-800-554-2717