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Financing your education 2011-2012

Financing your education 2011-2012. www.ndscs.edu. Excerpts and Graphics Provided by: National Association of Student Financial Aid Administrators North Dakota Association of Student Financial Aid Administrators. Agenda. 1. Definition of Financial Aid. 2. Definition of Financial Need.

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Financing your education 2011-2012

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  1. Financing your education 2011-2012 www.ndscs.edu Excerpts and Graphics Provided by: National Association of Student Financial Aid Administrators North Dakota Association of Student Financial Aid Administrators

  2. Agenda 1 Definition of Financial Aid 2 Definition of Financial Need 3 Description of Financial Aid Programs 4 How to Apply for Financial Aid

  3. Financing Your Education • What is Financial Aid? • Who is Eligible? • Steps in Financial Aid Process • How do I apply? • Where does it come from? • What aid is available?

  4. What is Financial Aid? Scholarships NDSCS or Outside Agencies Grants Federal or State Loans Subsidized or Unsubsidized Employment Institutional or Federal

  5. Types of Aid

  6. Definition of Need

  7. Cost of Attendance

  8. Estimated Family Contribution (EFC) “Federal Methodology” is the formula created by Congress to determine the expected family contribution (EFC). Information provided on the FAFSA is used to calculate the EFC.

  9. Definition of EFC for Dependent Student

  10. Dependency Status Independent Students are: • At least 24 years old by December 31 of award year covered by FAFSA; or... • Graduate or professional student; or... • Married; or... • Has legal dependents other than a spouse; or... • At age 13 or older were an Orphan, in foster care or a ward/dependent of the court; or... • Veteran of U.S. Armed Forces; or… • Homeless as determined by a state entity

  11. Financing Your Education What is financial aid? Who is eligible? How do I apply? Where does it come from? What aid is available?

  12. General Eligibility Criteria • Degree-seeking • Must be active in and/or successfully completed 6 or more credits per term for financial aid to disburse • Must be currently enrolled in the term to receive financial aid • U.S. citizen or eligible noncitizen • Registered with Selective Service, if male • Valid Social Security Number • Must be in good academic standing with College • May not be in default on any previous student loans • May not have certain drug-related convictions

  13. Financing Your Education What is financial aid? Who is eligible? How do I apply? Where does it come from? What aid is available?

  14. Before You Apply for Financial Aid • Student and Parent (if necessary) register for a PIN before completing the FAFSA on the Web • Receive PIN via email or online (real-time) or U.S. Postal Service (7 to 10 days) • The PIN acts as the student’s and parent’s electronic signature www.pin.ed.gov

  15. How Do I Apply for Financial Aid? As soon as possible complete a: Free Application for Federal Student Aid(FAFSA)

  16. The student (and parents, if necessary) complete the Free Application for Federal Student Aid (FAFSA) Submit an electronic FAFSA. FAFSA Process The student will receive a Student Aid Report (SAR). The school will receive the same information. Student may be selected for “verification.” FAFSA data is received by U.S. Department of Education Central Processing Service (CPS). The CPS calculates an Expected Family Contribution (EFC), and performs verification checks and edits.

  17. Verification

  18. And then. . .

  19. Special Circumstance • Contact your Financial Aid Office: • Divorce/separation after filing FAFSA • Significant Loss of Income or Benefits • Death • Foreclosure/Liquidation • Documentation, if needed: • Paid receipts • Tax returns • Divorce decree

  20. Financing Your Education What is financial aid? Who is eligible? How do I apply? Where does it come from? What aid is available?

  21. Sources of Financial Aid • Federal • Pell Grant • FSEOG Grant* • Work-Study* • Perkins Loans* • Direct Loans • Private/Local/Institutional • Loans • Scholarships* * Colleges have a limited amount of these funds.

  22. Federal Pell Grant

  23. Federal Supplemental Educational Opportunity Grant (FSEOG)

  24. Federal Workstudy

  25. Federal Perkins Loans

  26. Federal Direct Loans

  27. Federal Direct Loan Repayment

  28. Additional Sources of Grants and Scholarships

  29. Avoid being Scammed You shouldn’t have to pay to get free money. The only paying that should be done Ask questions and do some research. is paying attention! • Better Business Bureau: http://www.bbb.com • U.S. Department of Education: http://studentaid.ed.gov/students/publications/lsa/index.html • Federal Trade Commission: www.ftc.gov/bcp/conline/publs/alerts/ouchart.htm

  30. Private Scholarship Searches Free Internet Scholarship Search Engines

  31. Additional Sources of Aid

  32. Tax Benefits for College Costs Tax Incentives (www.irs.gov) Publication 970: • Lifetime Learning Credit – families can claim $2,000 per year in tax credits for tuition expenses. No limit on number of years to be claimed. • American Opportunity Credit - taxpayers can claim a credit of up to $2,500 for each of the 2009 and 2010 tax years. Available for the first 4 years of college. In tax bill waiting to be passed for 2011 and forward. • Deduction for Student Loan Interest -You can deduct up to $2,500 in student loan interest. The deduction is taken as an adjustment to income. • Limited Deduction for Tuition Expenses - Taxpayers can deduct approximately $4,000 in tuition expenses as an exclusion from income.

  33. REMEMBER! In Order for your federal (loans & grants) financial aid to disburse, you must be active in and/or have successfully completed 6 or more credits per term. You have to be currently enrolled in the term to receive your financial aid.

  34. Thank You ! www.ndscs.edu

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