2015 – 2016 Financial Aid Presented by Minnesota State University Moorhead Questions are welcome before the session begins
Who Pays for Postsecondary Education? • Student • Spouse, if applicable • Parents • State & federal financial aid • Private funds (scholarships)
General Financial Aid Eligibility Requirements • Admitted or enrolled in a degree, certificate or other recognized credential program at an eligible school • U.S. citizen or eligible non-citizen • Registered with Selective Service (males age 18-25) • No conviction for an illegal drug-related offense while attending college and receiving federal financial aid
General Eligibility Requirements (Cont.) • Valid Social Security Number • Not in default on a federal student loan • Does not owe repayment of a federal grant • Making satisfactory academic progress as defined by the school
Pell and Loan Limits • Pell Grant limited to six years full-time attendance (12 full-time semesters; 600% rule) • Subsidized Direct Loan limited to 150% of time required to complete degree (example: Bachelor’s Degree requires four years; Subsidized Direct Loan limited to six years. Associate Degree requires two years; Subsidized Direct Loan limited to three years)
Cost of Attendance • Tuition and fees • Room and board • Books, supplies, equipment • Transportation and miscellaneous personal expenses • Study abroad costs • Dependent care expenses • Expenses related to a disability
Expected Family Contribution for Dependent Students • Parent income • Student income • Untaxed income (SNAP, child support) • Assets • Age of older parent • Household size • Number attending college • Allowable exclusions
College Cost Formula Cost of Attendance - Expected Family Contribution (EFC) = Financial Need
What is Financial Aid? • Grants • Scholarships • Employment opportunities (Work Study) • Educational Loans • Available for full-time or part-time enrollment!
Types of Grant Programs • Federal Pell Grant • Federal Supplemental Educational Opportunity Grant (FSEOG) • TEACH (grant/loan possible) • State Grant • Available only for undergraduate study (except TEACH)
Federal Pell Grant • Awarded to eligible undergraduates pursuing first bachelor’s degree • Portable • Actual award amount is based on the school’s Cost of Attendance, student’s Expected Family Contribution (EFC) and enrollment status (full-time or part-time) • Maximum award: $5,730 (2014-15) • 600% limit
Federal Supplemental Educational Opportunity Grant (SEOG) • Eligible student: Undergraduate pursuing first bachelor’s degree Awarded by school to students with exceptional financial need (lowest EFC) • Annual amounts: Minimum = $ 100 Maximum= $4,000 (or amount set by school)
TEACH • Amount: $4,000 per year/$16,000 undergraduate maximum • Grant, with a teaching obligation in a high demand field at a school eligible for Title I assistance • Teach 4 years within 8 years of graduation • If teaching obligation is not met, grant becomes an unsubsidized loan with interest accruing from the date grant is first disbursed
State Grant Awarded to eligible students who are residents of the state, for attendance at a college or university within the state in which they reside. (ND deadline 4/15/15)
Federal Work Study (FWS) – Eligible students: Undergraduate and graduate/professional students – Eligible employers, on- or off-campus: • School • Federal, state, or local public agency • Private non-profit organization • For-profit organization in academically relevant jobs – Emphasis on community service
Types of Educational Loan Programs • Perkins Loan • Stafford/Direct Loans – Subsidized – Unsubsidized – Parent Loan for Undergraduate Students (PLUS) • Private Educational Loans DEAL, SELF, etc.
Perkins Loan • Priority to “exceptional need” students • Priority to Pell eligible students • $5,500 annual maximum (undergraduates) • $27,500 aggregate maximum • 9 month grace period • 5% interest (during repayment)
Federal Direct Loan (Subsidized & Unsubsidized) • Largest source of low interest loans administered by Department of Education • Available to both undergraduate and graduate students enrolled at least half-time • Lender is the U.S. Department of Education and U.S. Treasury • Student’s Pell Grant eligibility must be determined first
Federal Direct Loan • Annual base loan limits $5,500 * for the first year of undergraduate study $6,500 * per year for student who has successfully completed first year of an undergraduate program (sophomore) $7,500 * per year for student who has successfully completed second year of undergraduate program (junior and senior) $20,500 per year for graduate and professional students (Unsubsidized Direct Loan only) * Includes $2000 Federal Unsubsidized Loan
Federal Direct Loan • “ Subsidized ” and “Unsubsidized” are essentially the same, except duration of eligibility and when interest is charged: interest is not charged to the student in the subsidized Direct Loan program during enrollment, but charged to the student for the unsubsidized Direct Loan program. No Co-Signer Required!
Subsidized Loans • Must demonstrate “Need” • Interest is paid by the federal government while the student is enrolled at least half- time • Six-month grace period before repayments begins • Interest rate during repayment: Currently fixed at 4.66%
Unsubsidized Loans • Need is not a factor • Interest accrues beginning the day the loan is disbursed; until the loan is paid in full • 4.66% fixed interest rate (from date of disbursement) • The student may choose to capitalize interest • Six month grace period before repayment begins
Federal PLUS Loan • Parent Loan for Undergraduate Students • Parent of a dependent undergraduate student • Annual loan limit = cost of attendance at the school, minus other aid • Repayment begins 60 days after disbursement • Payment deferment available while student is enrolled at least half time (parent must request) • Fixed interest rate is currently 7.21%
How to Apply for Financial Aid Submit a Free Application for Federal Student Aid (FAFSA) every year Available January 1
Free Application for Federal Student Aid (FAFSA) • FAFSA is required for the federal (and state) student financial aid application process • Collects family’s financial and demographic information • Used to calculate an Expected Family Contribution (EFC) • Used to confirm student eligibility via database matches with federal agencies
Caution! • Avoid being charged a fee to file the FAFSA – Completing and processing the FAFSA is FREE – If filing FAFSA on the Web: www.fafsa.gov – Contact the financial aid office if you need help in completing the FAFSA. A paper version (PDF) is available for students without computer access.
FAFSA on the Web • Internet application used to complete electronic FAFSA: www.fafsa.gov • Most browsers are supported by the FAFSA site (a browser check and compatibility confirmation is automatically performed at login) • Application information is sent directly to Central Processing System (CPS) • Student and parent must sign electronically with the PINs (obtain for student and parent at www.pin.ed.gov) Note: Changes coming soon! • OR, without PINs, print, sign, and submit the signature page to FAFSA-CPS
To Register for a PIN: www.pin.ed.gov Alert: Watch for FSA Identifier Information at the end of April 2015!
Independent Student Definition • At least 24 years old by December 31 of the award year covered by the FAFSA; or • Graduate or professional student; or • Married; or • Have children student supports; or • Have legal dependents other than a spouse supported by student; or • Orphan or ward of the court at age 13 or older; or • Currently serving on active duty or a veteran of the U.S. Armed Forces; or • Court emancipated minor or in legal guardianship; or • Documented as homeless, or a homeless unaccompanied youth; OR • Determined to be independent by the financial aid administrator
Parents Separated or Divorced? • Complete “parent” sections for the parent with whom the student has lived with more in the last 12 months. If equal, use the parent from whom the student has received the most financial support in the past 12 months. • If that parent is remarried, step-parent information must be included, whether or not the step-parent is actually “supporting” the student • Any child support received must be included as income
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