Paying for College Financial Aid Overview North Dakota Association of Student Financial Aid...

Paying for CollegeFinancial Aid Overview

North Dakota Associationof Student Financial Aid Administrators

Plan & Save

• RUReadyND.com– Choices Explorer– Choices Planner– testGEAR for ACT

• College SAVE– State tax deduction– Matching grant program– Upromise Rewards program

College ExpensesIt’s not free

• Tuition & Fees• Room & Board• Books & Supplies• Transportation• Miscellaneous Personal Expenses

What is Financial Aid

• Scholarships• Assistance Programs• State Grants• Federal Grants• Federal Work Study• Student Loans

Where to Find Scholarships

• Local businesses & organizations• Library• Colleges/Universities• Religious Organizations• Fraternal Organizations• Employers• Tribal Agencies• State Agencies• Large Corporations• Internet

Internet Addresses

• www.nd-can.com• www.nddfs.org• www.fastweb.com• www.finaid.org• www.scholarships.com• www.collegenet.com• www.cashe.com• www.winscholarships.com

Assistance Programs

• ND Job Corps• Vocational Rehabilitation• Employee Assistance• Military Tuition Benefits• Tribal Higher Education • Individual Development Accounts

− North Dakota Community Action Partnership− Call 701-232-2452 or visit www.capnd.org

State Grants

• Scholars Program• Indian Scholarship: $800• Academic or Career/Tech Ed Scholarship:

$1,500• State Student Incentive Grant: $1,500– Complete FAFSA by April 15

www.ndus.edu Amounts are subject to change!

FAFSAFree Application for Federal Student Aid

• Basic application for federal student aid• Collects student and family information• School determines financial aid• Completed online– fafsa.gov

FAFSA4caster.ed.gov

• Federal aid estimator• Any student of any age• Reminder to fill out the FAFSA• Won’t have to retype

Frequent FAFSA Questions

• Who is a parent?• Who is included in household size?• What assets to report?

FAFSA Tips

• Complete as soon as possible after January 1–By April 1 for best results.

• Complete taxes 1 month prior

• Follow up with the financial aid office

• Must submit a FAFSA each year

Get FAFSA Help

• March 25, 2012• Receive hands-on assistance• Eleven North Dakota locations:–Belcourt, Bismarck, Dickinson, Fargo,

Fort Yates, Fort Totten, Grafton, Grand Forks, Minot, New Town & Williston

• Chance to win prizes• www.collegegoalnd.org

Financial Aid Process

Apply to Schools

Complete FAFSA

Review SAR

Receive Award Letter

• Choose School

Sign MPN

Money sent to school

Federal Work Study

• Say “yes” on FAFSA• Employment may be on or off campus• Eligible employers:– School– Federal, state, or local public agencies– Private nonprofit and for-profit organizations

Federal Grants

• Pell Grant: – Up to $5,550

• FSEOG: – Up to $4,000

• TEACH Grant: – $4,000

Student Loans

• Federal Perkins• Federal Stafford• Federal PLUS• State Loan Program• Alternative Loans

Federal Stafford Loans

• Subsidized: Government pays interest for student while in-school, grace or deferment status

• Unsubsidized: Government does not pay interest for student; the interest is billed quarterly

Federal Stafford Loans

• Student is the borrower• Must be enrolled at least half-time• School determines loan eligibility• Must sign Master Promissory Note (MPN)• Fixed interest rate (2011-12)– 3.4% subsidized loans–6.8% unsubsidized loans

• 1% loan fee

Federal Stafford Loan LimitsDependent Students• $5,500 – Year 1• $6,500 – Year 2• $7,500 – Years 3-5

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

Independent Students• $ 9,500 – Year 1• $10,500 – Year 2• $12,500 – Years 3-5• $20,500 – Graduates

Federal PLUS Loans

• Loan in parent’s name• Parent responsible for repaying loan• Credit application required• Fixed rate = 7.9%• 4% loan fees• Repayment begins after 60 days •Must sign Master Promissory Note

(MPN)

State DEAL Loan

• Dakota Education Alternative Loan• FAFSA required• Low interest rate• Fixed or variable• No tiers

• Credit worthy cosigner if under 24• Deferment options

Alternative Loans

• Variable interest rates• Tiers based on credit• Cosigner may be required• Terms vary among private lenders• Wells Fargo• US Bank• Citi Bank

How much should I borrow?

• 10% of anticipated gross income

• Example• $30,000 – Anticipated annual income • $2500 – Monthly income• $250 – Monthly student loan payment

Who Can Help

• High School Counselor• College Financial Aid Office• College Goal Sunday• North Dakota College Access Network

(NDCAN)

WWW.ND-CAN.COM1-800-554-2717