Financial Planning

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Financially Planning Your Northeastern Education

Presented byStudent Financial Services

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Overview

• Financial Aid - Process and Services

• Northeastern Financial Planning Assistance

• Payment Plan Options

• Helpful Resources

• Questions

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Applying for Financial Aid

• If you have not applied or have not completed the process

– FAFSA: Free Application for Federal Student Aid• FAFSA on the Web: www.fafsa.ed.gov• Pin number: www.pin.ed.gov

– PROFILE: The College Board/CSS• CSS PROFILE: https://profileonline.collegeboard.com• Click on Profile 2009-2010• Non-Custodial Parent Information

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Awarding Process

• Financial Aid and Scholarship Awards

– Available Online• Notification sent to Student’s Email Address

• View awards on the Application Status Check www.neu.edu/admissions

– Awarding began March, will continue throughout May

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Awarding Process – Northeastern Policy

•Five Year Guarantee

– Northeastern University grant and scholarship funds are guaranteed not to be reduced, regardless of changes in your financial circumstances, for up to eight in-class semesters.

– Allows you to plan for the total cost of education, without concern that grant and scholarship assistance will be reduced.*

*Students must file the Free Application for Federal Student Aid each year, and maintain the minimum cumulative grade point average required for any scholarship or grant funds awarded

Awarding Process – Changes in Circumstances

• Loss of Job– Need-based financial aid will be reevaluated to

meet at least the same percent of increased financial need as a result of a parent’s job loss.

– All available resources will be offered to students who demonstrate need for the first time as a result of a parent’s job loss.

• Medical Expenses– Unusual/high medical expenses can be excluded

from income used in calculation

Awarding Process – Changes in Circumstances

• Loss of Job - example– Family of 4, 1 student in college– Adjusted Gross Income of $100,000– Father earns $51,000/Mother earns $49,000– Average assets– Institutional Family Contribution $24,000– Need $26,000– Total gift aid $15,900– 61% of need met with gift aid

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Awarding Process – Changes in Circumstances

• Loss of Job - example– Father loses job, income reduced to $15,000– Adjusted Gross Income reduced to $64,ooo– New Institutional Family Contribution $14,000– Need $36,000– Gift aid increases to at least $22,000– 61% of increased need met with gift aid

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Awarding Process

• Verification/Additional Paperwork/Forms Request

• Can Cause Award Adjustments• If Possible, Provide Documentation Before May 1st

• Other appeals should be sent in writing to the Student Financial Services Office.

• May 1st deposit secures financial aid award

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Financing Options Overview

• Suggestions– Other Aid Sources

• Private Scholarships: Community Groups, Employers• Northeastern Endowed Scholarships: In subsequent

years• Private/Outside Scholarships:

– financialaid.neu.edu– collegeboard.com

– Keep Expenses Low: Cars, Clothes, Miscellaneous Expenses, Credit Cards

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Annual Costs (2 Semesters)

$34,950 Tuition*

$11,910 Average Room & Board*

$416 Typical Billed Fees*

Details: www.neu.edu/registrar/billing.html

* Estimated

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What Tuition Covers

• Prescribed curriculum– Full-time Tuition = 12 - 16 credits per semester– Normally 4 classes per semester– Expectation of 8 semesters to degree

• Attendance and Costs– Annual costs vary from year to year– Tuition is charged during “in school” terms– Most financial aid will deposit during “in school” terms (when

tuition is charged)

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Attendance Pattern Example

Fall SpringSem1: Sep t-Dec Sem2: Jan-April Sum1: M ay-Jun Sum2: Jul-Aug

Freshmen Class Class Vacation VacationSophomore Class Coop 1 Coop 1 Class

Middler Class Coop 2 Coop 2 ClassJunior Class Coop 3 Coop 3 VacationSenior Class Class

Summer Sessions

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Payment Options

• Monthly Payment Plan– Flexible Monthly Payment. – Can be Used Alone or Combined with Other

Financing Options– Payment Plan Is No Interest, with an enrollment

fee (approx. $60)– Detailed information will be provided in June .

Information can also be found at www.neu.edu/registrar/billing.html

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Payment Options

• Borrowing– General rule: Use savings and current

resources first• Use borrowing as a last resort

– For Education Expenses Only– Up to the Education Budget minus Aid

(available in Award Letter)– Subject to Approval by Lenders– Limit borrowing to what you need

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Payment Options

• Supplemental Loans– 2 Types

• Federal Direct Parent PLUS Loan– Fixed rate of 7.9%– In-school deferment available– 90% of NU parents approved

• Student Alternative Loans– Cosigner required– Variable interest rates– In-school deferment

• Loan Processing– Begins over Summer– Loan funds added to award in July– Loan funds disburse up to a week prior to the start of term

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Effective Payment Planning

• Web Payment Calculators– www.financialaid.neu.edu

• Click on Financial Planning Tools & Calculators

– Annual cost calculator

• Determines net balance due by subtracting financial aid from direct cost

– Monthly payment calculator

• Determines distribution of monthly payments and loan payments

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Combining Options

Example: $10,000 balance due

• Monthly payment plan = $1,000/month for 10 months

• Borrowing (Direct PLUS Loan ) = $120/month for 10 years ($14,996 total)

• Combination Plan– $429/month for 10 months ($4,290 monthly payment

plan)– $71/month for 10 years ($5,856 Direct PLUS Loan)

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Information & Communication

• myNEU - receive information on the following:– Financial aid– Billing (end of July or

early August)– Orientation

information– Pay deposit(s)– Waive health

insurance– Change your meal

plan

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Additional Information

• SFS Table(8:30 – 2:00) in Curry Student Center– Financial resource information– Aid application information– Answer most questions you may have

• Website: www.financialaid.neu.edu, www.neu.edu/registrar/billing.html

• E-Mail– Billing: studentaccounts@neu.edu – Financial Aid: sfs@neu.edu

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Questions & Answers