Financial Aid Jeopardy A Montana Perspective Presentation Concepts to High School Students and their

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Financial Aid Jeopardy A Montana
PerspectivePresentation Concepts to High School
Students and their Parents SASFAARegional
ConferenceFebruary 15, 2005
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The Montana Association of Student Financial Aid
Administrators The University of Montana
Presentation developed and provided by
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Handouts

• Record Keeper
• Montana Career Information System (MCIS) Flyer
• The Basics of Funding Your Education Booklet
• Annual College Planning Worksheet
• 2005-06 Paper FAFSA application
• (Gather information and use to enter on-line)
• Presentation/Discussion Papers

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The Quiz Show Answer is
A realistic opportunity for most Americans
regardless of family income
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Admissions

• Apply to the colleges or other post-secondary
  schools of your choice including a safety net
  school.
• Dream schools
• Reality school
• Pay close attention to institution deadlines.
• You DO NOT need to be admitted before applying
  for aid. However, you may need to be admitted
  before an official financial aid award can be
  made.

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(No Transcript)
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The Quiz Show Answer is
Most academically bright students will benefit if
they meet deadlines for these
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Scholarship Searches

• Colleges
• Internet
• www.fastweb.com
• www.finaid.org
• Free, Free, Free
• Avoid Scams

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• Scholarship Applications
• UM Presidential Scholarship Program (merit)
• or
• UM General Scholarship Program (merit, need)
• Deadline December 31, 2004
• Late applications are NOT considered
• Applications Web, Counselor, or call UM FAO
• UM Departmental Scholarships
• Check with each school or department
• Merit, Need Skill (eg. athletic, music, drama)
• Deadlines vary

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• Scholarship Applications
• Local, State and National Scholarships
• Churches, fraternal organizations, banks, credit
  unions and associations etc.
• Review family contacts
• See high school counselor
• The Basics of Funding your Education booklet

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(No Transcript)
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What is the federal PIN?For both student
parent(s)

• Password
• Access to private information
• Student Federal Aid (SFA) systems
• Electronic signature
• FAFSA on the Web
• New applications, corrections, renewals for next
  year
• E-mail and address changes for FAFSA
• Federal student parent loan promissory notes

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PIN Registration

• Speeds processing
• May be used throughout aid process -- including
  on-line signing of loan applications

• Recommendation get PIN Now!

Web Site www.pin.ed.gov
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Needs Analysis(Defining Cost of Attendance)
Cost of Attendance (COA)
Expected Family Contribution (EFC)
Need
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The Quiz Show Answer is
Cost of Attendance, Direct Costs, and
Tuition/Fees --representing college costs
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Whats in the Cost of Attendance?

• Tuition fees
• Books supplies
• Room board
• Personal expenses, transportation, misc.
• Loan fees
• Other possible components
• Study abroad costs
• Dependent or elder care expenses
• Expenses associated with a disability
• Expenses for cooperative education programs

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Total Average Costs for Full Time Attendance
Current Year -- 2004-05 Out-of
In-State State Tuition/Fees
4,614 12,872 Books/Supplies
800
800 Room/Board 5,500
5,500 All other Living Exp. 3,180
3,180 TOTALS
14,094 22,352 COT (2 yr
program) Totals
12,426 17,214 Estimated
range of increase is 3-10 per year

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• Average 2004-05 Direct Costs UM-Missoula
• (On-Campus Double Room Premium Meal Plan)
• In-State
• Tuition/Fees 4,614
• Room/Board 5,500
• Total 10,114
• Out-State
• Tuition/Fees 12,872
• Room/Board 5,500
• Total 18,372
• In the last ten years
• Tuition/Fee increases have ranged from 3.8 to
  13.7 per year
• Room/Board increases have ranged from 0 to 8.9
  per year

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Tuition Only Costs for Montana Students
2004-05 Arizona
State University
12,919 University of Colorado
21,462 Colorado State University
14,552 University of Idaho
11,652 The University of
Montana 4,614 University
of North Dakota
6,832 University of Oregon
17,424 University of Washington
17,916 Washington State University
14,046 University of Wyoming

4,865/9,273 Carroll College
15,750 Concordia College,
MN 17,770 Notre Dame
29,510
Western Undergraduate Exchange (WUE) (150
of in-state) Room/Board charges range
from 4,000 -- 8,000

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The Quiz Show Answer is
It is the definition for need-based financial
aid
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Needs Analysis(Defining the EFC)
Cost of Attendance (COA)
Expected Family Contribution (EFC)
Need
Financial Aid Estimator (EFC etc.) Web Site
www.finaid.org
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Expected Family Contribution (EFC)

• What is it?
• It is the official federal figure (established
  through Congress), that your family is expected
  to contribute toward the students total cost of
  school and living expenses for one year.

• How is it determined?
• The EFC is determined by the income and asset
  information of the student, ( parents when
  dependent), that is submitted on the FAFSA
  application.

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Need Varies Based on Cost
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The Quiz Show Answer is
The ultimate result of this effort is a 5-digit
number that represents the Expected Family
Contribution
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Free Application for Federal Student Aid (FAFSA)

• Familys personal and financial information is
  collected on the FAFSA and is required to perform
  EFC calculation
• Electronic version of the FAFSA
• FAFSA on the Web www.fafsa.ed.gov
• Department of Education PIN
• Paper versions of the FAFSA
• Regular FAFSA
• Renewal FAFSA

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Filling Out the FAFSA

• Use 2004 tax information
• Do not send any other forms with the FAFSA
• Make sure SSNs are correct
• Student and parents
• Names must match SS records also
• Make sure the school(s) are identified
• Contact the college Financial Aid Office for
  assistance
• If using paper, mail the paper form in the
  envelope provided

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Timelines

• Submit as early as possible after January 1
• Use estimates to submit by schools priority
  date. UM priority is Feb. 15 FAFSA must be
  processed by March 1.
• Completed tax returns are best
• Electronic -- 2 - 4 weeks
• Paper -- 4 - 6 weeks
• If you havent received any information by the
  4th week contact
• 1-800-4-FedAid (1-800-433-3243) or
• Your financial aid office

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Why Is All This Information Needed? The Federal
Philosophy

• To the extent they are able, parents have the
  primary responsibility to pay for their dependent
  childrens education
• Students also have a responsibility to contribute
  to their educational costs
• Families should be evaluated in their present
  financial condition
• A familys ability to pay for educational costs
  must be evaluated in an equitable and consistent
  manner, recognizing that special circumstances
  can and do affect the ability to pay

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2005-2006 FAFSA
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2005-2006 FAFSA
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2005-2006 FAFSA
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2005-2006 FAFSA
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Income Tax InformationApplies to Student Parent
In order to meet the priority deadline of the
school you want to attend, use projected tax
information! Better to file with good answers in
February than guessing in January. You can also
update the information with FAFSA on the web or
with the school after you file your taxes.
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2005-2006 FAFSA
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2005-2006 FAFSA
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2005-2006 FAFSA
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2005-2006 FAFSA
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2005-2006 FAFSA
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2005-2006 FAFSA

• Reminder Parent questions are always purple.
  All other questions refer to the student.
• Remember, the student and parent income and asset
  questions are the same for each section.
• If the parents and students are filling out Step
  Four -- skip Step Five.

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2005-2006 FAFSA
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2005-2006 FAFSA
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Ready to go Online!

• Have Your
• PIN
• Completed FAFSA or On-line Worksheet
• File your FAFSA after January 1, 2005 but before
  February 15th for best results at UM
• Note Other schools may have different deadlines
• UM-Missoula school code 002536

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Web Site www.fafsa.ed.gov
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Needs Analysis(Defining Need)
Cost of Attendance (COA)
Expected Family Contribution (EFC)
Need
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Potential Types of Aid Offered by filing FAFSA

• Need Based
• Free or gift aid -- Grants
• Employment Work Study
• Student Loans
• Non-Need Based
• Student Loans
• Parent Loans

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The Quiz Show Answer is
Grants, Work Study Loans
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Grants The Free money(About 30 of UM aid
applicants)

• Federal Pell Grant
• Federal Supplemental Educational Opportunity
  Grant (FSEOG)
• Montana Higher Education Grant (MTHEG)
• Baker Grant (fka MTAP)
• Acce Grant

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Employment Aid (Self Help Money)Work Study

• Work Study Employment (need-based)
• Most employment on-campus
• Limited to 19 hours per week
• Community Service America Reads
• May be a federal or state award
• Notice Non-Work Study is Regular Employment
• Not Financial Aid !!

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Student Loans Need Based

• Primary Need Based Loans
• Perkins
• Repayment after 9 month grace period
• Interest rate 5
• Stafford / Direct
• Origination fees and Insurance charges up to 4
• Repayment after 6 month grace period
• Interest Rate 8.25 cap (current 3.37)

Now is the time to plan!
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Student Loans Non-Need

• Non-Need Based Loans
• Unsubsidized Stafford/Direct
• Repayment after 6 months grace periodd
• (cap 8.25)
• Interest charged immediately
• Same fees/rates as Stafford
• (in-school rate 2.77)
• PLUS (Parent Loan for Undergraduates)
• Interest Rate 9.00 cap
• (current 4.17)
• Repayment begins 60 days after fully disbursed

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• EVERYONE WHO APPLIES FOR FINANCIAL AID
• AND IS OTHERWISE ELIGIBLE
• WILL BE OFFERED AT LEAST A STUDENT LOAN
• Subsidized (need) or Unsubsidized (non-need)
• Class Level Amount
• Freshmen 2,625
• Sophomore 3,500
• Junior / Senior 5,500
• Graduate 18,500
• Independent Students
• May have additional Unsubsidized eligibility

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The Quiz Show Answer is
Excess debt
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• PAYING FOR COLLEGE
• (After the College Years)
• BORROW WISELY!
• MONTHLY REPAYMENT SCHEDULES
• Estimated 10-YEAR REPAY _at_ 8.25
• 10,000
  122
• 20,000
  245
• 30,000
  368
• 40,000
  491
• 50,000
  613

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How Much Aid Could I Be Eligible For?



PLUS borrower can borrow EFC amount
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• INITIAL NOTIFICATON LETTER
• An Estimate of Financial
  Aid
• Joseph Montana SS 111-22-3333
• COA 14,000 EFC 002000
• Description of Award Amount Accept Amt
• Alumni/License Sch. 750 ___________
• Federal Pell Grant 1,800 ___________
• Montana Grant 500 ___________
• College Work Study 2,400 ___________
• Federal Stafford Loan 2,625 ___________
• Outside Scholarship 1,000 ___________
• Lender Name/Code ____________________________
• Signature ____________________________________
• PLUS (application available to parent of a
  dependent student up to 4,925)

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Other Resources

• Health Human Services Programs
• Veterans Benefits
• Military Service Scholarship (ROTC)
• Bureau of Indian Affairs (BIA) Grants
• Vocational Rehabilitation

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Taxpayer Relief Act(Eligibility determined on
Income Tax forms)

• Hope Scholarship (federal)
• Lifetime Learning (federal)
• Previous Student Loan Interest Deduction
  (federal)
• Education IRA (federal)
• Montana College Savings Trust (MT only)

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Web Sites

• The Basics of Funding Your Education (page 12)
• Scholarship searches, College searches, Career
  choices
• EFC Calculator
• Federal Links
• University of Montana
• www.umt.edu
• www.umt.edu/finaid
• www.umt.edu/studentjobs
• 529 College Educational Savings Plans
• http//montana.collegesavings.com

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Action Steps forAutumn 2005 Enrollment

• Immediately
• Get your PIN
• As soon as possible
• Get Admitted
• After January 1 by February 15
• File a complete FAFSA

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Questions??

College Goal Sunday February 13, 2005
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Your state financial aid association The
University of Montana

• Thank you for your time and attention!

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The Quiz Show Answer is
Yahoo