Financing Your Future. An introduction to Financial Aid

Financing Your Future An introduction to Financial Aid

Financing Your Future What does college cost? How do I apply for financial aid? What types of aid are available? Where can I get more information?

What does college cost? 2011-2012 average for 30 credits Anoka-Ramsey Community College $4,813 State Universities $7,323 University of Minnesota Twin Cities $13,062 Private Career Colleges $14,042 Private Colleges & Universities $31,862 Source MN Office of Higher Education

Cost of Attendance (COA) Direct Costs such as: Tuition and Fees Books and supplies Room and Board (if you are living on campus) Indirect Costs such as: Transportation Personal/Misc. Varies from college to college

How Do I Apply for Financial Aid? 1. Complete the FAFSA (Free Application for Federal Student Aid) online www.fafsa.gov Never pay a fee to file the FAFSA! Based on 2011 income for 2012-2013 IRS data retrieval available February 2012 Enter school code each school has a six digit code ARCC 002332 2. Complete and return all requested documents required for verification to the Financial Aid Office.

FAFSA on the Web www.fafsa.gov

PIN Registration www.pin.ed.gov

Dependent or Independent? Born before January 1, 1988 Married Graduate or Professional Student Children you support more than 50% Orphan or ward of the court Currently serving on active duty in the U.S. Armed Forces for purposes other than training Veteran of the U.S. Armed Forces Homeless or at risk of being homeless

IRS Tax Retrieval Feature While completing the FAFSA, Student and Parent tax information is required. The IRS Tax Retrieval Feature automatically loads your tax information into the FAFSA from the IRS. If 2011 Taxes were e-filed Tax Retrieval available 1-2 weeks after filing If 2011 Taxes were NOT e-filed Tax Retrieval available 6-8 weeks after filing Participation is voluntary but will reduce documents requested by financial aid office.

Verification Process whereby certain information provided on the FAFSA is reviewed for accuracy and completeness. Student/Family must complete and return to Financial Aid Office some additional documentation: Verification Worksheet 2011 Tax Return Transcript (if tax information was not received by the IRS retrieval process) Other untaxed income documentation

Frequent FAFSA Errors Missing signatures Social Security Numbers Divorced/Remarried parent information Missing school code Untaxed Income Household size U.S. income taxes paid Number of household members in college

General Eligibility Requirements Must be enrolled or accepted for enrollment in an eligible institution Must be admitted in a degree, certificate, or other recognized credential program Must be a U.S. citizen or eligible non-citizen Must be registered with Selective Service (males age 18-25)

General Eligibility Requirements (continued) Must not have eligibility suspended or terminated due to a drug-related conviction Must have a valid Social Security Number May not be in default on a federal student loan Maintain satisfactory academic progress once in school (as defined by the school).

Satisfactory Academic Progress (SAP) Students must maintain an overall GPA of 2.0 or higher and a completion rate of at least 67%. The first term a student does not meet SAP, they are placed on Warning. While on Warning, if by the end of the following term, the student still does not meet SAP, they are ineligible for aid and must submit an appeal. If a student s appeal is approved, they are placed on Probation, and must meet the terms of their probation until they meet SAP.

Expected Family Contribution (EFC) Calculated using data from the FAFSA and a federal formula Stays the same regardless of college Two components: Parent contribution Student contribution

Definition of Financial Need Cost of Attendance (COA) Expected Family Contribution (EFC) = Financial Need Based on your financial need, the school financial aid office will determine your financial aid package which may include a combination of grants, loans and workstudy.

Types of Financial Aid Grants or Scholarships: awards that you do not have repay. Loans: borrowed funds that must be repaid with interest, usually after your education is completed. (Interest rates differ depending on the loan) Where does it come from? Federal and state government, schools, employers, and other public and private sources like clubs and organizations. Work-Study: money earned on or off campus jobs.

Scholarship Resources Your college of choice High School Private business scholarships Civic organization scholarships Local library resources Place of employment

Free Scholarship Search Databases U.S. Department of Education Financial Aid and Scholarship Wizard: studentaid2.ed.gov/getmoney/fin_aid_wizard/ The College Board: apps.collegeboard.com/cbsearch_ss/welcome.jsp FastWeb: fastweb.com State Financial Aid Resources: getreadyforcollege.org

Avoid scholarship scams For information and tips to avoid scholarship scams check: Minnesota Attorney General s Office: www.ag.state.mn.us/consumer/college Students.htm Federal Trade Commission: www.ftc.gov/ftc/consumer.htm U. S. Department of Education: www.studentaid.ed.gov

What s Next? Student notified of FAFSA processing results Follow up with any additional information required for your financial aid application Obtain and review admission and financial aid materials from each school to which you are applying Meet all application deadlines Review Award letter carefully and contact your school with questions you may Continue to search and apply for scholarships.

Helpful Financial Aid Hints Plan ahead and apply early! Meet all application deadlines! Review your application before submitting. Follow up with any additional information required for your financial aid application. Make a financial aid file for copies of all financial aid forms you submit. Know your school s policies. Contact your school with questions you may have concerning your application or award. Apply each school year for financial aid. Make the grade to keep the aid. Consent to Release Form for parent questions

Special Circumstances Cannot report on FAFSA Send explanation and documentation to financial aid office at the college you plan to attend College will review request and determine outcome.

Special Circumstances Change in employment status Medical expenses not covered by insurance Change in parent marital status Unusual dependent care expenses

Where can I get more information? U.S. Department of Education: www.ed.gov Minnesota Office of Higher Education: www.ohe.state.mn.us FinAid-The Financial Aid Information Page: www.finaid.org The College Board: www.collegeboard.org

Financing Your Future an investment in you! Anoka-Ramsey Community College Financial Aid 763-433-1500