2012-2013Financing your Educationand your Future

Missouri Western State University

The Western Advantage

So Many Questions

How do I find a How do I find a college that is college that is right for me?right for me?

How do I How do I apply?apply?

What major What major or career or career should I should I choose?choose?

How am I going to pay

for my education?

What about loan repayment?

Find Answers to your questions

www.studentaid.ed.gov

Before we begin…

The moment your son or daughter sets foot on a college campus, the right to their privacy transfers to them.

What is Financial Aid?

Grants (Federal/State)

Scholarships (Western/Private)

Loans (Low Interest)

Employment (FWS/Institutional)

Financial Aid is money supplied by a source other than your family to assist with the cost of education.

Two Categories of Aid

Student must demonstrate financial need.

Need is determined by analyzing family financial resources.

Need Based

Financial need not considered.

Often given in recognition of special skills, talents, and abilities.

Merit Based

How is Need Determined?

Cost ofAttendance (COA)

LessExpected Family

Contribution (EFC)Equals

Financial NeedLess

Estimated Financial Assistance (EFA)

EqualsUnmet Need

Cost of Attendance Tuition/Fees, Room/Board, Books/Supplies, Transportation, Living Expenses, Etc. Will vary from school to school.

Expected Family Contribution is determined by a formula created by Congress (FAFSA results). Will NOT vary.

Estimated Financial Assistance total of all sources of assistance (grants, scholarships, loans, FWS).

How do I apply for Financial Aid?

Begin by completing the FAFSA.

What is the FAFSA?

FREE Application for Federal Student Aid Provides the necessary information to perform

need calculation - determines your EFC. Determines your eligibility for Federal, State, and

sometimes private aid. Should be submitted as soon as possible after

January 1st each year.

www.pin.ed.gov

To electronically sign the FAFSA, you and your parent, must request a PIN from the Department of Education.

What do I do first?

I have my PIN. What next?

www.fafsa.ed.gov

What do I need to Complete the FAFSA?

2011 W2 Forms 2011 Income Tax

Returns Asset/Investment

Information Other Financial

Information

Helpful Hints: Read the form carefully. Double check your answers. If you have questions, ask your

Financial Aid Professional.

Before you begin…There are a few things you should know about the FAFSA.

Dependent vs. Independent

Were you born before 1-1-89? Are you a grad or professional student? As of today, are you married? Do you have dependents who receive more than 50% of

their support from you? Are you currently serving in the Armed Forces? Are you a veteran of the U.S. Armed Forces? Are you an orphan or ward of the court or in foster care or

in legal guardianship? Are you a legally emancipated minor? Are you an unaccompanied, homeless youth?

Were you born before 1-1-89? Are you a grad or professional student? As of today, are you married? Do you have dependents who receive more than 50% of

their support from you? Are you currently serving in the Armed Forces? Are you a veteran of the U.S. Armed Forces? Are you an orphan or ward of the court or in foster care or

in legal guardianship? Are you a legally emancipated minor? Are you an unaccompanied, homeless youth?

IF YOU CAN’T ANSWER YES IF YOU CAN’T ANSWER YES to one, or more, of these questions, you are a to one, or more, of these questions, you are a dependent student and must include parent’s financial information.dependent student and must include parent’s financial information.

Do I have to include my parent’s financial information on the FAFSA?

Who is Considered a Parent?• If your parents are living and

married to each other, include their combined financial information.

• If your parent is widowed or single, include his/her financial information.

• If your parents are divorced or separated, include the financial information for the parent you lived with more during the past 12 months.

If that parent is remarried, you MUST include your stepparent’s financial information.

NOTE: Grandparents, foster parents and legal guardians are not considered parents unless they have legally adopted you.

IRS Data Retrieval Tool

1. Enter your PIN* and click Link To IRS. 2. On the IRS Web site, enter the requested information.3. Once the IRS has validated your identification, your IRS tax

information will display. You can either transfer your information from the IRS, or choose to return to FAFSA on the Web from the IRS Web site.

4. If you transfer your IRS tax information, questions that are populated with tax information will be marked with “Transferred from the IRS.”

1. Enter your PIN* and click Link To IRS. 2. On the IRS Web site, enter the requested information.3. Once the IRS has validated your identification, your IRS tax

information will display. You can either transfer your information from the IRS, or choose to return to FAFSA on the Web from the IRS Web site.

4. If you transfer your IRS tax information, questions that are populated with tax information will be marked with “Transferred from the IRS.”

Transfer IRS

tax information

to your

FAFSA.

How will I know the Results?

Will receive a link to an electronic version of the SAR.

Students who provide an e-mail address

Will be sent a paper SAR acknowledgement.

Students who do not provide an e-mail address

FAFSA results are reported to the student using the Student Aid Report (SAR).

What if I Make a Mistake?If corrections to the applicant data are required, they may be made…

Using FAFSA Corrections on the Web;

By the Financial Aid Staff; or

On the paper SAR.

What about Special Circumstances?

Contact the Financial Aid Office if you experience:

Loss or reduction of family income;

Unusual medical or dental expenses not covered by insurance;

Death or illness; or otherunusual circumstances.

What is Verification?

If you are selected for Verification, you will be notified in writing of the documents required to complete the process.

The U.S. Department of Education uses a quality-

control method called “verification” to check the

accuracy of application data.

A day

late is…

Deadlines for Federal Aid.

Priority Deadlines for Campus Based Federal Programs (SEOG, FWS, Perkins Loans).

Deadlines for State Aid Programs (April 1st).

Scholarship Application Deadlines.

Watch your deadlines!

What Programs are Available?

Federal Aid Programs State Aid Programs Institutional Programs Outside Sources

Show me the

MONEY!!

Federal Pell Grant

FAFSA results determine eligibility. Award amount based on Financial

Need (EFC less than $5,274) Maximum award for 2011-2012 was

$5,550 per year.

Government’s largest need-based grant which does not need to be repaid.

Federal Work Study

Need-based program providing on and off campus job opportunities.

Must complete the FAFSA by the Priority Deadline.

Compensation is at least the current minimum wage.

Access Missouri

Must complete the FAFSA by April 1st. Awarded to students with an EFC less than

$12,000. Awards range from $1,000 to $2,150 per

year depending upon state funding. Must be enrolled full-time (12 hrs). Must maintain a 2.50 GPA and make

Satisfactory Academic Progress.

State need-based grant which does not need to be repaid.

2012-2013Scholarships

Financing your Education and your Future

What About Scholarships?There is an assumption that you have to be brilliant, or athletically talented, or gifted musically, to earn scholarships for college.

What you don't realize is that sometimes you just need to take the time to apply. Persistence pays!!!

Scholarship Sources

Local ChurchesLocal BusinessesMilitary Sources

College WebsitesParent’s Employer

Civic OrganizationsHigh School Counselor

Local Library ResourcesProfessional Organizations

Scholarship Application Tips

1: Give concrete examples.2: Apply only if you are eligible.3: Identify the sponsor's goals.4: Complete the application in full.5: Neatness counts.6: Write an accomplishments resume.7: Watch all deadlines. 8: Make sure your application gets where it needs to go.9: Ask for help if you need it.10:Remember - your application represents YOU!

Ever wonder what the people who award the scholarships want to see?

Searching OnLine

FREE Scholarship Search Site

www.fastweb.com

CashCourse Quiz Time!

2012-2013Federal Student Loans

Financing your Education and your Future

About Federal Stafford Loans

The student is the borrower.

Fixed interest rate of 6.8% for Subsidized and 6.8% for Unsubsidized.

Repayment begins six months after you drop below six hours, withdraw or graduate.

Requirements for Borrowers

Complete a Master Promissory Note Complete Entrance Loan Counseling

Before loan funds will be disbursed, 1st-time freshman borrowers must:

NOTE: Your school may require a 30-day delay after classes begin for loan disbursement. Be sure to have other funds available to purchase book and supplies.

Federal Loan Limits

Year in School Earned Credit Hours Amt Borrowed Per Year

Freshman 0-29 $5,500

Sophomore 30-59 $6,500

Junior 60-89 $7,500

Senior 90-Grad $7,500

*There is additional unsubsidized loan eligibility for independent undergraduates, graduate students, and dependent students whose parents are unable to borrow under the PLUS Program.

Do the Math!Year in School Amt Borrowed

Per YearTotal Borrowed

Freshman Year $5,500 $5,500

Sophomore Year $6,500 $12,000

Junior Year $7,500 $19,500

Senior Year $3,500 $23,000

If you borrow $23,000 in a 6.8 percent interest rate Stafford Loan, you'll have to pay $265 every month for 120 months -10 years. By the time you pay back the $23,000 plus interest, you will have paid $31,800!

Subsidized vs. Unsubsidized

Unsubsidized Loans not based on financial need; student pays interest while in school.

Subsidized Loans based on financial need; government pays interest while you are in school.

Monthly Accrued Interest

If at all possible…make the interest payments on unsubsidized loan funds while you are in school.

If you borrow $5,500 in unsubsidized funds during your first year in college, your interest payment will be $31.17 per month. Over 4 years that amount will become $1,496.16 making your first year loan debt $6,996.16 plus the interest that will accrue during your repayment period.

Student loan debt…

Unfortunately not. Your student loan debt is a legal obligation requiring a 10-30 year financial commitment.

What if I default?

• A collection agency will take over your loans and you will incur additional fees.• Your credit history will be

damaged (wrecked).• Your wages may be garnished. • Your tax refund and Social Security benefits may be

withheld.• You will no longer be eligible for future federal loans.• Deferment will no longer be an option for you.

Default is the failure to repay a loan according to the terms of the promissory note. Be aware, there can be serious consequences for student loan defaulters.

Federal PLUS Loans

Fixed interest rate of 7.90%. Annual loan limit equals the cost of attendance minus

ALL other aid. Repayment begins sixty days after the loan is fully

disbursed but may be deferred until six months after the dependent student ceases to be enrolled on at least a half-time basis.

Borrowers are credit worthy parents of dependent under-graduate students.

2012-2013Top 3 Reasons toGO TO CLASS!

Financing your Education and your Future

you earn your financial assistance as you go to class?

Did you know…

return all or part of your Federal and State funding.

If you are reported for never attending or if you stop attending one or more of your classes, your school may be required to…

Did you know…you can lose your eligibility to receive Federal and State financial assistance?

If you fall below your schools Satisfactory Academic Progress standards, you are at risk of losing your eligibility to receive funding.

Question: If you lose your eligibility to receive aid, will you lose your opportunity to go to school??

the average freshman borrows $5,142 to help finance their first year of college?

Did you know…

Many freshman students borrow thousands of dollars to fund their education and then never go to class. They don’t realize that student loan debt is a very serious obligation – that student loans cannot be forgiven through bankruptcy proceedings or that failure to repay student loans can wreck their credit.

You wouldn’t borrow that much money to buy a car and then walk away without the car would you?

2012-2013Take the CashCourse Quiz

Financing your Education and your Future

Take the CashCourse Quiz!

Create a spending plan.

Identify income:List the financial assistance paid directly to you each month, family help,

anticipated job income, Work-Study income, and any other sources of money you receive.

List your expenses: Using your spending notebook and any receipts you've saved, determine what your actual expenses are.

Compare income with expenses: Once you've identified your income and expenses, you need to compare them to see how you're doing.

Make adjustments: If your income is higher than your expenses, great! Not only are you preventing financial stress, but you can set some money aside for your goals—a new laptop, a spring break trip, emergency savings, and more.

Keep in mind, small purchases add up to big money!!

When you look at your spending, you may see that you buy a latte every day. True, a latte only costs about $3, but if you buy one every day, that's $21 a week. Over the course of the school year, that adds up to $1,092. In four years of college, that's more than $4,368 you'll spend on coffee and steamed milk!

Take the CashCourse Quiz!

Take the CashCourse Quiz!

It pays to start saving and investing early!

Sally’s IRA Joe’s IRA

Interest Rate 9 percent 9 percent

Number of years of contributions

10 34

Total amount contributed

$1,000 per year for 10 years ($10,000)

$1,000 per year for 34 years ($34,000)

Value at age 65 $310,148 $215,711

Sally begins investing $1,000 a year in a tax-deferred IRA at age 22 and stops putting money in the IRA after 10 years, at age 32. She leaves her money so it will grow through compounding until she reaches age 65.

Joe begins investing $1,000 a year in a tax-deferred IRA at age 30 and continues to do so for 35 years until he reaches age 65.

Take the CashCourse Quiz!

Repayment Calculator

Take the CashCourse Quiz!

For more information…check out CashCourse online.

www.missouriwestern.edu/finaid

2012-2013Questions

Financing your Education and your Future