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Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
Missouri Western State University Financial Aid Presentation
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Missouri Western State University Financial Aid Presentation

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    • 1. FINANCING YOUR EDUCATION
    • 2. ns? stio ue f Q ts o t lo Go www.studentaid.ed.gov
    • 3. The PRIVACY ACT limits what Business and Financial Aid Office representatives are allowed to discuss with parents. You may sign a release form allowing your school to discuss your information with a third party (i.e. parent).
    • 4. Financial Aid is an INVESTMENT in your future made by sources other than your family…or by you. GIFT AID Grants (Federal/State) Scholarships (Western/Private) SELF-HELP AID Federal Loans (Low Interest) Employment (FWS/Institutional)
    • 5. Need Based Aid Merit Based
    • 6. How is need  Cost of Attendance determine d? 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).
    • 7. How do I apply for
    • 8. he t te ine le nl p o om A C FS ed A a. F fs t fa a w. w w v go .
    • 9. FREE Application for Federal Student Aid  Provides the necessary information to perform need calculation determines your EFC.  Determines your eligibility for Federal, State, institutional and private aid.  Should be submitted as soon as possible after January 1st EVERY year.
    • 10. What do I need to complete the FAFSA?  Parent/Student PIN www.pin.ed.gov     2013 W2 Forms 2013 Tax Forms Other Financial Info School Codes Helpful Hints:  Read the form carefully.  Double check your answers.  If you have questions, ask your Financial Aid Professional.
    • 11. To electronically sign the FAFSA, you and your parent, must request a PIN from the Department of Education. www.pin.ed.gov
    • 12.          Were you born before 1-1-91? 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 to one, or more, of these questions, you are a dependent student and must include parent’s financial information.
    • 13. Transfer IRS tax information to your FAFSA. 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.”
    • 14. Provide an email address…get a link to your SAR the next day. Don’t provide an email address… get your SAR via snail mail.
    • 15. Using FAFSA Corrections on the Web;  By the Financial Aid Staff; or  On the paper SAR. 
    • 16.  Loss or reduction of family income.  Unusual medical or dental expenses not covered by insurance.  Death  Other or illness. unusual circumstances.
    • 17. The Department of Education randomly selects around 30-35% of FAFSA filers to participate in a mandatory quality-control process called “Verification.”
    • 18. Watch your deadlines! 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. 
    • 19. Show me the money! Federal Aid Programs  State Aid Programs  Institutional Programs  Outside Sources 
    • 20.  FAFSA results determine eligibility.  Award is based on your Expected Family Contribution (EFC).  Maximum award for 20132014 is $5,645 per year.  Up to 6 years of potential eligibility. Does not need to be repaid!!
    • 21.  Awarded to students with an EFC less than $12,000.  Awards lete mp y t co SA b us M FAF st . the ril 1 Ap 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 for renewal.
    • 22.  Must complete the FAFSA by the Priority Deadline.  Compensation is at least the current minimum wage.
    • 23. 1098T – IRS Publication 970 A tax credit reduces the amount of income tax you may have to pay. Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself. • American Opportunity Credit - $2,500 per student for up to four years
    • 24. There is an assumption that you have to be brilliant, or athletically talented, or gifted musically, to earn scholarships for college.
    • 25. Where do I look? Local Churches Local Businesses Military Sources College Websites Parent’s Employer Civic Organizations High School Counselor Local Library Resources Professional Organizations
    • 26. Searching Online
    • 27. Beware of financial aid scams!
    • 28. Ever wonder what the people who award the scholarships want to see? Remember, your application represents YOU!
    • 29. Let’s talk about student loans… and the REALITY of student loan debt. loan debt topped $1 trillion dollars making it the Last year, student second largest category of consumer debt (home mortgages is #1).
    • 30. Who is the borrower of a Federal student loan? Who is NOT the borrower? Who is responsible for repaying
    • 31. The Federal government sets limits on the amount of money students may borrow to help fund their education. Freshmen may borrow up to $5,500 ($9,500 with PLUS denial).
    • 32. What’s the interest rate? Subsidized Stafford Loans 3.86% Unsubsidized Stafford Loans 3.86% Rates are established each year on July 1st.
    • 33. Understand the difference between Subsidized and Unsubsidized loans. Subsidized Student Loans Are based on financial need; government pays the interest while you are in school. Unsubsidized Student Loans Are not based on financial need; you should make interest payments while in school.
    • 34. Are you accruing interest now? 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.
    • 35. Loan debt can add up fast! Year in School Amt Borrowed Per Year Total Borrowed Freshman Year $5,500 $5,500 Sophomore Year $6,500 $12,000 Junior Year $7,500 $19,500 Senior Year $7,500 $27,000
    • 36. The reality of loan payments! If you borrow $27,000 in a 6.8 percent interest rate Stafford Loan, you'll have to pay $311 every month for 120 months - 10 years. By the time you pay back the $27,000 plus interest, you will have paid $37,286! If you borrow $35,000 you will pay $403 per month. If you borrow $50,000 you will pay $575 per month.
    • 37. Future salary required to manage that payment? $27,000 Borrowed $50,000 Borrowed
    • 38. When does repayment begin?
    • 39. Student loans…an investment?
    • 40. It could be the best investment you ever make… or the WORST!
    • 41. Go to Class! After all…you paid for it. Only Pay for a Class One Time! Do your work and be prepared for tests. If you are struggling, GET HELP! Stick to Your Academic Plan! Take only courses that are REQUIRED for completion of your degree program. Borrow Only What You Need! Learn the difference between NEED and WANT. Use Loan Funds for Educational Expenses ONLY!!
    • 42. What if I don’t pay my loans back? CODE OF FEDERAL REGULATIONS (CFR) PART 685—WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM Subpart B—Borrower Provisions Sec. 685.211 Miscellaneous repayment provisions. (d) Default. (1) Acceleration. If a borrower defaults on a Direct Loan, the entire unpaid balance and accrued interest are immediately due and payable . (2) Collection charges. If a borrower defaults on a Direct Loan, the Secretary assesses collection charges in accordance with Sec. 685.202(e). (3) Collection of a defaulted loan. (i) The Secretary may take any action authorized by law to collect a defaulted Direct Loan including, but not limited to, •filing a lawsuit against the borrower, •reporting the default to national credit bureaus, •requesting the Internal Revenue Service to offset the borrower's Federal income tax refund, and •garnishing the borrower's wages.
    • 43. No problem…I’ll just declare bankruptcy. Can’t do it! Federal student loans are rarely
    • 44. In other words… Borrow responsibly NOW… So you can live rich LATER.
    • 45. Federal PLUS Loans for Parents Borrowers are credit worthy parents of dependent undergraduate students.
    • 46. TOP Reaso ns to GO TO CLASS!
    • 47. You earn your financial assistance as you go to class.
    • 48. You can lose your eligibility to receive Federal financial assistance (Pell, Stafford Loans, etc.).
    • 49. Would you borrow that much money to buy a car and then… Leave the lot without it?
    • 50. Money Tip #1 You should always have a plan for spending your money. Know where your money goes. Avoid overspending. Stay out of debt. Be ready for the unexpected. Allow for saving and investing. Be prepared for a life of financial success!!
    • 51. Money Tip #2 Understand that 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, that's more than $4,368 you'll spend on coffee and steamed milk!
    • 52. Money Tip #3 Your credit score is expressed on a scale between 300 and 850. (Fair Isaac Corporation - FICO score). • Do you pay your bills on time? • What types of credit do you use? • How much do you owe? • How much credit do you have available? • Do you have responsible borrowing experience? • Have you applied for several credit cards over a short period of time? • Do you have court judgments or bankruptcies? • Do you have unpaid bills in collection? Length of Credit History
    • 53. The information in your credit report is used to evaluate your applications for credit, insurance, employment, and renting a home.  
    • 54. Money Tip #4 Understand the miracle of compounding interest? 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. Sally’s IRA Interest Rate Number of years of contributions Total amount contributed Value at age 65 Joe’s IRA 9 percent 9 percent 10 34 $1,000 per year for 10 years ($10,000) $1,000 per year for 34 years ($34,000) $310,148 $215,711
    • 55. Money Tip #5 Watch out for credit card debt.

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