Missouri Western State University Financial Aid Presentation
The PRIVACY ACT limits what Business and
Financial Aid Office representatives are allowed to
discuss with parents.
You may sign a
with a third
Financial Aid is an INVESTMENT in your
future made by sources other than your
family…or by you.
Federal Loans (Low Interest)
Cost of Attendance
Books/Supplies, Transportation, Living
Expenses, Etc. Will vary from school to
Contribution is determined by a
formula created by Congress (FAFSA
results). Will NOT vary.
Assistance total of all sources of
assistance (grants, scholarships, loans,
FREE Application for Federal
Provides the necessary
information to perform
need calculation determines your EFC.
Determines your eligibility
for Federal, State,
institutional and private
Should be submitted as
soon as possible after
January 1st EVERY
What do I need to complete the
2013 W2 Forms
2013 Tax Forms
Other Financial Info
Read the form carefully.
Double check your answers.
If you have questions, ask your
Financial Aid Professional.
To electronically sign the FAFSA,
you and your parent, must request
a PIN from the Department of
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.
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.”
Provide an email
link to your SAR
the next day.
Don’t provide an
get your SAR via
By the Financial
Aid Staff; or
On the paper
or reduction of family
medical or dental
expenses not covered by
The Department of Education randomly
selects around 30-35% of FAFSA filers to
participate in a mandatory quality-control
process called “Verification.”
Watch your deadlines!
Deadlines for Federal
Priority Deadlines for
(SEOG, FWS, Perkins
Deadlines for State Aid
Programs (April 1st).
Federal Aid Programs
State Aid Programs
FAFSA results determine
Award is based on your
Expected Family Contribution
Maximum award for 20132014 is $5,645 per year.
Up to 6 years of potential
Does not need
to be repaid!!
to students with
an EFC less than
t co SA b
FAF st .
the ril 1
$1,000 to $2,150 per
year depending upon state
be enrolled full-time
maintain a 2.50 GPA
and make Satisfactory
Academic Progress for
FAFSA by the Priority
Compensation is at
least the current
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
There is an assumption that you have to
be brilliant, or athletically talented, or
gifted musically, to earn scholarships for
Where do I look?
High School Counselor
Local Library Resources
Ever wonder what the people who award
the scholarships want to see?
Let’s talk about student loans…
debt. loan debt topped $1 trillion dollars making it the
Last year, student
second largest category of consumer debt (home mortgages is #1).
Who is the
borrower of a
Who is NOT the
The Federal government sets limits on the
amount of money students may borrow to
help fund their education.
borrow up to
($9,500 with PLUS denial).
What’s the interest rate?
year on July 1st.
Understand the difference between
Subsidized and Unsubsidized loans.
Are based on financial
need; government pays
the interest while you
are in school.
Are not based on
financial need; you
should make interest
payments while in
Are you accruing interest
If you borrow $5,500 in unsubsidized
funds during your first year in college,
your interest payment will be $31.17
Over 4 years that amount will become
making your first year loan debt
$6,996.16 plus the interest that will
accrue during your repayment period.
Loan debt can add up fast!
Year in School
Amt Borrowed Per Year
The reality of loan
If you borrow $27,000 in a 6.8
percent interest rate Stafford
you'll have to pay $311 every
month for 120 months - 10
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.
Future salary required to
manage that payment?
It could be the best investment
you ever make…
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
What if I don’t pay my loans
CODE OF FEDERAL REGULATIONS (CFR)
PART 685—WILLIAM D. FORD FEDERAL
DIRECT LOAN PROGRAM
Subpart B—Borrower Provisions
Sec. 685.211 Miscellaneous repayment
(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
•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.
No problem…I’ll just declare
In other words…
So you can
live rich LATER.
Federal PLUS Loans for Parents
Borrowers are credit worthy
parents of dependent undergraduate students.
You earn your financial assistance as you
go to class.
You can lose your eligibility to receive Federal
financial assistance (Pell, Stafford Loans, etc.).
Would you borrow that
much money to buy a
car and then…
Leave the lot
Money Tip #1
You should always have a plan for spending your
where your money goes.
Stay out of debt.
Be ready for the unexpected.
Allow for saving and investing.
Be prepared for a life of financial success!!
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!
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
• Do you have responsible borrowing
• Have you applied for several credit
cards over a short period of time?
• Do you have court judgments or
• Do you have unpaid bills in collection?
in your credit
report is used to
renting a home.
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.
Number of years
Value at age 65
$1,000 per year for
10 years ($10,000)
$1,000 per year for
34 years ($34,000)