Financial Aid 101
2009-2010 Academic Year

College education is an investment in your future, and some form of financial aid is available to help pay for it. However, you may still be responsible for some of the costs.
Sources of Student Financial Aid

• Federal
• State
• Institutional
• Private

Basis for Awards

• Ability/performance
• Merit
• Financial need

Free Application for Federal Student Aid (FAFSA)

• FREE standard form
• Determines eligibility for financial aid
• Based on tax records
• Submit as early as possible after January 1 and no later than April 1 each year to maximize your chances of receiving some types of aid
• May be completed online (www.fafsa.ed.gov) or via paper; the online FAFSA requires a Personal Identification Number (PIN)
• Direct questions to (800) 4-FEDAID

What is included in the cost of attending a postsecondary school?

Your school will calculate your Cost of Attendance (COA) annually. The COA includes more than just tuition and fees that may be due to your school. COA components include:

• Tuition and fees, such as lab or technology fees
• Books and supplies
• Room and board - may include residence hall costs or the costs associated with living off campus
• Transportation expenses - generally a reasonable amount for bus fare or fuel as determined by your school
• Miscellaneous personal expenses; these may include
• Dependent care expenses while in class, if you are a parent with small children
• Expenses associated with a disability that are reasonably incurred and not provided by another agency
• Expenses for cooperative education program
• Study abroad costs
• Student loan fees (if any)

Federal Financial Aid Programs

The U.S. Department of Education sponsors several student financial aid programs.

The Scoop on Student Loans

Are there loan options available even if I do not qualify for other types of financial aid? Or, what if I qualify for some financial aid but I still cannot cover all of the expenses associated with attending school?

There are several different types of student loans, providing financing options for students and/or their parents. Some loans are based on financial need and some are not. Additionally, some student loans may require a credit check while others do not. If you decide to borrow a student loan, there are several important decisions you will need to make. It is important to be educated about your choices and to choose wisely.

• How do I choose a lender? Although most schools have a "preferred lender list," federal regulations require the borrower to make their choice of lender known to the school. When choosing your lender, make sure you know who the servicer is. To ensure your repayment is as smooth as possible, make sure to keep all your student loans with the same servicer.

• How do I choose a servicer? A servicer is the organization that coordinates your loan repayment, including collecting your payments. Keeping all of your student loans with the same servicer will ensure you have only one monthly payment after you leave school.

• How do I choose a guarantor? A guarantor is a state agency or private non-profit organization providing insurance on a student loan. In the state of Missouri, the Missouri Department of Higher Education (MDHE) is the state-designated guarantor. You may choose to work with the MDHE or you may choose an out-of-state guarantor. However, there are some important benefits associated with your state agency.

Before you sign, remember:

ALL STUDENT LOANS MUST BE REPAID!

• Remember: It is better to live like a student when you are a student than to live like a student after you graduate. Although student loans offer many repayment options and low interest rates, the more you borrow, the higher your payments will be when you leave school. You should borrow the smallest amount possible each year to keep your payments low. Here are some important debt management strategies.

• Most students graduate with some type of debt. It is wise to avoid credit card use while in school and to be as educated as possible about the costs and responsibilities of incurring debt. Check out these financial literacy tips.

• You must stay in contact with your lender or servicer! It is your responsibility to notify your lender or servicer if you withdraw from school or move. If you run into difficulties repaying your loan, contact your lender about a deferment, forbearance, or other options

State Financial Aid Programs Administered by the Missouri Department of Higher Education

The MDHE administers many student grant and scholarship programs. There are several additional student aid programs sponsored by the state of Missouri or other local organizations.

Important Tips

• Complete the FAFSA and all other applications that are required as early as possible (financial aid is often first come, first serve)
• Adhere to deadlines
• Communicate with your high school counselor, admission offices, and financial aid offices
• Search the Internet for scholarships

Mapping Your Future (MYF)

• http://mappingyourfuture.org
• Nationally awarded website
• Sponsored by the MDHE, other guarantors, and lenders
• Mission: To enable individuals to achieve life-long success by empowering schools, students, and families with free, web-based college, financial aid, career, and financial literacy information and services

MYF features and services

• Information about planning a career, selecting a school, and paying for school
• Guided tours for students and parents
• Information for high school counselors
• Careership
• Money management tools

Questions?

Contact the Missouri Department of Higher Education for more information

• 8 a.m. - 5 p.m. Monday - Friday
• (800) 473-6757
• (573) 751-3940
• info@dhe.mo.gov