Financial Aid 101
2008-2009 Academic Year
College education is an investment, and some form of financial aid is available to help most students 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
Free Application for Federal Student Aid (FAFSA)
- Standard, free form
- Determines eligibility for financial aid
- Based on tax records
- Submit as early as possible after January 1 each year
- Paper or electronic (www.fafsa.ed.gov); electronic application requires a Personal Identification Number (PIN)
- (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 fees
- Books and supplies
- Room and board ? may include residence hall costs or the costs associated with living off campus
- Transportation to and from class ? generally includes the cost of gasoline or bus fare; does NOT a car payment
- Miscellaneous personal expenses; these may include
- Dependent care, if you are a parent with small children
- Expenses associated with a disability
- Expenses for cooperative education program
- Study abroad costs
- Student loan fees (if any)
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 most 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 do 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.
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How do I choose a lender? Although most schools have a "preferred lender list," federal regulations require schools to provide the borrower with the final choice of lender. 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.
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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 to make after you leave school.
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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, Think!
ALL STUDENT LOANS MUST BE REPAID!
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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.
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Most students graduate with some type of debt. It is wise to avoid credit card usage 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 contacat 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 assistance 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 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 MDHE, other guarantors, and lenders
- Mission: To counsel students and families about college, career, and financial choices through a state-of-the-art public service website
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
- Financial fitness 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
