Financial Aid 101: 2013-2014 Academic Year

A postsecondary education is an investment in your future, and various forms of financial aid are available to help you pay for it.

Free Application for Federal Student Aid (FAFSA)

• FREE standard federal form.
• Determines eligibility for most sources of need-based financial aid, including Missouri state aid programs such as Access Missouri.
• Is based on your federal tax records and offers an IRS Data Retrieval Tool.
• May be completed online (www.fafsa.gov) or via paper or telephone. (Note: Be wary of websites such as fafsa.com. These sites are NOT the official FAFSA site and typically charge a usage fee. Remember, the FAFSA is FREE!)
  • To maximize your chances of receiving some type of financial aid, submit your FAFSA each year as early as possible after January 1 and no later than April 1, the deadline for Access Missouri, or your institution's preferred aid deadline, whichever is earlier.
  • A Federal Student Aid PIN is a four-digit electronic identifier that allows students (and parents for dependent students) the ability to access personal and financial aid information online. A Federal Student Aid PIN is not required to complete a FAFSA but can be used to access and electronically sign federal student aid documents. If you choose not to use a PIN, you will need to print and mail the signature page before your FAFSA will be processed.
• Direct questions to 1-800-4-FED-AID (1-800-433-3243). Hearing impaired TTY users may call 1-800-730-8913. Additionally, free professional assistance completing the 2013-14 FAFSA may be obtained by attending one of Missouri's 2013 FAFSA Frenzy events on February 17, 2013 or other dates. You may also find FAFSA Frenzy and other events by visiting the Missouri Association of Student Financial Aid Personnel's Show-Me to College events calendar.

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 owed 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 such as

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

To help you better understand and compare postsecondary costs, the Consumer Financial Protection Bureau recently released an online College Cost Comparison tool.

Federal Financial Aid Programs

The U.S. Department of Education offers federal financial aid programs such as the Federal Pell Grant Program and federal student loans.

State Programs Administered by the Missouri Department of Higher Education

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

Student Loans

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, it is important to borrow as small amount as possible to keep your repayment after school manageable.

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 monthly payments and interest paid as low as possible. Here are some important debt minimization strategies.
• Most students graduate with some type of debt, and the total outstanding amount of student loans borrowed in this country recently surpassed total credit card debt. If you are borrowing student loans, 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 student loan servicer! It is your responsibility to notify your servicer if you withdraw from school or move. If you run into difficulties repaying your loan, contact your servicer about a deferment, forbearance, or other options.
• The CFPB offers helpful advice about student loan repayment, borrowing terms, risks, and more. The CFPB is also working on an initiative to standardize financial aid and cost disclosure information that postsecondary schools provide to students. Visit Know Before You Owe for more information about this initiative and to provide feedback.

Important Tips

• Complete the FAFSA and all other applications that are required as early as possible (financial aid is often first come, first served).
• Adhere to deadlines.
• Communicate with your high school guidance counselor, admission offices, and financial aid offices.
• To find scholarships, "like" the MDHE's Journey to College Facebook page and visit its scholarship section often. The MDHE is often notified when new private scholarships are available or when a scholarship's application period opens, and this information is added immediately Journey to College. You may also follow Journey to College via Twitter and have these communications sent to your cell phone.

Mapping Your Future

• http://mappingyourfuture.org.
• Nationally awarded website sponsored by the MDHE.
• 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.
• 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