Financial Aid

Questions About Financial Aid

What is financial aid?
Money to help meet college costs.

Where does it come from?
Federal and state governments, banks, the schools themselves, private donors, or other sources.

How much can you get?
Based on your financial need and the kinds of aid available at the school you attend.

What types are there?

• Grants: Do not require repayment.
• Loans: Typically repaid after you leave school, at much lower interest rates than regular bank loans. Sometimes repaid through service.
• Scholarships: Generally awarded on the basis of achievement.
• Work-Study: Paid jobs for students, usually on campus.
• Private-Aid Programs: Aid offered by private organizations.
• Special-aid Programs: Aid for special groups of students.
• Aid for Military Personnel: Financial aid opportunities that are a benefit of military service, including service in the National Guard.

Estimating Eligibility and Need for Financial Aid

Although costs at postsecondary institutions can vary, the amount you are expected to contribute stays the same. That's where financial aid helps. If you want to go to a more expensive postsecondary institution, but you and your parents cannot contribute very much money toward your education, you will qualify for more financial aid because your financial need will be higher. In addition, visit with your financial aid director to see if you meet the qualifications of a "special conditions," i.e., loss of employment, loss of a wage earner, or a disability that requires additional services.

The eligibility and need for financial aid are determined by calculating the amount that you and your parents are able to contribute and then subtracting that amount from the cost of education at the postsecondary institution of your choice. The following are examples of family contributions, budgets, and the resulting need for financial aid.

*Cost of education includes such things as: tuition, fees, room, board, books, supplies, loan fees, and miscellaneous expenses

**Note that there is no need for financial aid since the family contribution exceeds or is equal to the cost of education.

***EFC can be parent contribution and/or student contribution.

Note that the family contributions remain the same regardless of which postsecondary institution you choose to attend. The cost of education is the variable in both examples. It is the "NEED FOR FINANCIAL AID" figure that the financial aid administrator will attempt to meet through a combination of grants, loans, and jobs. If, however, a student's "need for financial aid" is met through a student loan, the following chart is an example of what your monthly payments could be over a ten-year period.

Deadlines

Deadlines for financial aid applications are very important and sometimes very strict. Each postsecondary institution will have its own deadline for admissions, applications, and required tests. Contact any postsecondary institution you are interested in to find out their admissions and financial aid deadlines.

The Offer of Financial Aid

You will be sent a Student Aid Report (SAR) within four to six weeks after submitting your Free Application for Federal Student Aid form. As soon as you have the SAR and have decided which postsecondary institution you will be attending, submit the SAR to the postsecondary institution's financial aid office to have your award calculated. All financial aid is disbursed per term or clock-hour based on the postsecondary institution's policy. There are several things to know about the financial aid package that you are offered:

• You must sign and return the forms that the aid office sends you indicating whether or not you are accepting the award.
• You don't always have to accept the entire package. You can sometimes accept parts of it, such as grants and not loans. If you decide not to accept the loan portion of the package, the financial aid offer will not increase, but may decrease, the amount of your award package.
• Many postsecondary institutions allow students to trade work aid for loan aid or loan aid for work aid. If you are interested, ask the financial aid office about it.
• Your financial aid award may be changed as your financial aid circumstances change, both before and during the school year. Report any changes in your financial aid circumstances to your financial aid office.

Private organizations will notify you directly of your award. They may pay the funds directly to you or through the postsecondary institution's financial aid office. These awards should be reported to the campus financial aid office.

What A Student Loan Costs

*The amount of a monthly loan payment depends on the prime interest rate and the number of years it will take to pay back the loan.

Monthly payments are based on the amount borrowed, and are not influenced by your current salary.

Postsecondary institutions will take into account your family contribution, Pell and State grants, scholarships, etc., when giving you other financial aid. Most institutions offer student aid in the form of a package: grant, loan, and/or work aid. The offer of financial aid usually comes after you are admitted to the postsecondary institution's program.

For more information, visit http://mystudentloanonline.nd.gov/.