Financial Aid 101

Financial Aid 101: Welcome

Welcome to Ottawa University! We are truly excited to have you joining our family. We are here to answer your questions and provide you with information on financial aid and how you can successfully and affordably complete your education.

Financial Aid 101: Applying for Financial Aid

Be a U.S. Citizen or eligible non-citizen

Maintain satisfactory academic progress

Be enrolled in a degree or certificate program

Attend a participating college

Male applicants must register with the Selective Service

Be in good standing on any previous student loans (no defaulted loans)

Not receive financial aid from any other institutions.

To be eligible for financial aid at Ottawa University, you must….

Financial Aid 101: Types of Financial Aid

Federal Grants (PELL grant is the only grant available to online students).

Federal Stafford Loans (Subsidized/Unsubsidized)

Federal PLUS Loans (Parent and Graduate)

Private/Alternative Loans

Campus based funds such as the Supplemental Education Opportunity Grant (SEOG), Federal Work Study, and Perkins loans are only available to students attending the residential campus in Ottawa, Kansas.

Financial Aid 101: Federal Pell GrantFree money that does not need to be repaid

Available to Undergraduate students only (if student already has a Bachelor’s degree, they are not eligible to receive Pell).

2011-2012 Maximum Yearly Award = $5550Award Amount is based on the students Expected Family Contribution (EFC) number from FAFSA and their enrollment status. Student’s EFC must be 0 to qualify for the max Pell award. The Pell award amounts decrease as the EFC # increases.

The FAFSA is the application for Pell and must be completed annually, using our school code: 001937.

The Pell Grant Fiscal Year is July 1st through June 30th.

Financial Aid 101: Key Concepts

1

•It is determined by a federal formula calculated using data from the FAFSA.

2

•The EFC may change from year to year.

3

•Your EFC helps the Financial Aid department determine how much and what type of financial aid you are eligible for. What is the Expected Family Contribution (EFC)?

Financial Aid 101: Federal Stafford Loans

Subsidized Stafford Loan

The loan starts with the students enrollment.Loans are scheduled for 4 terms (32 weeks) at a time(AKA the Loan Period).

Undergrad interest is fixed at 3.4% for 2011-12 with 1% fees. Up front interest rebate of 0.5% (Must make initial 12 payments on time to retain

this).

Grad interest is fixed at 6.8% for 2011-12 with 1% fees.Up front interest rebate of 0.5% (Must make initial 12 payments on time to retain this).

Interest is paid by the government while the student is in school and during their 6 month grace period after leaving school.

Repayment begins 6 months after the student leaves school.

Eligibility is based on financial need (EFC). Not all students qualify for subsidized loans.

Financial Aid 101: Federal Stafford Loans

Unsubsidized Stafford Loan

The loan starts with the students enrollment.Loans are scheduled for 4 terms (32 weeks) at a time.

Undergrad and Grad interest is fixed at 6.8% for 2011-12 with 1% fees.

Student is responsible for the interest that accrues as the loan is disbursed. They can make interest payments while in school (recommended) or they can capitalize the interest (add it to the principal of the loan) and repay during regular repayment period (will end up paying interest on interest).

Repayment begins 6 months after the student leaves school.

Financial Aid 101: Federal Stafford Loans

The maximum amount that a student is eligible toborrow is determined by their grade level and dependency status, as determined by the FAFSA.

Financial Aid 101: Federal Parent PLUS Loan

Available to Parents of Dependent students only; Credit check required.

Maximum amount is higher than the student could obtain on their own.

Students can get more funds (unsubsidized loans) in their name if the parent is denied a PLUS Loan.

Direct PLUS Loan Interest Rate is fixed at 7.9%, 4.0% Fees .

Up-front interest rebate of 1.5% for Direct PLUS; Must make initial 12 payments on time to retain this.

Repayment begins once the loan is fully disbursed; Payments CAN be deferred but interest will accrue.

Financial Aid 101: Federal Graduate PLUS LoanAvailable to Graduate students only who are unable to get enough funds from the Federal Direct Loan program; Credit check required.

You can borrow up to the school's cost of attendance, less all other aid you receive.

Student must complete a separate Entrance Counseling and MPN for the Graduate PLUS loan.

Direct PLUS Loan Interest Rate is fixed at 7.9%, 4.0% Fees.

Up-front interest rebate of 1.5% for Direct PLUS; Must make initial 12 payments on time to retain this.

Repayment begins once the loan is fully disbursed; Payments CAN be deferred but interest will accrue.

Financial Aid 101: Private/Alternative Loans

These loans are not backed by the Federal Government.

Subject to qualifying:• Credit checks• Income Verification• Co-Signers Recommended• Interest rates tend to be variable, may be higher than Fed. Loans • Loan fees may also be assessed

Financial Aid 101: Other Types of Aid

Ottawa Tribal GrantMembers of the Ottawa tribe of Oklahoma are eligible for free tuition and fees in any Ottawa University degree program.

Undergraduate students must complete a FAFSA (and provide any requested verification documents) as well as submit a copy of their tribal membership card.

Graduate students only need to submit their tribal membership cards.

Tribal members are responsible for the purchase of their text books and are welcome to apply for Federal student loans to help with this cost. Any Pell funds that undergraduate tribal members are eligible for is used toward tuition cost and the tribal grant supplements. Tribal members do not receive their Pell funds to use for books.

Financial Aid 101: Scholarships/Other Aid

Ottawa University does not offer any institutional scholarships to online students at this time.

Students must report any other financial assistance that they are receiving to the financial aid department when applying for financial aid (i.e. scholarships, tuition reimbursement from employer, etc.).

Students should be encouraged to try to obtain any scholarships or other assistance that they qualify for. Reducing overall debt is a GOOD thing.

Financial Aid 101: Starting the Application Process

Financial Aid 101: The Federal Student Aid PIN

Students will need a Federal Student Aid PIN in order to sign the FAFSA electronically as well as to sign on to the www.studentloans.gov website to complete their Entrance Counseling and MPN.

If a student does not have a PIN, they can apply for one online at www.pin.ed.gov. The PIN application must be verified by the Social Security Administration before the PIN is considered active. This process may take 1-3 days. Students have limited use of their new PIN until it has been verified by the SSA (can sign a new FAFSA but cannot access other websites).

Students have the option to select their own 4-digit PIN, so they can make it something easy to remember.

If a student already has a PIN, but has forgotten it, they can “Request a Duplicate PIN” online at www.pin.ed.gov.

Financial Aid 101: Applying for Financial Aid

The application process and lots of other great tools are provided on our public website. From the Ottawa University homepage, click on the “Quick Links” menu, select financial aid, then “Adult and Online Students”.

To apply for financial aid, students must complete:

1. The Free Application for Federal Student Aid (FAFSA) online at www.fafsa.ed.gov. (Ottawa’s school code = 001937)

2. The Direct Loans Entrance Counseling and Master Promissory Note (MPN) online at www.studentloans.gov.

3. The Ottawa University Institutional Application

• Students must also provide any additional documents requested by the financial aid department in a timely fashion, which may include: signed copies of their Federal tax returns, W-2s, Non-tax filer form, Verification Worksheet, Monthly Expense Statement, Selective Service verification, proof of citizenship, etc. Failure to submit ALL requested documentation will result in a student being unable to use financial aid until requested materials are received.

Financial Aid 101: Applying for Financial Aid

WARNING:DO NOT enter your information at www.fafsa.com

First word of FAFSA is FREE – fafsa.com charges money to use their site. This is a third-party site not affiliated with

the federal government.

Make you are using the correct link:

www.fafsa.ed.gov

(Needs to end in .gov)

Financial Aid 101: The “FAFSA”The FAFSA application must be updated once per year and requires tax information to be entered from the previous year. For example, the 2011-2012 application requires 2010 tax information.

The FAFSA is required to determine your eligibility for Federal grants and loans and is the first step you should complete when applying for financial aid.

Financial Aid 101: Applying for Financial Aid

Records of Taxable & Untaxable Income Received

• W-2 Forms• Federal Tax Returns

You may also need the following records if such

financial circumstances are applicable to you.

• Investment records• Business/Farm Records

What items do I need to fill out the Free Application for Federal Student Aid (FAFSA)?

Financial Aid 101: The Entrance Counseling and MPN

All new students to Ottawa University, or students using Financial Aid for the first time, must complete the Entrance Counseling and Mater Promissory Note(MPN), even if this has been done for another school.

Students must sign in with their PIN to access these items.

The MPN is valid for 10 years.

Financial Aid 101: The Institutional Application

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Be sure to indicate:

1) How many credits per term you plan to take (No blank spots or X’s)

2) How many credits you are transferring (if any) – This determines your grade level for funding.

Financial Aid 101: The Institutional Application

PAGE 2:

Choose only one option when indicating the amount requested.

Keep in mind that the amount you request will be equally divided over the next 4 terms.

Financial Aid 101: Summary

Student submits FAFSA online.

Student receives a Student Aid Report (SAR) from the federal government by mail or email.

Processing center sends results with Expected Family Contribution to the school indicated on the FAFSA.

Student completes entrance counseling and MPN online. Student completes Institutional Application and sends to University

Financial aid package is determined and award letter is sent to student.

Summary of the process of Financial Aid Application

Financial Aid 101: Student Resources

Financial Aid 101: Financial Aid Estimator

Undergraduate and Graduate versions availableFound online on the Financial Aid webpage

This tool can help you plan your enrollments and manage your financial aid funds.

Found online on the Financial Aid webpage

Consider the total investment that you are making when financing your education.

The Student Loan Repayment Calculator will assist you in determining your monthly payments for once you enter repayment.

Financial Aid 101: Student Loan Repayment Calculator

Information such as financial aid awards, balances owed, and missing financial aid documents are available in the "Financial Information" section of the student portal at: http://myottawa.ottawa.edu

Financial Aid 101: MyOttawa Portal

Financial Aid 101: Conclusion

We hope that this presentation has provided you with helpful information regarding your financial

aid options at Ottawa University.

Please contact your finance advisor with any follow up questions you may have.