FINANCIAL PLANNING FOR YOUR EDUCATION

Transcription

1 FINANCIAL PLANNING FOR YOUR EDUCATION

2 Your college search has led you to this point. Let us show you how we can help make this a reality. Enclosed you will find your financial award letter, Making Monmouth College a Reality. It is our hope that this award will make enrolling at Monmouth College a very real possibility for you. The following pages will help walk you through our approach to financial planning at Monmouth College. Proper planning is a necessity as we help you realize the full value of a Monmouth College education. This can be an overwhelming process for some, but we are here to assist you. Throughout this booklet we have grouped together key areas of financial planning for your consideration. Your award letter will outline the details of your specific package. Do not hesitate to reach out to us directly; we are another asset for you to utilize as you decide to make Monmouth College your future home. Jayne Schreck 90 Associate Vice President for Financial Aid 2

3 Meet our staff. We re here to assist you. Kathy Bichsel Financial Aid Associate Kathy joined the Office of Financial Aid in 2014 after serving for a year in our Business Office. Kathy serves as the primary contact for the Federal Work-Study Program and private scholarships. CONTENTS Sources of Funding...4 Policy...5 State Funding...6 Figuring Your Out-of-Pocket Costs... 7 Covering Your Out-of-Pocket Costs...8 Student Loan Options...9 Parent Loan Options...10 Cost of Attendance FEEL FREE TO CONTACT US Office of Financial Aid fax finaid@monmouthcollege.edu Business Office fax busoffc@monmouthcollege.edu Office of Admission fax admissions@monmouthcollege.edu Andrea Crum Financial Aid Associate Andrea rejoined the office in 2014 after having served as support to faculty for many years. Andrea assists families over the phone. She is the contact person for verification documents, and she assists in processing loans. Linda Muñoz Financial Aid Associate Linda joined the Office of Financial Aid in 2013, after serving four years in our Business Office. Linda processes state and federal grants and works primarily with the returning student population. Melissa Martin Financial Aid Counselor Melissa joined the office in 2015, after serving as support to the faculty. She oversees our Federal Perkins Loan portfolio, and focuses primarily on helping students complete the steps necessary to obtain loans. Jayne Schreck Associate VP for Financial Aid Jayne joined the staff of her alma mater in She assumed leadership of the Financial Aid Office in She works as an advocate for students, an administrator of federal, state and institutional funds, and an advisor to the senior staff. Her staff s work with families through financial planning enables talented, involved and academically motivated students to enroll at Monmouth College each year. 3

4 SOURCES OF FUNDING Where does all the funding come from? Institutional Scholarship Funding If you have been awarded an academic or talent-based scholarship by the college, then your scholarship will be reflected on your Financial Award Letter. Institutional Grant Funding Need-based grants are awarded to students based on the results of the Free Application for Federal Student Aid (FAFSA) and a combination of the other types of assistance available to you. Eligibility for need-based grant funding may vary from year to year. Federal Funding Eligibility for each of the federal programs (Pell Grant, SEOG Grant, Perkins Loan, Direct Loan and Work-Study) is determined by the results of the FAFSA. If you are eligible for participation in any of these programs, they are included on the Financial Award Letter. Eligibility for the Federal TEACH Grant must consider academic achievements in addition to the results of the FAFSA. Determination of eligibility for this grant may take place after the start of the fall semester, and will be verified again mid-year. State of Illinois Funding Eligibility for the IL MAP Grant and other State of Illinois grants are based on the results of the FAFSA application. If you are eligible, the grants are included on your Financial Award Letter. After the start of each academic semester, a reconciliation process will take place to verify the number of course credits for which you are officially registered and the corresponding amount of grant that may be collected. If adjustments are needed, they will be made at that time. Private Scholarship Funding If you are a student who will be receiving funds from another source that has not been listed on your Financial Award Letter, please send us copies of the congratulatory letter you received. With the proper documentation, we will credit your account in the amount of your scholarship and then wait for reimbursement from the donor. Funds from private organizations are most often sent in two disbursements and posted to student accounts one half each semester. It is your responsibility to request a grade transcript from the Office of the Registrar be sent to private organizations that require it for a scholarship. Please note that private scholarships may reduce either your out-of-pocket cost, your loan levels, or your work-study authorization. They will not reduce your gift monies from Monmouth College. Federal Work-Study (FWS) Funding If a student is deemed eligible for participation in the work-study program, then it is offered on the Financial Award Letter. There are many positions on campus, but priority in hiring will go to those students with work-study eligibility. A full description of the program and how it works can be found in the Financial Aid section of the college website at 4

5 POLICY Does the number of credits I register for affect my financial awards? Enrollment Status Generally, financial awards are created assuming the student will be enrolled on a full-time basis. Enrollment for less than full-time may result in the reduction or elimination of various award resources. Residency Status Financial awards are normally created assuming a student will reside on campus. If you intend to commute, and have obtained approval from our Student Affairs office, please verify that your Financial Award Letter indicates you will be a commuter. Financial assistance is available based on the costs you incur for tuition, room and board and will be pro-rated when you choose to live off campus or when you choose to waive a meal plan. This policy may also affect a student who moves home during a semester in which they student teach. Refund Policy Students who withdraw from all classes at Monmouth College within the first nine weeks of the semester will have their charges and financial awards reduced on a prorated basis. Regulations require that any refunds of federal assistance be returned to the proper federal sources. The complete refund policy is available in the Monmouth College Academic Catalog, as well as the Financial Aid section of the Monmouth College website. A partial withdrawal from classes does not warrant a refund of any kind. 5

6 STATE FUNDING How does the state government assist me? Out-of-State Residents Monmouth College charges flat-rate tuition to all students no matter their state of residence. There are a few states which will allow their residents to apply state funds to institutions outside their borders. If you are from one of these states, please contact our office so we can make appropriate arrangements to collect these funds on your behalf. State of Illinois Residents Illinois Monetary Award Program (MAP) Grant guidance provided by the Illinois Student Assistance Commission By applying for financial aid and agreeing to share that information with the Illinois Student Assistance Commission (ISAC) you have been considered for the State of Illinois (IL) Monetary Award Program (MAP) Grant. All MAP-approved institutions are required by the State of Illinois to announce MAP Grant awards to students who are enrolled or intending to enroll at their institution. An award amount is included on this letter if you have met the eligibility criteria. The MAP Grant award amount is an estimate made by the financial aid office and is identified as a State of IL MAP Grant (Est). Please be aware that the number of available MAP Grants is limited by funding levels approved by the Illinois General Assembly and the Governor, and reductions to estimated or actual MAP Grants are possible. There are also limitations to how long you can continue to receive a MAP Grant. Usage is tracked by the number of credit hours for which you ve received MAP benefits and is referred to as MAP Paid Credit Hours (MPCHs). The maximum number of MPCHs that can be received is 135, and you must be at the junior level or above to use more than 75 MPCHs. For your reference, and to learn more about MPCH limitations, you may access a record of your MPCHs through the ISAC Student Portal at Additional Guidance provided by Monmouth College The Illinois MAP Grant is paid to students based on the number of credit hours a student is registered for in a particular semester. Beginning with the academic year, Monmouth College converted to a 4-4 academic calendar. Under the new academic system, students will typically register for 4 course credits per semester. Monmouth College course credits will have to be converted into credit hours for the purpose of collecting Illinois MAP Grant payments. Sample conversions: 3 course credits is equivalent to: 12 credit hrs. which would collect 12/15th of the full MAP award 3.25 course credits is equivalent to: 13 credit hrs. which would collect 13/15th of the full MAP award 3.5 course credits is equivalent to: 14 credit hrs. which would collect 14/15th of the full MAP award 3.75 course credits is equivalent to: 15 credit hrs. which would collect the full MAP Grant award 4 or more course credits is equivalent to: 16 or more credit hrs. which would collect the full MAP Grant award 6

7 FIGURING YOUR OUT-OF-POCKET COSTS Tuition Fall Spring Annual Tuition What are my costs for the year? We hope you find this worksheet helpful in calculating your out-of-pocket costs for the academic year. There are standard/typical costs for most Monmouth College students, but if you make choices that differ from the standard, your costs will be affected. For example, if you take private music lessons or opt to live in a suite or apartment-style housing, your out-of-pocket cost will be higher than the standard. Federal work-study funds earned by the student are paid directly to the student and are therefore not automatically applied to an outstanding balance on the student account. Tuition, based on full-time enrollment 18,200 18,200 36,400 Housing/Room Fall Spring Annual Housing Grier Hall Women 2,430 2,430 4,860 (cost based Fulton Hall Women 2,430 2,430 4,860 on housing assignment) Liedman Hall Women 2,430 2,430 4,860 McMichael Hall Women 2,480 2,480 4,960 Alpha Xi Delta House Women 2,905 2,905 5,810 Pi Beta Phi House Women 2,905 2,905 5,810 Cleland Hall Men 2,430 2,430 4,860 Graham Hall Men 2,430 2,430 4,860 Winbigler Hall Men 2,430 2,430 4,860 Fraternity Complex Men 2,430 2,430 4,860 Various theme homes Co-ed 2,430 2,430 4,860 Pattee Hall Co-ed 2,905 2,905 5,810 Gracie Peterson Hall Co-ed 2,905 2,905 5,810 Bowers Hall Co-ed 2,905 2,905 5,810 Founders Village Apartments Co-ed 2,905 2,905 5,810 + If you have a single room to yourself, then add If you have a double room to yourself, then add Meal Plan (*Flex dollars are estimated at this time) Fall Spring Annual Meal Plan Edinburgh 21 meals / week + $165 Flex / sem.* 1,880 1,880 3,760 Haddington 14 meals / week + $265 Flex / sem.* 1,880 1,880 3,760 Dundee 19 meals / week + $215 Flex / sem.* 1,880 1,880 3,760 Aberdeen 10 meals / week + $415 Flex / sem.* 1,880 1,880 3,760 + Don t forget your textbooks! The cost for textbooks has not been included in this worksheet because the list of required books varies, depending on each student s course load. For more information about textbooks, please call the Monmouth College Bookstore go to Bookstore at One-Time Orientation Fee Fall Spring Annual Orientation Fee New Freshman Students New Transfer Students The Orientation Fee includes free lifetime academic transcripts. Misc. Charges you may incur Fall Spring Annual Misc. Charges Parking Permit Individual Music Instruction TOTAL CHARGES (added down the right-hand column) = Subtract the pending gift assistance Gifts Grants and Scholarships (federal, state and college) Private scholarships you have received SUBTOTAL (after gift assistance is subtracted from Total Charges) Subtract the pending student loans you have chosen Federal Perkins Loan Federal Direct Loan (net after loan fees) SUBTOTAL (after student loan is subtracted) Subtract the pending parent loans you have chosen Federal Parent (PLUS) Loan (net after loan fees) OUT-OF-POCKET CHARGES (after gifts and loans are subtracted) = Student Loans = Parent Loans = 7

8 COVERING YOUR OUT-OF-POCKET COSTS How do I cover my out-of-pocket costs? Check, money order, or credit card You may choose to pay your bill in full (by check or money order) two weeks prior to the start of each semester. For those families who would like to put the lump sum payment on their credit card, we can accommodate this through the use of our online WebAdvisor access. A student may make a credit card payment (VISA, Master- Card, Discover, or American Express) by logging in with a User ID and password. A convenience fee will be assessed by the credit card company. Interest-free NBS tuition payment plan This method is used by families who would like to spread their annual costs over a 10 or 12-month payment plan. The plan requires monthly automated payments taken from a checking, savings, or credit card account. For more information on the NBS tuition payment plan, or to set up a monthly payment arrangement, visit Plans/College Illinois Plans For families who have college tuition savings plans, you may choose to redeem those funds for partial payment of your bill. If you have questions about this, please contact your fund administrator and/or our Business Office at Veteran s Benefits Whether the veteran is enrolled as a Monmouth College student or the veteran s dependent child is enrolled as a college student, benefits may be available through the GI Bill to the student. For more information, contact your Veteran s Affairs representative. Once you have been provided a Certificate of Eligibility for benefits, please present the documents to the college s certifying official in the Office of Financial Aid or the Office of the Registrar. Federal Direct Student Loan Although some students will choose not to borrow, others find borrowing through the Federal Direct Loan Program a very helpful option. Students who have completed the Free Application for Federal Student Aid (FAFSA) are eligible to borrow through the loan programs. Repayment of student loans is deferred while the student is enrolled at least half-time, and typically begins 6 months after the student is no longer enrolled. Instructions for obtaining a Direct Student Loan are listed on page 9 of this booklet. Federal Direct Parent PLUS Loan This method is used by parents who may want to spread payments over a longer length of time than is allowed by the payment plan. You may choose to repay your Parent PLUS Loan by taking up to 10 years. There is no penalty for early payment. We are not necessarily recommending the Parent PLUS Loan. We are simply offering the loan and making you aware that it is an option. Instructions for obtaining a Parent PLUS Loan are listed on page 10 of this booklet. Private or alternative student loan program Students may choose to take advantage of a private or alternative loan program. Lenders will commonly require that students provide a co-signer. The college needs confirmation (2 weeks prior to the start of the semester) that the loan has been approved and will be disbursed. For a list of banks that offer private/alternative loans to students, please visit the Financial Aid section of our website at We strongly encourage students to take advantage of all federal loan programs prior to pursuing a private/alternative loan. 8

9 STUDENT LOAN OPTIONS What do I need to do to obtain a loan? Federal Perkins Loan The Federal Perkins Loan is a campus-based loan program administered through the Office of Financial Aid at Monmouth College and serviced by University Accounting Service, LLC (UAS). The Perkins Loan has a fixed 5% interest rate. However, no interest accrues on the loan while the student is enrolled in college. Interest begins accruing once the student is no longer enrolled at least half-time. Federal Direct Loans Eligibility amounts on Federal Direct Loans are set by the federal government based on the student s earned credits. We have offered the loan amount in accordance with the transcript records we currently have on file. No loan application is necessary. However, a first-time borrower student must complete the Master Promissory Note (MPN) with the federal Department of Education. 1) For new students, if you wish to accept the loan, indicate yes next to the award on your Financial Award Letter. 2) Complete a Direct Loan Master Promissory Note at You will click the LOG IN button and log in using your federal FSA ID Username and Password. You will choose Complete Master Promissory Note then Subsidized/Unsubsidized. Continue entering your information until the promissory note is signed and you receive an on-screen confirmation of completion. Eligibility for the Perkins Loan is determined based on the results of the Free Application for Federal Student Aid (FAFSA) and the student s calculated financial need. The amount offered will vary depending on the individual student s situation. If a student is eligible for the Federal Perkins Loan, it will be included on the Financial Award Letter. 1) If you are awarded a Federal Perkins Loan on your Monmouth College Financial Award Letter and wish to accept the loan, circle the Y (Yes) next to the award. 2) Between July 15 and the start of the school year, you will be contacted through your Monmouth College account and provided instructions on completing a Master Promissory Note (MPN) for the Federal Perkins Loan. The Perkins Loan MPN and Federal Entrance Counseling requirements will be completed online at 3) Complete the required Entrance Counseling at You will sign in (or continue on after signing your Master Promissory Note) and click on Complete Entrance Counseling. Continue reading the content and answering the questions until you see Congratulations, you are finished. E-signing the MPN and completing entrance loan counseling are federal requirements for all student loan borrowers and must be completed prior to the loan being disbursed. Once you have finished the steps above, Monmouth College s Office of Financial Aid will be notified within 48 hours and will proceed with processing your loan electronically with the federal government. All disclosures and legal documents for the loan will be provided directly from the Department of Education, Direct Loans. 9

10 PARENT LOAN OPTIONS What do my parents need to do if they choose to borrow? Federal Direct Parent PLUS Loan Parents of students at Monmouth College who need additional help in financing their student s education have the option to borrow through the Federal Direct Parent PLUS Loan Program. A parent may borrow enough to cover educational costs, which is determined by the college. The maximum amount allowable is equal to the student s cost of attendance minus any financial assistance the student receives. Monmouth College processes all Parent PLUS loans directly with the Department of Education, Federal Direct Loan Program. The Parent PLUS loan requires a successful review of the parent s credit history. For more information on the Federal Direct PLUS Loan visit: Repayment begins 60 days after the loan is fully disbursed. A deferment for the Parent PLUS Loan is available if the student remains enrolled at least half time, but interest continues to accrue. First-time Parent PLUS loan borrowers must complete the following two steps. 1) Complete a Parent PLUS loan application at by clicking the LOG IN button. The parent must log in using their own federal issued FSA ID Username and Password. After you have successfully signed in, click on Apply for a Direct PLUS Loan. The loan type will be the Parent PLUS. Fill in all the requested parent data and submit according to the instructions provided. You will need to specify the dollar amount you wish to borrow for the entire year. The credit decision is given immediately on the last page of the application. If your credit is denied, it is not necessary to complete step 2. 2) Complete a Master Promissory Note for a Parent PLUS loan while you are already signed in at Fill in all the requested parent data and submit. Monmouth College will be notified electronically, normally within 48 hours, when it is complete. Once a parent has completed the steps above, the Monmouth College Office of Financial Aid will process the loan electronically with the federal government. All disclosures and legal documents for the loan will be provided to the parent borrower directly from Department of Education, Direct Loans. If you have questions, please contact the Office of Financial Aid at or by at finaid@monmouthcollege.edu. Questions about the loan website can be directed to the loan origination customer service at

11 COST OF ATTENDANCE Is there a limit to the amount of financial assistance I can receive? There is a maximum amount of financial assistance which can be processed for any one student in the course of the academic year. This maximum is referred to as the Budget or Cost of Attendance. The budget (cost of attendance) amounts include not only your direct costs billed by the college such as tuition, room, and meals, but also indirect costs for miscellaneous expenses such as books, supplies, transportation, personal expenses, and lender fees. The total amount of annual financial assistance may not exceed the total budget (cost of attendance) for the year. Estimated Costs Per Year Dependent or Independent Resident Dependent Commuter Independent Commuter Independent Commuter with Children Tuition 36,400 36,400 36,400 36,400 Room 4, ,000 4,000 Meals 3, ,500 2,000 Books/Supplies 1,200 1,200 1,200 1,200 Transportation Personal 1,000 1,000 1,000 1,000 Child Care ,500 Loan Fees Total Budget 47,970 39,850 44,850 46,850 Example: If you are a dependent student who will be residing on campus, your budget for the year is $47,970. If your Financial Award Letter consists of grants, scholarships, loans, work-study, etc. totaling $31,000 and you contact a lender to process an additional loan for $18,000, we will not be able to certify the loan for the full $18,000. We will take the total budget of $47,970 less the existing financial assistance of $31,000 and process the additional loan for the difference of $16,970. This sometimes happens when a student decides to borrow extra funds to help buy a computer or vehicle for college and later find that they are limited in the amount of monies available to them. If you have questions, please contact us at finaid@monmouthcollege.edu or phone us at

12 Monmouth COLLEGE monmouthcollege.edu/financial-aid