Student Financial Services Summer Orientation 2005

1. Student Financial Services Summer Orientation 2005 Financing Your Education

2. Student Financial Services—The Details • Where are we? • In the Centennial Student Union… Campus Hub/MavCard Offices • When are we open? • Monday-Thurs 8am to 6pm Friday 9:30am to 5pm • Summer hours: Monday-Friday 8:30am to 4pm • How to reach us • 1-800-722-0544 • (507)389-1866 (Campus Hub) • www.mnsu.edu/campushub • campushub@mnsu.edu

3. The Financial Aid Process Determining Cost of Attendance (COA) • Each year, Student Financial Services determines average costs for living expenses and tuition • It is NOT the amount you will be billed from MSU • 2005-2006 COA for a MN Resident = $13,676 2005-2006 COA for a non Resident = $18,782

4. Direct Costs Expenses resulting from enrollment in an educational institution Tuition Fees Books Indirect Costs Expenses not directly a result of enrollment in an educational institution Rent Laundry Parking Entertainment Cost of Attendance Cont’d COA= Direct Costs + Indirect Costs

5. Your Award Letter • Review your award letter carefully and decide which loans you would like to accept and/or decline • Make sure to turn in all requested paperwork promptly • Minnesota Grant considers 15 credits full-time

6. Stafford Borrowers • Must complete Entrance Counseling and fill out a Master Promissory Note • All first-year, first-time borrowers will get their Stafford money disbursed 30 days into the term

7. Keeping Track of Your Loan Amounts ■Start a file for all your financial aid paperwork ■ File your FAFSA each year as soon as possible after January 1st • New school year= new financial aid file • Borrow smart…stay within your means • Use your PIN to check your loan amounts-go to: www.nslds.ed.gov and click on “financial aid review”

8. Budget setting and making your money work for you • Look at your income (savings, financial aid, paychecks) • Plot your expenses…Fixed and variable • Do the math and live within your means

9. Budget Busters...No Matter How Well You Plan • The late night snack favorite… • The 8:00 class rush • Clubs and organizations at MSU • Going out---and the mall • Things you can’t live without…

10. Credit Cards 101: A Lesson in Plastic

11. Credit Cards and the College Student • 76% of undergraduate students have at least one credit card • Average credit card debt $2,169 • Two-thirds of undergraduates make only the minimum payments • Students double their average credit card debt and triple the number of cards in their wallet from the time they arrive on-campus until graduation Source: Nellie Mae, April 2005

12. College Students: Why and How You are the Target • You are a large group of consumers • To establish relationships with you at a younger age • Look where they set up their tables: Sporting events, stores and even in the Student Union… • FREE STUFF: T-shirts, CD holders, bags of candy, coupon books

13. How Credit Cards Can Get You in Trouble…Without Realizing it! Throughout college, Jill decided to put certain education expenses on her credit card. Here is what is what it would cost Jill to payoff her credit card balance IF she makes no further credit purchases and makes only the minimum required monthly payment (which decreases over time as the outstanding balance decreases):

14. What about Educational Financial Aid Loans? Sam decides to take out a student loan for his educational expenses. Keep in mind that most students like Sam will borrow loans for each school year. If he made the minimum monthly payment on his loan for the next 10 years, he would end up paying $950 in interest. Additionally, he would not be required to make any payments on the loan until 6 months after he graduates.

15. Do Your Research Before You Charge • Look for low interest rates (Aim for 15% APR) • Watch your finance charges (late fee no higher than $29) • Low or no annual fee • Make sure your credit card has a grace period before finance charges are incurred (at least 25 days)

16. Once You Have a Credit Card… • Pay off your balance in FULL, every month • Set your own credit limit • READ all fine print • Keep your wallet trim… • Limit the number of direct mail credit card offers you get…Call1-888-5OPTOUT to have your name removed • BE SMART WITH YOUR CREDIT…IT WILL AFFECT YOU FOR THE REST OF YOUR LIFE!!

17. Money Management Tips • Be clear of your needs and wants • Use your credit card wisely • Watch your checkbook • Buy used books • Buy supplies at discount stores • Find a roommate (or two) to share costs • Determine a food budget, plan your meals and USE COUPONS • Borrow only what you need in student loans

18. Don’t Get Phished • Internet “Phishing” scams are one of the fastest-growing frauds today • Involves a bogus e-mail message using legitimate material (company’s logo) in an attempt to get a person’s personal financial information • Never give out personal information (SSN, credit card number, etc.) in an unsolicited e-mail • If you’ve been Phished, immediately contact your financial institution

19. FERPA and MSU • Parents are not permitted under the Family Educational Rights and Privacy Act to access their son or daughter’s education record at the post-secondary level. • However, with written permission from the student, the University can release information to the student’s parent, guardian or other individuals acting in a parental role in the absence of a parent or guardian. Authorization for Release of Information is available at The Campus Hub or on the web at: www.mnsu.edu/campushub/. • Only public information will be released to a parent without written authorization from the student unless it is an emergency situation.

20. Questions? Stop by the Campus Hub if you have financial aid questions or want to talk to someone about money management. • Call us from home 1-800-722-0544 (507) 389-1866 (Campus Hub) • Check out our web site www.mnsu.edu/campushub/ • Email us at:campushub@mnsu.edu