Financial Planning
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Financially Planning Your Northeastern Education
Presented byStudent Financial Services
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Overview
• Financial Aid - Process and Services
• Northeastern Financial Planning Assistance
• Payment Plan Options
• Helpful Resources
• Questions
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Applying for Financial Aid
• If you have not applied or have not completed the process
– FAFSA: Free Application for Federal Student Aid• FAFSA on the Web: www.fafsa.ed.gov• Pin number: www.pin.ed.gov
– PROFILE: The College Board/CSS• CSS PROFILE: https://profileonline.collegeboard.com• Click on Profile 2009-2010• Non-Custodial Parent Information
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Awarding Process
• Financial Aid and Scholarship Awards
– Available Online• Notification sent to Student’s Email Address
• View awards on the Application Status Check www.neu.edu/admissions
– Awarding began March, will continue throughout May
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Awarding Process – Northeastern Policy
•Five Year Guarantee
– Northeastern University grant and scholarship funds are guaranteed not to be reduced, regardless of changes in your financial circumstances, for up to eight in-class semesters.
– Allows you to plan for the total cost of education, without concern that grant and scholarship assistance will be reduced.*
*Students must file the Free Application for Federal Student Aid each year, and maintain the minimum cumulative grade point average required for any scholarship or grant funds awarded
Awarding Process – Changes in Circumstances
• Loss of Job– Need-based financial aid will be reevaluated to
meet at least the same percent of increased financial need as a result of a parent’s job loss.
– All available resources will be offered to students who demonstrate need for the first time as a result of a parent’s job loss.
• Medical Expenses– Unusual/high medical expenses can be excluded
from income used in calculation
Awarding Process – Changes in Circumstances
• Loss of Job - example– Family of 4, 1 student in college– Adjusted Gross Income of $100,000– Father earns $51,000/Mother earns $49,000– Average assets– Institutional Family Contribution $24,000– Need $26,000– Total gift aid $15,900– 61% of need met with gift aid
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Awarding Process – Changes in Circumstances
• Loss of Job - example– Father loses job, income reduced to $15,000– Adjusted Gross Income reduced to $64,ooo– New Institutional Family Contribution $14,000– Need $36,000– Gift aid increases to at least $22,000– 61% of increased need met with gift aid
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Awarding Process
• Verification/Additional Paperwork/Forms Request
• Can Cause Award Adjustments• If Possible, Provide Documentation Before May 1st
• Other appeals should be sent in writing to the Student Financial Services Office.
• May 1st deposit secures financial aid award
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Financing Options Overview
• Suggestions– Other Aid Sources
• Private Scholarships: Community Groups, Employers• Northeastern Endowed Scholarships: In subsequent
years• Private/Outside Scholarships:
– financialaid.neu.edu– collegeboard.com
– Keep Expenses Low: Cars, Clothes, Miscellaneous Expenses, Credit Cards
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Annual Costs (2 Semesters)
$34,950 Tuition*
$11,910 Average Room & Board*
$416 Typical Billed Fees*
Details: www.neu.edu/registrar/billing.html
* Estimated
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What Tuition Covers
• Prescribed curriculum– Full-time Tuition = 12 - 16 credits per semester– Normally 4 classes per semester– Expectation of 8 semesters to degree
• Attendance and Costs– Annual costs vary from year to year– Tuition is charged during “in school” terms– Most financial aid will deposit during “in school” terms (when
tuition is charged)
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Attendance Pattern Example
Fall SpringSem1: Sep t-Dec Sem2: Jan-April Sum1: M ay-Jun Sum2: Jul-Aug
Freshmen Class Class Vacation VacationSophomore Class Coop 1 Coop 1 Class
Middler Class Coop 2 Coop 2 ClassJunior Class Coop 3 Coop 3 VacationSenior Class Class
Summer Sessions
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Payment Options
• Monthly Payment Plan– Flexible Monthly Payment. – Can be Used Alone or Combined with Other
Financing Options– Payment Plan Is No Interest, with an enrollment
fee (approx. $60)– Detailed information will be provided in June .
Information can also be found at www.neu.edu/registrar/billing.html
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Payment Options
• Borrowing– General rule: Use savings and current
resources first• Use borrowing as a last resort
– For Education Expenses Only– Up to the Education Budget minus Aid
(available in Award Letter)– Subject to Approval by Lenders– Limit borrowing to what you need
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Payment Options
• Supplemental Loans– 2 Types
• Federal Direct Parent PLUS Loan– Fixed rate of 7.9%– In-school deferment available– 90% of NU parents approved
• Student Alternative Loans– Cosigner required– Variable interest rates– In-school deferment
• Loan Processing– Begins over Summer– Loan funds added to award in July– Loan funds disburse up to a week prior to the start of term
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Effective Payment Planning
• Web Payment Calculators– www.financialaid.neu.edu
• Click on Financial Planning Tools & Calculators
– Annual cost calculator
• Determines net balance due by subtracting financial aid from direct cost
– Monthly payment calculator
• Determines distribution of monthly payments and loan payments
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Combining Options
Example: $10,000 balance due
• Monthly payment plan = $1,000/month for 10 months
• Borrowing (Direct PLUS Loan ) = $120/month for 10 years ($14,996 total)
• Combination Plan– $429/month for 10 months ($4,290 monthly payment
plan)– $71/month for 10 years ($5,856 Direct PLUS Loan)
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Information & Communication
• myNEU - receive information on the following:– Financial aid– Billing (end of July or
early August)– Orientation
information– Pay deposit(s)– Waive health
insurance– Change your meal
plan
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Additional Information
• SFS Table(8:30 – 2:00) in Curry Student Center– Financial resource information– Aid application information– Answer most questions you may have
• Website: www.financialaid.neu.edu, www.neu.edu/registrar/billing.html
• E-Mail– Billing: [email protected] – Financial Aid: [email protected]
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Questions & Answers