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Financial Aid and the FAFSA
Presented by SMSU
What is Financial Aid?
Grants
Scholarships
Employment Opportunities
Loans
2013-14 Average MN Tuition and Fees
Community and Technical Colleges - $5,373
State Universities - $7,681
University of MN - $13,620
Private Career Colleges - $14,000
Private Colleges and Universities - $34,000
The College Pay-off
General Eligibility RequirementsMust be enrolled or accepted for enrollment in an eligible institution
Must be admitted in a degree, certificate, or other recognized credential program
Must be a U.S. citizen or eligible non-citizen
Must be registered with Selective Service (males age 18-25)
General Eligibility Requirements (continued)
Must have a valid Social Security Number
Must be making satisfactory academic progress as defined by the school
Must not have eligibility suspended due to a drug related conviction while attending college
Definition of Financial Need
Cost of Attendance (COA for one year)
- Expected Family Contribution (EFC)
= Financial Need
Cost of Attendance
Tuition and fees
Room and board
Books and supplies, equipment, transportation, and miscellaneous personal expenses
Loan fees
Study abroad costs
Dependent care expenses
Expenses related to a disability
Expenses for cooperative education program
EXPECTED FAMILY CONTRIBUTION FOR DEPENDENT STUDENT
Parent Income
Student Income
Untaxed Income
Exclusions
Assets
Family Size
Number Attending College
Need Varies Based on Cost
X
Y
Z
Cost of Expected Family NeedAttendance Contribution (Va ria b le ) (Va ria b le ) (Co ns ta n t)
1
2
3
EFC EFC
Principles of Need AnalysisTo the extent they are able, parents have primary responsibility to pay for their dependent children’s education
Students also have a responsibility to contribute to their educational costs
Families should be evaluated in their present financial condition
A family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect its ability to pay
Types of Financial Aid
Gift Aid
Grants & Scholarships
Federal Grants State Grants Institutional Grants &
Scholarships Private Grants &
Scholarships
Types of Financial Aid
Self Help Aid
Loans & Employment
Work-Study Stafford Loans Perkins Loans PLUS Loans Private Loans
GIFT AID
Federal Pell Grant Program
Awarded to eligible undergraduates pursuing first undergraduate certificate or degree
Actual award amount based on Cost of Attendance, Expected Family Contribution (EFC), and enrollment status.
For 2013-14 the Pell Grant range is $582-$5,645.
Limited to a total of 12 semesters of FT enrollment.
Federal Supplemental Education Opportunity Grant
(FSEOG)
Campus-based aid
For undergraduates pursuing first undergraduate degree or certificate
Must be Federal Pell grant eligible
Priority to students with exceptional financial need (i. e. students with the lowest EFCs at that school)
Award Range: $100 - $4,000
Minnesota State ProgramsEligibility Requirements Include:
Minnesota Residency
Demonstrate financial need
Enroll for at least 3 credits at a Minnesota college or university
Apply within 30 days of start of term
Limited to 8 semesters of Full-Time Enrollment
For further requirements, go to: www.ohe.state.mn.us
Scholarship Resources
School need-based and non-need based programs
Academic, athletic, and other talent-based scholarships and grants
Private business scholarships
Civic organization scholarships
Local library resources
Local businesses and civic organizations
Parents’ places of employment
SELF HELP AID
Work Study
Undergraduate or graduate students are eligible
Employment on or off campus (most are on campus)
Eligible employers School Federal, state, or local public agency Private non-profit organization For-profit organization
Watch What You Borrow
Live like a college student while in college so you don’t have to live like a college student for the rest of your life!
Student loan debt has now went over 1 Trillion dollars and is now more than credit card debt in the U.S.
www.studentloans.gov – loan and financial awareness counseling
Federal Perkins Loan
Interest rate: 5% (principal and interest deferred while in-school)
Subject to school’s FA priority application deadline
Eligible Students Undergraduate or graduate students Priority to exceptional need Loan amount varies
Maximum annual loan $5,500 undergraduate students $8,000 graduate and professional degree students
Federal Stafford LoanSubsidized and Unsubsidized
School determines loan eligibility and delivers loan proceeds to the student
Subsidized Stafford: Must demonstrate “need” – no interest or principal payments while in school – currently 3.86 (8.25% cap)
Unsubsidized Stafford: Need is not a consideration – no principal payments while in school but interest does accrue – currently 3.86% (8.25% cap)
Annual loan limits (combined subsidized and unsubsidized): $3,500 base + $2,000 unsub for 1st Year Students $4,500 base + $2,000 unsub for 2nd Year Students $5,500 base + $2,000 unsub for 3rd Year and beyond
Federal Plus Loan
Parent Loan for Undergraduate Students
Parent of a dependent undergraduate student
Annual loan limit = COA minus other aid
Repayment begins 60 days after disbursement
4% in fees, based on the principal
Interest rate – 6.41% (10.50% cap)
Student Education Loan Fund (SELF)
Minnesota Office of Higher Education (MOHE) is the lenderMinnesota resident at participating schoolsOut of state resident at Minnesota schoolCredit worthy co-signer requiredInterest rate - 3.3% minimum variable or 6.9% fixedNot need-based; students at any income level can qualifyLoan limits per grade classification:
Undergraduate Student: $10,000Graduate Student: $10,000
Federal Tax Benefits for Higher Education
American Opportunity Tax Credit
Lifetime Learning Tax Credit
Student Loan Interest Deduction
Employer Paid Tuition Assistance
Deduction for Qualified Higher Education Expenses
More info at: www.irs.gov
For further information, go to www.ohe.state.mn.us
How to Apply for Financial AidApply for a PIN
Go to: www.pin.ed.gov
Both one parent and student need it to sign application online
Complete FAFSA online at: www.fafsa.gov
Complete Free Application for Federal Student Aid--available beginning January 1st of the year for which you are applying
At FAFSA website, print out “FAFSA on the Web Worksheet” to assist in completing online application
Make sure to meet school determined priority dates
FOTW – www.FAFSA.gov
CAUTION!Avoid being charged a fee to file the FAFSA
Processes of completing and processing the FAFSA are FREE
When filing FAFSA on the Web, make sure you go directly to: www.fafsa.gov NOT www.fafsa.com
Contact the financial aid office if you need help in completing the FAFSA
FAFSA InstructionsYou (the student)
Must have a Social
Security Number to apply for federal aid
Put your name and SSN exactly how it appears on your social security card
Student Status
If all answers are “no”, proceed to parent section, where your parents will furnish income information
If you answer “yes” to any question, you are independent – skip Parent Section
Independent Student Definition
Born before January 1, 1991 (at least age 24)
As of today are you married;
Are you working toward a masters/doctorate;
Are you currently on Active Duty Military;
Are you a veteran of the Armed Forces;
Do you have children – must receive >50% of support;
Do you have Dependents other than children or a spouse;
Independent Student Definition
At any time since you turned age 13, were both of your parents deceased, were you in foster care or were you a dependent ward of the state;
Are you an emancipated minor;
Are you in a legal guardianship; or
After July 1, 2013 have you been an unaccompanied youth who is homeless as determined by school district
homeless liason or HUD or director of a runaway shelter.
Parents Divorced or Separated:
Complete Parent Section for the parent with whom the student has lived, or from whom the student has received the most support, for the past 12 months
If your parent is remarried, step-parent information must be included, whether or not that person is actually “supporting” the student
Any child support received must be included on FAFSA in parent section
Income, Earnings, and Assets(Student and Parents)
Refer to completed 2013 Federal income tax return and consult instructions for proper line references.
If entry is zero or none, enter 0. Do not leave blank.
Carefully read instructions and questions
HELPFUL HINT: Round off your $ amounts. Do not use cents.
IRS Data Share 2014-15
FAFSA on the Web users allowed to access tax data from IRS to populate FAFSA
Will be operational for 2014-15 FAFSA on the Web on February 3, 2014
Optional – family can choose to enter data directly on FAFSA on the Web
84% of families are eligible to use this process
Income, Earnings, and Assets, continued
Net worth = current value of assets minus debt
Separate net worth among “investments”, “business”, and “farm” to answer the three questions
Do not include the value of your home.See FAFSA instructions for further detail on what to count as an investment
Investment Farm QuestionRefers to an investment farm - # 92 for parents and #42 for studentsDo Not include the value of a family farm that you live on and operate. Only include one that is owned solely for investment purposesA farm that has been incorporated is not a family farm if non-family members own shares in the corporation
Family Business
Question #92 for Parents and #42 for studentsDo Not include the value of a small business that you own and control if it has 100 or fewer full-time or full-time equivalent employees.
Who Should Receive Your Information?
Enter up to 10 different school codes on FOW.For every school code listed, students will see retention, graduation and transfer rates for each school.Check appropriate housing plans for each school.
Signatures
Sign electronically using PINs (Student and Parent or
Print and mail parent’s signature page
FAFSA Processing Results
FAFSA processed – results electronically sent to all listed schools
E-mail notification with link to student’s SAR online if student’s email address provided on:
- FAFSA on the Web (takes 1-2 days if electronically signed with pin; 2 weeks if mailed in signature page)
- Make sure student adds federal email address to address book to avoid delivery problems
What’s Next?
After you have received your SAR (either via the web, or on paper),
The schools you listed on the FAFSA may send you a request for further documentation (tax transcript, citizenship verification, etc.)
You will then receive an award packet from your college indicating the type of aid you are being offered.
Helpful Resources
College Financial Aid Administrator knows best!!
Minnesota Office of Higher Ed Staff – 651-642-0567 or 800-657-3866
Helpful Websites
Scholarship Searches- www.fastweb.com
- www.finaid.org
- www.bigfuture.collegeboard.org
- www.gocollege.com
- www.scholarship.com
Scholarship Tips
For tips on applying for scholarships, writing essays, and letters of recommendation go to:
www.scholarshiphelp.org
Helpful Websites
General Financial Aid Information
- www.studentaid.ed.gov
- www.ed.gov
Helpful Websites
www.ohe.state.mn.us – MN OHE website for students and parents
- FA programs and application process- Preparing for college- MN College Tuition Costs- EFC/FA Estimator for families- On-line reciprocity application
Helpful Websites
Education and Career Choice Information
- www.petersons.com
- www.mappingyourfuture.org
- www.iseek.org
Contact Information
David Vikander, SMSU Financial Aid Director
Email Address: [email protected]
SMSU Phone: 507-537-6281
