Understanding Financial Aid

Goal of Financial Aid

Primary goal is to assist students in paying for their educational

investment and is achieved by:

!  Evaluating family s

ability to pay for educational costs

!  Distributing limited

resources in an equitable manner

!  Providing a balance of

Role of the Financial Aid Office

Determines eligibility for financial aid

Packages aid

Provides an award

notification detailing the

General Eligibility Requirements

Must be enrolled or accepted for enrollment in an eligible institution

Must be admitted in a degree, certificate, or other recognized credential program that is financial aid eligible

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

May not be in default on a federal student loan May not owe repayment of a federal grant

Application Process (part 1)

Complete Free Application for Student Federal Aid (FAFSA) online at www.fafsa.gov

"  Apply for an FSA ID

Dependent students: Both parent and student need an FSA ID to sign FAFSA online

Independent students: Student needs an FSA ID to sign FAFSA online

"  Use the IRS Data Retrieval Process to

electronically add your tax information to your FAFSA

"  FDLTCC s school code is 031291

You can also print a paper FAFSA from

Application Process (part 2)

The FAFSA results (Student Aid Report or SAR) will be sent to you and an

electronic SAR will be sent to all of the schools you listed on the FAFSA. Be sure to review the SAR for accuracy, and also read the eligibility information listed on the first page. If there are errors on your SAR, contact the

Application Process (part 3)

The VERIFICATION Process: The US Department of Education (ED) selects which financial aid

applicants have to undergo a process called

Verification . The Verification process requires the school to compare the information you

submitted on your FAFSA to documents

Application Process (part 4)

If there is any additional documentation needed, a request for it will be included on the verification letter. After you

have completed, signed, and returned all required documentation to the

Application Process (part 5)

The information you list on the FAFSA is put into a mathematical formula, and the result is called the EFC (Expected Family

Application Process (part 6)

Tribal Scholarships: If you are

Calculation of Financial Need

Cost of Attendance

Tuition and fees Room and board

Books and supplies, equipment, transportation, and miscellaneous personal expenses

Computer purchase or lease Loan fees

Study abroad costs

Dependent care expenses

Expenses related to a disability Expenses for cooperative

education program

EXPECTED FAMILY CONTRIBUTION

(EFC) FOR DEPENDENT STUDENT

EXPECTED FAMILY CONTRIBUTION

(EFC) FOR INDEPENDENT STUDENT

Need Varies Based on Cost

X

Y

Z

Cost of Expected Family Need

Attendance Contribution (Variable)

(Variable) (Constant)

1

2

3

Principles of Need Analysis

According to Federal

Regulations, students and parents have the primary responsibility to pay for their education. Financial aid is a supplement to their income Families should be evaluated in their present financial

condition. That is why prior year taxes are used

Types of Financial Aid

" 

Gift Aid

Federal Pell Grant Federal SEOG

MN State Grants Private Grants & Scholarships

" 

Self Help Aid

Federal Pell Grant Program

Awarded to eligible undergraduates pursuing

first undergraduate certificate or degree

Actual award amount based on Cost of

Federal Supplemental

Education Opportunity Grant

(FSEOG)

A limited amount is given to schools, so it is awarded on a first come-first served basis

For undergraduates pursuing first undergraduate degree or certificate

Minnesota State Programs

Eligibility Requirements

Include:

Minnesota Residency

Reciprocity

Receive tuition close to or same as resident tuition rate.

Remember to apply

online through your home state s website.

Get the application from your high school

counselor in the spring.

Wisconsin

North Dakota

Scholarship Resources

Private business scholarships

Tribal Scholarships (Contact your Tribal Scholarship Office regarding their

application process)

Civic organization scholarships Local library resources

Local businesses and civic organizations

Parents places of employment Internet Scholarship Searches

www.fastweb.com

Work Study

Federal Direct Loan

Subsidized and Unsubsidized

Subsidized Stafford: Must demonstrate need

Cost of Borrowing

Federal Direct Loans

Variable Interest Rate: Congress sets the

interest rate. For many years now, the interest

Other Loan options

PLUS Loan (Parent Loan for Undergraduate Student). This is a loan that a parent may take out, but must pass approval process based on their credit rating

SELF Loan (Student Education Loan Fund). This is a

student loan that requires a co-signer and a credit check of the co-signer

Alternative or Private Loans. These are loans offered by certain lenders to supplement other forms of funding.

Schools must have a contract with the lender for the school to offer a lender s Alternative/Private loan.

Federal Tax Benefits for

Higher Education

Hope Scholarship Tax Credit Lifetime Learning Credit

Student Loan Interest Deduction

Employer Paid Tuition Assistance

Deduction for Qualified Higher Education Expenses

Helpful Web Sites

General financial aid information and EFC estimator

www.studentaid.ed.gov www.ohe.state.mn.us

Education and Career Choice Information

Questions?