2017 – 2018 Financial Aid Presented by Minnesota State University Moorhead Questions are welcome before the session begins

BREAKING NEWS! 2017-18 FAFSA is available October 1, 2016… apply every year! 2015 income data will be used (2015 for 2016-17 FAFSA & 2017-18 FAFSA) Facilitates early FAFSA submission and notification of eligibility (Don’t get confused….one year only, the same year’s income is used for two application years.)

What’s Changing for 2017–18 What’s Changing for 2017–18

Free Application for Federal Student Aid (FAFSA) FAFSA is required for the federal (and state) student financial aid application process Collects family’s financial and demographic information Used to calculate an Expected Family Contribution (EFC) Used to confirm student eligibility via database matches with federal agencies

What’s an FSA ID and Why Do I Need One?

How do I get an FSA ID? Visit StudentAid.gov/fsaid to learn about and create an FSA ID You’re not required to provide your email address, but it makes retrieving your username and password easier if you forget them. Parent and student must use separate email addresses. Here’s what you need to get your FSA ID (both student and parent): Your Social Security number Your full name as it appears on your Social Security card Your date of birth

To Register for an FSA ID

Save the application; return to complete and submit Save the application; return to complete and submit. Saved for 45 days or until FAFSA is submitted for processing. Can share Save Key with parents for them to access and input information.

Income, Earnings & Assets (Student & Parents) Use submitted 2015 Federal income tax information. Best solution is to use the IRS Data Retrieval tool. Carefully read the “Additional Financial Information” and “2015 Untaxed Income” sections to correctly answer questions for both the student and parent(s). If entry is zero or none, enter 0. Do not leave blank. Round off dollar amounts. Do not use cents

Providing IRS Data: IRS Data Retrieval Tool

Signature Options

REMEMBER TO CLICK ON ALL SUBMIT BUTTONS

General Financial Aid Eligibility Requirements Admitted or enrolled in a degree, certificate or other recognized credential program at an eligible school U.S. citizen or eligible non-citizen Registered with Selective Service (males age 18-25) No conviction for an illegal drug-related offense while attending college and receiving federal financial aid

General Eligibility Requirements (Cont.) Valid Social Security Number Not in default on a federal student loan Does not owe repayment of a federal grant Making satisfactory academic progress as defined by the school

Independent Student Definition At least 24 years old by December 31 of the award year covered by the FAFSA (born before1/1/1994); or Graduate or professional student; or Married; or Have children student supports; or Have legal dependents other than a spouse supported by student; or Orphan or ward of the court at age 13 or older; or Currently serving on active duty or a veteran of the U.S. Armed Forces; or Court emancipated minor or in legal guardianship; or Documented as homeless, or a homeless unaccompanied youth; OR Determined to be independent by the financial aid administrator

Parents Separated or Divorced? Complete “parent” sections for the parent with whom the student has lived with more in the last 12 months. If equal, use the parent from whom the student has received the most financial support in the past 12 months. If that parent is remarried, step-parent information must be included, whether or not the step-parent is actually “supporting” the student Any child support received must be included as income QUESTION 64 - INCLUDED IN HOUSEHOLD SIZE • The student, even if the student is not living with the parents • The student’s parents, excluding a parent not living in the household as a result of death, separation or divorce. • The student’s sibling(s) if they received or will receive more than half of their support from the parents OR if they would be required to report parental information on the FAFSA. • The dependent student’s children, if they received more than half of their support from the student’s parents (even if they don’t live with the parents) •The student’s or parent’s unborn child, if that child will be born before or during the award year and the student’s parents will provide more than half of the child’s support from the projected date of birth until the end of the school year. • Other persons if they live with AND receive more than half of their support from the student’s parents at the time of application and during the school year (example might be extended family members such as grandparents)

Assets Net worth = current value of assets minus debt Separate net worth of savings and checking accounts from other types of investments Retirement investments such as 401K or pensions are exempt Do not include the value of your home Business net worth is excluded if family owned and controlled with no more than 100 employees IF NET WORTH IS ONE MILLION OR MORE, ENTER $999,999. IF NET WORTH IS NEGATIVE, ENTER ZERO. See Page 2 of the instructions for notes about questions 47-48 for students and 81-82 for parents.

Investment Farm Question Do not include the value of a family farm you live on and operate. Include value of a farm that is owned but not operated by parents or student A farm that has been incorporated is not a family farm if non-family members own shares in the corporation QUESTION 48 tells the student that an investment farm does not include a farm that the student lives on and operates. (THIS IS THE SAME AS QUESTION 82 FOR PARENTS). A rule of thumb for this is that if you have to file a Schedule F for the farm as part of your income tax return, it is a family farm, and should not be counted.

Most Common Mistakes Incorrect Social Security Number Incorrect parents’ income or taxes paid (use DRT!) Incorrect amounts of untaxed income Incorrect information for divorced or remarried parents (step-parent information missing or incorrect) Incorrect household size or number in college for the application year (7/1/17 - 6/30/18 for 2017-18 application) Missing signatures Incomplete FAFSA / forgetting to click SUBMIT button Not reading the instructions – may result in a rejected FAFSA (corrections required)

Verification Household size and number in college SNAP Confirms accuracy of information reported on FAFSA by students and parents Certain data elements selected by the FAFSA processor or school Common documents requested: 2015 IRS Tax Return Transcript only (copy of tax return is not acceptable) W-2s (may be requested by some schools) Household size and number in college SNAP Child support received

High School Completion Identity/Statement of Educational Purpose Some students required to verify their high school completion status (final high school transcript, GED or home school completion) Some students required to verify their identity and submit a Statement of Educational Purpose: “I certify that I am the individual signing this Statement of Educational Purpose and that the federal student financial assistance I may receive will only be used for educational purposes and to pay the cost of attending _______ for 2017-2018.”

Expected Family Contribution (EFC) for Dependent Students Parent income Student income Untaxed income (SNAP, child support) Assets Age of older parent Household size Number attending college Allowable exclusions The biggest factor in determining the expected parent contribution is the parent’s income. •There is an income protection allowance designed to reflect the basic living costs of a family. This is based on number in family, number in college, and food, shelter and clothing. There also is an employment allowance if both spouses work or if the parent is a single parent. After allowances are subtracted from the total income, the remaining amount is the available income. Part of that available income is assumed to be available for helping to pay for the college education of family members. •Parent’s assets are included in the need formula but they play a smaller role than income. Net worth is assumed to be for retirement. The closer parents are to retirement, the greater amount of asset protection. The remaining amount (called discretionary net worth) is seen as available to help with college costs. The current conversion rate in the formula is 12 percent. •Student income has a $2,200 income protection allowance and the remainder is assessed at 50%. •Student’s net assets are assessed at the rate of 35% for college. •The expected parent contribution is divided by the number enrolled in college. •Parents enrolled in college may NOT be included under the number in college.

Cost of Attendance Tuition and fees Room and board Books, supplies, equipment Transportation and miscellaneous personal expenses Study abroad costs Dependent care expenses Expenses related to a disability 6

What is Financial Aid? Grants Scholarships Employment opportunities (Work Study) Educational Loans Available for full-time or part-time enrollment! Financial aid will come in the form of both gift aid and self-help aid. Gift aid includes scholarships, grants, and work-study. You don’t have to repay gift aid. Self-help aid includes loans (which need to be repaid) and work (usually on-campus, with some off-campus community service positions available).

Types of Grant Programs Federal Pell Grant Federal Supplemental Educational Opportunity Grant (FSEOG) TEACH (grant/loan possible) State Grant Available only for undergraduate study (except TEACH)

Federal Pell Grant Awarded to eligible undergraduates pursuing first bachelor’s degree Portable Actual award amount is based on the school’s Cost of Attendance, student’s Expected Family Contribution (EFC) and enrollment status (full-time or part-time) Maximum award: $5,915 (2017-18) 600% limit (6 years receiving full-time Pell)

Federal Supplemental Educational Opportunity Grant (SEOG) Eligible student: Undergraduate pursuing first bachelor’s degree Awarded by school to students with exceptional financial need (lowest EFC) Annual amounts: Minimum = $ 100 Maximum= $4,000 (or amount set by school)

TEACH Amount: $4,000 per year/$16,000 undergraduate maximum Grant, with a teaching obligation in a high demand field at a school eligible for Title I assistance Teach 4 years within 8 years of graduation If teaching obligation is not met, grant becomes an unsubsidized loan with interest accruing from the date grant is first disbursed

State Grant Awarded to eligible students who are residents of the state, for attendance at a college or university within the state in which they reside. N.D. Academic Scholarships ($750/semester) N.D. Career & Technical Education Scholarships ($750/semester) N.D. Indian Scholarships (up to $2,000/year) N.D. Scholars Program (tuition charged by attending school) N.D. State Student Incentive Grant (up to $975/semester)

State Grant Awarded to eligible students who are residents of the state, for attendance at a college or university within the state in which they reside. Minnesota State Grant (award varies by cost of the school, maximum approximately $6,927-$10,745, based on 15 credit enrollment) Minnesota Child Care Grant ($2,800/year/child, full-time enrollment) MnSCU 2-Year Occupational Grant Pilot Program (tuition – Pell Grant) More Opportunities (http://www.ohe.state.mn.us/mPg.cfm?pageID=138)

Federal Work Study (FWS) Eligible students: Undergraduate and graduate/professional students Eligible employers, on- or off-campus: School Federal, state, or local public agency Private non-profit organization For-profit organization in academically relevant jobs Emphasis on community service

Types of Educational Loan Programs Federal Perkins Loan Stafford/Direct Loans Subsidized Unsubsidized Parent Loan for Undergraduate Students (PLUS) Private Educational Loans DEAL, SELF, etc.

Perkins Loan Priority to “exceptional need” students Priority to Pell eligible students $5,500 annual maximum (undergraduates) $27,500 aggregate maximum 9 month grace period 5% interest (during repayment) Program phase-out 9/30/17

Federal Direct Loan (Subsidized & Unsubsidized) Largest source of low interest loans administered by Department of Education Available to both undergraduate and graduate students enrolled at least half-time Lender is the U.S. Department of Education and U.S. Treasury Student’s Pell Grant eligibility must be determined first

Federal Direct Loan Annual base loan limits $5,500* for the first year of undergraduate study $6,500* per year for student who has successfully completed first year of an undergraduate program (sophomore) $7,500* per year for student who has successfully completed second year of undergraduate program (junior and senior) $20,500 per year for graduate and professional students (Unsubsidized Direct Loan only) * Includes $2000 Federal Unsubsidized Loan

Federal Direct Loan “Subsidized” and “Unsubsidized” are essentially No Co-Signer Required! Federal Direct Loan “Subsidized” and “Unsubsidized” are essentially the same, except duration of eligibility and when interest is charged (interest is not charged to the student in the subsidized Direct Loan program during enrollment, but charged to the student for the unsubsidized Direct Loan program).

Subsidized Loans Must demonstrate “Need” Interest is paid by the federal government while the student is enrolled at least half-time Six-month grace period before repayments begins Interest rate during repayment: Fixed at 3.76% (loans disbursed 7/1/16 – 6/30/17) Subsidized Direct Loan limited to 150% of time required to complete degree (example: Bachelor’s Degree requires four years; Subsidized Direct Loan limited to six years. Associate Degree requires two years; Subsidized Direct Loan limited to three years)

Unsubsidized Loans Need is not a factor Interest accrues beginning the day the loan is disbursed; until the loan is paid in full 3.76% fixed interest rate (from date of disbursement for loans 7/1/16 – 6/30/17) The student may choose to capitalize interest Six month grace period before repayment begins

Federal PLUS Loan Parent Loan for Undergraduate Students Parent of a dependent undergraduate student Annual loan limit = cost of attendance at the school, minus other aid Repayment begins 60 days after disbursement Payment deferment available while student is enrolled at least half time (parent must request) Fixed interest rate of 6.31% (2016-17) See page 12 in FOCUS. Borrowers are parents of dependent undergraduate students. PLUS borrowers don’t have to show need but will have to prove they are credit worthy. A parent may borrow an amount equal to the cost of attendance minus any other financial aid received. Repayment of BOTH principal and interest begins within 60 days of full disbursement of the loan and extends from 5-10 years. Interest rate varies each year with a cap of 9 percent. Deferment provisions: only principal is deferred, but interest may be capitalized.

Financial Aid Notifications Students should: Accept or decline offer (as directed by school) Sign and return award notification to financial aid office, if required Complete Federal Direct Loan acceptance and/or application(s), if applicable Sign promissory notes for educational loan, if applicable First time borrowers must complete Entrance Loan Counseling (school will inform of process to complete)

Evaluating Aid Packages Biggest is not always best; unmet need must be considered Are cost estimates realistic? Grant/loan balance What are terms and conditions of loans offered? Renewable vs. non-renewable scholarships Types of aid offered in view of student’s: Career objectives Work expectations

Student Borrowing & Money Management Tips (Cont.) Manage money wisely Make a budget and stick to it Borrow only for educational expenses Be a student worker – Student workers typically do better in their studies Earn and save as much as possible from a summer job Work part-time while in school (but don’t jeopardize studies!)

Special Circumstances Student should contact financial aid administrator if there is a loss or reduction of family income due to: Loss or reduction of child support payments to “custodial” parent A family death or illness Unusual high medical or dental expenses not covered by insurance and paid out-of-pocket Other unusual circumstances May result in revised award

Scholarship Resources College awarded need-based and non-need based programs Academic, athletic and other talent-based scholarships and grants High School Counselors Parents’ places of employment Private business scholarships Civic organization scholarships Local businesses and civic organizations Internet Scholarship Searches (such as fastweb.com) Local library resources To check the legitimacy of scholarship search organizations or individuals, check Better Business Bureau website at www.bbb.com/

Good Luck!

Questions? Office of Scholarship and Financial Aid Minnesota State University Moorhead 107 Owens Hall (218) 477-2251 finaid@mnstate.edu