Luther College Janice Cordell cordellj@luther.edu (800)458-8437 x1018 Financial Aid 101 Luther College Janice Cordell cordellj@luther.edu (800)458-8437 x1018

Philosophies The Right Match First Have a back-up Apply for all types of assistance

Making it Happen Follow Procedures Meet Deadlines Ask Questions Keep Copies

Scholarships Private Awards Family Affiliations www.fastweb.com www.finaid.org Choose free options Beware of scholarship scams Family Affiliations Employer, Church, Other Memberships

Institutional Need Blind Awards Academic Minimum academic requirements Talent Music, Art, Athletics Other Ethnic, Alumni, Leadership….. Watch for separate applications and deadlines

Need Based Financial Aid Family First National Formulas Federal Methodology Institutional Methodology Cost of Attendance - Family Contribution = NEED

Cost of Education Tuition Fees Room & Board Books Personal Expenses Transportation

Determining Family Contribution The family is the primary source for funding education. Where family is unable, financial aid helps. Custodial parent and step parent if applicable DOMA Income Adjusted Gross Income and some untaxed income and benefits

Determining Family Contribution (Cont.) Assets Cash in bank accounts Investments and other real estate equity Large business and investment farm net worth Does NOT look at value of home, retirement, family business with less than 100 employees or family operated farm Asset Protection Allowance Assets treated differently for parents than for those in the student name.

Determining Family Contribution (Cont.) Number in college – excluding parent College aid officers may take special circumstances into consideration. At the discretion of each college Family must provide a written letter and documentation to support circumstances.

“The Financial Aid Package” Need Blind and Outside Awards Grants College, Federal and State Loans Low interest Deferred while in school Interest may be tax deductible Work Improves Retention Provides work experience

Minnesota State Programs Eligibility Requirements Include: Minnesota Residency Demonstrate financial need Enroll for at least 15 credits at a Minnesota college or university to be considered for full award. Possible Part-time awards. For further requirements, go to: www.ohe.state.mn.us

Reciprocity Receive tuition close to or same as resident tuition rate. In most cases, your MN high school transcript is your application. Wisconsin North Dakota South Dakota Manitoba Midwest Student Exchange Program (IL, IN, KS, MI, MN, MO, NE, ND, WI) Iowa Lakes CC

Filling the Gap Unsubsidized Stafford Loan Short Term Payment Plans Long Term Financing Plans PLUS – Federal Parent Loan Private Loans – check with the college

Educational Tax Credits American Opportunity Tax Credit Lifetime Learning Credit Deductible Student Loan Interest Penalty-free IRA Withdrawals www.irs.ustreas.gov (IRS Publication 970, Tax Benefits for Higher Education)

Applying for Financial Aid FAFSA Apply online - www.fafsa.gov www.fsaid.ed.gov Institutional Application CSS Profile The earlier you complete your application, the earlier you will hear October 1, 2017-18

FAFSA tips Complete early using estimated information Blue Sections – Student (Green/paper application) Purple Sections – Parent Name & Social Security Number Date of Birth Citizenship State of Residence Selective Service Drug Conviction

FAFSA tips (continued) Dependency Status Over 24 Graduate student Married Children or other dependents who are supported by the student Orphan, foster care, or ward of court Veteran Emancipated minor Homeless or unaccompanied youth Legal Guardianship

FAFSA tips (continued) Custodial Parent household information If parents are divorced and custodial parent has remarried, must list step-parent information Unmarried parents living together must list both parent’s info Parent name, DOB, SSN Parent state of residence Net worth of Required Investments Investment farm – rental farmland Application will be rejected without both parent and student FSA ID Use of IRS Data Retrieval Tool

Questions?