1. 2017 – 2018 Financial Aid Presented by
Minnesota State University Moorhead
Questions are welcome before the session begins

2. BREAKING NEWS! 2017-18 FAFSA is available October 1, 2016…
apply every year!
2015 income data will be used (2015 for
FAFSA & 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.)

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

5. 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

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

7. 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 address, but it makes retrieving your username and password easier if you forget them. Parent and student must use separate 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

8. To Register for an FSA ID

12. 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.

13. 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

14. Providing IRS Data: IRS Data Retrieval Tool

18. Signature Options

19. REMEMBER TO CLICK ON ALL SUBMIT BUTTONS

21. 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

22. 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

23. 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

24. 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)

25. 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 for students and for parents.

26. 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.

27. 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 application)
Missing signatures
Incomplete FAFSA / forgetting to click SUBMIT button
Not reading the instructions – may result in a rejected FAFSA (corrections required)

28. 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

29. 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 ”

30. 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.

31. 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

32. 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).

33. 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)

34. 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 ( )
600% limit (6 years receiving full-time Pell)

35. 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)

36. 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

37. 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)

38. 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 (

39. 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

40. 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.

41. 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

42. 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

43. 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

44. Federal Direct Loan “Subsidized” and “Unsubsidized” are essentiallyNo
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).

45. 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)

46. 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

47. 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% ( )
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.

48. 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)

49. 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

50. 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!)

51. 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

53. 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

54. Good Luck!

55. Questions?
Office of Scholarship and Financial Aid Minnesota State University Moorhead 107 Owens Hall (218)