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

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

3. Making it Happen Follow Procedures Meet Deadlines Ask Questions
Keep Copies

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

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

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

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

8. 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

9. 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.

10. 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.

11. “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

12. 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:

13. 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

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

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

16. Applying for Financial Aid
FAFSA
Apply online -
Institutional Application
CSS Profile
The earlier you complete your application, the earlier you will hear
October 1,

17. 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

18. 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

19. 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

20. Questions?