1. St. Cloud State University
Financial Aid Night
Presented by
Valerie Knopp
St. Cloud State University

2. Dear Dad…
$chool i$ really gr8. I am making lot$ of friend$ & $tudying very hard. W/all my $tuff, I $imply can’t think of anything I need, $o if u would like, u can ju$t $end me a card, a$ I would love to hear from u. <3 ur $on $ent from my iPhone

3. Dear Son…
I kNOw that astroNOmy, ecoNOmics and oceaNOgraphy are eNOugh to keep even an hoNOr student busy. Do NOt forget that the pursuit of kNOwledge is a NOble task and you can never study eNOugh. Love, Dad Sent by

4. Myths to Qualify for Financial Aid
We make too much money to qualify
We have too many assets to qualify
It’s not worth completing the application (FAFSA)

5. What we’ll cover… Application Process Definition of “Need”
Aid Types and Sources
Need Analysis Formula (optional)

6. Application Process

7. Who is eligible? U.S. citizen or permanent resident
High school graduate/GED holder/Home school Certificate
Eligible degree/certificate program
Valid Social Security number
Registered with Selective Service (males 18 years old)
No conviction for drug offense while receiving federal aid
Satisfactory academic progress

8. How to Apply Free Application for Federal Student Aid (FAFSA)
Online at – fastest, most efficient
As soon as possible after January 1st – earlier the better
Watch out! Only use the “.gov” site – anything else and you will be charged and your results may be delayed
Check the schools’ deadlines
Paper FAFSA
Download from - select “FAFSA Filing Options”
Order by phone FED-AID
School Form or CSS Profile (if applicable)

9. Government Philosophy on Financial Aid
Three partners who share responsibility for educational costs: students, parents, and taxpayers (government).
Parent and student responsibility to pay for college expenses to the extent that they are able before federal or state funds are used.
FAFSA – determines an EFC (Expected Family Contribution) to make a consistent evaluation of each family’s financial circumstance.

10. FAFSA on the Web
Apply/Reapply
Apply for PIN
Filing Deadlines
IRS Data Tool (DRT) available late February 2013
Find college codes
Check status of FAFSA
Make corrections
Print SAR
FAFSA4caster

11. Filing Deadlines See state “Deadlines” at www.fafsa.gov
Minnesota State Grant deadline is 30th day of the start of the term
Check with the schools - college deadlines vary and may be early. Check with the individual college

12. Personal Identification Number (PIN) www.pin.ed.gov
Apply for a PIN or have PIN and forgot it?
When completing the FAFSA (real time), or at the PIN website Forgot your PIN? “Request a Duplicate PIN” at PIN website
Student and at least one parent need a PIN
Use your PIN to:
IRS Data Retrieval Tool (DRT) to complete the FAFSA
Sign your FAFSA electronically
Check the status of your FAFSA or Make corrections to your FAFSA
Sign Master Promissory Note (MPN) for federal loans (student and PLUS)
Look up student’s loan and grant history (

13. NOTE: After 1/1/13 the two options will be 2012-13 and 2013-14
FAFSA on the Web
NOTE: After 1/1/13 the two options will be and
Main page once logged in
Renewal or New FAFSA
Remember to select the correct award year
PIN status

14. Step 1: Beginning a FAFSA

15. Step 2: Filling out the FAFSA

16. High School (high school grads only)

17. School Codes (up to 10) FAFSA on the Web search Finding School Codes:
“Paying for College” booklet (Minnesota schools only)
School’s website

18. Dependency Questions
If student answers “NO” to all questions, parent information must be included on the FAFSA.

19. Special Circumstances (dependent students only)

20. Who is a “Parent” for the FAFSA?
Biological, adoptive, or step-parent
Grandparent, foster parent, other relative or legal guardian (who are not the parent) are NOT considered parents unless they legally adopted the student.

21. Entering Parental Data

22. IRS Data Retrieval Tool (DRT)
Who can use it? Dependent and independent students (parents of dependent students) who meet ALL criteria:
Valid SSN
Filed a 2012 IRS tax return, AND
Unchanged marital status since December 31, 2012.
Available approx. late February 2013
Displays if student (or parent, for dependents) selects tax filing status of “Already completed”

23. Application Type (English) Application Type (English)
Application Statistics*
Average completion time for NEW FAFSAs filed
January 1, September 30, 2012
Application Type (English)
# of Applicants
Completion Time
(in minutes)
FAFSA
3,455,616
37:04
EZ FAFSA
329,120
32:02
Renewal
4,003,109
27:13
EZ Renewal
394,268
19:52
Application Type (English)
# of Applicants
Completion Time
(in minutes)
FAFSA
3,879,269
19:03
EZ FAFSA
594,765
16:31
Renewal
4,894,169
14:36
EZ Renewal
774,079
10:60

24. What if I filed without using IRS DRT?

25. IRS DRT (cont.) Check tax filing status “Already completed”
If “Married Filing Separately” applicant is ineligible to use IRS DRT
NOTE: If you recently filed taxes, you won’t see IRS DRT. 2-3 weeks after you file electronically, correct the FAFSA, change this to “None of the Above”, and then use IRS DRT

26. IRS DRT (cont.) IRS Interface
Insert all information exactly as it appears on your federal tax return
(e.g. St. for Street or Street for St.)

27. Transfer IRS data to FAFSA
REMEMBER
Select the box and the “Transfer Now” button.
Include “earnings from work” on the FAFSA after data transfer

28. What if I don’t use the IRS DRT?
If you’re selected for verification and did not use the IRS DRT, you must provide a Tax Return Transcript issued by the IRS.
NOTE: A Tax Account Transcript does not provide sufficient information.

29. FAFSA saved up to 45 days

30. Entering Income Information (student view – same for parent)
If entering estimated income information, click here. REMEMBER: Update your information once you complete your federal income tax return.

31. Sign and Submit the FAFSA
Both student and parent must sign.
“Save”: You store the data to retrieve later (up to 45 days).
“Submit”: Your FAFSA will be processed.

32. Confirmation Page
Transfer sameparent info for a (dependent) sibling need? Click the link on the confirmation page to forward parent info from your FAFSA to your sibling’s.
Estimate based on data entered. School will determine eligibility.

33. NEW for 2013-2014: MN On-Line Student Eligibility Questionnaire
Student must click on MN link on Confirmation page to be redirected to OHE on-line questionnaire
First optional feature only appears for dependent students

34. Step 3: FAFSA Follow-up Make Corrections to a Saved FAFSA
Check status of a submitted FAFSA
Print Signature Page (if not signed electronically)

35. Application Status Check
1. Processed, not submitted
2. Processed, missing signatures (rejected to school)

36. Corrections on the Web REMEMBER: Save your correction(s) before submitting.

37. Completed FAFSA… …now what happens?
Department of Education: your estimated Expected Family Contribution (EFC)
Student: receive your Student Aid Report (SAR) by or mail
Financial Aid Office: receives electronic copy of your FAFSA results
If selected for verification, the school(s) listed on your FAFSA will contact you

38. Verification (not an audit)
Some applications may be selected for verification by the Central Processing Service or the school
School will send student/family: Verification worksheet to complete, sign and return
School will request: Federal income tax transcript (not the return) and W-2 forms for student and parent, if applicable ( for transcript)
If selected for verification, please do not make corrections to your FAFSA unless the school requests it

39. The Financial Aid Office
Determines student’s eligibility based on FAFSA results (and verification, if required)
Packages and offers financial aid to students
based on eligibility
in attempt to meet financial need
Sends an award letter detailing:
Cost of attendance
Types and amount of financial aid
Conditions of the award
Disbursement procedure
NOTE: Students must be admitted to (not enrolled at) the college before they can receive an award letter.

40. Eligibility for Financial Aid
All students and families are encouraged to complete the FAFSA for need and non-need based aid.
Submit the FAFSA by filing deadline (no later than the 30th day after the start of the term if Minnesota state grant-eligible).
Admitted to the school and enrolled at least half-time (6 credits) to receive most types of aid.
Make satisfactory academic progress (GPA, credits completed v. attempted, maximum time frame) to receive aid.

41. Review of Application Steps
PIN - student and at least one parent
File federal income tax returns
Complete FAFSA at
Review Student Aid Report (SAR)
Complete verification request from school (if applicable)
Apply for financial aid each year
Check priority dates and deadlines
Do not share your federal PIN

42. Definition of Financial Need
Cost of Attendance (variable)
- Expected Family Contribution (EFC) (constant)
Eligibility for need-based aid (variable)
Factors used in determining EFC:
Parent(s) income (taxed & untaxed) and assets
Student income (taxed & untaxed) and assets
Household size
Number in college

43. Cost of Attendance Each school’s will vary; all will include: TRAVEL
ROOM/BOARD
PERSONAL
BOOKS
TUITION/FEES

44. Need Varies Based on Cost
NOTE: Your Expected Family Contribution (EFC) remains the same.

45. Estimators Fafsa4caster Minnesota Office of Higher Education
Fafsa4caster
Finaid.org

46. Types of Financial Aid Gift Aid Self Help Scholarships Grants
Employment
Loans

47. Gift Aid: Scholarships
Merit-based aid
Local or Private – visit with your school counselor
College/University where you apply
Scholarship search services
Watch out for scams

48. Beware of Scholarship Scams
"The scholarship is guaranteed or your money back.“
"You can't get this information anywhere else.“
"I just need your credit card or bank account number to hold this scholarship.“
"We'll do all the work.“
"The scholarship will cost some money.“
"You've been selected by a 'national foundation' to receive a scholarship."
"You're a finalist.“… in a contest you never entered
Scholarship Scam Information:
Federal Trade Commission:

49. Gift Aid: Grants Need-based gift aid* Federal Pell Grant
Federal Supplemental Education Opportunity Grant (SEOG)
Federal TEACH Grant* (not based on need; agreement to serve requirement)
Minnesota State Grant
Other

50. Self-Help Aid: Employment
Earnings paid as hours are worked
Federal Work-Study
Minnesota Work-Study
College Employment

51. Self-Help Aid: Loans Must be repaid with interest
Need-based (guaranteed student loans)
Federal Perkins Loan
Federal Subsidized Stafford Loan
Not need-based
Federal Unsubsidized Stafford Loan (guaranteed student loan)
Federal PLUS Loan (parent loan, credit check required)
Private/Alternative Loans (variable rates/terms; credit check)

52. How to Save $$ While in School
Determine needs vs. wants
If you registered for a course, complete it
Work part-time (10-15 hours per week)
Avoid credit cards and card pushers (using credit and not paying it off can cost more than it’s worth)
Buy used books and clothes
Learn to cook
Share living expenses with a roommate
Use public transportation, a carpool, a bike, or your feet
Stay healthy
Buy food & supplies in bulk; buy generic, shop farmer’s markets
Use student discounts
Live like a college student so you don’t need to do it later

53. Financial Literacy Websites
studentloans.gov - Select “Financial Awareness Counseling” (NOTE: Not the same as entrance loan counseling for new borrowers)
- Select “Manage Your Money”

54. To keep in mind…
Discuss as a family the costs – how and how much – of financing college.
Discuss as a family available resources to meet these costs.
Carefully evaluate and understand the terms and renewal requirements for aid.

55. 5 Questions to Ask the Financial Aid Office
What do I need to finalize my award letter?
What academic requirements are there to keep my financial aid?
What are the terms of the loans?
Where can I find a job (work study or not)?
How and when will I receive my financial aid?
Modified from

56. Additional Resources
Minnesota College Goal (FAFSA Assistance) minnesotacollegegoal.org/Locations.cfm
MN Office of Higher Education getreadyforcollege.org
FAFSA Helpline FED-AID
U.S. Department of Education or
General Financial Aid

57. Questions about this presentation?
St. Cloud State University
Financial Aid Office
Administrative Services 106
720 Fourth Avenue South
St. Cloud, MN
(320)

58. (Expected Family Contribution)
Calculating the EFC
(Expected Family Contribution)

59. Parent Contribution – Income
Parent Income (AGI + Untaxed income)
Taxes and FICA
Employment expense allowance
Income protection allowance (variable)
= Available Income

60. Parent Contribution - Assets
Parent Asset Equity
Asset Protection Allowance (variable)
= Discretionary Net Worth
x 12% (Asset Conversion Rate)
= Contribution from Assets

61. Parent Contribution - Total
Available Income
+ Contribution from Assets
= Adjusted Available Income
x % (variable)
= Parent Contribution
÷ Number of family members in college*
*do not include parents in college

62. Student Contribution - Income
Student Income
Taxes (federal, state, FICA)
$6,130 Income Protection Allowance
= Available Income
x 50%
= Contribution from Income

63. Student Contribution - Total
Contribution from Income + 20% of asset equity = Total Student Contribution

64. Expected Family Contribution (EFC)
Parent Contribution + Student Contribution = Total EFC