1. Understanding Financial Aid
Peg Mason
Assistant Director of Financial Aid
Colorado School of Mines

2. What is Financial Aid?
Scholarships: from your university or outside entity
Grants: federal, state, or institutional
Work Study: federal, state, or institutional
Student Loans: federal (subsidized, unsubsidized, Perkins) or private
Parent Loans: federal (parent PLUS) or private
Financial aid tracks almost everything that doesn’t come from a personal bank account or educational savings account.

3. Who can receive Financial Aid?
Must have a valid Social Security Number matching their name and date of birth
May not be in default on federal loans or overpayment on federal grants or loans
Must be making “Satisfactory Academic Progress” at the institution
Must be enrolled in an eligible program of study pursuing a degree, certificate, or recognized credential
Must be a U.S. citizen or eligible non-citizen (permanent resident) who has registered with selective service (if born male).
State aid is generally awarded to the same population of students as federal aid who also are residents of the state where they are attending college.
Institutional aid and independent scholarships may have their own requirements. You will want to check with your institution or your scholarship provider.

4. How do I get Financial Aid?
Apply annually using the Free Application for Federal Student Aid (FAFSA).
It is FREE at or
It doesn’t cost anything to apply. It is FREE.
The FAFSA currently becomes available October 1st for Financial Aid beginning July 1st. If you are starting college in Fall 2017, your FAFSA will be available October 1, 2016 for FREE.
Prior-Prior Year data will be requested (i.e tax data requested for 17-18,)
Submit your FAFSA as early as possible to ensure your school(s) receive it by their priority deadline. Check with each school to find out their deadline. IF for some reason you have not filed your 2015 federal income tax return, use estimated income information to meet this deadline. You can make changes later for FREE.
Your FAFSA can go to as many as 10 schools at one time for FREE.
Did I mention it is FREE?

5. Filling out the FAFSA
It is highly recommended that the student and their parent(s) fill out the FAFSA together.
Most of the FAFSA is asking questions of the student. If only the parent fills it out, many times they answer the questions for themselves and not their student. DON’T be that parent!
When it comes time for parent information, the questions are asked of the custodial parent. If the student doesn’t live with either parent, it is the one who supports the student more than 50% financially.
All questions reference that parent including their spouse and their household.
Both the student and the parent will sign the FAFSA using the FSA ID/Password.

6. FSA ID [Federal username/password
Student
Parent
Parent PLUS borrower, if different than on the FAFSA

7. FAFSA Sections
Step 1 (Student): personal information about the student
Step 2 (Student): income information about the student. If the student worked at all in 2015, list the income, even if they won’t be filing taxes.
Step 3 (Student): dependency questions. This is where it is determined if parental information is required on the FAFSA. Students should read these questions carefully; they pertain to the student only.
Step 4 (Parent): parent personal and income information. Marital status is of the custodial parent, not necessarily of the biological parent(s). Remaining questions are for that parent’s household including their spouse. Use estimated tax information if necessary.
Step 5 (Student): only necessary if no parent information is provided
Step 6 (Student): list the colleges you want to receive the information (up to 10)
Step 7 (Student and Parent): sign and submit your application with your personal FSA ID/Passwords.

8. Common FAFSA Mistakes Not submitting the FAFSA
Using a nickname instead of a legal name
Parent and/or student not signing the FAFSA
Divorced biological parents listing marital status of both biological parents, not of the parent completing the app
Only listing the income of the parent on the app; excluding their spouse
Entering financial numbers including cents; use whole dollars only
Including business income for a sole proprietorship with less than 100 employees
Including retirement accounts and/or personal home as investments
Including parents in the number of household members in college
Rollover IRAs…

9. I’ve done the FAFSA, now what?
The FAFSA calculates an “Expected Family Contribution (EFC).”
The EFC is an index number used by schools to determine the types of aid they can offer (need or no-need aid)
The EFC does take into account how many household members are in college (not counting parents)
In general, the same EFC is used by all schools for the same period of time (9 months)
Additional Documentation Required
Selected for Verification? Each school could need additional documentation to complete your file
Independent student? Your school will let you know if you must provide documentation to receive aid
Schools must resolve conflicting information before disbursing aid, not before awarding aid. Your aid award can change once the information is collected.

10. CSS Profile
May be required by an institution-check with your schools to determine if this is necessary.
Used by member institutions and other organizations of the College Board a closer look into the finances of a student and family.
Cost $25 for one college - $16 for additional reports

11. Calculating your “Need”
Need = Cost of Attendance - Expected Family Contribution
Your need can change as your cost of attendance changes:

12. Components of your Award : Cost of Attendance
NOT your bill!
Tuition and Fees: For a full-time student as defined by your institution
Room and Board: Even if living off campus
Books and Supplies: An estimate for the year
Transportation: Allowance for getting around campus, not a car payment
Personal Expenses: Pizza and shampoo money
Loan Fees: Average for regular borrowing
These components are generally averages used to determine financial aid NEED. Some of these can be adjusted and others must be changed as circumstances change.

13. Components of your Award: Need-based Aid
All Grants are need-based (Pell Grant, SEOG, State Grants, Institutional Grants)
Work Study (not necessarily study at work)
Money the student earns for hours worked in an on-campus job that does not have to be repaid.
Not a good way to pay for Tuition/Fees.
Subsidized Loan
Undergraduate federal student loan (aka Direct Loan); interest accrues at same rate as unsubsidized loan, but the government subsidized or pays the interest while the student is in school at least half-time. Loan is limited by the student’s grade level. Repayment begins 6 months after a student graduates or is enrolled less than half time.
Scholarships count toward need not the EFC

14. Components of your Award: No-need aid
Scholarships: awarded based on merit, not necessarily need-based, but can count against need
Unsubsidized Loan
Undergraduate federal student loan (aka Direct Loan); interest accrues at same rate as subsidized loan, but the interest begins accruing on the disbursed amount as soon as disbursement is made. Loan amount is limited by grade level and dependency status. Repayment begins 6 months after student is enrolled less than half time.
Parent PLUS Loan
Credit-based federal loan made to a parent of a dependent undergraduate student. Interest rate is fixed by the government each year. The loan amount is limited by the student’s cost of attendance minus other aid. Repayment begins when loan is fully disbursed, but can be deferred until the student is enrolled less than half time.
For loan interest rates, origination fees and loan limits, go to

15. Components of your Award: What’s missing?
College Opportunity Fund (COF): for Colorado residents attending Colorado schools
Apply once at
Not classified as Financial Aid; most likely the tuition and fees component of the cost of attendance already take this into account.
Funds paid toward bill on a cost-per-credit basis
Must give permission for an institution you attend to access the funds
Outside scholarships: these can reduce need-based aid; contact your school with scholarship information ASAP.
Student or Parent Loans: not all schools award these immediately although they may be available to you. Ask your school if you are needing loans.

16. Looking for more information?

17. Questions?

18. Peg Mason Colorado School of Mines 303-273-3551