1. Financing Education Beyond High School
An Introduction to Financial Aid

2. Tonight’s Agenda College Costs Financial Aid Principles
Types of Financial Aid
FAFSA
Questions

3. College Costs (MN)
Source: MOHE for tuition data; U.S. Department of Education, IPEDS Institutional Characteristics Survey for other data

4. Education is an investment in the future!
Financing Strategies
Savings & Investments
Current Income
Monetary Gifts
Financial Aid
Scholarships
Future Earnings
Education is an investment in the future!

5. Goal of Financial Aid
Primary goal is to assist students and families in paying for their educational investment and is achieved by:
Evaluating family’s ability to pay educational costs
Distributing limited resources in an equitable manner
Providing a balance of gift aid and self-help aid

6. Principles of Need Analysis
To the extent they are able, parents have primary responsibility to pay for their dependent children’s education
Students also have a responsibility to contribute to their educational costs
Families should be evaluated in their present financial condition
A family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect ability to pay

7. Cost of Attendance (COA) An estimation of expected costs
Direct Costs Indirect Costs
Tuition and fees
Room and board
Transportation
Miscellaneous personal expenses
Books & Supplies

8. Expected Family Contribution (EFC)
Student and parent contributions are determined by the federal formula (FAFSA application)
Colleges use your EFC to determine your family’s aid eligibility at their school
How much a family can reasonably contribute to educational expenses; a measure of a family’s financial strength! It is not the exact amount that you will end up paying for college.

9. Expected Family Contribution (EFC)
Based on FAFSA data elements: Parent Income Student Income Untaxed Income Assets Family Size Number Attending College

10. What is Financial Need?

11. Types of Financial Aid Scholarships Grant
Work Study /Student Employment
Loans
Where does it come from?
Federal and state government, colleges and universities, employers, and other public and private sources

12. Federal Student Aid Programs
Federal Pell Grant
Iraq Afghanistan Service Grant
Federal Supplemental Educational Opportunity Grant (FSEOG)
Teacher Education Assistance for College and Higher Education (TEACH) Grant
Federal Work-Study (FWS)
Federal Direct Student Loans (Direct Loans)
Federal PLUS Loans

13. Teacher Candidate Grant
Minnesota State Programs
Minnesota State Grant
SELF Loan Program
MN GI Bill
MN Indian Scholarship
Teacher Candidate Grant
Other programs:

14. Colleges & Universities
Scholarship and/or grant funding
Institution uses FAFSA (or sometimes CSS Profile) information
Each institution has its own policy for awarding scholarship and grant aid; may be based on merit, need, or both
A few colleges/universities have institutional loan programs

15. Search for Scholarships
Search for Scholarships! Private scholarships are typically awarded based on merit, not need.
Where to look:
Your college of choice
HS Guidance/Career Office
In your community: church, civic, charitable, and business organizations
Parent employer
Online scholarship search engines

16. How do I apply for financial aid?
Complete the Free Application for Federal Student Aid at (FAFSA) fafsa.gov
Complete school financial aid application (if required)
Meet application deadlines
Apply for scholarships
Contact your financial aid administrator if you have special circumstances

17. Free Application for Federal Student Aid (FAFSA)
Standard form that collects your personal data
Information on it is used to calculate your EFC
Schools will use the EFC to calculate your eligibility for aid
Apply online
Available now! (October 1, 2018)
Can fill out anytime until June 30, 2019, but…
Schools and states may set their own deadlines for certain types of aid

18. FAFSA on the Web
Faster processing
Built in edits and skip logic
Secure connection
Ability to check processing online
Detailed instructions and “help” functions

19. myStudentAid Mobile App
Mobile app to begin, complete, save, and submit FAFSA
Same protection as FOTW
Allows applicant to save and complete later
Allows a digital signature
Provides estimated EFC after submission

20. FSA ID https://fsaid.ed.gov/npas/index.htm
Electronic Signature
Student and parent must have one
Parent can use same ID for multiple children
Can request before or while completing FAFSA
Used for: fafsa.gov, StudentLoans.gov, NSLDS.ed.gov, TEACH ATS

21. Completing the FAFSA
Documents you’ll need: social security card for student and parent, drivers license, asset/investment information, tax return (if completed) and w-2 form(s) – or use IRS DRT, records of untaxed income (e.g. child support)
FAFSA on the Web worksheet; available at under “Resources” on right hand side of page
Submit online FAFSA asap
Make sure to meet state deadline for state grant program (MN- 30 days after start of term)

22. IRS Data Retrieval
The IRS Data Retrieval Tool takes you to the IRS website, where you’ll need to log in by providing your name and other information exactly as you provided it on your tax return.
Easy way to provide required data and ensures accuracy
Won’t need to provide copies of an IRS tax transcript to your schools
Decreases the likelihood of being chosen for the Verification process

23. IRS Data Retrieval Certain tax filers cannot use the
IRS Data Retrieval Tool
Did not indicate on FAFSA a tax return was completed
Marriage date is January 2017, or later
First three digits of the SSN are 666
Filed a non-U.S. tax return
Married and filed as head of household, or filed separate returns
Neither married parent entered a valid SSN
Non-married parent or both married parents entered all zeroes for the SSN

24. Avoid Errors!
Put your name and SSN on FAFSA exactly how it appears on your social security card.
Make sure to correctly report parent marital status – stepparents must be included in the household and their income is counted!
Read instructions for household size and family members in college carefully! Note that parents cannot be included as # in college.
Read instructions for reporting assets.
If not using DRT, refer to completed federal income tax return and consult instructions for proper line references.
If entry is zero or none, enter 0. Don’t leave blank.
Enter school code(s).

25. Frequently Asked Questions
What income year do I use on the FAFSA? For the FAFSA you will use 2017 calendar year income.
Can I choose to use 2018 income data on my FAFSA if it is significantly different than 2017? No, you are required to use 2017 income data on the FAFSA
Do I report household size and assets as of 2017, too? No. Household size for the FAFSA is based on the timeframe of July 1, 2019 to June 30, You will report your assets as of the date you file your FAFSA

26. What if my family’s financial situation has changed since 2017
What if my family’s financial situation has changed since 2017? If you have a change in circumstances, such as significant loss of income or a change in marital status, contact each school to which you are applying to discuss the situation.
Do I need to be admitted to a school before I can list it on my FAFSA? No, you can list a school at any time. However, schools will not create a financial aid award for you until you have been accepted for admission.
When will I get an award letter? Each school has the authority to decide when they will begin sending out award letters.

27. How long will it take to complete a FAFSA?
What if my parents are divorced?
What are special circumstances?
I don’t think we’ll qualify for aid. Do I have to fill out the FAFSA?
My parents don’t claim me on their taxes. Shouldn’t I be considered independent for aid?
Do I need to apply every year?

28. What do I do….and when?
Apply for admission to your school(s) of choice.
Apply for your FSA ID.
Complete the FAFSA (each year) as soon as possible after October 1.
Review your Student Aid Report (SAR).
Respond if your school requests more information. You may be selected for verification and asked to submit tax transcripts or other documents.
Respond to financial aid award notice and complete any loan paperwork.

29. Reciprocity Wisconsin North Dakota South Dakota Manitoba
Reciprocity information and online applications available at
*Midwest Student Exchange Program

30. Alternative Funding Private scholarships
Vocational Rehabilitation Services
MN Post-Secondary Child Care Fund
MN Indian Scholarship
Bureau of Indian Affairs Grants
Armed Forces – MN GI Bill, fed vet benefits
Check out Aid for Students with Special Circumstances at

31. Where can I get more information?
Minnesota Office of Higher Education Student website:
U.S. Department of Ed:
The College Board:
FastWEB scholarship search:
FinAid-The Financial Aid Information Page:

32. Associate Director of Financial Aid St. Catherine University
Good Luck!
Questions?
Karla Glasser
Associate Director of Financial Aid
St. Catherine University