1. State Grant 201 “The Hard Stuff” MAFAA Spring Conference 2014 Presented by Ginny Dodds, OHE May 8, 2014

2. Content 2 State Residency Difficult Transcripts Award Calculation – Multiple Schools Same Term Distribution of Interim Credits for Awarding Award Recalculations & Refunds for Change in Enrollment Level Full Withdrawal Refund

3. Minnesota Resident M.S.136A.101, Subd. 8 3 Meet ONE of the following criteria: Student who graduated from MN high school while residing in MN (must be physically attending college in MN if residing in another state*); OR Student who earned GED in MN after residing in MN for one year; OR Dependent student whose parents resided in MN when FAFSA completed; OR Student who resided in MN for 12 consecutive months without being enrolled for 6 or more credits in any term (con’t) * Restriction on distance education applies ONLY if graduating from a MN high school is the ONLY way a student can establish MN residency

4. Minnesota Resident M.S.136A.101, Subd. 8 4 A member (or spouse or dependent of) of the armed forces of the U.S. stationed in MN on active federal military service as defined in MS 190.05, Subd. 5c; or A spouse or dependent of a veteran who meets the residency requirement; or A person (or spouse of) who relocated to MN from an area that is declared a presidential disaster area within the preceding 12 months, if the disaster interrupted the person’s postsecondary education; or A person defined as a refugee under US Code, Title 8, section 1101 (a)(42) who upon arrival in the US, moved to MN and has continued to reside in MN; or A person qualifying for in-state tuition rates under the MN Dream Act

5. Minnesota Resident MN Dream Act 5 Requirements: Attend a MN high school for at least 3 years Graduate from a MN high school or earn a GED in MN If male, complied with Selective Service registration requirements Apply for lawful immigration status once federal process exists (does not refer to Deferred Action for Childhood Arrivals) This requirement not yet enforced, since federal process does not yet exist

6. Minnesota Resident Agency Policy 6 Student who resided in MN for 12 consecutive months without being enrolled for 6 or more credits in any term Does not have to be initial year student lived in MN Residency established this was is lost if student later leaves MN for more than 1 year (unless for college, military, missionary service and still pay taxes to MN)

7. Minnesota Resident Agency Rules 7 Independent student who originally met residency requirement as dependent because parents resided in MN when FAFSA completed grandfathered once independent (4830.0100 Subp. 10E) Families not penalized for leaving MN to attend college or serve in military or missionary if still filing taxes in MN (4830.0400 Subp. 2a.)

8. Problem Transcripts 8 Must obtain separate transcript from each school It is acceptable to obtain written statement from student reconstructing history when transcript can’t be obtained due to: Cosmetology schools only required to keep records 5 years School closure and no other entity holding records Destruction of institutional records Civil war in country where student attended Can’t use if school holding transcript due to unpaid bill However, student copy is acceptable Can also accept written statement from student if transcript doesn’t contain enough information to make determination

9. Good Faith Effort Assigning Units School can make reasonable, good faith effort to assign units when transcript does not contain enough information to make accurate determination Course work not separated by term, no start or end date, no credits shown for any course work If course shows grade of ‘W’ with no attempted credits, use assumed value of 4 credits (unless all other classes indicate otherwise) 9

10. Good Faith Effort Assigning Units Examples of “reasonable” Look at other college’s web site for more information How long does it usually take to complete program? Standard period of time to complete credential for particular program Written clarification from student or other college Number of terms that would normally take place during period of enrollment Look at total attempted credits for period of enrollment Examples of “unreasonable” Ignore, destroy, dartboard, roulette wheel 10

11. Award Calculation Multiple Colleges for Same Term One eligible MN school may act as the ‘home school’ and base student’s award on the combined credits at both schools A consortium agreement is not required as long as both schools are eligible MN schools However, home school must monitor student’s enrollment at other school to determine if student withdraws or is making satisfactory progress No award calculation adjustment is required if both schools are in the same sector: MnSCU U of M Private 4-Year Private 2-Year 11

12. Award Calculation Multiple Colleges for Same Term If colleges are in different sectors, use OHE award calculation spreadsheet for multiple campuses Spreadsheet factors in tuition actually charged at each campus Tuition maximum based on student’s program If one campus is MnSCU campus, can only combine credits if: Other campus is MnSCU campus (no adjustments needed) Student’s total credits 15+; or Student has $0 PC (dependent) or EFC (independent) 12

13. Award Calculation Distribution of Interim Credits 13

14. Award Calculation Distribution of Interim Credits Federal Pell Grant requires interim term be attached to one term State Grant allows interim term credits to be assigned to either or both terms, on student by student basis However, if student is Pell Grant recipient, interim credit distribution for State Grant cannot result in incorrect Pell Grant being subtracted in award calculation 14

15. Award Calculation Distribution of Interim Credits Example: Fall credits = 11 Interim credits = 4 Spring credits = 11 School attaches interim to spring semester for Pell Grant enrollment level Interim credits go to spring semester for State Grant Distributing any interim credits to fall term would result in incorrect Pell Grant (e.g. full- time) being subtracted in State Grant formula 15

16. Award Calculation Distribution of Interim Credits Example: Fall credits = 11 Interim credits = 4 Spring credits = 0 School attaches interim to spring semester for Pell Grant enrollment level Interim credits go to spring semester for State Grant Distributing any interim credits to fall term would result in incorrect Pell Grant (e.g. full- time) being subtracted in State Grant formula 16

17. Award Calculation Distribution of Interim Credits Example: Fall credits = 13 Interim credits = 3 Spring credits = 14 School attaches interim to spring semester for Pell Grant enrollment level School can distribute all interim credits to either term; or Distribute 2 credits to fall, 1 credit to spring to maximum State Grant eligibility Either way, the full-time Pell Grant will still be used in the State Grant formula 17

18. Withdrawing/Adding Credits After Beginning Attendance No state award adjustments required after student has begun attendance in all classes School can have written policy to adjust awards through a certain date e.g. end of drop/add period, end of term, etc. School can have different policy for different programs e.g. day school vs weekend college Policy must be used for all state financial aid programs requiring adjustments Adjustment end date does NOT have to match end date used for Federal Pell Grant program 18

19. Withdrawing/Adding Credits After Beginning Attendance If school has policy opting for award adjustments, they must be done regardless of whether award increases or decreases if they occur before adjustment end date 19

20. Withdrawing/Adding Credits After Beginning Attendance When student first withdraws from and then adds credits after beginning attendance and before award adjustment end date: Compare revised award for new net enrollment level (don’t include Ws) with previous disbursement retained by student If new award is less than what was retained from original disbursement, there is not an overpayment If new award is higher than what was retained from original disbursement, disburse additional funds to student 20

21. Withdrawing/Adding Credits After Beginning Attendance Example: Student paid at onset of term for 15 credits Student later withdraws from 3 credits Partial withdrawal refund results in $100 refund Student retained $393 from original disbursement Student adds 2 credits Net enrollment level = 14 (15 – 3 + 2) Award at 14 credits is $271, but student can retain $393 from original disbursement 21 StateCredits Grant forFor Term $49315 $27114 $5213 $012 $31311 $9410 $09 $3568 $1377 $06 $3995 $1804 $03

22. Withdrawing/Adding Credits After Beginning Attendance Example: Student paid $94 at onset of term for 10 credits Student later withdraws from 2 credits Beyond Pell Grant adjustment period, so no decrease in Pell Grant from ¾ to ½-time State Grant stays at 10-credit amount $94 Student adds 3 credits Net enrollment level = 11 (10 – 2 + 3) Award at 11 credits is $313, so school can disburse $219 ($313 - $94) in additional State Grant funds to student 22 StateCredits Grant forFor Term $49315 $27114 $5213 $012 $31311 $9410 $09 $3568 $1377 $06 $3995 $1804 $03

23. Withdrawing/Adding Credits After Beginning Attendance When first awarding/disbursing funds AFTER the adjustment end date, award must be based on enrollment level as of the date of disbursement No further adjustments after that point If student has withdrawn class removed from transcript, treat as if student was never enrolled and perform award recalculation School can have policy to add credits after state award adjustment end date if: Credits would have normally been added during drop/add period and failure to originally add credits was beyond student’s control; or Interim credits were registered after fall term award adjustment end date and will be allocated to fall term 23

24. Using OHE Refund Calculation Spreadsheet Used when: Full withdrawal from school Withdrawal from class takes place before term adjustment end date and results in reduced award 24

25. Using OHE Refund Calculation Spreadsheet Line A: Amount of cash or financial aid applied to original institutional charges (capped at the amount of original institutional charges) Line B: Subtract amount of original institutional charges school is allowed to retain according to its own refund policy Schools licensed by OHE subject to prorata refund policy Others may be subject to system or accrediting agency policy Line C: Gross refund (if zero or negative, STOP! ) Line D: Subtract institutional share of any required refund due to Title IV programs Line E: Net refund (distributed proportionally among non-Title IV aid programs except State Work Study ) 25

26. Questions? 26 Where is my face??

27. Contact Ginny Dodds Manager, State Financial Aid MN Office of Higher Education Phone: (651) 355-0610 Fax: (651) 797-1637 Ginny.Dodds@state.mn.us 27