2017 – 2018 Financial Aid

1. 2017 – 2018Financial Aid Presented by Minnesota State University Moorhead Questions are welcome before the session begins

2. BREAKING NEWS! • 2017-18 FAFSA is available October 1, 2016… apply every year! • 2015 income data will be used (2015 for 2016-17 FAFSA & 2017-18 FAFSA) • Facilitates early FAFSA submission and notification of eligibility (Don’t get confused….one year only, the same year’s income is used for two application years.)

3. What’s Changing for 2017–18 What’s Changing for 2017–18

5. Free Application for Federal Student Aid (FAFSA) • FAFSA is required for the federal (and state) student financial aid application process • Collects family’s financial and demographic information • Used to calculate an Expected Family Contribution (EFC) • Used to confirm student eligibility via database matches with federal agencies

6. What’s an FSA ID and Why Do I Need One?

7. How do I get an FSA ID? • Visit StudentAid.gov/fsaid to learn about and create an FSA ID • You’re not required to provide your email address, but it makes retrieving your username and password easier if you forget them. Parent and student must use separate email addresses. • Here’s what you need to get your FSA ID (both student and parent): • Your Social Security number • Your full name as it appears on your Social Security card • Your date of birth

8. To Register for an FSA ID

12. Save the application; return to complete and submit. Saved for 45 days or until FAFSA is submitted for processing. Can share Save Key with parents for them to access and input information.

13. Income, Earnings & Assets(Student & Parents) • Use submitted 2015 Federal income tax information. Best solution is to use the IRS Data Retrieval tool. • Carefully read the “Additional Financial Information” and “2015 Untaxed Income” sections to correctly answer questions for both the student and parent(s). • If entry is zero or none, enter 0. Do not leave blank. • Round off dollar amounts. Do not use cents

14. Providing IRS Data: IRS Data Retrieval Tool

18. Signature Options

19. REMEMBER TO CLICK ON ALL SUBMIT BUTTONS

21. General Financial Aid Eligibility Requirements • Admitted or enrolled in a degree, certificate or other recognized credential program at an eligible school • U.S. citizen or eligible non-citizen • Registered with Selective Service (males age 18-25) • No conviction for an illegal drug-related offense while attending college and receiving federal financial aid

22. General Eligibility Requirements (Cont.) • Valid Social Security Number • Not in default on a federal student loan • Does not owe repayment of a federal grant • Making satisfactory academic progress as defined by the school

23. Independent Student Definition • At least 24 years old by December 31 of the award year covered by the FAFSA (born before1/1/1994); or • Graduate or professional student; or • Married; or • Have children student supports; or • Have legal dependents other than a spouse supported by student; or • Orphan or ward of the court at age 13 or older; or • Currently serving on active duty or a veteran of the U.S. Armed Forces; or • Court emancipated minor or in legal guardianship; or • Documented as homeless, or a homeless unaccompanied youth; OR • Determined to be independent by the financial aid administrator

24. Parents Separated or Divorced? • Complete “parent” sections for the parent with whom the student has lived with more in the last 12 months. If equal, use the parent from whom the student has received the most financial support in the past 12 months. • If that parent is remarried, step-parent information must be included, whether or not the step-parent is actually “supporting” the student • Any child support received must be included as income

25. Assets • Net worth = current value of assets minus debt • Separate net worth of savings and checking accounts from other types of investments • Retirement investments such as 401K or pensions are exempt • Do not include the value of your home • Business net worth is excluded if family owned and controlled with no more than 100 employees

26. Investment Farm Question • Do not include the value of a family farm you live on and operate. Include value of a farm that is owned but not operated by parents or student • A farm that has been incorporated is not a family farm if non-family members own shares in the corporation

27. Most Common Mistakes • Incorrect Social Security Number • Incorrect parents’ income or taxes paid (use DRT!) • Incorrect amounts of untaxed income • Incorrect information for divorced or remarried parents (step-parent information missing or incorrect) • Incorrect household size or number in college for the application year (7/1/17 - 6/30/18 for 2017-18 application) • Missing signatures • Incomplete FAFSA / forgetting to click SUBMIT button • Not reading the instructions – may result in a rejected FAFSA (corrections required)

28. Verification • Confirms accuracy of information reported on FAFSA by students and parents • Certain data elements selected by the FAFSA processor or school • Common documents requested: • 2015 IRS Tax Return Transcript only (copy of tax return is not acceptable) • W-2s (may be requested by some schools) • Household size and number in college • SNAP • Child support received

29. High School CompletionIdentity/Statement of Educational Purpose • Some students required to verify their high school completion status (final high school transcript, GED or home school completion) • Some students required to verify their identity and submit a Statement of Educational Purpose: “I certify that I am the individual signing this Statement of Educational Purpose and that the federal student financial assistance I may receive will only be used for educational purposes and to pay the cost of attending _______ for 2017-2018.”

30. Expected Family Contribution (EFC)for Dependent Students • Parent income • Student income • Untaxed income (SNAP, child support) • Assets • Age of older parent • Household size • Number attending college • Allowable exclusions

31. Cost of Attendance • Tuition and fees • Room and board • Books, supplies, equipment • Transportation and miscellaneous personal expenses • Study abroad costs • Dependent care expenses • Expenses related to a disability

32. What is Financial Aid? • Grants • Scholarships • Employment opportunities (Work Study) • Educational Loans • Available for full-time or part-time enrollment!

33. Types of Grant Programs • Federal Pell Grant • Federal Supplemental Educational Opportunity Grant (FSEOG) • TEACH (grant/loan possible) • State Grant • Available only for undergraduate study (except TEACH)

34. Federal Pell Grant • Awarded to eligible undergraduates • pursuing first bachelor’s degree • Portable • Actual award amount is based on the • school’s Cost of Attendance, student’s • Expected Family Contribution (EFC) and • enrollment status (full-time or part-time) • Maximum award: $5,915 (2017-18) • 600% limit (6 years receiving full-time Pell)

35. Federal Supplemental Educational Opportunity Grant (SEOG) • Eligible student: • Undergraduate pursuing first bachelor’s degree • Awarded by school to students with • exceptional financial need (lowest EFC) • Annual amounts: • Minimum = $ 100 • Maximum= $4,000 (or amount set by school)

36. TEACH • Amount: $4,000 per year/$16,000 undergraduate maximum • Grant, with a teaching obligation in a high demand field at a school eligible for Title I assistance • Teach 4 years within 8 years of graduation • If teaching obligation is not met, grant becomes an unsubsidized loan with interest accruing from the date grant is first disbursed

37. State Grant Awarded to eligible students who are residents of the state, for attendance at a college or university within the state in which they reside. • Minnesota State Grant (award varies by cost of the school, maximum approximately $6,927-$10,745, based on 15 credit enrollment) • Minnesota Child Care Grant ($2,800/year/child, full-time enrollment) • MnSCU 2-Year Occupational Grant Pilot Program (tuition – Pell Grant) • More Opportunities (http://www.ohe.state.mn.us/mPg.cfm?pageID=138)

38. Federal Work Study (FWS) • Eligible students: Undergraduate and graduate/professional students • Eligible employers, on- or off-campus: • School • Federal, state, or local public agency • Private non-profit organization • For-profit organization in academically relevant jobs • Emphasis on community service

39. Types of Educational Loan Programs • Federal Perkins Loan • Stafford/Direct Loans • Subsidized • Unsubsidized • Parent Loan for Undergraduate Students (PLUS) • Private Educational Loans • DEAL, SELF, etc.

40. Perkins Loan • Priority to “exceptional need” students • Priority to Pell eligible students • $5,500 annual maximum (undergraduates) • $27,500 aggregate maximum • 9 month grace period • 5% interest (during repayment) • Program phase-out 9/30/17

41. Federal Direct Loan(Subsidized & Unsubsidized) • Largest source of low interest loans administered by Department of Education • Available to both undergraduate and graduate students enrolled at least half-time • Lender is the U.S. Department of Education and U.S. Treasury • Student’s Pell Grant eligibility must be determined first

42. Federal Direct Loan • Annual base loan limits $5,500* for the first year of undergraduate study $6,500* per year for student who has successfully completed first year of an undergraduate program (sophomore) $7,500* per year for student who has successfully completed second year of undergraduate program (junior and senior) $20,500 per year for graduate and professional students (Unsubsidized Direct Loan only) * Includes $2000 Federal Unsubsidized Loan

43. No Co-Signer Required! Federal Direct Loan “Subsidized” and “Unsubsidized” are essentially the same, except duration of eligibility and when interest is charged (interest is not charged to the student in the subsidized Direct Loan program during enrollment, but charged to the student for the unsubsidized Direct Loan program).

44. Subsidized Loans • Must demonstrate “Need” • Interest is paid by the federal government while the student is enrolled at least half-time • Six-month grace period before repayments begins • Interest rate during repayment: Fixed at 3.76% (loans disbursed 7/1/16 – 6/30/17) • Subsidized Direct Loan limited to 150% of time required to complete degree (example: Bachelor’s Degree requires four years; Subsidized Direct Loan limited to six years. Associate Degree requires two years; Subsidized Direct Loan limited to three years)

45. Unsubsidized Loans • Need is not a factor • Interest accrues beginning the day the loan is disbursed; until the loan is paid in full • 3.76% fixed interest rate (from date of disbursement for loans 7/1/16 – 6/30/17) • The student may choose to capitalize interest • Six month grace period before repayment begins

46. Federal PLUS Loan • Parent Loan for Undergraduate Students • Parent of a dependent undergraduate student • Annual loan limit = cost of attendance at the school, minus other aid • Repayment begins 60 days after disbursement • Payment deferment available while student is enrolled at least half time (parent must request) • Fixed interest rate of 6.31% (2016-17)

47. Financial Aid Notifications • Students should: • Accept or decline offer (as directed by school) • Sign and return award notification to financial aid office, if required • Complete Federal Direct Loan acceptance and/or application(s), if applicable • Sign promissory notes for educational loan, if applicable • First time borrowers must complete Entrance Loan Counseling (school will inform of process to complete)

48. Evaluating Aid Packages • Biggest is not always best; unmet need must be considered • Are cost estimates realistic? • Grant/loan balance • What are terms and conditions of loans offered? • Renewable vs. non-renewable scholarships • Types of aid offered in view of student’s: • Career objectives • Work expectations

49. Student Borrowing & Money Management Tips (Cont.) • Manage money wisely • Make a budget and stick to it • Borrow only for educational expenses • Be a student worker – Student workers typically do better in their studies • Earn and save as much as possible from a summer job • Work part-time while in school (but don’t jeopardize studies!)

50. Special Circumstances Student should contact financial aid administrator if there is a loss or reduction of family income due to: • Loss or reduction of child support payments to “custodial” parent • A family death or illness • Unusual high medical or dental expenses not covered by insurance and paid out-of-pocket • Other unusual circumstances May result in revised award