Understanding Understanding Financial AidFinancial Aid

What is Financial Aid?What is Financial Aid?

GrantsGrants

ScholarshipsScholarships

Employment OpportunitiesEmployment Opportunities

LoansLoans

Goal of Financial AidGoal of Financial Aid

Primary goal is to assist Primary goal is to assist students in paying for students in paying for their educational their educational investment and is investment and is achieved by:achieved by:

Evaluating family’s Evaluating family’s ability to pay for ability to pay for educational costseducational costs

Distributing limited Distributing limited resources in an resources in an equitable mannerequitable manner

Providing a balance of Providing a balance of gift aid and self-help gift aid and self-help aidaid

Role of the Financial Aid OfficeRole of the Financial Aid Office

Determines eligibility for Determines eligibility for financial aid financial aid

Packages aidPackages aid

Provides an award Provides an award notification detailing the notification detailing the programs and amount from programs and amount from each program for which the each program for which the student is eligiblestudent is eligible

General Eligibility RequirementsGeneral Eligibility Requirements

Must be enrolled or accepted for enrollment in an Must be enrolled or accepted for enrollment in an eligible institutioneligible institution

Must be admitted in a degree, certificate, or other Must be admitted in a degree, certificate, or other recognized credential programrecognized credential program

Must be a U.S. citizen or eligible non-citizenMust be a U.S. citizen or eligible non-citizen

Must be registered with Selective Service (males Must be registered with Selective Service (males age 18-25)age 18-25)

Must not have eligibility suspended or terminated Must not have eligibility suspended or terminated due to a drug-related convictiondue to a drug-related conviction

General Eligibility Requirements General Eligibility Requirements (continued)(continued)

Must have a valid Social Security NumberMust have a valid Social Security Number

May not be in default on a federal student loanMay not be in default on a federal student loan

May not owe repayment of a federal grantMay not owe repayment of a federal grant

Must be making satisfactory academic progress Must be making satisfactory academic progress as defined by the schoolas defined by the school

Application Process (part 1)Application Process (part 1)Apply for a PIN Apply for a PIN

Go to: www.pin.ed.govGo to: www.pin.ed.gov

Dependent students: Both parent Dependent students: Both parent and student need a PIN to sign and student need a PIN to sign application onlineapplication online

Independent students: Student Independent students: Student needs a PIN to sign application needs a PIN to sign application onlineonline

Complete Free Application for Student Complete Free Application for Student Federal Aid (FAFSA) online at Federal Aid (FAFSA) online at www.fafsa.ed.gov www.fafsa.ed.gov

You can also complete paper FAFSA—if You can also complete paper FAFSA—if choose not to do it onlinechoose not to do it online

FDLTCC’s school code is FDLTCC’s school code is 031291031291

Application Process (part 2)Application Process (part 2)

The FAFSA results (Student Aid The FAFSA results (Student Aid Report or SAR) will be mailed to Report or SAR) will be mailed to you and an electronic SAR will you and an electronic SAR will be sent to all of the schools you be sent to all of the schools you listed on the FAFSA. The Be listed on the FAFSA. The Be sure to review the SAR for sure to review the SAR for accuracy, and also read the accuracy, and also read the eligibility information listed on the eligibility information listed on the first page. If there are errors on first page. If there are errors on your SAR, contact the Financial your SAR, contact the Financial Aid Office for instructions on how Aid Office for instructions on how to maketo make corrections. corrections.

Application Process (part 3)Application Process (part 3)

The VERIFICATION Process: The US The VERIFICATION Process: The US Department of Education (DOE) selects 30% of Department of Education (DOE) selects 30% of all financial aid applicants at every school in all financial aid applicants at every school in the nation for “VERIFICATION”. The the nation for “VERIFICATION”. The Verification process requires the school to Verification process requires the school to compare the information you submitted on your compare the information you submitted on your FAFSA to documents pre-determined by DOE FAFSA to documents pre-determined by DOE (tax forms and Verification Worksheet). Your (tax forms and Verification Worksheet). Your SAR will tell you if you have been selected. SAR will tell you if you have been selected. The Financial Aid Office also will send you a The Financial Aid Office also will send you a letter and Verification Worksheet informing you letter and Verification Worksheet informing you that you have been selected. To complete the that you have been selected. To complete the Verification process you must submit a signed Verification process you must submit a signed copy of Federal tax forms and the signed, copy of Federal tax forms and the signed, completed Verificationcompleted Verification worksheet to the worksheet to the Financial Aid Office.Financial Aid Office.

Application Process (part 4)Application Process (part 4)

If there is any additional If there is any additional documentation needed, a letter documentation needed, a letter along with the required forms will along with the required forms will be mailed to you. After you have be mailed to you. After you have completed, signed, and returned all completed, signed, and returned all required documentation to the required documentation to the Financial Aid Office, your eligibility Financial Aid Office, your eligibility will be calculated and an Award will be calculated and an Award Letter listing your Grant, Work Letter listing your Grant, Work Study, and/or loan eligibility will be Study, and/or loan eligibility will be mailed to you.mailed to you.

Application Process (part 5)Application Process (part 5)

The information you list The information you list on the FAFSA is put into on the FAFSA is put into a very large mathematical a very large mathematical formula, and the result is formula, and the result is called the EFC (Expected called the EFC (Expected Family Contribution). The Family Contribution). The EFC is used to determine EFC is used to determine eligibility for all Federal eligibility for all Federal and MN State financial and MN State financial aid programs.aid programs.

Application Process (part 6)Application Process (part 6)

Tribal Scholarships: If you Tribal Scholarships: If you are Tribally enrolled, are Tribally enrolled, contact your Tribal contact your Tribal Scholarship Office Scholarship Office regarding their application regarding their application process.process.

Calculation of Financial NeedCalculation of Financial Need

Cost of Attendance (COA for one year)Cost of Attendance (COA for one year)

- Expected Family Contribution (EFC)- Expected Family Contribution (EFC)

= Financial Need= Financial Need

Cost of AttendanceCost of Attendance

Tuition and feesTuition and fees

Room and boardRoom and board

Books and supplies, equipment, Books and supplies, equipment, transportation, and miscellaneous transportation, and miscellaneous personal expensespersonal expenses

Computer purchase or leaseComputer purchase or lease

Loan feesLoan fees

Study abroad costsStudy abroad costs

Dependent care expensesDependent care expenses

Expenses related to a disabilityExpenses related to a disability

Expenses for cooperative Expenses for cooperative education programeducation program

EXPECTED FAMILY CONTRIBUTION EXPECTED FAMILY CONTRIBUTION (EFC) FOR DEPENDENT STUDENT(EFC) FOR DEPENDENT STUDENT

Parent IncomeParent Income

Student IncomeStudent Income

Untaxed IncomeUntaxed Income

ExclusionsExclusions

AssetsAssets

Family SizeFamily Size

Number Attending Number Attending CollegeCollege

EXPECTED FAMILY CONTRIBUTION EXPECTED FAMILY CONTRIBUTION (EFC) FOR INDEPENDENT STUDENT(EFC) FOR INDEPENDENT STUDENT

Student IncomeStudent Income

Untaxed IncomeUntaxed Income

ExclusionsExclusions

AssetsAssets

Family SizeFamily Size

Number Attending Number Attending CollegeCollege

Need Varies Based on CostNeed Varies Based on Cost

X

Y

Z

Cost of Expected Family NeedAttendance Contribution (Variable) (Variable) (Constant)

1

2

3

EFC EFC

Principles of Need AnalysisPrinciples of Need AnalysisAccording to Federal According to Federal Regulations, students and Regulations, students and parents have the primary parents have the primary responsibility to pay for their responsibility to pay for their education…financial aid is a education…financial aid is a supplement to their incomesupplement to their income

Families should be evaluated in Families should be evaluated in their present financial condition. their present financial condition. That is why prior year taxes are That is why prior year taxes are usedused

A family’s ability to pay for A family’s ability to pay for educational costs must be educational costs must be evaluated in an equitable and evaluated in an equitable and consistent manner, recognizing consistent manner, recognizing that special circumstances can that special circumstances can and do affect its ability to payand do affect its ability to pay

Types of Financial AidTypes of Financial Aid

Gift Aid Gift Aid Federal Pell GrantFederal Pell Grant

Federal SEOGFederal SEOG

State GrantsState Grants

Private Grants & Private Grants & Scholarships Scholarships

Self Help AidSelf Help Aid

Work-Study Work-Study

Stafford LoansStafford Loans

Federal Pell Grant ProgramFederal Pell Grant Program

Awarded to eligible undergraduates pursuing Awarded to eligible undergraduates pursuing first undergraduate certificate or degree first undergraduate certificate or degree

Actual award amount based on Cost of Actual award amount based on Cost of Attendance, Expected Family Contribution Attendance, Expected Family Contribution (EFC), and enrollment status. (EFC), and enrollment status.

Federal Supplemental Federal Supplemental Education Opportunity GrantEducation Opportunity Grant

(FSEOG)(FSEOG)

A limited amount is given to schools, so it is awarded A limited amount is given to schools, so it is awarded on a first come-first served basison a first come-first served basis

For undergraduates pursuing first undergraduate degree For undergraduates pursuing first undergraduate degree or certificateor certificate

Awarded to students who have a zero EFC Awarded to students who have a zero EFC and receive the Federal Pell Grantand receive the Federal Pell Grant

Minnesota State ProgramsMinnesota State Programs

Eligibility Requirements Include:Eligibility Requirements Include:

Minnesota ResidencyMinnesota Residency

Demonstrate financial needDemonstrate financial need

Enroll for at least 3 credits at a Enroll for at least 3 credits at a Minnesota college or universityMinnesota college or university

For further requirements, go to: For further requirements, go to: http://www.ohe.state.mn.us/http://www.ohe.state.mn.us/

ReciprocityReciprocity

Receive tuition close to or Receive tuition close to or same as resident tuition same as resident tuition rate.rate.

Remember to apply Remember to apply online through your home online through your home state’s website.state’s website.

Get the application from Get the application from your high school your high school counselor in the spring.counselor in the spring.

WisconsinWisconsin

North DakotaNorth Dakota

South DakotaSouth Dakota

Scholarship ResourcesScholarship Resources

Private business scholarshipsPrivate business scholarships

Tribal Scholarships (Contact your Tribal Tribal Scholarships (Contact your Tribal Scholarship Office regarding their Scholarship Office regarding their application process)application process)

Civic organization scholarshipsCivic organization scholarships

Local library resourcesLocal library resources

Local businesses and civic Local businesses and civic organizationsorganizations

Parents’ places of employmentParents’ places of employment

Internet Scholarship SearchesInternet Scholarship Searches

www.fastweb.comwww.fastweb.com

www.collegenet.com/mach25/www.collegenet.com/mach25/

Work StudyWork Study

Undergraduate or graduate students are eligibleUndergraduate or graduate students are eligible

Employment on or off campus (only a couple are Employment on or off campus (only a couple are off campus)off campus)

Federal Stafford LoanFederal Stafford LoanSubsidized and UnsubsidizedSubsidized and Unsubsidized

Subsidized Stafford: Must demonstrate “need”Subsidized Stafford: Must demonstrate “need”

Unsubsidized Stafford: Need is not a considerationUnsubsidized Stafford: Need is not a consideration

Cost of Borrowing Cost of Borrowing Federal Stafford LoansFederal Stafford Loans

Variable Interest Rate: Congress sets the Variable Interest Rate: Congress sets the interest rate. For many years now, the interest interest rate. For many years now, the interest rate has been calculated by indexing it against rate has been calculated by indexing it against the T-Bill. The interest rate is re-evaluated each the T-Bill. The interest rate is re-evaluated each June. Recently, Congress has indicated they June. Recently, Congress has indicated they want to decrease interest rates, capping them want to decrease interest rates, capping them each year in a decreasing, graduated processeach year in a decreasing, graduated process

Other Loan optionsOther Loan options

PLUS Loan (Parent Loan for Undergraduate Student). PLUS Loan (Parent Loan for Undergraduate Student). This is a loan that parent’s may take out, but must pass This is a loan that parent’s may take out, but must pass approval process based on Parent’s credit ratingapproval process based on Parent’s credit rating

SELF Loan (Student Education Loan Fund). This is a SELF Loan (Student Education Loan Fund). This is a student loan that requires a co-signer and a credit check student loan that requires a co-signer and a credit check of both the student and co-signerof both the student and co-signer

Alternative or Private Loans. These are loans offered by Alternative or Private Loans. These are loans offered by certain lenders to supplement other forms of funding. certain lenders to supplement other forms of funding. Schools must have a contract with the lender for the Schools must have a contract with the lender for the school to offer a lender’s Alternative/Private loan. school to offer a lender’s Alternative/Private loan. FDLTCC offers the Sallie Mae Signature Loan and the FDLTCC offers the Sallie Mae Signature Loan and the Wells Fargo Collegiate LoanWells Fargo Collegiate Loan

Federal Tax Benefits for Higher Federal Tax Benefits for Higher EducationEducation

Hope Scholarship Tax CreditHope Scholarship Tax Credit

Lifetime Learning CreditLifetime Learning Credit

Student Loan Interest Student Loan Interest DeductionDeduction

Employer Paid Tuition Employer Paid Tuition AssistanceAssistance

Deduction for Qualified Higher Deduction for Qualified Higher Education ExpensesEducation Expenses

For more information, check For more information, check with your tax advisorwith your tax advisor

Helpful Web SitesHelpful Web SitesScholarship SearchesScholarship Searches

www.fastweb.comwww.fastweb.comwww.collegenet.com.mach25.appwww.collegenet.com.mach25.appwww.finaid.orgwww.finaid.orgwww.collegeboard.com/payingwww.collegeboard.com/paying

General financial aid information and EFC estimatorGeneral financial aid information and EFC estimatorwww.studentaid.ed.govwww.studentaid.ed.govwww.ohe.state.mn.uswww.ohe.state.mn.us

Education and Career Choice InformationEducation and Career Choice Informationwww.petersons.comwww.petersons.comwww.mapping-your-future.orgwww.mapping-your-future.orgwww.Iseek.orgwww.Iseek.orgwww.mncareers.orgwww.mncareers.org

Department of EducationDepartment of Educationwww.ed.govwww.ed.gov

Questions?Questions?Contact the Financial Aid Office:Contact the Financial Aid Office:

Phone: Phone: Amy (218) 879-0780Amy (218) 879-0780

Dave (218) 879-0816Dave (218) 879-0816 Long Distance: (800) 657-3712Long Distance: (800) 657-3712 FAX: (218) 879-0814FAX: (218) 879-0814 E-mail: finaid@fdltcc.eduE-mail: finaid@fdltcc.edu