Financial Aid 101

Financial Aid 101

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  1 FINANCIAL AIDUPDATE MSCSA October 17, 2014 Susan Ant Director of Financial Aid & Scholarships Normandale Community College
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  TYPES OF FINANCIALAID 2  Grants and Scholarships  Loans  Student Employment and Work-Study
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  3 SOURCES OFFINANCIAL AID Almost all financial aid in Minnesota comes from:  The US Department of Education  The State of Minnesota  Higher Education Institutions  Private Sources
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  4 US DEPARTMENTOF EDUCATION The largest Federal financial aid programs are:  Stafford Direct student loans  Pell Grants  SEOG grants  Perkins loans  College Work-Study
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  5 STATE OFMINNESOTA The main MN programs of aid are:  Minnesota State Grants  Student Education Loan Funds (SELF)  Minnesota State Work-Study  Minnesota Post-Secondary Child Care Grants  MN GI Bill
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  6 COMPUTATION OF STATE GRANT AWARD Tuition and Fees (cap for 2 yrs) 5,808 Living and Miscellaneous Expense 8,490 Cost of Attendance $14,298 Less Student Share (50% of COA) 7,149 Less Adjusted EFC ??? Less Pell Grant Eligibility ??? Annual State Grant Award ???
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  7 MN STATEGRANT EXAMPLE MNSCU 2 Year Private College or Univ. of MN Tuition and Fees (capped) $ 5,808 $13,000 LME $ 8,490 $ 8,490 COA $14,298 $21,490 Student Share (50% COA) $ 7,149 $10,745 Less Adj Parent Contribution $ 3,300 $ 3,300 Less Pell Grant Eligibility $ 2,280 $ 2,280 MNSG eligibility $ 1,569 $ 5,165
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  8 MN PART-TIMEWORKING STUDENT GRANT PILOT PROGRAM  Applies only to MnSCU students who enroll for fewer than 15 credits per term and who work while in school  Pilot for FY 13 and FY 14  Adjusted EFC> $ 0 will be prorated to the level of the student’s enrollment (the cost of attendance is already prorated)  This will produce larger grants for most working, part-time MnSCU students  Effects of the pilot on student time to completion will be measured at the end of 2013-14
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  POSSIBLE CHANGES TOTHE STATE FINANCIAL AID PROGRAM THAT WOULD BENEFIT MSCSA STUDENTS  Increase in LME  Reduction in Student Share  Five yrs/Nine Sems of eligibility  Further reduction of federally calculated family contribution
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  10 KEY ISSUES- FINANCIAL AID  Reauthorization of Federal Aid programs  Student Debt; the long repayment process for loans places a significant burden on students as they enter the work force and become consumers and tax payers.  Increasing MnSCU student loan default rates are a serious concern for some schools  Federal Pell Grant shortfalls  Effects of movement toward Competency-based education  Regulation of for-profit schools
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  11 KEY ISSUES- FINANCIAL AID  MN State Grant P-T student pilot  When Pell grants are increased, the MN State Grant formula reduces the recipients’ State Grants, dollar for dollar.  Independent students are not treated fairly by the State Grant formula, which expects them to pay the same dollar twice.
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  12 FINANCIAL AIDUPDATE  QUESTIONS?  Chris Halling, System Director for Student Financial Aid, MNSCU System Office  [email protected]  651/201-1658