2010Annual Statewide Financial Aid Conference for High School Counselors

November 9, 2010

Conference Agenda

• PowerPoint presentation

• Break

• Financial aid administrator panel Q & A session

2

THANKS TO SPONSORS!!!

Great Lakes Higher Education Guaranty Corporation

• Minnesota Association of Financial Aid Administrators

(MAFAA)

3

Presentation Overview• Application Process & FAFSA• Post-application Process• Sources of Financial Aid• Higher Education Tax & Savings

Incentives• Additional Resources for Counselors

4

Application Process & FAFSA

5

Free Application for Federal Student Aid - FAFSA

• Apply on-line at: www.fafsa.gov

• Watch out for www.fafsa.com– Commercial site with fee for service

• If family prefers paper FAFSA form– Can download from: www.studentaid.ed.gov

• High schools can download and make copies– Can order by phone: 1-800-4FEDAID

6

Applying for 2011-2012

• Submit FAFSA after January 1, 2011– The earlier, the better– Can complete with estimated tax figures and make

corrections later

• College financial aid deadlines vary, some early – Posted on school web site or OHE Counselor’s Guide

• Carleton, Macalester, St. Olaf, Gustavus Adolphus (and many east coast colleges) require CSS Profile form in addition to FAFSA– https://profileonline.collegeboard.com

7

FAFSA on the WebWorksheet

• 2011-2012 FOTW Worksheet (#6 in packet)

– Helps student determine answers prior to entering data on-line

– Question order follows FAFSA on the Web, so different from paper FAFSA

– Student can download from www.fafsa.gov

• Fall 2010: Limited supply of 2011-2012 FAFSA on the Web (FOW) Worksheets automatically mailed to schools by U.S. Department of Education– Also available in PDF at: www.fafsa.gov– Order additional supply at: www.FSAPubs.org

8

FAFSA on the Web www.fafsa.gov

• Apply• Retrieve IRS data • Reapply • Apply for PIN• Find college codes• Check status of

FAFSA• Make corrections• Add additional

colleges• Print SARs

New homepage redesign for 2011-2012!

9

FAFSA on the Web 2011-2012 www.fafsa.gov

• Streamlined log-in page for new and returning applicants

10

Search

FOOTER

NEED HELP?

Home Contact Us Browse Help

STUDENT

Help & HintsLogin

Date of Birth

Last Name

Social Security Number

First Name

Student Information

By clicking Next, you agree to the terms and conditions of the US Government System Warning.

FAFSA on the Web 2011-2012 www.fafsa.gov

• What new applicant will see after logging in on the main page

• Note PIN status at bottom– Allows

student to apply for PIN upfront

11

Applying for PIN Number

• Apply for PIN in real-time while completing FOTW

• Make sure name/dob on FAFSA matches name/dob on file at Social Security Admin– Applies to both student and parent signing form– If no match with SSA, PIN disabled 3 days later

• PIN can be used:– As electronic signature on FAFSA on Web– Check application status– Make corrections– Sign master promissory note for federal loans– Look up student’s student loan and grant history

12

FAFSA on the Web 2011-2012 www.fafsa.gov

• What returning applicant will see after logging in on the main page

• Populate 2011-2012 FAFSA with info from 2010-2011 FAFSA

• Note PIN status at bottom– Allows student to

access PIN if student can’t remember PIN

13

Changes to FAFSAQuestions for 2011-2012

• New question #27“What is the name of the high school where you

received or will receive your high school diploma?”

• Will appear if student indicates high school diploma in Question #26

• Student selects high school from drop-down box of high schools approved by U.S. Dept of Ed

• Added due to proliferation of high school diploma mills– FAFSA output document will assist college in determining

if student has legitimate high school diploma

14

Changes to FAFSAQuestions for 2011-2012

• Revised Question #31• Old wording had student indicate

interest in work study, student loans, neither or both

• New wording “Are you interested in being considered for work-study?”– Changes based on input from financial

aid administrators to U.S. Dept of Ed

15

Changes to FAFSAQuestions for 2011-2012

• Eliminated former question asking for student’s planned enrollment level

–Most schools package financial aid on full-time enrollment or student’s actual registration load, if known

• Eliminated former question used for TEACH Grant

–Colleges can determine student’s program of study using their own records

16

Changes to FAFSAQuestions for 2011-2012

• Eliminated FAFSA on the Web questions regarding the Academic Competitiveness Grant (ACG)– Used to ask student if s/he took rigorous

course of study during high school– ACG program eliminated effective 2011-2012

17

Questions Related to Being Homeless

• Effective 2009-2010, definition of independent student was expanded to include:– Homeless unaccompanied youths

(Questions 55 & 56 Step 3)

• Determination must be made by:– high school or district homeless liaison; or– director of HUD emergency shelter program; or – director of runaway or homeless youth basic

center or transitional living program

– Youths at risk of homelessness (Question 59 Step 3)

• Determination must be made by:– director of runaway or homeless youth basic

center or transitional living program

18

FAFSA on the WebHomeless Question

• Identifying Homeless Students– First question asks applicants if they are homeless or

at risk of being homeless– The three homeless determination questions (# 55,

56, 57) will only be presented if student is 21 or younger and answers “Yes” to the homeless screening question

– If student answers “Yes” to homeless screening question, but is older than 21 or answers “No” to all three homeless questions, the student will be-

• Taken down an alternate path to allow submission of FAFSA without parental data, and

• Directed to follow-up with their financial aid office

19

Verifying Student is Homelessor Emancipated

• Financial aid office may request documentation of homeless unaccompanied youth status– List of district or high school homeless liaisons is in

packet (#7)– List of shelters and transitional housing programs in

packet (#8)• Must be funded by HUD (shown on listing)

– If third party documentation not possible, financial aid administrator can verify based on documented interview with student

• Financial aid office likely to request documentation of emancipated status (#53 Step 3)

– Emancipation in MN limited to cases of legal marriages and parental consent

20

Providing Parents’ Information on FAFSA

• Parents’ information– Grandparents, foster parents, other

relatives and legal guardians are NOT considered parents on the FAFSA unless they legally adopted student

• Do NOT substitute information about above parties in parent section on FAFSA

• In many cases, these applicants will be able to apply as independent via:

– Meeting one of the independent criteria in Step Three; or

– Dependency override

21

Providing Parents’ Information on FAFSA

• If biological/adoptive parents married, report information for both parents

• If biological/adoptive parents are divorced or separated, provide information for parent:– Student lived with the most in last year– Or, if lived equal periods with each parent,

parent who provided the most financial support in last year or most recent year support provided

• If that parent remarried, include stepparent’s information, even if stepparent did not adopt student

– Note: Unlike FAFSA, CSS Profile form will require information for non-custodial parent

22

Providing Parents’ Information on FAFSA

• If student’s biological/adoptive parents are living together but not married, provide information for parent who provided the most financial support in the previous year or most recent year support was provided

• Generally, this is parent with highest income

• If biological/adoptive parent is single or widowed, provide information about surviving parent

• If surviving parent remarried, include stepparent’s information, even if stepparent did not adopt student

23

FAFSA on the Web 2011-2012 IRS Interface

• FAFSA on the Web users allowed to access tax data from IRS to populate FAFSA

• Will be operational for 2011-2012 FAFSA on the Web on January 30, 2011

• Optional – family can always choose to enter data directly on FAFSA on the Web

– However, populating FAFSA with data from IRS (either originally or via correction) may avoid college having to request tax forms to perform verification at a later date

24

FAFSA on the Web 2011-2012 IRS Interface

• Can access IRS tax data if select “Already Completed” for FAFSA tax status question and tax forms have been filed

25(Screenshot from 2010-2011 FOTW)

FAFSA on the Web 2011-2012 IRS Interface

• IRS data retrieval screen

26

FAFSA on the Web 2011-2012 IRS Interface

• IRS data retrieval screen showing tax figures pulled from IRS

27

FAFSA on the Web 2011-2012 IRS Interface

• FAFSA on the Web screen showing tax data retrieved from IRS system

• Will still need to enter earnings from employment on FAFSA screen

28(Screenshot from 2010-2011 FOTW)

FAFSA on the Web 2011-2012 College Choices

• When selecting colleges on FAFSA, will provide link to additional school info

29

FAFSA on the Web 2011-2012 College Choices

• Link to college web site

• Tuition and fees

• Graduation rate

• Retention rate

• Transfer rate

30

FAFSA on the Web 2011-2012 Signature Page

• Signature page gives student and parents options for signature

– Sign electronically with Pin

– Print and mail signature page

– Submit without signature

• Will result in rejected SAR until signatures submitted

31

FAFSA on the Web 2011-2012 Confirmation Page

• Confirmation page

– Transfer parents’ data to sibling’s FAFSA

– Link to state application (used only for New York)

– Estimated Pell Grant and Loans

– Information on colleges selected

– Next steps

32

FAFSA Handouts for Students

• Tips for Completing the 2011-2012 FAFSA (#9 in packet)

• Completing the FAFSA: Special Guidance Related to Dependency Status and Providing Parental Information (#10 in packet)

• Completing the FAFSA Flowchart (#11 in packet)

33

Post-ApplicationProcess

34

FAFSA Results

• Student notified of FAFSA processing results by:– E-mail notification with link to student’s SAR

online if student’s e-mail address provided on:• Paper FAFSA (takes 2 weeks)• FAFSA on the Web (takes 1-2 days if electronically

signed with PIN; 2 weeks if mailed in signature page)• Make sure student adds federal email address to

address book to avoid delivery problems FederalStudentAidFAFSA@cpsemail.ed.gov

– If student has a PIN, can view SAR online at www.fafsa.gov

– Draft 2011-2012 SAR #12 in packet

35

FAFSA on the Web www.fafsa.gov

• Screen student sees when checking status of FAFSA

• In this case, FAFSA is still in process

36

FAFSA on the Web www.fafsa.gov

• In this case, FAFSA has been successfully processed

• Note dates of original application and revisions

• Student can view or print SAR/results

37

Corrections

• If a correction to applicant data is needed, the correction may be made: – On the paper SAR;– Using Corrections on the Web if student has a

PIN (www.fafsa.gov); or– By the school, using software or web-access

system provided by the U.S. Dept of Ed

38

FAFSA on the Web Corrections

39

• Corrections page will note any obvious errors

• Many students will use this feature to revise estimated tax figures once taxes are filed

FAFSA on the Web Corrections

40

• Can also be used to add or delete college choices

• Corrections will require signatures just like original FAFSA

– Most sign electronically with PIN

Verification

• Certain applications are selected for verification

• Family must complete verification worksheet sent by financial aid office– Must attach tax returns, W2

statements and other supporting documentation

– Don’t make corrections after verification without consulting financial aid administrator!!

41

Professional Judgment

• Normally, a family’s Expected Family Contribution (EFC) is based on income for the previous tax year– For 2011-2012 academic year, tax year 2010

• Federal and state financial aid laws allow financial aid administrators to use their “professional judgment” to alter data on the FAFSA for special circumstances

• Adjustments are typically performed as corrections after the original FAFSA is submitted

42

Professional Judgment

• Common examples include:– Significant change in income from past tax year based

on unemployment, underemployment, death, divorce, military service or natural disaster

– Unusually high medical expenses– Nursing home expenses– Elementary or secondary school tuition– Significant college costs for dependent student’s parent

attending college– Dependency override

• Family should contact financial aid administrator to discuss unusual circumstances

43

What is a Dependency Override?

• Gives financial aid administrator authority to allow otherwise dependent applicant to apply as independent applicant due to unusual circumstances– Parental abuse, abandonment, incarceration, etc.

– Not used simply because student lives outside parent household after age 18 or parents object to providing data

• Must be supported by documentation, preferably by someone outside immediate family

• Student should contact financial aid office for instructions after submitting FOTW without parental data

44

Completing FAFSA Without Parental Information

• For students who don’t qualify for a dependency override but can’t provide parental information:– Will have the option to submit the FAFSA

for an unsubsidized loan only

– FAFSA on the Web will present a path that allows the applicant to indicate that he or she will not provide parental data on the form and will allow the applicant to submit the FAFSA

– School will later require statement from one parent that parents refuse to complete the FAFSA and do/will not provide financial support to the student

45

Award Notification

• Student should receive award notice from each college listed on the FAFSA once admitted to college– Important that student identifiers on FAFSA match

identifiers used in admissions process

• Financial aid varies depending on the cost and mix/composition of financial aid available

• Compare:– Ratio of grants to loans/work-study– Remaining unmet need

• OHE financial aid comparison worksheet in packet – #26 on left side of packet

46

Sources of Financial Aid

47

Need Varies Based on Cost

X

Y

Z

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

1

2

3

EFC EFC

48

EFC Calculation

•Federal Methodology is formula created by Congress to calculate the Expected Family Contribution (EFC)

•Sample calculation in packet for future reference– #13 left side of packet

•EFC Formula Book available at www.ifap.ed.gov

•Check out Office of Higher Education’s on-line estimator for EFC, Pell Grant, State Grant and tax credits at:

www.getreadyforcollege.org

49

EFC Calculation

•No significant changes in EFC formula for 2011-2012

•Certain tables and offsets adjusted for economic variables (e.g., CPI)

•Income threshold used for automatic zero EFC increased from $30,000 to $31,000

50

Net Price Calculator

51

• By August 2011, every college must have a net price calculator on its website

– Required by Higher Education Opportunity Act • Using certain inputs entered by student, will

calculate net price of college after gift aid is subtracted from gross price

Net Price CalculatorStudent Inputs

52

Calculator Outputs for Department Template [Minimum Output Data Elements for Institutionally Developed Calculators]

1. Estimated total price of attendance:a) Estimated tuition and feesb) Estimated room and boardc) Estimated books and suppliesd) Estimated other expenses (including personal expenses and

transportation)

2. Total estimated grant aid (includes both merit and need based aid)

3. Estimated net price (price of attendance minus grant aid)

Net Price CalculatorOutput for Student

Net Price Calculator

54

• Grant aid subtracted from price is based on previous year’s total federal, state and institutional grant aid awarded at college for student’s EFC range and living arrangement divided by all recipients in that category

Federal General Student Eligibility Criteria

• Enrolled or accepted for enrollment in eligible program of study

• Pursuing recognized credential

• U.S. citizen or “eligible non-citizen”– Permanent residents with I-551 or I-551C card– Refugees, asylees, victims of human trafficking, T-Visa

holders with I-94 card

• Registered with Selective Service (if male and required)

• Not convicted for sale of illegal drugs while receiving federal aid– Last two bullets don’t affect state financial aid

55

Selective Service Registration

• Male students 18-25 years old MUST register with the Selective Service– This includes:

• U.S. citizens and permanent residents

• Refugees, parolees, asylees

• Undocumented persons

– Excludes:

• Lawful non-immigrants on visas

• FAFSA on the Web interface with Selective Service system verifies student has registered– If not verified, student won’t be eligible until

registered

56

Selective Service Registration

• Student older than 25 who never registered will not be eligible for federal financial aid unless– Student can prove failure to register was “not

knowing or willful”

• Difficult to prove

• Selective Service registration is NOT a requirement for state financial aid

57

Federal Pell GrantApplication: FAFSA

• Based on financial need

– For average family of 4, income < $63,000

– Higher income if larger family or more than one child in college

• Award does NOT vary based on cost of college

• Maximum award for 2011-2012 is $5,550

– (President’s budget proposes increase to $5,710)

• Available for up to 4 full-time semesters per year

• Limited to a total of 18 semesters of Pell Grant

• Portable to eligible colleges in any state

• Funded as entitlement program (all eligible students receive funding)

58

Federal Supplemental Educational Opportunity Grant (FSEOG)Application: FAFSA

• Eligible students– Undergraduates pursuing first

bachelors or professional degree– Must have exceptional financial

need • Annual award amounts

– $100 minimum - $4,000 maximum

• Funding limited to school’s allocation

– Schools usually prioritize based on financial need, date of application

59

ACG and SMART Grants

• Federal ACG and SMART Grant programs eliminated effective 2011-2012

60

TEACH GrantsApplication: FAFSA, TEACH Agreement to Serve (https://teach-ats.ed.gov)

• $4,000 per year for students pursuing coursework necessary for teaching

• Must teach full-time in low-income school in certain fields for 4 years within 8 years of degree completion– Becomes a loan that must be repaid if teaching obligation not

met– Interest accumulates from initial date of disbursement

• Must have 3.25 GPA or ACT, SAT, GRE in 75th percentile• Not based on financial need• Eligible fields are math, science, special education,

foreign language, bilingual education, reading or another high-need field

61

Robert C. Byrd Honors Scholarship ProgramApplication: http://education.state.mn.us/MDE/Academic_Excellence/School_Choice/Sch_Choice_Serv/Robert_C_Byrd_Honors_Schlorship_Program/index.html

• Federally-funded, merit-based program administered by MN Department of Education

– MDE contact: Sarah.Smith@state.mn.us or (651)582-8629

• Recognizes and promotes student excellence and achievement

• States establish selection criteria and select recipients

• Recipients may receive up to $1,500 a year for up to four years of undergraduate assistance

62

Federal and State Work StudyApplication: FAFSA, Contact Financial Aid Office for Job Placement

• Undergraduate or graduate students are eligible

• Employment may be on or off campus

• May work during summer

• Wages won’t count against student’s future financial aid eligibility on FAFSA

• Student should indicate interest in work study on question #31 on FAFSA

63

Federal Perkins LoanApplication: FAFSA, Promissory Note (see Financial Aid Office)

• Priority to students who show exceptional need

• Loan amount varies – Maximum $5,500 undergraduate; $8,000 graduate

• Lender is college (using federal funds)– Not all colleges participate

• Interest rate 5%; Nine-month grace period

• Several loan cancellation options

– Teaching, military service, law enforcement, child or family services, Head Start, early awareness, nursing

64

Direct Federal Student Loans • Due to recent federal legislation, private

lenders no longer participate in federal student loan programs

• All Stafford, PLUS and Consolidation loans taken out after July 1, 2010, are now direct loans– Lender is federal government– School packages loan on campus and

requests funds from federal government (contractor)

– Federal government contracts with private contractors to service loans

65

Direct Federal Stafford LoansApplication: FAFSA, Promissory Note

• Subsidized: Must demonstrate “need”– Interest paid by government while in college

• Unsubsidized: Need is not a consideration– Interest not subsidized by government

• Base annual loan limits (combined sub and unsub)

– $5,500 for 1st year undergrad

– $6,500 for 2nd year undergrad

– $7,500 for each remaining undergraduate year

– $20,500 for each year of graduate/professional study (no more than $8,500 subsidized)

• Annual limits for undergraduates can be increased by $4,000-$5,000 for independent students or dependent students whose parents are unable to borrow PLUS loan

66

Repayment of Stafford Loans

• Current interest rate 3.4% (subsidized) and 6.8% (unsubsidized)

• Six-month grace period

• Deferment and cancellation provisions available

– New borrower (after Oct 1998) can cancel up to $5,000 by teaching in low-income school district for 5 consecutive years

• Up to $17,500 if highly qualified full-time math or science teacher at secondary school or special education teacher

• For further details on repayment, see ‘Repaying’ at: www.studentaid.ed.gov

67

PLUS LoansApplication: FAFSA, PLUS Application & Promissory Note

• Apply at: www.studentloans.gov • Annual loan limit: cost of attendance minus

other aid– Family EFC not a factor

• Borrowers are graduate students or the parents of dependent undergraduate students

• 7.9% interest rate• Repayment begins 60 days after loan is fully

disbursed OR can defer until 6 months after student no longer enrolled half-time

– Interest is capitalized during deferment unless paid • Loan comparison chart for families #15 in

packet– Compares all federal loans and state SELF loan

68

Minnesota State Grant ProgramApplication: FAFSA

• Minnesota resident attending Minnesota college• Must be enrolled for at least 3 credits per term in

a program leading to credential• Ineligible after four years of full-time attendance• Award based on financial need and

calculated/disbursed by school– Award amount varies based on college cost,

enrollment level and type of college attended

(2-year or 4-year)– Ineligibility for Pell Grant does not necessarily rule out

State Grant (see handout on Pell and State Grant eligibility by income #16 in packet)

69

Pell and State GrantsFamily of 4, Married Parents, 1 in college – 2010-2011 Academic Year

FamilyIncome

2-Yr Public

State Univ U of M

4-Yr Private

PrivateCareer

$20,000

Pell $5,550 $5,550 $5,550 $5,550 $5,550

State $ 624 $1,648 $3,509 $3,509 $1,085

$40,000

Pell $4,500 $4,500 $4,500 $4,500 $4,500

State $ 418 $1,442 $3,303 $3,303 $ 879

$60,000

Pell $1,176 $1,176 $1,176 $1,176 $1,176

State $ 0 $ 856 $2,717 $2,717 $ 293

$80,000

Pell $ 0 $ 0 $ 0 $ 0 $ 0

State $ 0 $ 0 $ 0 $ 0 $ 0

70

MN ACHIEVE ScholarshipApplication: FAFSA, Achieve Application www.getreadyforcollege.org/achieve

• One-time $1,200 - $4,022* scholarship for students graduating from high school after January 1, 2009– Must be used the year after high school graduation– Additional $150 for taking on-line course in high school

• Student must:– Complete ACHIEVE Scholarship application no later than 30

days after term starts– Be MN resident attending MN college for 15 or more credits– Show financial need for a Pell or State Grant*– Be U.S. citizen or eligible non-citizen– Complete the FAFSA – Complete a rigorous course of study** in high school with

overall unweighted GPA of at least 2.5* Due to 2010-2011 funding shortfall, awards were limited to $1,200 and reserved

for families with $0 parent contribution**described in handout #17 in packet

71

MN ACHIEVE Scholarship

• Program is administered by the Office of Higher Education (OHE)

• On-line application at: www.getreadyforcollege.org/achieve

• Students can apply on-line and submit copies of official high school transcripts or other supporting documentation to OHE

• PLEASE HELP GET THE WORD OUT !!!!– ACHIEVE Scholarship handout #17 in packet available

for duplication and distribution– Encourage students to complete rigorous course of

study in high school

72

Summer Transition GrantFAFSA, Summer Transition Grant Application

• Passed by 2009 Legislature

• Monetary grant to students attending summer transition programs immediately following HS graduation

• Programs must be offered by MN colleges and address weaknesses identified by college placement exam– Remedial courses

– Support services (counseling, mentoring, etc.)

• Programs for summer 2010 were offered by Central Lakes College, MCTC and North Hennepin CC

73

Summer Transition GrantFAFSA, Summer Transition Grant Application

• Awards typically high enough to cover tuition and fees and some living expenses– $3,482 Summer Transition Grant for

student:• Enrolled at MCTC summer program• Taking 12 credits• $0 Expected Family Contribution• Tuition and fees = $1,882

• Funds for living expenses intended to reduce summer work hours so students can concentrate on academic preparation

74

Summer Transition GrantFAFSA, Summer Transition Grant Application

• List of participating summer transition programs will be emailed to high school counselors spring 2011

• Students should contact college for application materials– Some will direct student to on-line STG application

– Others will use paper application to collect additional information

• For summer 2011, complete:– 2010-2011 FAFSA (for summer program)

– 2011-2012 FAFSA (for freshman year of college)

• STG handout for students #14 in packet

75

Summer Academic Enrichment ScholarshipSummer Academic Enrichment Scholarship Application

• OHE received $1.5 million Federal College Access Challenge Grant– $300,000 will be used to restore Summer Academic

Enrichment Scholarship for summer 2011

• Scholarships will be awarded to low-income students grades 3 – 11 attending summer academic enrichment programs– Low income = eligible for free or reduced price lunch

– Scholarships up to $1,000

• Summer programs will recruit students and provide applications

• Further info will be emailed to K-12 counselors

76

Student Educational Loan Fund (SELF) Application: FAFSA, SELF Loan Application www.selfloan.org

• Office of Higher Education is lender• Family income not a consideration• Can be used at participating college in any state• Credit worthy co-signer who is U.S. citizen or

eligible non-citizen• Variable interest; quarterly interest paid while in

school; rate currently 3.85% (historical average 5.8%)

– New fixed rate option 7.25%

• Maximum $10,000 per year – $7,500 for associate degree, short programs

• Apply on-line at: www.selfloan.org (#18 in packet)

77

MN Indian Scholarship Program

• $1.9 million awarded to approximately 500-600 recipients per year

• Maximum award $4,000 undergraduate; $6,000 graduate

• Applicants submit applications to OHE• At least one quarter American Indian

ancestry• MN resident attending MN college• On-line application at:

www.getreadyforcollege.org/indianscholarship

• Handout #19 has contacts for tribal scholarships 78

MN G.I. Bill ProgramApplication: FAFSA, MN GI Bill Application

• Up to $1,000 per semester for students who are:– Veterans who serve/have served honorably in the

U.S. armed forces on or after 9/11/2001– Non-veterans who served honorably in the MN

National Guard (or other reserve) for 5 or more years and part of service occurred on or after 9/11/2001

– Surviving spouses or dependents of person who served on or after 9/11/2001 and died or sustained permanent disability as a result of military service

• For MN residents attending MN college• On-line application at:

www.getreadyforcollege.org

79

Other State Financial Aid Programs

Information in Your Guide to Paying for College:

• Postsecondary Child Care Grant (Page 11)• Safety Officer’s Survivor Grant (Page 28)• Tuition waiver at public college for

visually or hearing impaired students (Page 27)

• $5,000 Education Vouchers for Former Foster Youth (Page 27)

• Several Health Professions Loan Forgiveness Programs (Page 30)

80

Tuition Reciprocity

• Allows MN residents to attend in neighboring states at rate similar to what they would have paid in MN (and vice versa)

• Apply directly to ND or SD college if recent MN high school graduate

• Apply directly to colleges in Manitoba• All other students must submit

application to Office of Higher Education in MN– Apply on-line for 2011-2012 after March

1, 2011 at: – www.getreadyforcollege.org

• With exception of the SELF loan, state financial aid not portable to other states

81

Midwest Student Exchange Program

• Minnesota participates in MSEP program with Indiana, Kansas, Michigan, Missouri and Nebraska– Participation is voluntary– High-demand programs/colleges can opt out

• Colleges can selectively grant MSEP rates – Many use as tool to recruit high ability students

• For listing of colleges/programs and criteria:

http://msep.mhec.org• Students charged no more than 150% of resident

tuition rate• Students apply directly to college for MSEP rates

82

Institutional Scholarships

• Variety of need-based, merit, athletic, and other talent-based scholarships and grants

• Many of these listed in OHE high school counselor guide and at: http://www.getreadyforcollege.org/sPagesGR/scholarshipsAll.cfm

• Average institutional scholarship offered by MN private four-year colleges during 2007-2008 was $9,225

83

Application: FAFSA

Power of You Application

MnSCU’s POWER OF YOU• For graduates of Minneapolis or St. Paul high school

attending Mpls CC & TC, St. Paul College or Metro State University

• Family income < $75,000• Pays tuition and fees not covered by grants• Apply in senior year of high school as early as

possible - priority deadline is May 3• For additional information contact: MCTC: Nasreen Mohamed 612-659-6727 nasreen.mohamed@minneapolis.edu

Saint Paul College: Mee Yang (651) 846-1385 mee.yang@saintpaul.edu

Metro State Univ: Xy Johnson (651) 793-1509 xy.johnson@metrostate.edu

84

The University of Minnesota Promise Scholarship (U Promise) guarantees need-based aid to eligible new Minnesota resident freshmen, with family incomes up to $100,000, who enroll at any U of M campus.

Notification:•Awards are based a student’s expected family contribution (EFC), as determined by the Free Application for Federal Student Aid (FAFSA). •Recipients will be notified of their awards when estimated financial aid awards are sent to admitted freshmen in the spring.

Next steps for students:1. Apply for admission!2. Apply for financial aid! Complete the Free Application for Federal Student Aid

(FAFSA) recommended by the March 1 priority deadline.

Private Scholarships

• Student should check with local businesses, civic organizations, parents’ employers

• Free internet search sites:

www.collegeboard.com/pay

www.fastweb.com

www.studentscholarshipsearch.com

www.gocollege.com

www.finaid.org

www.scholarship.com

• For tips on applying for scholarships, writing essays, letters of recommendation:

• www.scholarshiphelp.org86

Resources for Undocumented Students

• Office of Higher Education’s web site has information on resources for undocumented students (#21 in packet)

– Listing of scholarships– Several public colleges and universities in MN no

longer have non-resident tuition rates– SELF loan available if co-signer is U.S. citizen

• Conceptos Basicos de Ayuda Financiera – OHE’s Financial Aid Basics brochure in Spanish

– Provides resources for both documented and undocumented students

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Higher Education Tax and Savings Incentives

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Federal Higher EducationTax Advantages

• American Opportunity Tax Credit (formerly Hope Tax Credit)

• Lifetime Learning Tax Credit• Tuition and Fees Deduction• Penalty Free IRA Withdrawals• Coverdell Education Savings Account• Student Loan Interest Deduction

See Publication 970 at: www.irs.gov for details

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American Opportunity Tax Credit (formerly Hope Tax Credit)

• Available for tax years 2009 and 2010• Covers up to $2,500 in tuition and fees

not covered by gift aid• 40% of calculated credit is refundable

– Occurs when tax liability is less than amount of credit

– Example: If taxes from tax table are $500 and calculated tax credit is $1,000, $500 will be applied to tax liability and $400 ($1,000 X 40%) will be refunded

• Available for incomes up to:– $90,000 single filer– $180,000 joint filers

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• State-managed savings accounts for higher education offering different investment options

• Earnings exempt from federal and state taxes if used for qualified higher education expenses

• State provides annual matching grant to qualifying account beneficiaries who are MN residents

– To receive matching grant, account owner must contribute at least $200 in last calendar year and apply for matching grant by the following May 1st

– If account beneficiary’s family income under $50,000 could receive a 15% match, up to $400

– If account beneficiary’s family income between $50,000 and $80,000 could receive a 10% match, up to $400

• See brochure in packet

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It Pays to Save

• Assets a factor in EFC if parents’ AGI is $50,000 or more and parents don’t qualify for short tax form or other federal need-based programs

• Parental net worth does NOT include family home, retirement or life insurance accounts, non-education IRAs, small business (100 or fewer employees) or family farm

• Roughly 6 percent of parental net worth OVER the asset protection allowance ends up in the EFC– Asset protection allowance is around $45,000

• Dependent student net worth assessed at 20%– No asset protection allowance

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It Pays to Save - Handouts

• Does Saving in College Affect Financial Aid?

(#22 packet)

• Financial Impact of Savings Vehicles

(#23 in packet)

• Higher Education Tax Benefits (#23a in packet)

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Helpful Resources

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Helpful Resources

• College financial aid administrator knows best!!– (Contact info provided in back of Your

Guide to Paying for College)

• Questions on federal aid programs and application process (800) 433-3243

• Office of Higher Education financial aid staff (651) 642-0567 or (800) 657-3866

(see #30 in packet)

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Student PublicationsOffice of Higher Education(all in packet)

Choosing a College

Paying for College

Financial Aid Basics

(English, Spanish, Somali, Hmong) Reducing

Textbook CostsNEW!!

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Helpful Resources Office of Higher Education

• Bulk orders of student publications– www.getreadyforcollege.org/materials– Click on ‘ordered in bulk’– Select institution name– Enter password

• Schools were mailed instructions • with passwords• If you forget password, ask another counselor

at school or click email link on web page

– Can also download forms in PDF

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Helpful Resources Office of Higher Education

www.getreadyforcollege.org (#31 in packet)• OHE web site for students and parents

– Financial aid programs and application process– Preparing for college– Tuition and fees charged by colleges in MN and

neighboring states– EFC/Financial Aid Estimator for Families– On-Line Reciprocity Application– All student-focused publications– OHE Guide for High School Counselors– Financial Aid Night PowerPoint Presentation– Materials from conference (download in white to

duplicate) See material list #2 packet

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www.iseek.org

• Explore careers– Career planning, assessment tests, job outlook,

working conditions, wages

• Plan your education– Find a college, program, K-12 class, apprenticeship,

Adult Basic Education

• Find a job– Workforce centers, job listings, resumes,

unemployment benefits, interviewing

• www.iseek.org

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Helpful Resources for Counselors• www.nasfaa.org Counseling Tools

– Early Awareness– Counselor’s Advisor– Financial Aid Night kit for HS counselors

• www.ifap.ed.gov– High School Counselors’ Handbook– FAFSA on Web promotional materials– Order financial aid publications

• On-line tutorial for completing a FAFSA, including case study:

• http://www2.ed.gov/offices/OSFAP/fsacoach/module.htm#m-1004-1

• List of useful financial aid and higher education web sites #32 in packet

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College Goal Sunday!!

• Presenters at events will help families complete the FAFSA line by line

• Targeted to families of first-generation college students

• Parents and students should bring W2’s, tax return forms and records of untaxed benefits to event for reference

• Events will start in February• For further information and

dates/sites: www.mncollegegoalsunday.org

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College Goal Sunday!!

• National College Goal Sunday website will have taped webinar of completing the 2011-2012 FAFSA line-by-line– Available for high school

counselors and families to view• www.collegegoalsundayusa.org

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FAFSA on WEB Demo Site (for financial aid nights)

• In December 2010, FAFSA on the Web demonstration site will be available – To access, go to:

http://fafsademo.test.ed.gov– Enter:

• User Name: eddemo• Password: fafsatest

• Click on FOTW button at bottom of screen to access demonstration

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Thank you for your service to students!!

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