This document discusses types of financial aid including grants, scholarships, loans, and work-study. It outlines the main sources of financial aid which are the US Department of Education, the State of Minnesota, higher education institutions, and private sources. Key federal programs are listed along with the main Minnesota state programs. An example is provided to illustrate how Minnesota State Grant awards are calculated based on tuition/fees, living expenses, and expected family contributions. Issues with financial aid are also summarized such as reauthorization of federal programs, increasing student loan debt burden, and effects of competency-based education.

1. 1
FINANCIAL AID UPDATE
MSCSA
October 17, 2014
Susan Ant
Director of Financial Aid & Scholarships
Normandale Community College

2. TYPES OF FINANCIAL AID
2
 Grants and Scholarships
 Loans
 Student Employment and Work-Study

3. 3
SOURCES OF FINANCIAL AID
Almost all financial aid in Minnesota comes
from:
 The US Department of Education
 The State of Minnesota
 Higher Education Institutions
 Private Sources

4. 4
US DEPARTMENT OF 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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STATE OF MINNESOTA
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

6. 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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MN STATE GRANT 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

8. 8
MN PART-TIME WORKING 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

9. POSSIBLE CHANGES TO THE 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

10. 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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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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FINANCIAL AID UPDATE
 QUESTIONS?
 Chris Halling, System Director for Student
Financial Aid, MNSCU System Office
 christopher.halling@so.mnscu.edu
 651/201-1658