Christopher Halling, Minnesota State System Office - System Director for Student Financial Aid Learn the financial aid basics -- types of aid, how need is calculated, how state grant works, and current issues.

1. 1
MSCSA
October 21, 2016
Chris Halling
MnSCU
System Director for Student Financial Aid
FINANCIAL AID UPDATE

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

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

4. The US Department of Education
4
The largest Federal financial aid programs
are:
 Stafford Direct student loans
 Pell Grants
 SEOG grants
 Perkins loans
 College Work-Study

5. The State of Minnesota
5
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. DEFINITION OF NEED
“Cost of Attendance”
minus “Resources”
= Need
Cost of Attendance =
Tuition and fees
Room and board (rent and groceries)
Books and Supplies
Misc. (travel, medical, “pizza”, etc.)
Resources – from FAFSA
6

7. Computation of State Grant Award
7
Cost of Attendance (COA)
- Student Share
- EFC (“Adjusted”)
- Pell Grant
= State Grant
===================================================================
COA = Tuition and Fees (capped) + LME
Student Share = 50% of COA*
Tuition Cap = $14,186 (4yr), $5736 (2yr)
LME = $9320*
Max. Pell Grant = $5815
*EFC and Student Share will change if grants must be rationed

8. Possible Changes to the State Financial Aid
Programs that would benefit MSCSA students
 Increase in LME
 Reduction in Student Share
 Five years/Nine Semesters of eligibility
 Further reduction of federally
calculated family contribution
 Change in treatment of Independent
students
 Change in treatment of part-time
students
8

9. KEY ISSUES -- FINANCIAL AID
9
 Perkins Loan closeout
 “Prior prior” year
 Reauthorization of Federal Aid programs
 Student Debt
 Student loan default rates
 Competency-based education/Non-standard
terms
 Closing and Regulation of for-profit schools
 “Gainful Employment” requirements

10. KEY ISSUES -- FINANCIAL AID
10
 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.
 Part-time students are still being treated
differently in the Shared Responsibility formula
 MnSCU Occupational Grant Pilot Program

11. FINANCIAL AID UPDATE
11
 QUESTIONS?
 Chris Halling, System Director for Student
Financial Aid, MNSCU System Office
 christopher.halling@so.mnscu.edu
 651/201-1658