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Financial Aid basics: Determining eligibility

Question: How is eligibility determined for need-based aid programs?

The underlying principle behind federal and state need-based aid is that paying for school is first and foremost the responsibility of the student and her family. For any expenses beyond the family's capacity (the Expected Family Contribution or EFC), federal, state and institutional dollars may be available to make higher education more accessible.

A student begins the need-based financial aid process by completing the Free Application for Federal Student Aid (FAFSA). The form collects detailed information to paint a picture of the family's ability to shoulder its share of educational costs.

The formula breaks down like this:

Cost of Attendance – Expected Family Contribution = Need

Cost of Attendance and Expected Family Contribution

Cost of Attendance (COA)
Cost of Attendance (COA) is the total price tag for one year of tuition, fees, room and board, books, and other related expenses at the student's chosen institution. For estimated COA budgets at the Twin Cities campus, visit http://onestop.umn.edu/finances/costs_and_tuition/index.html.

Expected Family Contribution (EFC)
The major inputs to the Expected Family Contribution (EFC) are listed below. (For definitions to these terms, refer to our financial aid glossary at http://onestop.umn.edu/finances/financial_aid/basics/glossary.html
  1. Student status: Independent or dependent?
  2. Household size and number in college.
  3. Adjusted Gross Income
  4. Financial assets like savings accounts, trusts, investments, business holdings, etc.

For example:
Sam Student has a COA of $21,144. His EFC is $8,594. The government believes Sam's family has enough room in its budget to come up with that much on their own during the academic year. The remaining $12,550 is the limit of what Sam can receive this year from all the aid sources he qualifies for.

Packaging

The Office of Student Finance (OSF) will design Sam a package of suggested aid funds he can accept or decline. Increasingly at the University, these packages include a mix of gifts (free money), loans (must be repaid), and work-study funds (must be earned through campus-based employment). OSF always prioritizes awards in the order most favorable to the student.

Above all, students should know that completing the FAFSA is the best way to maximize their aid. Every year some students miss out on aid dollars they would have qualified for if only they had applied. Nobody should assume their income is too high for aid. The only way to know for sure is to complete the FAFSA. Timing is also important, as many aid programs are first-come-first-serve. The priority deadline for incoming freshmen is March 1 and for returning students, April 1.

For more information on these topics, please visit the Finances section on the One Stop Web site: http://onestop.umn.edu/finances/index.html.


Summer financial aid disbursement

May/summer financial aid will disburse to students' billing accounts on June 8. There is no separate disbursement for May session. Students should plan their expenses accordingly to accommodate for the June disbursement date.


Drop/add/refund schedule for summer

Because of the various start and end dates for courses during the May and summer sessions, it is important that students pay close attention to the drop, add, and refund deadlines. The deadlines can be found online at: http://onestop.umn.edu/calendars/cancel_add_refund_deadlines/index.html


Be sure to destroy records properly

For many departments, the beginning of summer means cleaning and discarding things in preparation for fall semester.
As you do your cleaning, keep in mind that appropriate destruction of student records is as important as appropriate
maintenance of those records because they contain data. Student information can be destroyed properly by either shredding it or placing it in confidential recycling. It should never be placed in public trash bins, dumpsters, or recycling bins.

Confidential recycling can be arranged by contacting Dana Donatucci at 612-624-8507.

Other questions about student privacy can be directed to Tina Falkner at rovic001@umn.edu or 612-625-1064


UMACRAO has a new Web url

The Upper Midwest Association of Collegiate Registrars and Admissions Officers (UMACRAO) has a new Web url. Update your bookmarks to "umacrao.com." The old url, "umacrao.org" is no longer in use.

Also, it's never too early to mark your calendars for the UMACRAO annual conference. The 2009 annual conference will be held at the Holiday Inn in Fargo, ND from October 28-30. Conference and registration details will be appearing on the UMACRAO Web site later this summer.


RAC meetings canceled for June and July

The Registrar's Advisory Committee (RAC) is taking a break during the summer. Join us for our next meeting on Monday, August 3, from 9 a.m. to noon. A location has yet to be determined. Contact Ingrid Nuttall at ingridn@umn.edu with questions.


The new ASR Web site is now live

The new ASR Web is now live! We are pleased to bring you an online home for Academic Support Resources that reflects our cross-functional approach to making a positive difference in students' lives. Log on today at asr.umn.edu for improved access to our projects, services, and information supporting University staff.


Help revamp the Record!


It's time the Record had a face lift. Why do you read the Record each month and what would you like to see in future publications? What suggestions do you have for making it a more useful newsletter? Send your suggestions to Ingrid Nuttall at ingridn@umn.edu. Any and all thoughts are welcome.

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The Record is published monthly for colleges and departments at the University of Minnesota, Twin Cities, by the Office of the Senior Vice President for Academic Affairs and Provost. Back issues are on the Web in PDF format at http://onestop.umn.edu/onestop/Services/News_Events_and_Activities/Record.html

Please direct address changes to Ingrid Nuttall, 612-626-0075 or ingridn@umn.edu.

Ingrid Nuttall, editor Academic Support Resources 160 Williamson Hall 231 Pillsbury Drive S.E. Minneapolis, MN 55455
The University of Minnesota is an equal opportunity educator and employer. This publication is available in alternative formats upon request.