your guide to paying for college$5,000 price of college a - 3,100 expected family contribution =...

Minnesota Higher Education Services Office 2004-2005 Edition

Focuson Financial Aid

Your Guide to Paying for College

Useful Financial AidWeb SitesMinnesota HigherEducation Services Officewww.mheso.state.mn.us

The Services Office providesinformation on the financialaid process and federal and state financial aid programs, and includes anonline financial aid estima-tor, Minnesota tuition andfees chart, an online tuitionreciprocity application, andSELF loan counseling andrepayment calculator.

Federal Student Aidwww.studentaid.ed.gov

This U.S. Department ofEducation web site for stu-dents and families providesdetailed information onpursuing education beyondhigh school.

Free Application for FederalStudent Aid (FAFSA)www.fafsa.ed.gov

This web site allows stu-dents to apply for studentfinancial aid, check the sta-tus of their application, andmake changes online.

FinAid: The SmartStudentGuide to Financial Aidwww.finaid.org

This web site provides linksto numerous sources ofinformation about studentfinancial aid, and includesan online searchabledatabase of more than180,000 private sector schol-arships, fellowships, grants,and loans; advice on identi-fying scholarship scams; anda variety of useful onlinecalculators.

Student Gateway to theU.S. Governmentwww.students.gov

The federal government inthis site has compiled a vari-ety of student aid informa-tion and tools for studentsand administrators.

Frequently Asked QuestionsHow do students apply for financial aid?

To apply for most financial aid, students must complete a need analysisform called the Free Application for Federal Student Aid, or FAFSA. Thisform is used to determine federal, state, and school aid. Or apply online atwww.fafsa.ed.gov. See page 4 for more details.

Is there a fee charged to apply for financial aid?

No, but most loans charge origination fees. Almost 95 percent of all studentfinancial aid is awarded by the federal and state governments or the schoolitself using the results of the Free Application for Federal Student Aid. See page 8 to learn how to protect yourself from fee-based financial aidsearch companies.

How much financial aid will I or my child receive?

The amount of financial aid a student is offered depends on the price of the school and the income, living expenses, assets, and savings of the student and his or her family (if the student is a dependent) as well as how many family members are in college. The FAFSA is used to determinefinancial need. See page 4 to learn more.

Do I have to apply for financial aid every year?

Yes, but if you applied in the previous year, you may be able to complete the shorter Renewal FAFSA. See the flow chart on page 5 to learn more.

Important Application DeadlinesIf you attend a Minnesota post-secondary institution in 2004-2005, you may apply for a Minnesota State Grant within 14 days of the start of theterm at your school and still receive an award for that term.

If you plan to attend a post-secondary institution in 2005-2006, you may submit your application after January 1, 2005, but it must be received within 14 days after the start of the term at your school.

Telephone AssistanceStudents with questions may contact the Services Office at (651) 642-0567 or(800) 657-3866. At the recording, press:#1 for Grants and Reciprocity#2 for SELF Loans#6 for financial aid publications#7 for Minnesota College Savings Plan

If you’re calling from a dial phone, stay on the line, and your call will beanswered.

For information about federal student aid matters, call the FederalStudent Aid Information Center at (800) 4-FED-AID (800-433-3243) or (800) 730-8913 TDD Monday through Friday, 9 a.m. to 5:30 p.m. (EasternStandard Time).

The Minnesota Higher Education Services Office provides statewide post-secondary services tohelp the citizens of Minnesota achieve studentfinancial access to post-secondary education. The Office administers the state’s student finan-cial aid programs, negotiates and administersinterstate tuition reciprocity programs, and provides students and parents with informationabout academic and financial preparation forpost-high school education.

What Is Financial Aid?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

How Do I Apply for Financial Aid? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Application Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

When to Apply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Who is Eligible . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

What Kinds of Financial Aid Are Available? . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Federal Pell Grant Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Minnesota State Grant Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Federal Supplemental Educational Opportunity Grant Program. . . . 11

Minnesota Post-Secondary Child Care Grant Program. . . . . . . . . . . . 11

Scholarships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Where to Find Private Scholarships . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Warning Signs of a Scholarship Scam. . . . . . . . . . . . . . . . . . . . . . . . . 13

Loans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Federal Subsidized Stafford Loans . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Federal Unsubsidized Stafford Loans . . . . . . . . . . . . . . . . . . . . . . . . 15

Federal Parent Loans for Undergraduate Students (PLUS). . . . . . . . 16

Federal Direct Stafford Loans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Federal Perkins Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Minnesota Student Educational Loan Fund (SELF). . . . . . . . . . . . . . 17

Repayment of Student Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Work Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Community Service Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Military Service Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Financial Aid for Specific Populations . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Reciprocity and Reduced Tuition Options . . . . . . . . . . . . . . . . . . . . . . . . 27

Are There Any Education Tax Benefits? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Summary of Financial Aid Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Where Can I Get Additional Help? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Glossary of Financial Aid Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Financial Aid Contacts List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Focus on Financial Aid 2004-2005

Contents

Although college costs increase each year,there is a bright side: most students are eli-gible for some type of financial aid.

Minnesota’s financial aid programs awardmore than $200 million in aideach year and are recognizedas among the best in thenation. Each year thousandsof students receive some formof state financial aid or partic-ipate in tuition reciprocity pro-grams.

Financial aid can help youno matter what type of schoolinterests you. By planning

carefully and applying early, you can affordpost-secondary education. Guidance andcounseling are available at your high schooland at post-secondary institutions.

Purpose of Financial AidFinancial aid helps millions of students payfor their education beyond high school. Mostfinancial aid is awarded on the basis of need.

The price of attending a post-secondaryinstitution varies greatly depending on thetype of school, its location, and curriculum.Total price of attendance usually considers:• tuition and fees• room and board• books and supplies• personal expenses• transportation expenses

Financial aid is added to what you and yourfamily are expected to pay to cover the priceof attendance. This allows students to choosefrom a wide range of schools, including somethey might otherwise not be able to afford.

Types of Financial Aid

Financial aid comes in three forms:• Grants or Scholarships: awards that you

do not have to repay.• Loans: borrowed funds that must be

repaid with interest, usually after youreducation is completed.

• Work-Study: money earned through on-or off-campus jobs.

Sources of Financial AidFinancial aid comes from four key sources:• The federal government, the largest

source of financial aid for undergraduates• The state government• The school itself• Private organizations and corporations

The school will use funds from all availablesources to create a financial aid package.

Aid from Federal Government

The federal government generally awardsfinancial aid to students from low- and mod-erate-income families. The largest federalgrant program is the Federal Pell GrantProgram. This program provided $167 mil-lion to 76,500 undergraduates attendingMinnesota schools of higher education inFiscal Year 2003.

The government also offers loans to helpstudents pay for their higher education.These programs allow students to pay partof the price of their education with futureincome. The largest of the federal loan pro-grams is the Federal Stafford and theFederal Ford Direct Loan Programs.

The federal government also subsidizeswork study jobs at various colleges and uni-versities. About 17,500 students atMinnesota schools earned $24.2 million infederal work study jobs in Fiscal Year 2003.

Aid from State Government

The state of Minnesota awards most of itsfinancial aid to students from low- and mod-erate-income families. In Fiscal Year 2003,Minnesota students received about $135 mil-lion in state need-based aid:• $133.6 million in Minnesota State Grants

to approximately 72,000 Minnesota resi-dents attending Minnesota post second-ary institutions as undergraduates

• $1.1 million in Post Secondary Child Care Grants

• $40,000 to the survivors of safety officerskilled in the line of duty

2 Minnesota Higher Education Services Office

Over $105 billion in financial aid is

available nationallyfrom federal, state,

institutional, andprivate sources.

What Is Financial Aid?

The state subsidizes a number of workstudy jobs at schools around the state. In2002, about 12,000 students earned $17.8million in state work study jobs.

Minnesota also operates a state loanprogram, the Student Educational LoanFund (SELF), for students and families whohave exhausted or do not qualify for need-based aid. Minnesota students borrowedapproximately $107 million in SELF loans inFiscal Year 2003.

Aid from Institutional Sources

Besides administering several federal andstate aid programs, many colleges and uni-versities have their own scholarship, loan,and work programs. These may include:• alumni sponsored awards• privately sponsored scholarships• athletic awards• general institutional funds used for

financial aid

When awarding institutional aid, someschools may collect supplemental data onincome and assets or other items notrequired by the Free Application for FederalStudent Aid (FAFSA).

Aid from Private Sources

Financial aid also is available from manycommunity agencies, foundations, corpora-tions, clubs, and civic and cultural groups.

Some awards are based on financial need.Others are based on your academic achieve-ment, religious affiliation, ethnic or racialheritage, community activities, artistic tal-ents, athletic ability, career plans or field ofstudy, or special hobbies and interests.

Qualifying for AidMost financial aid programs assume thatstudents and parents have a responsibilityto pay a share of educational costs. Theamount you and your parents are expectedto contribute will vary according to such fac-tors as income, assets, the number of chil-dren in the family, and thenumber of children attendingpost-secondary institutions.Students and parents areexpected to provide funds fromsavings, earnings, loans, oradditional assistance from pri-vate or school sources.

Students and their familiesapply for most federal and stateaid by completing the FreeApplication for Federal StudentAid (FAFSA). The FAFSAassesses income and net worthto determine what you and yourparents can reasonably be expected to pay.This is called your expected family contri-bution (EFC). The school uses this to identi-fy your financial need:

Price of Specific School - Expected Family Contribution= Financial Need

Most types of aid are offered only if yourexpected family contribution is not enoughto cover the price of attending a particularschool. Based on your financial need, yourschool will tailor a financial aid packagewhich may include a combination of grants,scholarships, work-study, and loans. Theamount you actually receive will depend onthe availability of funds, state and schoolpolicies, and the number of students needingassistance at your school.

Although your expected family contribu-tion may stay the same, your financial aideligibility typically increases as the price ofa school increases:

$5,000 Price of College A - 3,100 Expected Family Contribution= $1,900 Financial Need

$15,000 Price of College B - 3,100 Expected Family Contribution= $11,900 Financial Need

3

Financial Aid Basics

To qualify for mostfinancial aid, youhave to show thatyou do not haveenough income,savings, or assets topay the price ofattendance.

Financial Aid EstimatorUse this online financial aid estimatorto estimate your eligibility for a FederalPell Grant, Minnesota State Grant, andfederal education tax benefits.

Go to www.mheso.state.mn.us andclick on Paying for College and thenCalculators and Estimators.

Expected Parent’sContribution ChartUse this chart to estimate how muchyour parent may be expected to payout of pocket for your education.

Go to www.mheso.state.mn.us andclick on Paying for College and thenFinancial Aid. Select How FinancialNeed is Determined.


In order to receive financial aid, you mustapply for it. Applying for admission to aschool is not enough. Filling out the FreeApplication for Federal Student Aid (FAFSA)is the first step in determining your finan-cial aid eligibility.

Timing also is important in obtainingfinancial assistance. Not only do you need toknow what to do, but you also need to knowwhen to do it.

Application ProceduresYou must complete the FAFSA to apply formost types of financial aid. There is nocharge for applying, but you reapply each

year using a shortened renew-al form. The application proce-dure also may vary byprogram and by school so besure to check with the school’sfinancial aid administrator.

The paper FAFSA becomesavailable in early winter, andmay be obtained from high

school counselors, financial aid administra-tors at post-secondary institutions, localpublic libraries, and from the HigherEducation Services Office. You also mayrequest a copy by calling the FederalStudent Aid Information Center at (800)433-3243 or (800) 730-8913 TDD. TheFAFSA also is available in Spanish. Or youmay apply online at www.fafsa.ed.gov.Check with the school you are attending orplan to attend to determine which method ispreferred.

The FAFSA is used to apply for theFederal Pell Grant, the Federal StaffordLoan, the Minnesota State Grant, and someawards available at colleges. Other campusfinancial aid programs may require addition-al applications. Check with the college’sfinancial aid office for more information.

To complete the FAFSA, you will needto have the following financial records:• your tax return (if filed)• your parents’ return if you apply as a

dependent student• your spouse’s return (if you’re married

and your spouse filed a separate return)

It also helps to have other records such asW-2 forms, current bank statements andmortgage information, records of untaxedincome (veterans, social security, or welfarebenefits), and business and farm records.

Title IV school codes used to complete theFAFSA are available at www.fafsa.ed.govor see the school list on page 43.

Fill out the FAFSA completely andaccurately, and be sure to get it in on time.Even a minor problem with the form canresult in delays, errors in awards, or yourbecoming ineligible for assistance. Save allrecords and other materials used to prepareyour application in case you are asked toverify that it is correct.

Your FAFSA will be analyzed, and aStudent Aid Report (SAR) will be sent tothe schools you designate. This report willconfirm the information you provided on theFAFSA, and it contains your expected familycontribution.

For tips on completing the FAFSA, visitwww.studentaid.ed.gov/completefafsa/or Financial Aid under Paying for College atwww.mheso.state.mn.us.

Conditions for ReceivingFederal Financial AidFor the Federal Pell Grant Program andother federal programs, you must:• be enrolled in a program leading to a cer-

tificate, degree, or diploma at a school eli-gible to participate in the Federal PellGrant program.

• sign a statement of registration statusindicating that you have either registeredwith the Selective Service (www.sss.gov)or that you are not required to register.You must register if you are a male bornon or after January 1, 1960, are at least18, and not currently on active duty inthe Armed Forces.

• maintain satisfactory academic progress.If you are receiving federal student aidand are enrolled in a program that islonger than two years, you must have a Caverage by the time you are half waythrough your course of study, or have anacademic standing consistent with yourinstitution’s graduation requirements.


Check the status of your FAFSA at

www.fafsa.ed.gov by clicking on

FAFSA Follow-up.

How Do I Apply forFinancial Aid?

5

Applying for Financial Aid


Completing the Free Application forFederal Student Aid(FAFSA)

Did the student complete the FAFSA

for the previous academic year?

Does the student plan to apply online?

Complete the full paperFAFSA application

and return it in the envelope provided.

Has the student received a Renewal FAFSA?

Does the student have a PIN number?

Call the Federal StudentAid Information Center

at (800) 433-3243.

The student must review and update the information.

Does the student want to complete the renewal online?

Go towww.fafsa.ed.gov.

For new applicants, clickon Fill out a FAFSA.

For renewals, click on Fillout a Renewal FAFSA.

Has the student received the SAR?

If an e-mail address was included on the FAFSA, the student will receive a link to an electronic Student Aid Report (SAR) within 2 weeks for online

applications or within 4 weeks for paper applications. If an e-mail address was NOT included on either the paper or online FAFSA,

the student will receive a paper SAR within 4 weeks.

Review the information on the SAR. Is it correct?

Complete and return the

paper renewal.

Go to www.pin.ed.govto request a PIN.

STA

RT

Go to www.fafsa.ed.gov

and click on Check Statusof a Submitted FAFSA.

Or call the Federal StudentAid Information Center

at (800) 433-3243.Go to www.fafsa.ed.gov

and click on MakeCorrections to a ProcessedFAFSA. Or make the cor-

rections on the paper SARand return it promptly.

The schools you listed will request your SAR

electronically, and use the information to prepare a financial aid package to

meet your financial need.

FINIS

H

• sign a statement stating that you do notowe a refund on a Pell Grant and are notin default on a federal loan, and that youagree to use your student aid only foreducational purposes.

• be a U.S. citizen or eligible non-citizen.• not have a recent conviction for the

possession or sale of illegal drugs.

When to ApplyThe first, and possibly the most important,step in obtaining financial aid is to planahead and apply early. This will improveyour chances of finding assistance.

Application deadlines can vary by pro-gram, state, and school. Return your com-pleted FAFSA using the return envelopeincluded with the application, or applyonline at www.fafsa.ed.gov.

Federal Pell Grants: If you attend a post-sec-ondary institution in 2004-2005, you mayapply through June 30, 2005 to receive aFederal Pell Grant for the enrollment periodbetween July 1, 2004 and June 30, 2005.

Minnesota State Grants: The FAFSA mustbe received by the federal application pro-cessing center no later than 14 days afterthe start of that term.

Federal Stafford Loans: You may apply for aStafford Student Loan any time during the

year, but must allow forprocessing time beforethe end of the schoolterm. There are severaldifferent applicationprocedures. Check withthe financial aid officeat the school you attendor plan to attend tolearn which procedure itrecommends and howmuch time will be nec-essary for processing.

Tuition Reciprocity: Application formsbecome available around April 1 of everyyear for Minnesota’s reciprocity tuition pro-grams with Wisconsin, North Dakota, andSouth Dakota.

If you plan to attend school in 2005-2006in one of these neighboring states, you canobtain an application from the ServicesOffice, high school counselors, or eligible col-leges. Or print a paper application from theServices Office web site. Most Minnesotaresidents also can apply for reciprocityonline at www.mheso.state.mn.us.

Campus-based Programs: The deadlines forvarious campus-based programs are set bythe financial aid office at the school.

Who Is EligibleTo be eligible for federal and state financialaid, all students must meet guidelines.

Dependent or Independent Status

All students are considered either depend-ent (on your parents) or independent (selfsupporting).

Dependent students must submit finan-cial information about their parents on theFAFSA. This information is required even ifthe parents do not intend to help pay for thestudent’s education; the student is thenresponsible for the parent’s share as well.

You are automatically considered an inde-pendent student for the 2004-2005 awardyear if you are 24 or older as of December31, 2004. If you are under 24, you will beconsidered independent if you are:• a graduate or professional student• married• a student with legal dependents other

than a spouse• veteran of U.S. Armed Forces• orphan or ward of the court• classified by your financial aid adminis-

trator as independent because of unusualcircumstances

Appeals: If you think you should be inde-pendent because of unusual circumstances,even though you normally would be consid-ered dependent, talk to the financial aidadministrator at your school. The aid admin-istrator may use his or her judgment tochange your status to independent if he orshe believes your status warrants it. Thatdecision is final.

Minnesota Resident or Non-Resident Status

To be considered a Minnesota resident forthe State Grant, State Work Study, and thePost-Secondary Child Care Grant, a studentmust meet one of the following criteria: • graduated from a Minnesota high school

while residing in Minnesota• received a GED in Minnesota after living

in the state for at least one year• lived in Minnesota for at least one year

for other than educational purposes (wasnot enrolled for more than five credits inany term during that time)

• the dependent student’s parents residedin Minnesota when the financial aidapplications were submitted

• the independent student originally metthe resident definition as a dependentapplicant, and has not moved from thestate since that time


If you estimate yourfederal income taxeson the FAFSA, manyschools will hold off

awarding financialaid packages

until your income is verified.

Students and their families are not penal-ized for leaving the state to serve in the mili-tary or missionary service, or to attendcollege in another state if they retainedMinnesota as their state of legal residence.

Questions about a student’s residencystatus should be directed to the financial aidoffice at the school the student is attendingor plans to attend.

Eligible Non-Citizen Status

When applying for federal or state financialaid, you must be a U.S. citizen, U.S. nation-al, or an eligible non-citizen.

You are an eligible non-citizen if you:• are a U.S. permanent resident with an

Alien Registration Card (I-551)• are a conditional permanent resident

with an I-551C card• have an Arrival Departure Record (I-94)

from the Department of HomelandSecurity with any of the following desig-nations: refugee, asylum granted, parole,or Cuban-Haitian entrant

Eligible Distance Learner Status

Students enrolled in online, correspondence,or other distance education programs maybe eligible for some types of financial aid.

To be eligible for some forms of federalfinancial aid, the student must:• attend an institution where at least half

the students enroll in on-campus courses;a limited number of schools are exemptfrom this

• attend a program that offers at least oneday of instruction each week

• be a U.S. citizen, U.S. national, or an eligible non-citizen

Students also may be eligible for a loanthrough the Minnesota Student EducationalLoan Fund (SELF) Program (see page 17) atparticipating institutions.

Undergraduate Minnesota residents mayqualify for a Minnesota State Grant if theinstitution is physically located in Minnesotaand participates in the program. The methodof educational delivery is not consideredwhen determining eligibility for or theamount of the State Grant.

To learn more about financial aid eligibili-ty as a distance learner, check with thefinancial aid administrator at the school thestudent is attending or plans to attend.

Visit www.mnvu.org to learn moreabout distance learning opportunities from Minnesota schools.

Changes That AffectEligibilityVarious factors may result in increases ordecreases in your eligibility for financial aid:

Class Load: Increases or decreases in yournumber of credits per term may affect howmuch financial aid you are eligible toreceive. Before making changes to your classschedule, check with your financial aidadministrator for more details.

School Transfer: Financial aid does not auto-matically transfer with the student to a newinstitution. Students must contact the finan-cial aid administrator at the new school todetermine what actions should be taken toreceive aid. Students with federal aid mustbe sure to have an electronic version of theFAFSA results sent to the new institution.In many cases, the new institution will beable to access the federal application systemelectronically. Students with a StaffordStudent Loan, PLUS, or SELF loan willneed to reapply. See your financial aidadministrator for details.

Family Financial Status: Students and fami-lies sometimes experience changes in theirfinancial status due to special circum-stances, such as the loss of a job, serious ill-ness, disability, separation or divorce, ordeath in the family. If your family incomechanges, your financial aid eligibility alsomay change—even if you previously appliedand were denied assistance.

Contact the financial aid administrator atthe institution you attend or plan to attendand explain your circumstances. In specialinstances, the aid administrator can adjustthe information used to calculate yourexpected family contribution which mayresult in increased financial aid eligibility-based on your revised level of financial need.

7Focus on Financial Aid 2004-2005

Applying for Financial Aid

The Student Guide, 2004-2005Published by the U.S. Department ofEducation, this publication providesinformation on federal grants, loans,and work-study. It also is available inSpanish. Copies may be downloaded atwww.studentaid.ed.gov/guide, orordered by calling (800) 4-FED AID orwriting to:

Federal Student Aid Information CenterP.O. Box 84Washington, D.C. 20044-0084

Financial aid comes in three main forms:grants or scholarships, loans, and work

study. Other ways to help youpay include community servicebenefits, military service bene-fits, reduced tuition programs,and government tax benefits.

The school you attend orplan to attend will use fundsfrom all available sources (seepage 2) to create an aid pack-age for you based on yourfinancial need.

Be Wary of Financial AidSearch CompaniesSome financial aid computer search compa-nies offer to match students with sources offinancial aid for a fee. People should be cau-tious in using these services. Chances forsuccess in obtaining more scholarship money

are small. There are no guarantees the com-pany will find any sources of financial aidthat you can’t find yourself, and there’s noguarantee of receiving funds.

Following are some questions to considerif you use a search company:• If the company suggests that large

amounts of aid are not being used, howdoes it document the statement?

• How many financial aid sources exist inthe company’s computer file? Does thecompany maintain its own file of sources?Or does it use the file of some other com-pany or service?

• Is there a minimum number of sourcesprovided by the company? Are the listingsin the form of scholarships, work, loans,or contests? Do they include federal andstate programs for which the student willbe considered through the regular finan-cial aid application process?

• How often does the company update itslist of aid sources? Does the companycheck if the source still exists?

• What characteristics are used to matchstudents with aid sources?

• Can the student apply directly to the aidsources provided by the company, or musthe or she be recommended by some otherperson or group. Are the application feesfor the sources provided?

• How long must the student wait for theinformation? Will the list of aid sourcesbe received before application deadlines?

• How successful have previous partici-pants been in obtaining funds from aidsources identified by the company?

• Will the company refund the program feeif aid sources are incorrectly matchedwith the student’s qualifications, if aidsources no longer exist or fail to reply tothe student, or if application deadlines foraid sources already have passed when theinformation is received?

Even if the company answers all your ques-tions positively, there’s no guarantee ofreceiving funds.


What Kinds of FinancialAid Are Available?

Almost 95% of allstudent aid comes

directly from thefederal or state

governments or theschool itself.

Where to File Complaints:Federal Trade CommissionTel: (877) FTC-HELP (877-382-4357)

(866) 653-4261 TTYWeb: www.ftc.gov/scholarshipscams

Minnesota Better Business BureauTel: (651) 699-1111E-mail: [email protected]: www.mnd.bbb.org

Minnesota Attorney General’s OfficeSt. Paul, MN 55101Tel: (651) 296-3353 or (800) 657-3787

(651) 297-7206 or (800) 366-4812 TTYWeb: www.ag.state.mn.us/consumer/

State Attorney General’s Office where the company is locatedWeb: www.naag.org/ag/full_ag_table.php

If you learned of the program and replied via the postal service, contact:

U.S. Postal ServiceAttn: Mail FraudInspection Service Operations Support Group222 South Riverside Plaza, Suite 1250Chicago, IL 60606-6100Web: www.usps.com/ncsc/locators/find-is.html

9

Financial Aid You Don’t Repay

GrantsGrant funds usually are awarded on thebasis of financial need.

Most colleges require that you apply forboth a Pell Grant and state aid by complet-ing the Free Application for Federal StudentAid (FAFSA) and any other form required bythe institution’s financial aid office.

Financial aid packages prepared forundergraduates make the maximum use ofthe Federal Pell Grant Program and theMinnesota State Grant Program.

Federal Pell Grant Program

Federal Pell Grants assist about 5.3 millionundergraduate students nationally who areattending full time or part time.

In 2004-2005, these grants range from$400 to $4,050. The average grant is approx-imately $2,441. The actual award amountwill depend on the price of attendance, yourfamily’s financial situation (such as income,assets, and family size), whether you are a full-time or part-time student, and other criteria.

Students with family incomes up to$40,000 may be eligible for a Federal PellGrant although most awards go to studentswith family incomes below $20,000.

Application Process: You apply for theFederal Pell Grant by completing the FreeApplication for Federal Student Aid(FAFSA). You may apply until June 30, 2005to receive a Pell Grant for the 2004-2005school year. You may apply for the 2005-2006school year after January 1, 2005. Studentsmust apply each year to renew their grant.

Eligibility Requirements: You may receive aPell Grant for your undergraduate studyuntil you complete a baccalaureate or firstprofessional (such as pharmacy or dentistry)degree, and may use it at almost any school.In some cases, you may receive a Pell Grantfor attending a post-graduate teacher certifi-cation program. Check with the financial aidadministrator at your school to determinewhether the institution and its programs areeligible for the Federal Pell Grant Program.

Minnesota State Grant Program

The Minnesota State Grant Program assignsspecific responsibility for paying the price ofattendance to the student, parents, and—ifnecessary—the federal and state govern-ments. All students are required to pay atleast 46 percent of their price of attendancefrom savings, earnings, loans, or other finan-cial aid from the school or private sources.

The price of attendance is pro-rated basedon the student’s enrollment status and con-sists of:

• tuition and fees• an allowance

established by theMinnesotaLegislature forroom and board,books and sup-plies, and miscella-neous expenses

For dependent (on their parents) students,the remaining 54 percent of the price ofattendance is assigned to the parents asdetermined by the federal need analysis and,if necessary, to the government through acombination of Pell and State Grant awards.

For independent (self supporting) stu-dents, the remaining 54 percent of the priceis met using the student’s income and networth as determined by the federal needanalysis, with an adjustment by the state ofMinnesota, and with a combination of Pelland State Grant awards.• For independent students without

dependents other than a spouse, the stateof Minnesota expects students to con-tribute 72 percent of what the federalgovernment expects them to contribute.

• For independent students with depend-ents, the state of Minnesota expects students to contribute 90 percent of whatthe federal government expects them to contribute.

The maximum combined Pell and StateGrant in 2004-2005 ranges from about$4,802 at a public technical college to $7,662at a private four-year college. The averageState Grant award is about $1,860. The min-imum award is $100 per year. On average, astudent receives a combined Pell and StateGrant award of about $3,390.

Eligible institutions include state univer-sities, the University of Minnesota, commu-nity colleges, public technical colleges,schools of nursing and related health profes-

Of all Federal PellGrants awarded,90 percent goes tofamilies with incomesbelow $40,000.

Family Incomes of State Grant Recipients

■ 39% incomesbelow $20,000

■ 44% incomesbetween$20,000 and$50,000

■ 17% incomesover $50,000


sions, private colleges, and private careerinstitutions in Minnesota. State Grants can-not be used at out-of-state schools unless thestudent is pursuing a degree at an eligibleMinnesota school that has a consortiumagreement with an out-of-state school.

Application Process: You apply by complet-ing the Free Application for Federal StudentAid (FAFSA). The FAFSA must be receivedwithin 14 days after the start of the term foryour school. You may apply for the 2005-2006 school year after January 1, 2005.Students must apply each year to renewtheir grant.

You can renew a grant for up to sixsemesters or nine quarters, or their equiva-lent. Students may receive State Grants forfour consecutive quarters or three consecu-tive semesters during the course of a singlefiscal year. You are not eligible for a StateGrant after obtaining a baccalaureate degreeor being enrolled full time for the equivalentof eight semesters or 12 quarters.

Eligibility Requirements: Minnesota resi-dents who enroll for at least three credits asundergraduate students in a program lead-ing to a certificate, degree, or diploma at oneof more than 128 eligible schools inMinnesota may apply for a State Grant.

To be considered a Minnesota resident, astudent must meet one of the criteria listedon page 6.

Grant applicants must be a graduate of asecondary school or its equivalent, or be 17years of age or older by the end of the aca-demic year.

Students in default of a student loan or more than 30 days behind for child support owed to a public agency are not eligible, unless they are complying with apayment plan.

You need to be registered for 15 cred-its per term to be considered a full-timestudent for a State Grant. If you register

for fewer than 15 credits, the price of atten-dance (tuition and fees plus the living andmiscellaneous expense allowance) will beprorated to your actual number of credits.

How It Works

Example 1: A student attending a state pub-lic four-year institution in 2004-2005

The annual price of attendance recog-nized by the state is $10,447. This includesactual tuition and fees of $5,242 plus $5,205for living and miscellaneous costs. The stu-dent is assigned responsibility for 46 percentof the price, or $4,806. The remaining 54percent of the price is covered by the stu-dent’s parents and, if necessary, federal andstate grants.

If the student’s parents are not expectedto help pay for their child’s education, thestudent would be eligible for federal andstate grants totaling $5,641—the 54 percentshare not provided by the student. If, forexample, the student’s parents are expectedto contribute $1,000, the student would be eligible for federal and state grants total-ing $4,641.

Example 2: A student attending a privatefour-year institution in 2004-2005

The annual price of attendance recog-nized by the state is $14,188. This includestuition and fees of $8,983 and $5,205 for liv-ing and miscellaneous costs. The student isassigned responsibility for 46 percent of theprice, or $6,526. The remaining 54 percentprice is covered by the student’s parentsand, if necessary, federal and state grants.

If the student’s parents are not expectedto help pay for their child’s education, thestudent would be eligible for state and feder-al grants totaling $7,662. If, for example, thestudent’s parents are expected to contribute$1,000, the student would be eligible forgrants totaling $6,662.

The student who chooses to attend a pri-vate four-year college must, in this example,


Example 1State UniversityPrice of Attendance:

Actual Tuition & Fees . . . . . . . . $5,242Living & Misc. Allowance . . . . . . 5,205

Total . . . . . . . . . . . . . . . $10,447

Source of Funds:

Student’s share . . . . . . . . . . . . . $4,806Parent share . . . . . . . . . . . . . . . . . . . 0Pell Grant . . . . . . . . . . . . . . . . . . 4,050State Grant . . . . . . . . . . . . . . . . . 1,591

Total . . . . . . . . . . . . . . . $10,447

Example 2Private Four-Year CollegePrice of Attendance:

Recognized Tuition & Fees .. . . . $8,983Living & Misc. Allowance. . . . . . . 5,205

Total . . . . . . . . . . . . . . $14,188

Source of Funds:

Student’s share . . . . . . . . . . . . . $6,526Parent share . . . . . . . . . . . . . . . . . . . 0Pell Grant . . . . . . . . . . . . . . . . . . 4,050State Grant . . . . . . . . . . . . . . . . . 3,612

Total . . . . . . . . . . . . . . $14,188



pay actual tuition and fees of $21,467. Butfor the State Grant Program, only $8,983 isrecognized in the award calculation for 2004-2005. This means the student will need toprovide $12,484 in tuition and fees that isnot recognized by the state.

In both examples, the students mayreceive additional grant assistance from pri-vate or institutional sources that are underthe control of the campus financial aidadministrator. Receipt of these additionalgrants does not affect the size of the State orPell Grant. This additional assistance can beused to help meet the student’s required con-tribution.

Federal Supplemental EducationalOpportunity Grant Program

The Federal Supplemental EducationalOpportunity Grant Program (SEOG) isawarded to exceptionally needy students,and can add $100 to $4,000 in grant moneyto the financial aid package.The awardamount is set by the institution’s financialaid office and depends on the availability offunds at your school, and the amount ofother aid you are receiving.

Application Process: You must applythrough the financial aid office at yourschool, which will use your FAFSA results todetermine the size of your award. Differentschools set different deadlines so apply asearly as possible.

Eligibility Requirements: Undergraduates orvocational students who are enrolled at leasthalf time are eligible. Priority is given tostudents already receiving a Pell Grant.

Child Care Grant Program

Students who have children 12 and under(14 and under if handicapped) and demon-strate financial need may receive assistanceunder the Minnesota Child Care GrantProgram to help pay for child care.Assistance may cover up to 40 hours per eli-gible child in 2004-2005.

The maximum available to a full-timestudent is $2,200 for each eligible child peracademic year. In some instances, the maxi-mum award may be increased by 10 percentto compensate for higher market costs forinfant care. The amount of the grant awardis based on the income of the applicant andspouse, number in the applicant’s family,number of eligible children in the applicant’sfamily, and the student’s enrollment level.

Eligible Minnesota institutions include allpublic post-secondary schools and private,baccalaureate degree granting colleges anduniversities, or nonprofit two-year vocationalschools granting associate degrees. Someschools may choose not to participate.

Application Process: You must apply for theChild Care Grant through the financial aidoffice at your school.

Eligibility Requirements: You are eligible toapply for a Child Care Grant if you:• Are a resident of Minnesota (see page 6)• Have a child 12 years of age or younger

(14 years of age or younger if handi-capped), who is receiving or will receivecare on a regular basis from a licensed orlegal non-licensed care giver

• Meet the program’s income guidelines• Are not receiving Minnesota Family

Investment Program (MFIP) benefits dur-ing the same term you receive a ChildCare Grant. A student who receives aChild Care Grant award and thenreceives benefits from the MFIP programduring the same quarter must inform theschool within 10 days

• Are enrolled at least half-time (six ormore credits) in an eligible institution

• Have not earned a baccalaureate degreeor have enrolled full-time fewer thaneight semesters, 12 quarters, or theequivalent

• Are pursuing a nonsectarian program orcourse of study that applies to an under-graduate degree, diploma, or certificate

• Are in good academic standing and mak-ing satisfactory progress toward a degree,diploma, or certificate

• Are not receiving tuition reciprocity• Are not in default on any educational

loan or, if in default, have made satisfac-tory arrangements to repay the loan withthe holder of the note

MFIP recipients who want to pursue a post-secondary education and who have childrenage 12 and under may receive assistancethrough the MFIP program to help pay childcare expenses.

Other low income families interested inchild care assistance should contact thesocial service office in the county where thestudent resides to inquire about the BasicSliding Fee child care program. The amountof assistance to cover day care will dependon the number of children under 12 in thefamily, and the number of day care hoursnecessary to cover education and work obli-gations, and the availability of funding.Other requirements and standards mayvary, depending on the county.


ScholarshipsScholarships are awarded based on criteriasuch as academic or athletic achievement,cultural or religious background, or specialskills and talents. Unlike grants, you oftenneed to complete scholarship applicationforms in addition the Free Application forFederal Student Aid (FAFSA).

Be sure to check with your school’s finan-cial aid office to determine if scholarshipawards will affect your eligibility for othertypes of financial aid.

Robert C. Byrd Honors Scholarship Program

The federal Robert C. Byrd Honors Scholar-ship Program is a renewable scholarship of$1,500 to high school seniors who are nomi-nated by high school principals. Recipientscan attend any accredited post-secondaryinstitution in the United States.

About 120 awards are equitably distrib-uted across the eight MinnesotaCongressional districts. Awards can berenewed for three additional years of under-graduate study upon request and continuedeligibility, and are not competitive.

Application Process: The MinnesotaDepartment of Education distributes appli-cation/nomination information to allMinnesota high schools, charter schools(public and private), GED programs andArea Learning Centers in January. Studentsshould contact their principal or counselorfor application forms.

A Minnesota resident high school senior

attending a high school outside Minnesotamay self nominate if he or she has theendorsement of the high school principal.The award amount depends on the level offederal funding.

One nomination is accepted per highschool, or two if the graduating class is 350or greater. The nomination deadline is earlyMarch. Students are notified before the endof their high school senior year.

Eligibility Requirements: Nominees mustdemonstrate outstanding academic achieve-ment. For more information, contact:

Sarah K. Smith Tel: (651) 582-8629E-mail: [email protected]

Valarie CochranTel: (651) 582-8250E-mail: [email protected]

Minnesota Department of Education1500 Highway 36 WestRoseville, MN 55113Web: education.state.mn.us

Minnesota Academic Excellence Scholarship

Students who demonstrate outstanding abil-ity, achievement, and potential inEnglish/creative writing, fine arts, foreignlanguage, math, science, or social sciencemay be eligible for the Minnesota AcademicExcellence Scholarship.

At public institutions, the scholarshipcovers the price of full-time attendance for

Scholarship Resources

Scholarship Handbook, 2005

This guide helps students identify federal,state, and private scholarships for whichthey meet eligibility criteria. More than2,300 programs are surveyed annually. Itincludes a Windows version of Real Stuffon CD-ROM. It can be purchased at book-stores, or directly from the publisher atwww.collegeboard.com, by calling(800) 323-7155, or by sending a check for$26.95, plus $5 for shipping, to:

College Board PublicationsP.O. Box 869010Plano, TX 75074-0998

Scholarships, Grants, & Prizes, 2005

This publication provides details nearly1.6 million awards worth more than $6billion available to students from private

sources. It can be purchased at book-stores, or directly from the publisher atwww.petersons.com, by calling (800)338-3282, or by sending a check for$29.95, plus $5.25 for shipping, to:

Peterson’sPrinceton Pike Corporate Center2000 Lenox Drive, Box 67005Lawrenceville NJ 08648

Sports Scholarships and College AthleticPrograms, 5th Edition

This guide details sports scholarships andfreshman financial aid at 1,500 collegesand universities. It can be purchased atbookstores, or directly from the publisherat www.petersons.com, by calling (800)338-3282, or by sending a check for$26.95, plus $5.25 for shipping, to:

Peterson’sPrinceton Pike Corporate Center

13



one academic year; at private institutions, itcovers either the actual tuition and feescharged by the institution or the tuition andfees at comparable public institutions,whichever is less.

Application Process: Contact the institutionsyou are considering to check if the collegeparticipates in the program. Implementationof this program depends on availability offunds which come from the sale of specialcollegiate license plates.

The scholarship can be renewed annuallyfor up to three additional academic years ifthe student continues to meet the program’sacademic standards.

Eligibility Requirements: High school gradu-ates must be admitted full time in a nonsec-tarian, baccalaureate degree-grantingprogram at the University of Minnesota, a Minnesota state university, or a Minnesotaprivate, baccalaureate degree-granting college or university. Students must beenrolled the same year they graduated from high school.

Where to Find Private Scholarships

Many community organizations, founda-tions, corporations, clubs, and civic and cul-tural groups provide student scholarships.Some only require that you demonstratefinancial need—just as you do for state andfederal aid. Others award scholarships basedon academic or athletic achievement, reli-gious affiliation, ethnic or racial heritage,community service, career plans or field ofstudy, or special hobbies and interests.

If you’re looking for private sources offinancial aid, you should:• Inquire at community organizations such

as the Chamber of Commerce• Check with churches, businesses, indus-

tries, and veterans posts• Check with your high school counselor• Review reference books in your high

school guidance office or the library• Watch for announcements in your local

news media• Search online• Check with your or your family’s employ-

er, professional association, or laborunion. They often sponsor grants, scholar-ships, or loans. Or, if you are employed,check if your employer has an educationpolicy that pays for employees to enroll injob-related post-secondary courses

Warning Signs of a Scholarship Scam

There are no perfect indicators of a fraudu-lent or deceptive company. However, proceedwith caution if you consider working with acompany that exhibits one or more of the fol-lowing warning signs:• listing of a mail drop as a return address

or operates out of a residential address• excessive hype and claims of high success • up-front money for application fees• typing and spelling errors on application

materials• no telephone number for the business• suggestions of influence with scholarship

sponsors• time pressure to respond quickly• unusual requests for personal information

such as bank account, credit card, orsocial security numbers

If you have been the victim of a scholarshipscam, use the resources at the beginning ofthis section (see page 8) to file a complaintand report the fraud.

LoansStudent loans are useful if you:• do not qualify for scholarships or grants• receive some grant money but need addi-

tional assistance to meet your expenses• are a graduate or professional student• attend a school out of state

Low-interest educational loans are availablefrom several federal and state programs aswell as from private lenders, such as a bank,savings and loan association, or credit union.Students at some schools may be able to bor-row directly from the U.S. Department ofEducation. Loan programs are available forboth students and parents.

Scholarship Search SitesCollegeViewwww.CollegeView.com

CollegeNetwww.collegenet.com

FastWebwww.fastweb.com

Scholarship Resource Network Expresswww.srnexpress.com

Scholarships.comwww.scholarships.com

Wired Scholarwww.wiredscholar.com

Federal student loans generally fall undertwo categories:• Federal Family Education Loan

Program (FFEL)- Federal Subsidized Stafford Loan- Federal Unsubsidized Stafford Loan- Federal Parent Loan for Students

• Federal Direct Student Loans- Federal Direct Subsidized Stafford Loan- Federal Direct Unsubsidized

Stafford Loan- Federal Direct Parent Loan for Students

The major difference is that students receiveloans directly from the federalgovernment under the DirectLoan Program while under theFFEL program, loans comefrom a bank, credit union, orother private lender. Both pro-grams offer Stafford andPLUS Loans.

The state of Minnesota alsoprovides a loans to studentsand parents through the

Student Educational Loan Fund.

How to Evaluate a Loan

Each loan has its own characteristics andfeatures. Compare your options side-by-sideby determining:• the total cost to repay the loan (including

the fees, principal, and interest)• how long it takes to repay the loan• the amount of the monthly payments• the penalty you’d pay if you were late on

a payment or default• the impact the loan would have on your

total financial aid package (how it mayaffect your grant, scholarship, and workstudy awards)

Make sure you choose the loan that bestmeets your needs, but keep in mind that thecheapest loan is not always your best option.Because loans must be repaid, you shouldplan your debt financing carefully.• Ask for information about interest rates

and fees, repayment terms and options,and other obligations.

• Consider your future income and don’tborrow more than you can afford to payback. The table on page 19 illustrateshow high a salary you will need to repaydifferent levels of student loan debt.

Federal Subsidized Stafford Loan

The subsidized Stafford Loan is availableonly to students who demonstrate financialneed, and the interest is paid to the lenderby the government while the student attendsschool at least half time.

More than 500 private lenders make theFederal Stafford Loan available toMinnesota students. If you have difficultylocating a cooperating lender, contact theGreat Lakes Higher Education GuarantyCorporation, at (651) 290-8795 or (800) 366-0032.

The chart on page 16 illustrates howmuch you may be eligible to borrow. Loanamounts are higher for independent (selfsupporting) students.

The annual borrowing amounts assumeenrollment in a program that is at least oneacademic year long. Your annual borrowinglimit will be lower if you enroll for less thana full academic year.

Application Process: Because the school youare attending or plan to attend must deter-mine your Federal Pell Grant eligibilitybefore it can process your loan application,you must complete the Free Application forFederal Student Aid (FAFSA) as the firststep in determining if you qualify for thesubsidized Stafford Loan.

If you qualify, you then need to completea Stafford Loan application. There are twobasic methods of application—paper andelectronic. Ask your school which method it prefers.

You may apply any time during the year,but obtaining a loan may take severalweeks. If a need analysis has been per-formed for you at the school, you mayreceive a loan in two to four weeks. If noneed analysis has been done, you could waitseveral months.

Stafford loans (both subsidized andunsubsidized) made by lenders are guaran-teed by one of a number of private, non prof-it guarantee agencies. All loans must beapproved by the guarantor before the lenderwill make the loan.

In return for this guarantee, you may berequired to pay an insurance premium of 1 percent, also known as a guarantee fee,which is deducted proportionately from eachdisbursement of your loan amount. On a typical loan of $2,625, a 1 percent guaranteefee would equal $26.25. This fee goes into a fund at the guarantee agency which isused to reimburse lenders in the event ofdefault, death, disability, or bankruptcy ofthe borrower.


Interest rates forJuly 1, 2004 to June

30, 2005 are 2.77percent for in school

and 3.37 percentduring repayment.


FinancialAid You Do Repay

You also pay an additional one-time 3 per-cent fee to the lender. This fee, set by thefederal government, is called an origina-tion fee. It is deducted proportionately fromeach disbursement of your loan amount. Forexample, for a loan of $2,625, an originationfee of $78.75 will be deducted. The fee iskept by the lender to offset part of the feder-al interest subsidy that the government paysthe lender for you.

Subtracting the two fees ($26.25 + $78.75= $105), a Stafford loan request of $2,625would therefore be reduced to a net dis-bursement of $2,520.

After you sign a promissory note (anagreement to repay your loan) from yourlender, your loan will be sent to your schooleither by electronic funds transfer or by acheck made payable to both you and yourschool. Most loans are disbursed in two ormore payments, rather than a lump sum.Because of this, you should plan your per-sonal finances accordingly.

Eligibility Requirements: You must attendschool at least half time, and be determinedto have financial need. The financial aidadministrator at the school you attend orplan to attend will assist you.

Repayment of Stafford Loans: Interest rateson Federal Stafford and Direct loans varyeach year, depending on changes to theFederal 91-Day Treasury Bill rate. Ratescannot exceed 8.25 percent. FFEL StaffordLoan payments are made to private lendersor loan servicers while payments on FederalDirect Loans are made to the Direct LoanServicing Center.

Interest rates for repayment of priorloans vary depending on the date of the firstdisbursement. You will be informed of ratechanges throughout the life of your loans.

The federal government pays the intereston (or subsidizes) the loan for you until thestart of your repayment period. In mostcases, you must begin repayment six to ninemonths after you leave school or drop belowhalf-time status. You have up to 10 years tocomplete repayment.

The amount of your payment depends onthe size of your debt, but in all cases you willpay at least $50 per month in principal andinterest. Under certain conditions you maydefer (postpone) payments forup to three years. Ask yourfinancial aid administrator,your lender, or read your prom-issory note to learn about defer-ring payment.

Some borrowers may be eli-gible to repay their loans basedon a “graduated” or “incomesensitive” repayment. Thisoption considers your financialsituation when determining the monthlypayment. For more information, ask yourlender or servicer.

Federal Unsubsidized Stafford Loan

For students without demonstrated financialneed, the unsubsidized Stafford Loan isavailable. The loan limits and interest ratefor dependent, undergraduate students arethe same as those of the subsidized StaffordLoan. Independent students enrolled inundergraduate, graduate or professionaldegree programs have slightly higher bor-rowing maximums.

Borrowers of the unsubsidized StaffordLoan are required to pay interest on the loanwhile in school. During your grace period(the time before beginning repayment) andduring periods of authorized deferment(postponement) and forbearance (author-ized delay in loan principal payment), thestudent may make monthly or quarterlyinterest payments to the lender or choose tohave the interest added to the principal ofthe loan. This is called capitalization.

Application Process: Because the school youare attending or plan to attend must deter-mine your Federal Pell Grant eligibilitybefore it can process your loan application,you must complete to the Free Applicationfor Federal Student Aid (FAFSA).

You then need to complete a StaffordLoan application. There are two basic meth-ods of application—paper and electronic. Ask

You may be eligiblefor the Student LoanInterest Deductionwhen you file yourfederal tax return.See page 31.

10-Year Stafford Loan Monthly RepaymentTotal Balance 4% 5% 6% 7%

$4,000 $50.00 $50.00 $50.00 $50.00

$8,000 81.00 84.85 88.82 92.89

$15,000 151.87 159.10 166.53 174.17

$30,000 303.74 318.20 333.06 348.33

$50,000 506.23 530.33 555.11 580.55

Subsidized and UnsubsidizedStafford Loan Comparison

Subsidized Stafford Loan• need-based• federal government pays interest

while the student is in school

Unsubsidized Stafford Loan• not need-based• student pays interest while in school

your school will which method it prefers. Youmay apply any time during the year, butobtaining a loan may take several weeks.

Like with the subsidized Stafford Loan,you may be charged a 1 percent guaranteefee and a 3 percent origination fee thatwill be subtracted proportionately from eachdisbursement of your loan. For more infor-mation, contact your financial aid adminis-trator or your lender.

Eligibility Requirements: You must attendschool at least half time. The financial aidadministrator at the school you attend orplan to attend will assist you.

Federal Parent Loans for Undergraduate Students (PLUS)

Loans to parents of dependent undergradu-ate students may be available from some

private lenders and directlythrough schools participatingin the Direct Loan Program(see below). These loans arecalled the Federal ParentLoans for UndergraduateStudents (PLUS).

Between 400 to 500 lenders(including banks, savings andloan associations, and creditunions) participate in the pro-

gram in Minnesota. Borrowers unable tofind a PLUS lender should contact the Great Lakes Higher Education GuarantyCorporation at (651) 290-8795 or (800) 366-0032.

The PLUS loan has a variable interestrate. Loans made on or after July 1, 2004

have an interest rate of 4.17 percent. Themaximum interest rate is 9 percent.

Application Process: Parents must completea PLUS application which is available fromthe school’s financial aid office. The guaran-tor may charge a guarantee fee of 1 percentof the loan principal, plus an origination feeof 3 percent.

Eligibility Requirements: PLUS borrowers donot have to show financial need, but willhave their credit checked. Parents may bor-row up to the annual price of attendanceminus any financial aid received for eachdependent child enrolled at least half time.There is no cap on annual or aggregate bor-rowing amounts.

Repayment of PLUS Loans: Repayment ofboth principal and interest begins within 60days of receiving the loan and extends from5 to 10 years. The amount borrowed willdetermine the minimum monthly payment,but no payment will be less than $50 amonth. Parents with a Direct Plus Loan canchoose the Standard, Extended, orGraduated Repayment plan.

Federal Direct Student Loans

The federal government makes Stafford andPLUS loans directly available to studentsthrough selected schools across the country.No banks or guarantee agencies areinvolved. The U.S. Department of Educationis the lender. Loan amounts, deferments,monthly repayment amounts, and cancella-tion benefits for Direct Loans are the sameas those for other federal loans.

16

Maximum Federal Loan AmountsSubsidized and Unsubsidized Stafford PLUS

Borrower’s Dependent Independent DependentAcademic Level Annual Annual

First Year Undergraduate $2,625 $6,625 There is no annual or aggregate limit.

Second Year Undergraduate $3,500 $7,500 A parent may borrow an amount equal to the cost of education minus any financial aid received.

Third Year and Beyond $5,500 $10,500

Graduate/Professional Student $8,500* $18,500* *only $8,500 may be subsidized.aggregate aggregate

Undergraduate $23,000 $46,000

Graduate $138,500** $138,500** **only $65,500 may be in combined combined subsidized loans.

The combined annualtotal of PLUS loansand other financialaid cannot exceedthe student’s price

of attendance.

Minnesota Higher Education Services Office



Application Process: Applications are avail-able at participating schools. You or yourparents may pay an origination fee of 4 per-cent of the loan deducted proportionatelyfrom each loan disbursement. Once a DirectLoan is made, it is managed and collected bythe U.S. Department of Education’s DirectLoan Servicing Center. For more informa-tion, visit www.dlservicer.ed.gov or call(800) 848-0979.

Eligibility Requirements: Eligibility is thesame as for Stafford and PLUS loans madeavailable through a private lender.

Repayment of Direct Loans: The Direct LoanProgram offers four repayment plans:• Standard Repayment Plan: a fixed

amount is paid each month, at least $50,for up to 10 years.

• Income Contingent Repayment Plan:bases monthly payment on annualincome, family size, and the loan amount.

• Extended Repayment Plan: extends repay-ment over a period of 12 to 30 years,depending on your loan amount.

• Graduated Repayment Plan: paymentsare lower at beginning of the repaymentperiod, then increase every two years over12 to 30 years.

Federal Perkins Loan Program

The Federal Perkins Loan Program provideslong-term, low interest (5 percent) loans toundergraduate and graduate students whodemonstrate financial need and enroll inparticipating schools.

Undergraduate students may borrow$4,000 per year and $20,000 in total.Graduate and professional students mayborrow $6,000 per year and $40,000 in total,including any Perkins Loans borrowed as anundergraduate. Students attending institu-tions with low default rates (7.5 percent)may be able to borrow larger amounts.

Loan amounts depend on the availabilityof funds at your school, your financial need,and the amount of other aid you receive.

Application Process: You apply to the finan-cial aid office at the school you attend. Eachschool has its own application deadline, andserves as the loan’s lender. The PerkinsLoans do not have an origination fee.

Eligibility Requirements: You must be anundergraduate or graduate student enrolledat least half time at a participating school.Some schools may make loans available topart-time students and, in some cases, toless-than-half time students. For undergrad-uate students, priority is given to FederalPell Grant recipients.

Repayment of Perkins Loans: You beginrepaying the loan nine months after yougraduate or leave school if you are borrowingfor the first time or have repaid previousloans. If you are not a new borrower, youhave six months before you start repayingthe loan. You may be allowed up to 10 yearsto repay your loan.

The amount of the payment depends onthe size of your debt and the length of yourrepayment period. Part or all of your loancan be deferred or canceled under certainconditions, such as if you teach handicappedchildren or full time in a designated elemen-tary or secondary school that serves lowincome students. You must seek approval forthese provisions from your school.

Student Educational Loan Fund

The Student Educational Loan Fund (SELF)is a Minnesota program intended to helpstudents and parents who need assistance inpaying for education beyond high school. Theloan can be used only for educational pur-poses. The minimum loan size is $500.

As of July 2004, 335 institutions partici-pate in the program, including 150Minnesota institutions and 185 out-of-stateschools. To find out if the institution youattend or plan to attend participates, visitwww.selfloan.org, or contact the financialaid administrator at the school or theMinnesota Higher Education Services Office.

The interest rate varies throughout thelife of the loan and can change every threemonths. In July 2004, the SELF III interestrate was 4.6 percent.

Application Process: Prior to applying, stu-dents are expected to seek certain othersources of federal, state, institutional, or pri-vate aid for which they might be eligible bycompleting the FAFSA.

The campus financial aid administratorwill determine the maximum amount a stu-dent may borrow and recommend a loanamount. The maximum cannot exceed theprice of attendance minus all other financialaid that the borrower is receiving.

Currently, there is no guarantee fee forborrowers whose loan periods began on orafter July 1, 1989. The Services Office, how-ever, reserves the right to charge a guaran-tee fee on future loans in order to coverclaims for nonpayment of interest and prin-cipal amounts by borrowers and co-signers.

Eligibility Requirements: To be eligible, astudent must:• be enrolled at least half time in a certifi-

cate, associate, baccalaureate, or graduatedegree program

• have a credit worthy co-signer

• not be delinquent or in default on a SELFor other outstanding student loan

• attend an eligible school in Minnesota• be a Minnesota resident (see page 6)

enrolled in a participating school inanother state or a Canadian province

Repayment of SELF Loans: Borrowers arerequired to pay interest quarterly while inschool. Upon graduating or leaving school,they are required to pay interest monthly forup to one year; they then will begin repayingloan principal as well as interest monthly.Repayment is usually 7 to 9 years. SELFhas two repayment plans:• Standard Repayment Plan: one year of

interest only and up to nine years of prin-cipal and interest payments

• Extended Interest Plan: interest only forthree years followed by up to seven yearsof principal and interest payments

Comparison of Federal UnsubsidizedStafford Loan and SELF Loan

Both the unsubsidized Stafford Loan andSELF Loan programs have advantages anddisadvantages. The student and familyshould learn the facts about each program,and decide which program best meets theirneeds. The school’s financial aid office orlocal private lenders can help you learn the differences.

Health Professions Loan Programs

Various federal scholarship and loan pro-grams are available for students interestedin health professions, such as nursing, den-tistry, or medicine. Campus-based programsinclude the Health Professions Student LoanProgram, the Primary Care Loan Program,Loans for Disadvantaged Students Program,and Nursing Student Loan Program.

Additional health loan repayment pro-grams may be available from the U.S.Department of Health and Human Services,such as the Faculty Loan Repayment andthe Nursing Education Loan Repaymentprograms. Visit bhpr.hrsa.gov/dsa/ to learnmore.

Application Process: Students should con-tact the financial aid office at the schoolwhere they are enrolled or intend to applyfor admission. For more information or toreceive a fact sheet on the different types ofassistance, contact:

Dept. of Health and Human ServicesDivision of Health Careers, Diversity and DevelopmentParklawn Building, Room 8-345600 Fishers LaneRockville, MD 20857Tel: (301) 443-4776Web: bhpr.hrsa.gov/dsa/

State Health Professions Loan Forgiveness

The Minnesota Department of Health’sOffice of Rural Health and Primary Careadministers six loan forgiveness, or repay-ment, programs for health professionals. Theprograms are available to:• physicians, dentists, or midlevel practi-

tioners who agree to serve in federallydesignated Health Professional Shortage Areas

• medical residents who agree to serve indesignated rural areas or underservedurban areas

• midlevel practitioner students who agreeto serve in designated rural areas

• dentists who agree to treat public pro-gram participants

• nursing students (RN or LPN) who agreeto serve in a licensed nursing home or anintermediate care facility for persons withmental retardation or related conditions

Midlevel practitioner means a nurse practi-tioner, certified nurse midwife, nurse anes-thetist, advanced clinical nurse specialist, ora physician assistant. All service obligationsmust be filled by working in Minnesota.

Application Process: Applications are avail-able after July 1, 2004 and due December 1,2004, and can be requested from:

Minnesota Department of HealthOffice of Rural Health and Primary Care Tel: (651) 282-3838 or (800) 366-5424Web: www.health.state.mn.us/divs/

chs/loan.htm

Alternative Loans

Alternative loans also are available from pri-vate lenders, such as a banks, savings andloan associations, or credit unions. Typically,these loans cost the student and family morein the long run, but they may have fewer eli-gibility restrictions. For more information,contact commercial financial institutions orthe financial aid administrator at the schoolyou attend or plan to attend.


19


Repayment of Student LoansBefore using loans to pay for your collegeeducation, be reasonably sure that you canrepay the loan(s) after graduation. Thesmaller the loan debt you assume, the lowerthe salary you’ll need to repay the debt.Conversely, the greater your student loandebt, the higher a salary you’ll need.

The general rule of thumb is that annualstudent loan payments should be less than 8percent of your annual income. If your aver-age annual student loan payment is morethan this, your available cash for everydayliving expenses will be limited.Opportunities for other credit, like car andhome loans, also may be restricted.

The job placement office at your schoolcan give you some idea about the averagestarting salaries for certain professions.Given your choice of profession, you shouldbe able to determine how much you can reasonably borrow to finance your educationby focusing on that profession’s typical starting salary.

The chart below illustrates how high asalary you’d need to repay different levels ofstudent loan debt. The chart assumes a fixed5 percent interest rate, and a minimum of120 monthly (or 10 years) payments.

For more information, check with yourlender or a financial aid administrator.

Loan Consolidation

If you have outstanding balances on severaldifferent federal loans, you may be able tocombine them into one new consolidatedloan with one monthly repayment. Thisreduces the size of your monthly payments

by extending your repayment period for 10to 30 years, depending on your total debt.

Both the Federal Direct Loan Programand the Federal Family Education LoanProgram (FFEL) offer consolidation loans.Most federal student loans or PLUS loanscan be consolidated under a Direct FederalConsolidation Loan. The interest rate isvariable, and is based on theweighted average of the consoli-dated loans not to exceed 8.25percent.

Loans from the SELFProgram cannot be consolidat-ed, but the outstanding balanceon SELF loans may be used to determinelength of the repayment term for consolida-tion loans. Private, alternative, and institu-tional loans also cannot be included in aFederal Consolidation Loan.

You can get a Direct Consolidation Loanwhile still enrolled in school, during thegrace period, or once you have enteredrepayment. Information will be providedduring entrance and exit counseling at yourschool. For an application or to learn more,visit loanconsolidation.ed.gov or contactthe Loan Origination Center’s ConsolidationDepartment at (800) 557-7392.

Other loan consolidation programs areavailable from participating private or statelenders (such as banks, credit unions, andsavings and loan associations), guaranteeagencies, the Student Loan MarketingAssociation, and other secondary markets.Some consolidation plans allow you to baseyour repayments on your income. The inter-est rate on your new consolidated loan willbe the weighted average of interest rates onloans you choose to consolidate, and will befixed for the life of the loan.

Advantages of Consolidation

Consolidation loans allow borrowers to lockin low interest rates and extend their repay-ment period beyond that provided by theoriginal loan. This results in lower monthlypayments for the duration of the new consol-idated loan. Plus, most deferment and for-bearance options are not affected by loanconsolidation.

Disadvantages of Consolidation

Consolidation loans do not have a grace peri-od, and payments begin shortly after theconsolidation is finalized. You also will makemore payments and pay more interest. Thismeans the total cost of repaying the loanwill be higher after consolidation eventhough your payment per month maydecrease. Other borrower benefits resultingfrom the original loan also may be lost.

Your student loanscan be consolidatedonly once.

Loan Repayment Chartat 5% InterestAmount Monthly EstimatedBorrowed Payment Income

(120 months) Level

$ 5,250 $ 55.68 $ 8,352

9,250 98.11 14,717

13,250 140.54 21,081

17,250 182.97 27,446

24,750 262.52 39,378

32,250 342.06 51,309

39,750 421.62 63,243

47,250 501.16 75,174

54,750 580.71 87,107


Defaulting on Your Loan

If you fail to repay your loan, you will be indefault. Your lender and the state and fed-eral governments can take action to recoverthe money:• Your tax refunds may be withheld• Part of your salary may be withheld if

you work for the federal government• You may be sued and taken to court• Credit bureaus will be informed, and your

future credit rating may be affected,which may make it difficult to borrowmoney for a car or a house

• You may be required to repay your debtunder an income contingent repaymentplan and thus repay more than the origi-nal principal and interest on your loans

• You will not be able to obtain additionalstate or federal student aid until youmake satisfactory arrangements to repay

Work Study ProgramsYou may earn money to help pay for youreducation by working at part-time jobs on-or off-campus under either the FederalWork-Study Program or the Minnesota WorkStudy Program. Most schools offer a workstudy job as part of the student’s financialaid package.

The work study award is set by the finan-cial aid office at the school you attend orplan to attend. In most cases, the actual

amount depends on yourfinancial need and the amountof money your school hasavailable for the program.However, some state workstudy funds are available tostudents regardless of finan-

cial need. All Minnesota public post-second-ary institutions and most private collegesparticipate.

Participating students work an average of15 hours per week and may earn $3,000 ormore per year. Minimum wage laws are fol-lowed. The maximum hourly wage ratedepends on the job and the student’s qualifi-cations. Your financial aid administrator willconsider your work study award amount,class schedule, job skills, and academic program to determine how many hours youcan work.

Students work either on-campus or theschool may have arrangements for off-cam-pus employment with governmental or non-profit agencies, or a private, for profitemployer. Work study programs encouragecommunity service work and job placementin elementary-secondary schools in activitiessuch as tutoring. The school tries to place

students in positions related to their courseof study.

Application Process: The financial aid officeat the school you attend or plan to attendwill use the results from your FAFSA todetermine your eligibility for work study.

Eligibility Requirements: Undergraduate andgraduate students are eligible under bothfederal and state work study programs.

To be eligible for Federal Work-Study,the student must:• be a U.S. citizen or eligible non-citizen

(see page 7)• be enrolled a least half time in a program

leading to a degree, certificate, or diploma• be either registered with the Selective

Service (for all males born on or afterJanuary 1, 1960, who are at least 18 andnot currently on active duty in the ArmedForces), or sign a statement of registra-tion status indicating that he is notrequired to register

• not have defaulted on a student loan• not have a recent conviction for posses-

sion or sale of illegal drugs

A school may use some of its federal fundsfor less than half-time students. To find outif your school does this, contact the financialaid administrator.

To be eligible for Minnesota WorkStudy, the student must:• be a Minnesota resident (see page 6) and

U.S. citizen or eligible non-citizen (seepage 7)

• be enrolled for at least six credit hoursper term in a program leading to adegree, certificate, or diploma

Under the state program, students must beenrolled for at least six credits, but priorityis given to students enrolled for 12 or morecredits or the equivalent.

Eligibility criteria for the state programare in some cases less restrictive than thosefor the federal program. Your financial aidadministrator can explain them to you.

Community ServiceBenefitsStudents interested in community servicecan join AmeriCorps to earn an educationaward. Students who have existing community service hours may be eligible for the Presidential Freedom Scholarship.

AmeriCorps

AmeriCorps is a cooperative effort by localagencies and federal and state governmentsto provide community service throughout the


Work study is notconsidered income

on the FAFSA.


Financial Aid You Earn

country. Areas of service include such proj-ects as preschool education, dropout preven-tion, literacy, low-income housing, assistedliving for the elderly and people with disabil-ities, violence prevention, conservation, andneighborhood recycling.

Hundreds of community service opportu-nities are available which provide incomeand a post-service education benefit to helpfinance part of the participant’s education atany Federal Title IV institution. AmeriCorpsgraduates have seven years to use their edu-cation award, and can apply it to any non-defaulted federal student loan.

Application Process: For more information inAmeriCorps, visit www.americorps.org.For information on Minnesota opportunities,visit www.serveminnesota.org or callServe Minnesota! at (612) 333-7740.

Eligibility Requirements: To be eligible forAmeriCorps positions, you must be 17 yearsof age or older, have a high school diploma ora GED (or are completing a GED), and be aU.S. citizen, U.S. national, or an eligiblenon-citizen (see page 7).

Participants may enroll in post-secondaryeducation while holding a position, and mayapply to projects in the state or nationally.However, you can serve no more than twoAmeriCorps terms.

Presidential Freedom Scholarship

The Presidential Freedom Scholarship recog-nizes high school students for outstandingcommunity service. The principal of eachschool can nominate up to two students.

Each scholarship is at least $1,000, whichincludes at least $500 from local business,community, or civic organizations and a $500 match from the Corporation forNational Service.

Application Process: Students are nominatedby their high school principal in spring ofeach year. For more information, visitwww.nationalservice.org/scholarships/,or contact your high school principal or theServices Office.

Eligibility Requirements: You must be a highschool junior or senior, in public and privateschools, who has performed at least 100hours of community service in the year priorto applying.

Military Service BenefitsEach branch of the U.S. military has educa-tion programs to help students pay for col-lege. Active duty also makes you eligible foreducational benefits under the federalMontgomery G.I. Bill. You may be eligiblefor additional benefits from the federal andstate governments.

Those called to active duty while enrolledat a Title IV post-secondary institutionreceive certain protections in regard tofinancial aid eligibility, enrollment status,and loan repayment. In most instances, thestudent will not be penalized as a result ofhis or her absence to perform military serv-ice. Check with the school’s financial aidoffice for more details.

Veterans Education Assistance Program

The Veterans Education Assistance Program(VEAP) helps men and women who served inthe military between January 1, 1977through June 30, 1985 to pursue anapproved course of education or training.The Veterans Department matches everydollar contributed by the veteran to a specialtraining fund with $2 in federal funds.

Participants receive monthly paymentsfor the number of months they contributed,or 36 months, whichever is less. The amountis determined by dividing the number ofmonths that contributions were made intothe participant’s training fund total.

Application Process: Application forms andother information are available from stateVeterans Affairs regional offices. Veteransalso should contact their school’s veteransaffairs office, and should inquire about othereducational benefits such as VA educationalloans, tutorial assistance, work studyallowance, and the vocational rehabilitationprogram. For more information, call aVeterans Affairs counselor at (888) 442-4551.

Americorps Service Commitment Chart Length of Hours of Living Allowance Post-serviceCommitment Service and Benefits Education Award

Full time, 1,700 about $10,000, plus $4,7259 months to health care coverage, 1 year child care (if eligible)

Part time 300 to 900 about $5,000 $2,362 (pro-rated basedon number of hours)


Eligibility Requirements: You are eligible forthis program if you entered the militaryfrom January 1, 1977 through June 30,1985, and contributed between $25 and $100of your monthly pay (maximum $2,700) to aspecial training fund

Montgomery G.I. Bill

The Montgomery G.I. Bill (active duty) pro-vides educational benefits for individualswho entered active duty for the first timeafter June 30, 1985. Active duty includes full-time National Guard duty performed afterNovember 29, 1989. Benefits are not guaran-teed nor automatic, and are disbursed at thediscretion of the Veterans Affairs Office.

The program is voluntary. However, allservice members are assumed to be enrolledunless they elect not to participate uponentry into the service. Participating activeduty members will have their pay reducedby $100 per month for their initial 12months of service. This reduction in pay is nonrefundable.

Application Process: Veterans should contacttheir state Veterans Affairs regional office orthe veterans affairs office at the school theyare attending or plan to attend.

Eligibility Requirements: You are eligible forbenefits if you:• served on active duty for three years, or

two years of active duty plus four years inthe Selected Reserve or National Guard.You are eligible to receive $900 a monthin basic benefits for 36 months effectiveOctober 1, 2002, and $985 effectiveOctober 1, 2003. Those who enlist for less

than three years may receive $800 amonth, effective October 1, 2003

• are Selected Reserve personnel who obli-gate themselves for six years on or afterJuly 1, 1985 are eligible for theMontgomery G.I. Bill Chapter 1606 pro-gram. Eligible service members may col-lect up to $282 per month for a maximumof 36 months of assistance

Entitlement under the Vietnam Era G.I. Bill:You are eligible for Montgomery G.I. Billbenefits if you had remaining entitlementunder the Vietnam Era G.I. Bill onDecember 31, 1989; served on active dutywithout break from October 19, 1984; servedto June 30, 1988, or June 30, 1987—followedby four years in the Selected Reserve afterrelease from active duty; and entered theSelected Reserve within one year of releasefrom active duty.

Federal Tuition Assistance

The Federal Tuition Assistance program pro-vides financial aid for Army National Guardmembers. The program pays up to $200 persemester hour, up to $4,000 per fiscal year(October 1 – September 30). The combina-tion of the State Tuition and TextbookReimbursement Grant Program and TuitionAssistance cannot exceed more then 100 per-cent of the tuition cost (not including fees).Money is paid directly to the school.

Application Process: Soldiers complete theirapplications on www.VirtualArmory.com.Soldiers need to bring a signed copy of theDD 2171-e (printed when completing theapplication online) to their unit with a copyof their course registration and tuition andfees statement. Applications must bereceived prior to the start of the course.Federal funding is limited and this benefit isapproved on a first come, first pay basis.

Eligibility Requirements: Soldiers must be members of the National Guard prior to start of course. Soldiers must not bereceiving Montgomery G.I. Bill Kicker benefits. Soldiers with Montgomery G.I. Bill basic benefits may be eligible for theprogram, pending funding from NationalGuard Bureau.

Minnesota Tuition and TextbookReimbursement Grant

The Minnesota State Tuition and TextbookReimbursement Grant program providesfinancial aid for Air and Army NationalGuard members. The 2004-2005 tuition andtextbook reimbursement program reimburs-es members for coursework satisfactorilycompleted at any school, in-state or out-state, approved for veterans benefits. The

Military Benefits ResourcesROTC Military Scholarshipswww.todaysmilitary.com/wyg/t5_wyg_rotc.php

U.S. Department of Veterans Affairswww.gibill.va.gov

Federal Benefits for Veterans andDependents, 2004 Edition

This U.S. Department of VeteransAffairs book contains information onveterans’ programs, including educa-tional benefits. Copies in English andSpanish may be downloaded for free atwww.va.gov/opa/feature/, or pur-chased for $6.50 by sending a check ormoney order payable to:

Superintendent of DocumentsP.O. Box 371954Pittsburgh, PA 15250-7954


rate of reimbursement is up to 80 percenttuition only, not to exceed 80 percent of theper undergraduate credit rate at theUniversity of Minnesota, Twin Cities. Moneyis paid directly to the soldier.

Application Process: You request obligationthrough your units at the start of the semes-ter. Upon completing the course, you turn inyour grades, and submit a tuition and feestatement from the school to your unit.

For additional information on educationalbenefits in the Minnesota National Guard,contact the Education Services Office:

Tina Kojetin Department of Military AffairsJFMN-J1R-D (Education)Veterans Service Building20 West 12th StreetSt. Paul, MN 55155-2098E-mail: [email protected]: www.dma.state.mn.us

Eligibility Requirements: You must be anactive member of the Minnesota Army or AirNational Guard pursuing undergraduate orgraduate coursework at any school approvedfor veterans benefits. This grant may beused in conjunction with either FederalTuition Assistance or the Montgomery G.I. Bill.

Minnesota Educational Assistance for War Veterans

The state of Minnesota provides educationalassistance for war veterans who attend anapproved educational institution inMinnesota. Veterans may qualify for a one-time stipend of $750.

Application Process: Contact the financialaid office at the school you attend or plan toattend, your county Veterans Service Officerat the County Courthouse, or:

Lillian DambowyMinnesota Department of Veterans Affairs Veterans Service Building, 2nd Floor20 West 12th StreetSt. Paul, MN 55155Tel: (651) 296-1033Web: mdva.state.mn.us

Eligibility Requirements: To be eligible forthis program, you must provide a statementfrom the U.S. Department of VeteransAffairs indicating you have used all benefitsavailable under federal veterans programs;have been a resident of Minnesota at thetime of your induction into the armed forcesand for six months immediately preceding

the induction; and have some time remain-ing on your eligibility period for federal vet-erans benefits.

Minnesota Veterans’ Dependents Assistance Program

The Minnesota Veterans’ DependentsAssistance Program provides tuition assis-tance for higher education at mostMinnesota institutions to dependents of per-sons considered by the Department ofDefense to be prisoners of war or personsmissing in action after August 1, 1958.Students should apply to the financial aidoffice at the school they attend.

Financial Aid for Specific PopulationsAdditional aid may be available to you basedon criteria in addition to your level of finan-cial need, including aid for (but not limitedto) orphaned or fostered, minority, or adultstudents. The programs described here areonly a few of those available. Be sure tocheck the web sites listed on page 24.

Orphaned or Fostered Children

Orphans and those who were in foster careuntil age 18 may be eligible for an increasedlevel of financial aid assistance.

To qualify, students should answer “yes”to question 57 on the Free Application forFederal Student Aid (FAFSA).

Orphans or wards of court also are auto-matically considered independent studentsand are not required to submit financialinformation about their family. You mayqualify for a larger Federal Pell Grant andMinnesota State Grant because of this.

If you are attending or plan to attend aMinnesota state college or university, youmay be eligible for a tuition waiver for cer-tain courses or programs. Check with theschool for more details.

Minnesota Educational Assistance for War Orphans

Qualified war orphans may receive up to$750 a year from the Department ofVeterans Affairs to be used for tuition, roomand board, and books and supplies.

Children of deceased veterans also mayqualify for free tuition at Minnesota’s techni-cal and community colleges and state uni-versities until they receive a bachelor’sdegree. This does not apply to private insti-tutions or the University of Minnesota.

Financial Aid forSpecificPopulations

Application Process: Contact the financialaid office at the school you attend or plan toattend, your county Veterans Service Officerat the County Courthouse, or:

Minnesota Department of Veterans Affairs Veterans Service Building, 2nd Floor20 West 12th StreetSt. Paul, MN 55155Tel: (651) 296-2562Web: mdva.state.mn.us

Eligibility Requirements: To be eligible forthis program, you must have lost your veter-an parent through death because of a servicecaused condition and have been a resident ofMinnesota for two years prior to your appli-cation for educational benefits

Education Vouchers for Former Youth in Care

Education vouchers are federal funds madeavailable to states through the ChafeeFoster Care Independence Act. Educationvouchers are intended to help students ages18 to 23 pay for post-secondary education.

The award amount is based on theamount of other aid the student is receiving,and an estimated living expenses budgetwhich is a part of the application. The maxi-mum amount per year is $5,000 per student.

In addition to tuition, books, and fees,education vouchers may be used for roomand board, child care, transportation, com-puters, and other expenses the student mayneed to cover to make a post-secondary edu-cation possible.

Application Process: Applications are avail-able at www.dhs.state.mn.us underChildren. Click on Adolescent Services andthen Education/Training Vouchers.Application deadlines are twice a year.

To apply for an education voucher award,you must attach a copy of your FAFSA,apply for other sources of financial aid, and

submit two letters of recommendation.Students may reapply for education vouch-ers every year. Transcripts are required asevidence of progress in a post secondary edu-cation program. Additional questions can bedirected to:

Claire HillMinnesota Department of Human Services444 Lafayette Road North, 3rd Floor SouthSt. Paul, MN 55155Tel: (651) 296-4471E-mail: [email protected]: www.dhs.state.mn.us

Eligibility Requirements: In order to receivean education voucher, you must meet the fol-lowing requirements:• Experience a county approved out of

home placement after the age of 14 (thisincludes relative and kinship place-ments), or be adopted after age 16

• Have a high school diploma or a GED• Begin a post secondary program before

age 21• Attend an accredited public or nonprofit

school that has been in existence for atleast two years

Native American Students

Native American students in Minnesota maybe eligible for additional financial aid fromthe state of Minnesota, the U.S. Bureau ofIndian Affairs, and their tribe.

Minnesota Indian Scholarship Program

Scholarships are available to eligible Indianstudents who are undergraduates enrolledfull-time and graduate students, enrolledeither full or part-time. The award amountis based on need up to $3,300 per year.


Scholarship ResourcesAid for Native American Studentswww.finaid.org/otheraid/natamind.phtml

American Indian College Fundwww.collegefund.org

Hispanic College Fundwww.hispanicfund.org

Marine Corps Scholarship Foundationwww.marine-scholars.org

Minority Scholarship Listwww.miami.edu/UMH/CDA/UMH_Main/1,1770,6802-1;8577-3,00.html

NCAA Scholarships and Internshipswww.ncaa.org/about/scholarships.html

Union-Sponsored Scholarships and Aidwww.aflcio.org/familyfunresources/collegecosts/scholar.cfm

United Negro College Fundwww.uncf.org/scholarship/

Also see page 13 for popular online scholarship searches.


Financial Aid forSpecificPopulations

Application Process: Interested studentsshould complete the FAFSA and contacttheir tribal education office or the financialaid administrator at their campus. The pri-ority deadline is July 1. Information andapplication forms also are available from:

Lea PerkinsMinnesota Department of Education1500 Highway 36 WestRoseville, MN 55113Tel: (651) 582-8846 or (800) 657-3927E-mail: [email protected]: education.state.mn.us

Eligibility Requirements: In order to qualifyfor this scholarship, you must be:• one-fourth or more Indian ancestry• a resident of Minnesota and a member of

a federally recognized Indian tribe• a high school graduate (or have a GED)• able to benefit from advanced education• accepted by an approved college, universi-

ty, or vocational school in Minnesota

American Indian Tuition Waiver

The American Indian Tuition Waiver at theUniversity of Minnesota, Morris (UMM) rec-ognizes the campus’ origins as the MorrisIndian School founded in the 1800s.American Indian students admitted to UMMreceive a full tuition waiver by supplyingdocumentation of American Indian heritage.

Students of Farm Families

Minnesota community and technical col-leges, the University of Minnesota, and someprivate colleges may provide additionalfinancial aid for students from farm familiesor for students wanting to pursue agricul-ture-related careers. Gustavus AdolphusCollege, for example, provides up to $3,000in need-based financial aid to students fromfarm families in rural areas. Be sure tocheck with the financial aid office at theschool you attend or want to attend.

University of Minnesota Agriculture, Food,and Environmental Sciences

The University of Minnesota’s College ofAgricultural, Food, and EnvironmentalSciences (COAFES) awards over $700,000 inneed- and merit-based undergraduate schol-arships each year. Awards range from $1,000to $5,000 per year, and many are renewablefor multiple years.

The College offers 11 majors that focus onfood, agriculture, and the environment, andspan the business, communication, educa-tion, and science disciplines.

Application Process: Prospective studentsconsidering enrolling in the College arestrongly encouraged to apply. More informa-tion is available from:

Jessica KruegerCollege of Agricultural, Food, andEnvironmental SciencesUniversity of Minnesota190 Coffey Hall1420 Eckles AvenueSt. Paul, MN 55108Tel: (612) 625-9254 or (800) 866-2474E-mail: [email protected]: www.coafes.umn.edu

Eligibility Requirements: To beeligible, you must be a fresh-man, continuing, or transferstudent admitted and planningto enroll in one of the College’sdegree programs.

Dependents and Spousesof Public Safety Officers

Dependent children and thesurviving spouse of a publicsafety officer killed in the lineof duty are eligible to receiveeducational benefits through the PublicSafety Officers’ Survivor GrantProgram. Awards are based on the tuitionand fees charged by the institution or thetuition and fee maximums established inlaw for the State Grant Program, whicheveris less. Awards are renewable for a maxi-mum of 8 semesters or 12 quarters or their equivalent.

Application Process: Applicants need to takea certificate of eligibility to the financial aidoffice of the school they attend or plan toattend. This certificate can be obtained from:

Dana Gotz Minnesota Department of Public Safety 445 Minnesota Street, Suite 100 NCL Tower St. Paul, MN 55101Tel: (651) 296-6642 E-mail: [email protected]

Eligibility Requirements: To qualify for thisaward, you must be:• a dependent less than 23 years old

or a spouse of a public safety officer killed in the line of duty on or afterJanuary 1, 1973

• enrolled in an undergraduate or certifi-cate program at one of the more than 128public or private post-secondary institu-tions in Minnesota that participate in theState Grant Program

A farm is notconsidered an asseton the FAFSA if it is the parents’principal place ofresidency and theyparticipate in itsoperation.

Those who have received a baccalaureatedegree or been enrolled full time for theequivalent of 10 semesters or 15 quarters,whichever occurs first, are no longer eligible.

Adult Students

If you have been away from school forawhile, your needs probably differ fromthose of 18 year-old college freshmen. Youmay need to consider career changes, family

priorities, and full or part-timeemployment responsibilities.

Although you may feelalone, you’re not. About athird of the independent stu-dents applying for MinnesotaState Grants are over 30 years old.

Review pages 8 to 23 tolearn more about the majorfederal and state financial aidprograms available. The schoolyou are attending or plan to

attend also may have additional aid pro-grams geared toward adult students. Checkwith the financial aid office (see page 43).

Regardless of the aid program, it helps toapply early. If a program has limited fund-ing, this money may be depleted early in the year.

Don’t be discouraged if you decide to go toschool later in the year and have not yetapplied for aid. Some programs are availableany time of the year. It is best to contact thefinancial aid office of the school that you areplanning to attend. In addition to providinginformation about financial aid programs,the financial aid personnel may have othersuggestions about how you can reduce yourexpenses while attending school.

Alliss Opportunity Grant Program

Adults may be eligible to take a college cred-it course for free at one of Minnesota’s com-munity colleges through the AllissOpportunity Grant Program. The grant cov-ers one course (up to five credits). The cost ofbooks is included in the award, but otherrestrictions and fees many apply.

Application Process: Contactthe community college admis-sions office for more informa-tion and an application. Youcannot apply for a grant afteryou have registered.

Eligibility Requirements: To be eligible forthis grant, you must have been out of highschool for seven or more years, and not havea bachelor’s degree.

Employer-Paid Tuition Assistance

Employers may provide up to $5,250 peryear in educational assistance to eachemployee on a tax free basis for undergradu-ate or graduate courses, regardless ofwhether the education is job related.

This means you can exclude from yourtaxable income up to $5,250 of tuition assis-tance you received from your employer. Youremployer can tell you if the program is aqualified program, and will automaticallytreat the educational assistance as a tax-freebenefit and not include it as wages on yourW-2 form.

Limitation & Restrictions: Neither the HopeTax Credit nor the Lifetime Learning Credit(see page 30) may be claimed for a studentin the same tax year that the employer pays all the student’s qualified tuition andrelated expenses.

Qualified Education Expenses: Educationalassistance benefits include payments by theemployer for tuition, fees, and similarexpenses, books, supplies, and equipment. Itdoes not include payments for meals, lodg-ing, transportation, or tools or supplies(other than textbooks) that you can keepafter completing the course of instruction.

Employer Scholarship Programs

Some employers also may provide scholar-ships for undergraduate or graduate studyto their employees and the employee’sspouse or children. Your employer can tellyou if it has such a program available.

Assistance for Dislocated Workers

Dislocated Worker Programs serve individu-als dislocated from long-held jobs. The goalis to help workers obtain new employmentquickly. These programs focus on upgradingcurrent job skills, retraining workers whoseskills are not marketable, and providing sup-port services. Individuals should inquireabout Dislocated Worker Programs at local WorkForce Centers. Visitwww.mnwfc.org/field/ to find theWorkForce Center nearest you.

26Minnesota Higher Education Services Office

There is no age limitfor federal and state

financial aid, butmany aid programs

are limited toundergraduate

students.

Be sure to exploreeducation tax

credits anddeductions on

page 30 to help pay for your

education.


Reciprocity & ReducedTuition ProgramsReciprocity is the agreement that Minnesotahas with neighboring states to provide lowertuition for attending public colleges and uni-versities in those states. Typically, non-resi-dent admission tuition and fees are reduced(or eliminated) for reciprocity students.

Students from Kansas, Michigan,Minnesota, Missouri, Nebraska, and NorthDakota also may be eligible for tuitionreduction using the Midwest StudentExchange Program.

Tuition Reciprocity

Tuition reciprocity enhances opportunitiesfor students to attend public post-secondaryeducation institutions in neighboring states.Reciprocity students do not have to meethigher non-resident admission standards,and do not pay non-resident tuition prices.

Minnesota has tuition reciprocity agree-ments with Wisconsin, North Dakota, SouthDakota, Manitoba, and Iowa LakesCommunity College (campuses at Algona,Estherville, Emmestburg, Spencer, andSpirit Lake) and Minnesota WestCommunity and Technical College (campus-es at Canby, Granite Falls, Jackson,Pipestone, and Worthington).

All public post-secondary education insti-tutions in Minnesota, Wisconsin, NorthDakota, South Dakota, and Manitoba arecovered by statewide tuition reciprocity

Some students must apply for tuition rec-iprocity benefits, and should do so as soon asthey know they will be attending an eligibleinstitution. Applying early ensures studentswill be charged the reciprocity tuition ratewhen they register for classes. Applicationsreceived after the last day of a term will onlyapply to subsequent terms. There is no fee toapply for reciprocity.

Minnesota/Wisconsin Tuition Reciprocity

All public post-secondary education institu-tions in Minnesota and Wisconsin areincluded in the statewide tuition reciprocityagreement. All undergraduate and graduateprograms of study are available to reciproci-ty students, except professional programs ofMedicine, Veterinary Medicine, andDentistry at the University of Minnesota-Twin Cities or Duluth and the University ofWisconsin-Madison or Milwaukee.

Reciprocity Tuition Rate: Minnesota resi-dent undergraduate students enrolled in aWisconsin public post-secondary institutiongenerally pay tuition at the rate charged bya comparable Minnesota institution. Forexample, an undergraduate student from

Minnesota enrolled at the University ofWisconsin-Madison pays approximately thetuition rate he or she would pay at theUniversity of Minnesota-Twin Cities. Anundergraduate student from Minnesotaenrolled at the University of Wisconsin-River Falls, or any other similar Wisconsincomprehensive four-year institution, pays atuition rate similar to what heor she would pay at aMinnesota state university. AMinnesotan enrolled in aUniversity of Wisconsin SystemCollege (two-year institution)pays the tuition rate charged ata similar Minnesota communitycollege. And, a Minnesotanenrolled in a Wisconsin technical collegepays the Wisconsin technical college residenttuition rate.

Wisconsin resident undergraduate stu-dents enrolled at a Minnesota communitycollege or consolidated community and tech-nical college, a Minnesota state university,or a University of Minnesota campus atDuluth, Morris, or Crookston pay tuition ata rate charged by a comparable Wisconsininstitution. Wisconsin resident undergradu-ate students enrolled in a Minnesota techni-cal college pay tuition at the Minnesotaresident tuition rate. Wisconsin residentundergraduate students enrolled at theUniversity of Minnesota-Twin Cities paytuition based on the resident undergraduaterate charged at the University of Wisconsin-Madison plus 25 percent of the differencebetween the University of Wisconsin-Madison and the University of Minnesota-Twin Cities undergraduate rate.

Minnesota and Wisconsin residentsenrolled in graduate education or in lawschool under the tuition reciprocity agree-ment pay the higher of the two state tuitionrates at comparable institutions.

Application Process: Minnesota residentswho enroll in University of Wisconsin insti-tutions must apply for tuition reciprocitythrough the Minnesota Higher EducationServices Office. Minnesota students seekingtuition reciprocity at a Wisconsin technicalcollege should apply directly to the institu-tion they will attend.

Wisconsin residents who enroll in aUniversity of Minnesota institution, aMinnesota state university, a Minnesotacommunity college, or a Minnesota consoli-dated community and technical college mustapply through the Wisconsin HigherEducational Aids Board. Wisconsin studentsenrolling at a Minnesota technical collegeshould apply directly to the institution theywill attend.

Minnesota students may be eligible toapply for tuitionreciprocity online.

Reciprocityand ReducedTuition

Reciprocity benefits are automaticallyrenewed for Minnesota/Wisconsin tuitionreciprocity students who earned post-second-ary credits in the previous 12 months.

Applications are available from all highschools or eligible post-secondary educationinstitutions, or request an application from:

Minnesota Higher Education Services Office1450 Energy Park Drive, Suite 350St. Paul, MN 55108-5227Tel: (651) 642-0567 or (800) 657-3866E-mail: [email protected]: www.mheso.state.mn.us

Wisconsin Higher Educational Aids BoardP.O. Box 7885Madison, WI 53707Tel: (608) 267-2209E-mail: [email protected]: www.heab.state.wi.us

Minnesota/North Dakota Tuition Reciprocity

All public post-secondary education institu-tions in Minnesota and North Dakota areincluded in the statewide tuition reciprocityagreement. All undergraduate and graduateprograms of study are available to reciproci-ty students, including professional programsof study.

Reciprocity Tuition Rate: Minnesota resi-dent undergraduate or graduate studentsenrolled at the University of North Dakotaor North Dakota State University pay theaverage tuition at a rate charged byMinnesota state universities. Minnesota resident students attending other NorthDakota public four-year institutions paytuition at a rate slightly above the NorthDakota resident tuition rate. Minnesota residents enrolled in a North Dakota two-year institution pay tuition at a ratecomparable to what is charged Minnesotaresidents attending a Minnesota communityor technical college.

North Dakota residents enrolled in aMinnesota public post-secondary institutionpay the Minnesota resident tuition rate.

Application Process: Minnesota residentswho graduated from a Minnesota high schoolwithin 12 months of initial enrollment at aNorth Dakota institution do not have toapply for tuition reciprocity. These studentsmust present an official high school tran-script to the enrolling North Dakota school.Minnesota residents who graduated fromhigh school more than 12 months prior toinitial enrollment at a North Dakota institu-tion must apply for tuition reciprocitythrough the Minnesota Higher EducationServices Office.

North Dakota residents who enroll in a Minnesota technical college must apply for tuition reciprocity through the NorthDakota Board for Career and TechnicalEducation. All other North Dakota residentsmust apply through the North Dakota Boardof Higher Education.

Reciprocity benefits are automaticallyrenewed for Minnesota/North Dakota tuitionreciprocity students who earned post-second-ary credits in the previous 12 months


Minnesota Higher EducationServices Office1450 Energy Park Drive, Suite 350St. Paul, MN 55108-5227Tel: (651) 642-0567 or (800) 657-3866E-mail: [email protected]: www.mheso.state.mn.us

North Dakota University SystemState Capitol Building, 10th Floor600 E. Boulevard Avenue, Dept. 215Bismarck, ND 58505Tel: (701) 328-4113E-mail: [email protected]: www.ndus.nodak.edu

North Dakota Board for Career and Technical Education600 E. Boulevard Avenue, Dept 270Bismarck, ND 58505Tel: (701) 328-2288E-mail: [email protected]: www.state.nd.us/cte/

Minnesota/South Dakota Tuition Reciprocity

All public post-secondary education institu-tions in Minnesota and South Dakota areincluded in the statewide tuition reciprocityagreement. All undergraduate and graduateprograms of study are available to reciproci-ty students, including professional programsof study.

Reciprocity Tuition Rate: Minnesota resi-dent undergraduate or graduate studentsenrolled at the University of South Dakota,South Dakota State University, or otherSouth Dakota public four-year institutionspay the average undergraduate or graduatetuition rate charged by Minnesota state uni-versities. Minnesota residents enrolled inprofessional programs at the University ofSouth Dakota pay no more than 150 percentof the South Dakota resident tuition rate.Minnesota residents enrolled in SouthDakota technical institutes in Watertown,Mitchell, Sioux Falls, or Rapid City pay theSouth Dakota resident tuition rate.



South Dakota residents enrolled in aMinnesota public post-secondary institutionpay approximately the Minnesota residenttuition rate. At some Minnesota state uni-versities and Minnesota two-year institu-tions the tuition rate is slightly aboveMinnesota resident rates.

Application Process: Minnesota residentswho graduated from a Minnesota high schoolwithin 12 months of initial enrollment at aSouth Dakota institution do not have toapply for tuition reciprocity. These studentsmust present an official high school tran-script to the enrolling South Dakota school.Minnesota residents who graduated fromhigh school more than 12 months prior toinitial enrollment at a South Dakota institu-tion must apply for tuition reciprocitythrough the Minnesota Higher EducationServices Office.

South Dakota residents who enroll in aMinnesota public post-secondary institutionmust apply for tuition reciprocity throughthe South Dakota Board of Regents.

Reciprocity benefits are automaticallyrenewed for Minnesota/South Dakota tuitionreciprocity students who earned post-second-ary credits in the previous 12 months.


Minnesota Higher Education Services Office1450 Energy Park Drive, Suite 350St. Paul, MN 55108-5227Tel: (651) 642-0567 or (800) 657-3866E-mail: [email protected]: www.mheso.state.mn.us

Reciprocity ProgramSouth Dakota Board of RegentsBox 2201, University StationBrookings, SD 57007Tel: (605) 688-4497E-mail: [email protected]: www.sdbor.edu

Minnesota/Manitoba Tuition Reciprocity

Minnesota and Manitoba residents wishingto obtain tuition reciprocity benefits shouldcontact the school where they intend toenroll. Students pay the resident tuition rateat the institution attended.

Iowa Lakes Community College & MinnesotaWest Community and Technical College

Minnesota residents and Iowa residents wholive in the Iowa Lakes Community Collegeattendance district should contact the schoolwhere they intend to enroll. Students paythe resident tuition rate at the institution.

Midwest Student Exchange Program

Through the Midwest Student ExchangeProgram (MSEP), Minnesota residents mayattend a participating public and privatepost-secondary institution in Michigan,Missouri, Kansas and Nebraska at a reducedtuition rate. The program also allows resi-dents of participating states to attend aMinnesota publicinstitution at areduced tuition rate.

Program Tuition Rate:Students pay up to150 percent of theresident tuition rate(which is still belowthe non-resident rate)at participating public colleges and universi-ties or receive a 10 percent reduction intuition at participating private schools.

Application Process: Students must indicatethey are seeking admission as a MidwestStudent Exchange Program student whenapplying to an eligible institution. The insti-tution will evaluate the student’s requestand respond directly to the student.

Eligibility Requirements: Minnesota resi-dents are eligible for reduced tuition at alimited number of public and private schoolsin Michigan, Missouri, Kansas, andNebraska. Minnesota residents interested ina North Dakota school and North Dakotaresidents interested in a Minnesota schoolmust apply for tuition reciprocity (see page28) rather than the Midwest StudentExchange Program.

If you’re a resident of Michigan, Missouri,Kansas, and Nebraska, you’re eligible forreduced tuition if you attend a Minnesotapublic college or university through theMidwest Student Exchange Program.

Brochures listing eligible colleges, univer-sities, and programs of study are distributedto high schools, and are available from:

Minnesota Higher Education Services Office1450 Energy Park Drive, Suite 350St. Paul, MN 55108-5227Tel: (651) 642-0567 or (800) 657-3866E-mail: [email protected]

Midwest Higher Education Commission1300 South Second St., Suite 130Minneapolis, MN 55454-1079Tel: (612) 626-8288Web: www.mhec.org

Click on Reciprocity underPaying for College atwww.mheso.state.mn.us to check current reciprocity tuition rates.

Reciprocityand ReducedTuition

Several federal tax benefits are available tohelp pay for post-secondary education. Theseinclude tax credits, tax deductions, andexclusions from gross income.

Limitations & Restrictions

The following tax incentives have differentphase-in and phase-out periods, varyingincome eligibility requirements, and defini-tions of qualified college costs. Students andfamilies may need to choose among incen-tives since some tax preferred investmentoptions and tax provisions cannot be usedwith each other in the same tax year.

Hope Tax Credit

The Hope Tax Credit provides up to $1,500per eligible student to help cover the firsttwo years of qualified expenses for each eli-gible student. The credit reduces the amountof federal individual income taxes you mayhave to pay. Scholarships, grants, and othertax-free educational assistance are subtract-ed from tuition and fees, and may reduce theamount of credit you receive.

Qualified Education Expenses: Qualifiedtuition and related expenses are tuition andfees required for enrollment at an eligibleinstitution. Qualified expenses do notinclude books, room and board, studentactivities, athletics (unless the course is partof the student’s degree program), insurance,equipment, transportation, or other similarpersonal, living, or family expenses.

Eligibility Requirements: The student mustbe taking at least one half the normal full-time work load in a program that leads to adegree, certificate, or other recognized edu-cational credential; and enrolled for at leastone quarter or semester during the calendaryear. You, your spouse, or an eligible depend-ent can be an eligible student.

You must file a tax return and owe taxesto take advantage of this tax credit. Taxcredits are subtracted directly from the taxyou owe, rather than reducing taxableincome like a tax deduction. If the credit ismore than your tax, the excess is not refund-ed to you.

Limitations: The tax credit is limited to thefirst two years of qualified expenses, andphases out for joint tax filers between

$82,000 and $102,000 of adjusted grossincome and for single tax filers between$41,000 and $51,000. Married taxpayers fil-ing separate returns cannot claim this cred-it. The credit is based on qualified tuitionand fees minus scholarships, grants, andother tax-free educational assistance.

You cannot claim the Hope and LifetimeLearning Tax Credits for the same studentin the same year, but families may be able toclaim the Hope Credit for some family mem-bers and the Lifetime Learning Tax Creditfor others who qualify in the same year. Youmay be able to claim this credit in the sameyear a distribution is received from aCoverdell Education Savings Account (ESA)or a Qualified Tuition Program (QTP). Youcannot use expenses paid with a distributionfrom either a Coverdell ESA or a QTP as thebasis for the Hope Tax Credit.

Effects on Financial Aid: The Hope TaxCredit is reported on the Free Applicationfor Federal Student Aid Worksheet C. Thecredit reduces the amount of federal incometax liability and reduces total income used todetermine financial aid.

Lifetime Learning Tax Credit

The Lifetime Learning Credit equals 20 per-cent of the amount of qualified tuition andrelated expenses, up to $2,000 per taxpayer’sfamily for all undergraduate and graduatestudy. There is no limit on the number ofyears for which the Lifetime Learning TaxCredit can be claimed for each student.

Qualified Education Expenses: Qualifiedtuition and related expenses are tuition andfees required for enrollment or attendance atan eligible education institution. Non-creditcourses to acquire or improve job skills alsomay qualify. Check with your tax prepareror contact the IRS.

Eligibility Requirements: Generally, you canclaim the Lifetime Learning Tax Credit ifyou pay qualified tuition and related expens-es of higher education for an eligible stu-dent. You, your spouse, or an eligibledependent can be an eligible student.

The tax credit also may be claimed for astudent who enrolls in a single course orwho is not pursuing a degree or other recog-nized educational credential.

Are There AnyEducation Tax Benefits?



Education Tax andSavingsIncentives

You must file a tax return and owe taxesto take advantage of this tax credit. Taxcredits are subtracted directly from the taxyou owe, rather than reducing taxableincome like a tax deduction. If the credit ismore than your tax, the excess is not refund-ed to you.

Limitations: The credit covers qualifiedexpenses for all undergraduate and graduatestudy. There is no limit on the number ofyears. It has the same income phase-outs asthe Hope Tax Credit. Married taxpayers fil-ing separate returns cannot claim this cred-it. The credit is based on qualified tuitionand fees minus scholarships, grants, andother tax-free educational assistance.

You cannot claim the Hope and LifetimeLearning Tax Credits for the same studentin the same year, but families may be able toclaim the Lifetime Learning Tax Credit forsome family members and the Hope Creditfor others who qualify in the same year. Youmay be able to claim this credit in the sameyear a distribution is received from aCoverdell Education Savings Account (ESA)or a Qualified Tuition Program (QTP). Youcannot use expenses paid with a distributionfrom either a Coverdell ESA or a QTP as thebasis for the Lifetime Learning Tax Credit.

Effects on Financial Aid: The LifetimeLearning Tax Credit is reported on the FreeApplication for Federal Student AidWorksheet C. The credit reduces the amountof federal income tax liability and reducestotal income used to determine financial aid.

Student Loan Interest Deduction

Taxpayers who have taken loans to pay theprice of attending an eligible educationalinstitution for themselves, their spouse, ortheir dependent may deduct the interestthey pay on the loans up to $2,500.

The deduction is not limited to govern-ment sponsored loans, but does not apply toloans made by family members.

Qualified Education Expenses: Qualifiedexpenses are the costs of attending an eligi-ble educational institution, including gradu-ate school. These costs typically includetuition, fees, room and board, books, equip-ment, and other necessary expenses, such astransportation. These costs, however, mustbe reduced by nontaxable educational assis-tance benefits.

Eligibility Requirements: The student mustbe enrolled in a degree, certificate, or otherprogram leading to a recognized educationalcredential at an eligible educational institu-tion; and have attended for at least one halfthe normal full-time work load for the courseof study.

Limitations: This deduction phases out atmodified adjusted gross incomes of $100,000to $130,000 for married taxpayers filing jointreturns and $50,000 to $65,000 for singletaxpayers.

Effects on Financial Aid: The deductionreduces the federal adjusted gross incomereported on the Free Application for FederalStudent Aid.

Tuition and Fees Deduction

Taxpayers may take a deduction of up to$4,000 for qualified tuition and relatedexpenses. Qualified expenses must bereduced by the amount of any tax-free edu-cation assistance you receive.

Qualified Education Expenses: Qualifiedexpenses are tuition and fees required forenrollment at an eligible institution.Qualified expenses do not include books,room and board, student activities, athletics(unless the course is part of the student’sdegree program), insurance, equipment,transportation, or other similar personal, liv-ing, or family expenses. The deduction doesnot apply to tax years after 2005.

Limitations: You cannot take this deductionif you claim the Hope or Lifetime LearningTax Credit in the same year.

The maximum deduction is limited to taxfilers with modified adjusted gross incomesnot over $65,000 ($130,000 on a jointreturn). Taxpayers with incomes between$65,000 ($130,000 on a joint return) but notover $80,000 ($160,000 on a joint return) candeduct up to $2,000 of qualified tuition andrelated expenses.

Effects on Financial Aid: The deductionreduces the federal adjusted gross incomeon the Free Application for Federal Student Aid.

Other College Tax Provisions

Several other tax provisions may help fami-lies cover college costs:• Grants and scholarships are generally

excluded from the gross income of the recipient.

• The value of debt forgiven if a student per-forms qualified work after graduation isexcluded from the student’s gross income.

• The tuition reduction provided to post-secondary employees and their immediatefamily is excluded from the gross incomeof the recipient.

32

Tax Preferred Saving and Investment OptionsSeveral tax-preferred saving and investmentoptions are available to help you save andpay for post-secondary education. These areparticularly valuable if the family begins touse them when children are young.

Series EE Savings Bonds

Series EE bonds remain a popular savingsoption for paying for college. Contributionsare not tax deductible, but you may be ableto exclude all or part of the interest earnedon Series EE bonds from income when youredeem the bonds to pay post-secondary edu-cation tuition and fees for undergraduate orgraduate study.

Bond interest is subject to federal incometax, but not state or local income tax.However, Series EE bonds purchased afterJanuary 1, 1990 or Series I bonds may beeligible for a special federal exclusion fromtaxpayer income when bond redemption pro-ceeds are used for tuition and fees.

Qualified Education Expenses: Qualifiedexpenses are tuition and fees required foryou, your spouse, or your dependent forwhom you claim an exemption to attend aneligible school. Qualified expenses do notinclude expenses for room and board or forcourses involving sports, games, or hobbiesnot part of a degree program.

You must reduce the qualified expensesby the amount of any tax-free educationalassistance you receive as well as any expens-es used in figuring the Hope and LifetimeTax Credits, and tax-free withdrawals froma Coverdell Education Savings Account.

Eligibility Requirements: You must be payingqualified education expenses for yourself,spouse, or a dependent. Bonds must beissued either in the taxpayer’s name (as soleowner) or in the name of both the taxpayerand the spouse (as co-owners). The ownermust be at least 24 years old before thebond’s issue date.

Limitations: Income limits are applied in theyear bonds are redeemed. Limits are $87,500to $117,750 for married taxpayers filing jointreturns and $58,500 to $73,500 for singletaxpayers.

Effects on Financial Aid: An education sav-ings bond is reported on the Free Applicationfor Federal Student Aid as a parental assetif owned by the parent and a student asset ifowned by the student. The interest incomeexclusion on savings bonds reduces federaladjusted gross income.

Minnesota College Savings Plan

The Minnesota College Savings Plan(MCSP), a 529 Qualified Tuition Program,allows individuals to contribute to state-directed college savings accounts. Earningsaccumulate tax-free, and are exempt fromfederal and state taxes if used for qualifiedhigher education expenses.

The state of Minnesota provides an annu-al matching grant of up to $300 toMinnesota families making a minimumannual contribution of $200, contingent oncontinuing state appropriations for thematch. If the account beneficiary’s familyincome is $50,000 or less, the matchinggrant is 15 percent of the contributionsmade to the beneficiary’s account during the calendar year. The percentage decreasesto 5 percent if the beneficiary’s familyincome is more than $50,000, but not more than $80,000.

For additional information on theMinnesota College Savings Plan or to openan account, visit www.529mn.com or call(866) 218-4223.

Qualified Education Expenses: Qualifiedexpenses include tuition, required fees,books, supplies and equipment, and roomand board for students enrolled at least half time.

Eligibility Requirements: Accounts may beopened by Minnesota residents or residentsof other states. However, only Minnesotaresidents are eligible for the matching grant.

Limitations: The maximum contribution is $235,000, and rollovers are limited to family members. The MCSP has limitedinvestor direction.

You may be eligible to claim either theHope or Lifetime Learning Tax Credits.Contributions can be made to Coverdell ESA and the MCSP in the same year for thesame beneficiary.

Effects on Financial Aid: If owned by theparent, the 529 savings asset is reported asa parental asset on the Free Application forFederal Student Aid. If owned by the stu-dent, it is reported as a student asset. The529 savings plan earnings exclusion reducesfederal adjusted gross income.


33

Education Tax andSavingsIncentives

taxpayers). Students must use the accountby age 30 or incur a 10 percent penalty.

The Hope and Lifetime Learning TaxCredits can be claimed in same year as tax-free distribution from Coverdell ESA so longas the distribution is not used for the sameeducation expenses for which a credit wasclaimed. There is no excess tax on contribu-tions made to a Coverdell ESA on behalf of abeneficiary in the same year there are con-tributions to a Qualified State TuitionProgram on behalf of the same beneficiary.

Effects on Financial Aid: If owned by theparent, the Coverdell ESA is reported as aparental asset on the Free Application forFederal Student Aid. If owned by the stu-dent, it is reported as a student asset. TheCoverdell ESA earnings exclusion reducesfederal adjusted gross income.

Penalty-Free IRA Withdrawals

Taxpayers can withdraw funds from individ-ual retirement accounts (IRAs)—traditionalor Roth—to pay qualified higher educationexpenses without paying the 10 percentearly withdrawal tax that applies to with-drawals before the account owner reachesage 59 1/2.

These funds can be used to pay qualifiededucation expenses for the taxpayer orspouse, or the child or grandchild of the tax-payer or taxpayer’s spouse.

Qualified Education Expenses: Qualifiedexpenses are tuition, fees, books, supplies,and equipment and room and board if thestudent is enrolled at least half time.Eligible payments may be made for qualifiedhigher education expenses for yourself,spouse, children, or grandchildren if yourwithdrawal is made from traditional or Roth IRA.

Distributions from a Coverdell ESA,grants, and tax free employer-provided edu-cational assistance are deducted from quali-fied expenses.

Eligibility Requirements: None.

Limitations: None.

Effects on Financial Aid: The untaxed por-tion of an IRA distribution is reported asuntaxed income on FAFSA Worksheet B.

Coverdell Education Savings Accounts

A Coverdell Education Savings Account(ESA) is a trust or custodial account createdfor paying qualified education expenses ofthe designated beneficiary of the account. ACoverdell ESA can be opened at any bank orother IRS-approved entity.

Earnings accumulate tax-free, and distri-butions may be used for elementary and sec-ondary school expenses as well as forpost-secondary education expenses.

Qualified Education Expenses: Expenses forroom and board must be incurred by stu-dents who are enrolled at least half time,and will qualify only to the extent that theydo not exceed the greater of the followingtwo amounts:• the allowance for room and board, as

determined by the eligible educationalinstitution, that was included in the priceof attendance (for federal financial aidpurposes) for a particular academic periodand living arrangement of the student

• the actual amount charged if the studentis residing in housing owned or operatedby the eligible educational institution

Amounts withdrawn from a Coverdell ESAthat exceed the child’s qualified higher edu-cation expenses in a taxable year are gener-ally subject to income tax and to anadditional tax of 10 percent.

Eligibility Requirements: Parents, grandpar-ents, other family members, friends, and achild may contribute to the Coverdell ESA,provided that the total contributions for eachchild under 18 years of age do not exceed$2,000 during the taxable year.

If the child does not need the money forpost-secondary education, the account bal-ance can be rolled over to the Coverdell ESAof certain family members who can use it fortheir higher education.

Limitations: You cannot contribute to aCoverdell ESA if you are married with anincome over $220,000 ($110,000 for all other


For More InformationTo learn more about federal educationtax benefits and savings options, contact the Internal Revenue Service at (800) 829-3676 or visitwww.irs.gov/formspubs/ to view or download IRS publication 970. Or visit www.mheso.state.mn.us andclick on Tax Benefits & Incentives underPaying for College.

34

Program

State Grant Program

Federal Pell GrantProgram

Federal SupplementalGrants

Minnesota IndianScholarship Program

Child Care GrantProgram

State Work-StudyProgram

Federal Work-StudyProgram

Federal Perkins LoanProgram

Federal StaffordStudent Loan Program(subsidized or unsubsidized)

Apply to

Complete Free Application for FederalStudent Aid (FAFSA).

Complete Free Application for FederalStudent Aid (FAFSA).

Campus financial aid office.

Call (800) 657-3927 or e-mail [email protected]





Private lenders.(A limited number of schools makeloans directly to students)

Amount

Maximum award in 2004-2005 rangesfrom about $4,801 at a public technicalcollege to $7,662 at a private four-yearcollege. Average state award is $1,860.

$400–$4,050 in 2004-2005.

Up to $4,000 per year.

Up to $3,300 per year.

Maximum of $2,200 per child perschool year. Determined by school not to exceed 40 hours per week.Maximum award can be increased byup to 10 percent to compensate forhigher market costs for infant care.

Determined by school.

Determined by school.

Up to $20,000 total for undergradu-ates; $40,000 for graduates.

$2,625/year for first year undergrad students, $3,500/year for second yearundergrad students, and $5,500 forundergrads in third year status. $23,000cumulative. $8,500/year for graduateand professional students. $65,500cumulative maximum, including loansfor undergrad study. Loan limits arehigher for independent students.

Loan Programs

Work Study Programs

Scholarships and Grants

Summary of Financial Aid Programs


35

Type of Award

Award based on financial need, price of attendance. All applicants must con-tribute at least 46 percent of their price of attendance.

Grant based on demonstrated financial need.

Grant based on financial need.

Award based on financial need.

Award based on financial need usingfamily size and number of children.

Part-time job on or off campus based onfinancial need. Placement approved byschool, non-profit agency, or for-profitemployer.

Part-time job either on or off campus.Based on financial need; more restrictivethan state program; placementapproved by school, non-profit agency,or for-profit employer.

Long-term, low interest (5%) loans. Must be repaid, based on financial need.

Long-term, low interest loans dependingon date of first loan; must be repaid.Based on need, government pays interest while student is in school.Unsubsidized Stafford loan is availablefor students without financial need.Borrowers pay interest while in school.

Eligible Students

Minnesota resident, enrolled for at least three credits in any yearof undergraduate study. Must be a graduate of a secondary schoolor its equivalent, or be 17 years of age or older. Completed lessthan four years of college. Attend eligible Minnesota colleges.U.S. citizen or eligible non-citizen. Not in default on student loanor child support payments.

Undergraduates. Males 18-25 years old and born after January 1,1960, and not a current member of the Armed Forces must beregistered with the Selective Service. U.S. citizen or eligible non-citizen. Must not be in default on a federal loan.

Undergraduates or vocational students enrolled at least half time.Selective Service registration. Priority given to Pell Grant recipients.

One-fourth or more Indian ancestry; resident of Minnesota andmember of recognized Indian tribe; high school graduate or haveGED; show ability to benefit from advanced education; acceptedby approved Minnesota institution; approved by Minnesota IndianScholarship Committee.

Minnesota resident who has child 12 years old or younger, or 14or younger who is handicapped, enrolled for at least 6 credits perterm in an undergraduate program, and not a recipient of bene-fits from the Minnesota Family Investment Program.

Minnesota residents enrolled for at least six credits per term.Includes undergraduates, graduates, or vocational students. U.S. citizen or eligible non-citizen.

Undergraduate, graduate or vocational students enrolled at leasthalf time. Selective Service registration. U.S. citizen or eligiblenon-citizen.

Undergraduate, graduate, or vocational students enrolled at leasthalf time; Selective Service registration. Cannot be in default orowe a refund on any Title IV Higher Education Act loan or grantreceived for attendance at any institution. U.S. citizen or eligiblenon-citizen.

Any student enrolled at least half time in an eligible school inMinnesota or another state—undergraduate, graduate, profes-sional and vocational students. Must pass standard financial needtest to qualify for subsidized loan; Selective Service registration.Cannot be in default or owe a refund on any Title IV HigherEducation Act loan or grant received for attendance at any institution. U.S. citizen or eligible non-citizen.



Federal Parent Loanfor UndergraduateStudents (PLUS)

SELF (StudentEducational LoanFund), available onlyfrom Services Office.

Minnesota-Wisconsin

Minnesota-South Dakota

Minnesota-North Dakota

Minnesota-Iowa

Minnesota-Manitoba

Midwest StudentExchange Program

Federal VeteransBenefits

State Veterans’DependentsAssistance Program

Educational Assistancefor War Orphans andVeterans

Private lenders.(A limited number of schools makeloans directly to students)

Higher Education Services Office.School must approve application. Co-signer required.

Minnesota students in public collegesapply to Services Office atww.mheso.state.mn.us. Vocational college students apply tothe institution.

Minnesota students in public collegesapply to Services Office atww.mheso.state.mn.us. Vocational college students apply tothe institution.

Minnesota students apply to ServicesOffice at www.mheso.state.mn.us.

School of attendance.

Students apply at school of attendance.

Students apply at time of submissionof admission application.

Department of Veterans AffairsOffice, Fort Snelling, MN 55111.

Financial aid office.

Contact the institution or MinnesotaDepartment of Veterans Affairs (2ndfloor Veterans Service Bldg., 20 W.12th Street, St. Paul, MN 55155); orthe county veterans’ service officer atthe county courthouse.

Up to annual price of attendance lessother aid received for each dependentchild.

Up to $4,500 per year for the first twoyears and $6,000 thereafter; total max-imum of $25,000; $9,000 per year and$40,000 cumulative maximum for grad-uates. $500 minimum.

Varies by length of service, monthlyrates or contributions.

Tuition, fee assistance, maximum of$250 per year at Minnesota privatepost-secondary institutions.

One-time stipend of $750 to veteranswho have exhausted eligible federalbenefits. Stipend of $750 to warorphans at eligible institutions. Freetuition to eligible war orphans at eligi-ble institutions.

Program Apply to Amount

Loan Programs (continued)

Reciprocity Programs

Veterans Benefit Programs

Summary of Financial Aid Programs (continued)


Long-term; variable interest thatchanges annually (9% maximum inter-est) loans; must be repaid. Ordinarily,repayment of principal and interestbegins 60 days after disbursement.

Long-term loans; must be repaid; variable interest.

Students attending a public higher edu-cation institution in the neighboringstate pay approximately the averagetuition they would have paid at a com-parable school in their home state.Technical college students pay the resi-dent rate at the institution they attend.

Students pay the higher of the residenttuition and fee rate at the institutionattended or the resident tuition and fee rate at a comparable home stateinstitution.

Students pay the higher of the residenttuition at the institution or the residenttuition rate at a comparable home stateinstitution.

Students pay resident tuition.

Students pay resident tuition.

Students pay reduced tuition at partici-pating public and private institutions.

Monthly benefits under VeteransEducation Assistance Program,Montgomery GI Bill.

Aid to dependents.

Stipends and tuition benefits to veteransand children of deceased veterans.

Parents of dependent, undergraduate students; Selective Serviceregistration. Cannot be in default or owe a refund on any Title IVHigher Education Act loan or grant received for attendance at anyinstitution. U.S. citizen or permanent resident.

Undergraduate, graduate, and vocational students enrolled atleast half time in an eligible school in Minnesota or Minnesotaresidents enrolled in an eligible out-of-state school, or Canadianprovince of Manitoba.

Virtually all public collegiate, technical college students.Exceptions are students in the College of Medicine, VeterinaryMedicine and Dentistry at the University of Minnesota-Twin Citiesor Duluth and University of Wisconsin-Madison or Milwaukee.

Most students in public institutions.

Most students in public institutions.

Students at Minnesota West Community and Technical College;Iowa Lakes Community College.

Minnesota residents enrolling at University of Manitoba,University of Winnipeg, Brandon University, Red River CommunityCollege, Assiniboine Community College, or College universitairede Saint-Boniface.

Minnesota students enrolling in participating institutions/pro-grams in Kansas, Michigan, Missouri, and Nebraska.

Veterans, dependents.

Dependents of POWs, MIAs.

Veterans and children of deceased veterans.

Type of Award Eligible Students

Financial aid may seem confusing, but thereare people who can advise students and par-ents on the best way to meet college costs,including high school counselors, financialaid administrators at post-secondary schools,and the staff of the Minnesota HigherEducation Services Office.

The most important single source of infor-mation is the college financial aid admin-istrator who:• distributes and receives applications• determines student need• develops financial aid packages• distributes aid• provides professional counseling to

students and families

Your aid administrator will suggest thetypes of aid best suited to your needs and

financial situation. Contactthe financial aid administratorwell before the start of theschool term, and be sure toconsult the school’s catalog forapplication deadlines.

Schools are responsible formaking judgments to meetindividual needs of students.

Many of the federal, state, and private stu-dent aid programs provide for some degreeof discretion by the aid administrator whocan consider special circumstances affectingthe financial need of students.

Resources for Studentswith DisabilitiesStudents with a disability may have addi-tional needs and expenses when they attendcollege. Support services such as individualcounseling and reasonable accommodation(assistive technology, auxiliary aids, andservices for effective communication) may beavailable at the post-secondary institution.Students should register with the StudentServices Personnel, 504 Coordinator, orDisability Support Services Office at theirpost-secondary institution, and will need todisclose any disabilities in order to qualifyfor support services. Several additionalresources are listed on the next page.


Most financial aidmoney is made

available to youthrough the college’s

financial aid office.

Where Can I GetAdditional Help?

Disability ResourcesStudent Aid Audio Guide CD

FAFSA in Braille

Federal Student Aid Information CenterP.O. Box 84Washington D.C. 20044-0084Tel: (800) 433-3243 voice

(800) 730-8913 TTY

Creating Options: A Resource on Financial Aid for Students with Disabilities

Describes financial aid terms and dis-ability-related expenses. It illustrateshow to include these expenses on a stu-dent budget, and shows how to coordi-nate such sources of funding asVocational Rehabilitation Services andSocial Security. To obtain a copy, visitwww.heath.gwu.edu or contact:

HEATH Resource CenterGeorge Washington University2121 K Street Northwest, Suite 220Washington D.C. 20037Tel: (202) 973-0904 or (800) 544-3284E-mail: [email protected]

College Students Who Have ChronicDiseases or Mental Conditions

College Students with LearningDisabilities

College Students Who Have ADHP

There is a small fee charged for each ofthese brochures. Visit www.ahead.orgto learn more or contact:

Association on Higher Education andDisability (AHEAD)P.O. Box 540666Waltham, MA 02454Tel: (781) 788-0003 (voice and TTY)E-mail: [email protected]

Vocational Rehabilitation Program

If you have a severe physical or mental dis-ability that causes a significant impedimentto gainful employment, you may be eligiblefor rehabilitation counseling and othercareer planning services from your stateVocational Rehabilitation Program.

If you are determined eligible for servicesand if you meet the Order of Selection (inMinnesota, qualifying for vocational rehabil-itation is a two-step process), a rehabilita-tion counselor can assist with developing anindividual plan for employment, and willprovide services to meet your disability-related needs.

Minnesota’s vocational rehabilitation program does consider your eligibility forother financial aid, and may fund somedirect costs (such as tuition and mandatoryfees, books, supplies and equipment), if post-secondary training is part of yourEmployment Plan.

For information, visit www.mnwfc.org,consult the blue pages in your local phonebook for the Department of Employment andEconomic Development RehabilitationServices Office nearest you, or call (651) 296-5616 voice or (651) 296-3900 TTYin the Twin Cities metro area, or (800) 328-9095 voice or (800) 657-3973 TTYin Greater Minnesota.

Services for the Blind or Visually Impaired

Vocational rehabilitation services for personswho are blind or visually impaired are pro-vided by the Minnesota State Services forthe Blind (www.mnssb.org). Consult thisweb site or your local phone book for theState Services for the Blind office nearestyou, or call (651) 642-0500 voice or (651)642-0506 TTY in the Twin Cities metro area,or call (800) 652-9000 voice and TTY inGreater Minnesota.

The Minnesota State Services for theBlind also transcribes textbooks and voca-tional materials onto cassette tape or intobraille free-of-charge to Minnesota studentswho are blind or visually impaired.

Additional resources are available fromthe Federal Student Aid InformationCenter to assist students who are blind orvisually impaired:

Federal Student Aid Audio Guide

The U.S. Department of Education has pro-duced an audio guide on federal student aidfor visually impaired students. The guidedescribes eligibility requirements and appli-cation procedures for federal grant, loan,and work-study programs; scholarshipsoffered to visually impaired students; andthe rights of students with disabilities under

the Rehabilitation Act, which forbids disabil-ity bias in federally assisted institutions.

The Audio Guide is available online atwww.studentaid.ed.gov/audioguide/ oron compact disc.

The FAFSA in Braille

A Braille version of the Free Application forFederal Student Aid (FAFSA) is available asa reference aid. It cannot, however, be sub-mitted in place of the regular or onlineapplication.

Minnesota CareerInformation SystemThe Minnesota Career Information System(MCIS) provides annually updated informa-tion about student financial aid. By usingthe computerized system, a student canobtain general information about studentfinancial aid as well as specific financial aidinformation on post-secondary schools inMinnesota and more than 3,500 collegesnationally. MCIS also has an extensivesearchable scholarship list which includesinformation on over 3,000 national andMinnesota specific scholarship programs.

MCIS is available in over 600 sitesstatewide, including secondary and post-sec-ondary schools, workforce centers, libraries,correctional facilities, and a variety of otheragencies throughout Minnesota. Contactyour high school counselor to find out if yourschool has access to MCIS. For more infor-mation, contact:

MCISMinnesota Department of Education1500 Highway 36 WestRoseville, MN 55113Tel: (651) 582-8357 or (800) 599-MCIS


AssistanceandResources

Additional Sourcesof InformationA number of other publications are availableto help you learn about sources of financialaid. Many are available at your school orpublic library. Your high school counselor orlibrarian can help you find many of them.

College Catalogs and Brochures

Your school library and guidance center willhave many available. Also, write to theadmissions offices of post-secondary institu-tions to request these publications.

College Cost and Financial Aid Handbook,2005. This book lists prices at over 3,000two- and four-year colleges and universities.It also includes information on sources offinancial aid and how to apply. It can be pur-chased at bookstores, or directly from thepublisher at www.collegeboard.com, bycalling (800) 323-7155, or by sending a checkfor $24.95, plus $5 for shipping, to:


The College Handbook, 2005. This guidecontains up-to-date information on morethan 3,600 two- and four-year colleges anduniversities, housing, majors, special studyoptions, financial aid, and athletics. It alsoincludes a Windows CD-ROM with SATexam preparation. The guide can be pur-chased at bookstores, or directly from thepublisher at www.collegeboard.com, bycalling (800) 323-7155, or by sending a checkfor $27.95, plus $5 for shipping, to:


College Money Handbook, 2005. This publi-cation presents information on costs andfinancial aid at over 2,100 U.S. colleges anduniversities. It can be purchased at book-stores, or directly from the publisher atwww.petersons.com, by calling call (800)338-3282, or by sending a check for $29.95,plus $5.25 for shipping, to:

Peterson’sPrinceton Pike Corporate Center2000 Lenox Drive, Box 67005Lawrenceville NJ 08648


Don’t Miss Out, The Ambitious Student’sGuide to Financial Aid, 2004-2005. This bookexplores grants, loans, scholarships, and taxcredits. It contains worksheets to help esti-mate family contribution to college costs. Itcan be purchased directly from the publisherat www.thinktuition.com or by sending acheck for $11, plus $3 for shipping, to:

Octameron Associates P.O. Box 2748Alexandria, VI 22301

Get Set for College: A College PlanningGuide for Minnesota Students and Parents.This guide contains financial aid facts andtips, the steps for college planning, and adirectory of Minnesota colleges and universi-ties. The guide is available free from highschool counselors’ offices, or directly from thepublisher by calling (847) 634-2560, or bywriting to:

ACT Midwest office300 Knightsbridge Parkway, Suite 300Lincolnshire, IL 60069-9498

Need A Lift? This 160-page handbook con-tains sources of scholarships, financial aidopportunities, loans, careers, and employ-ment opportunities for all students. A specialsection applies to veterans and their depend-ents. Copies are available by sending acheck or money order (no cash) for $3, plus$.95 for shipping, to:

The American LegionNational Emblem SalesP.O. Box 1050Indianapolis, Indiana 46206º

The following list includes many of theterms you may encounter in the financial aid process.

Adjusted Gross Income: All taxable incomeminus deductions.

Assets: Savings and checking accounts, business value, stocks, bonds, real estate,trust funds. Cars are not considered assets,nor are retirement accounts or personal possessions such as stamp collections ormusical instruments.

Benefit: Funds that students are entitled tounder special conditions.

Co-Signer: This is a credit worthy individual,usually a parent or spouse, who has agreedto share the responsibility for repayment ofa student loan with you.

Default: Being delinquent in repaying a stu-dent loan more than a predetermined num-ber of days or failure to comply with any ofthe other terms of the promissory note.

Deferment: A postponement of the loanrepayment. Conditions for deferment vary byloan program.

Delinquency: The act of missing a scheduledpayment on a student loan. If delinquencypersists, default will occur.

Disbursement: This is the act of sending orhanding a loan check to the student so thatit can be cashed. A student loan could be dis-bursed in one, two, or three payments.Disbursements can be sent electronically tothe student’s school to credit his or herschool account.

Exclusions from Gross Income: Benefitsreceived by the tax filer that do not have tobe included in their gross income for taxpurposes. Examples are grants and scholar-ships, employer provided educational assis-tance, student loan debt forgiveness, andtuition reductions for post-secondary educa-tion employees and their families.

Expected Family Contribution (EFC): A calcu-lation based on the need analysis of howmuch of a family’s resources should be avail-able to pay toward the price of attendance.

Financial Aid Administrator: A professionalemployee at each post-secondary institutionwith special knowledge and background instudent financial aid.

Financial Aid Package: Assembled by thefinancial aid office, the financial aid packagecontains an estimate of the total amount offinancial aid a student is to receive. It mayinclude grant, work, and loan funds from avariety of sources.

Financial Need: The difference between theprice of attending a post-secondary institu-tion and the family’s ability to pay for it.

Firstmark Services LLC: A private, for-profitcompany hired by the Minnesota HigherEducation Services Office to service itsStudent Educational Loan Fund loans. Aloan servicer bills students for scheduledpayments, records those payments whenmade, encourages payments when not made, and generally monitors the status of a student loan for the student, lender, and guarantor.

Forbearance: An arrangement to postpone or reduce a borrower’s monthly paymentamount for a limited and specified amount of time, or to extend the repayment period.The borrower is charged interest during the forbearance.

Free Application for Federal Student Aid(FAFSA): The form that must be completedby all students and parents who apply forfederal student aid. It is the only form thatcan be used to apply for Minnesota StateGrant funds and, at most post-secondaryinstitutions, for institutional funds.

Grant: An outright award to the student,usually based on financial need. The studentdoes not have to repay this money.

Guarantee Fee: A fee that is deducted fromthe proceeds of the Stafford Student Loanand forwarded by the lender to a guarantorin return for its guaranteed coverage against default.



Glossary of Financial Aid Terms

Half-time: At schools measuring progress bycredit hours and academic terms, at least sixsemester hours or quarter hours per term; atschools measuring progress by clock hours,at least 12 hours per week; at schools meas-uring progress by credit hours, but not usingacademic terms, at least 12 semester hoursor 18 quarter hours per year.

Institutional Student Information Record(ISIR): An electronic record sent to all schoolslisted in the student’s FAFSA that containsthe student’s FAFSA data and Federal needanalysis results.

Interest: This is the fee charged to borrowmoney. Interest charges are in addition tothe principal of the loan.

Interest Subsidy: The payment of interest onStafford Student Loans by the U.S.Department of Education for student bor-rowers while they are in school. (Also inter-est benefits)

Loan: A form of assistance that requiresrepayment at a future time.

Need Analysis: A procedure used to estimatea student applicant’s need for financial assis-tance to help meet his or her educationalexpenses. It consists of two major compo-nents; arriving at an estimate of the appli-cant’s and/or the family’s ability tocontribute to educational expenses, andarriving at an accurate estimate of the edu-cational expenses themselves.

Origination Fee: A fee that is deducted fromthe amount of a Stafford Student Loan.

Parents’ Contribution: The amount a stu-dent’s parents can be expected to contributeto their son or daughter’s education; basedon analysis of their income and assets.

Price of Attendance: The total amount it willcost a student to go to school. Typicallyincluded are such items as actual tuitionand fees, room and board, and estimates ofsuch expenses as books, transportation,medical, day care and dependents’allowances. For the State Grant Program, itincludes averaged tuition and fees, a livingallowance, and miscellaneous expenses.Campus financial aid administrators typical-ly use more generous living and miscella-neous allowances than the state program.

Principal: This is the amount borrowed bythe student before interest is charged.

Promissory Note: The legal document signedby the borrower prior to receiving a studentloan. Besides containing a promise to repaythe loan, it lists the conditions of the loanand terms for repayment.

Scholarship: An award to students based onacademic achievement and usually on finan-cial need. The student does not have torepay this money.

Student Budget: The amount of money thestudent will need to pay tuition and fees,books and supplies, room and board, person-al expenses, and transportation. These fig-ures will be determined by the financial aid administrator.

Student Aid Report (SAR): Report on theresults of student’s need analysis based oninformation supplied on the Free Applicationfor Federal Student Aid. The report is usedto make corrections.

Student Contribution (SC): The amount thata student/spouse can be expected to con-tribute to the price of attendance based onneed analysis of income and assets.

Tax Credit: As in the Federal Hope andLifetime Learning Tax Credits, means acredit against a tax liability. The tax filer is able to subtract the amount of credit from tax liability. The tax filer must have tax liability to receive the Hope orLifetime credit. This is what is meant by a “nonrefundable” credit.

Tax Deduction: Tax deductions are subtrac-tions from income. In the case of studentloans, some tax filers may be able to deductsome interest from income. Some tax filerswill do this when they “itemize” their taxdeductions. However, tax filers who do notitemize will be able to deduct interest onstudent loans.


Following are the addresses andphone numbers of contacts forobtaining information on finan-cial aid at Minnesota post-sec-ondary institutions. To find TitleIV school codes used to completethe FAFSA that are not listed,visit www.fafsa.ed.gov.

Community & Technical Colleges

Alexandria Technical College #005544Gary McFarland(320) 762-0221 or (888) 234-12221601 Jefferson StreetAlexandria, MN [email protected]

Anoka Technical College #007350Nancy Maki(763) 576-4760 or (800) 247-55881355 West Highway 10Anoka, MN [email protected]

Anoka-Ramsey Community College, CambridgeCampus #002332Mary Kay Lavigne(763) 689-7000300 Polk Street SouthCambridge, MN [email protected]

Anoka–Ramsey Community College, CoonRapids Campus #002332Karla Seymour(763) 422-341111200 Mississippi Boulevard NorthwestCoon Rapids, MN [email protected]

Central Lakes College, Brainerd Campus#002339Mike Barnaby(218) 855-8025 or (800) 933-0346501 West College DriveBrainerd, MN [email protected]

Central Lakes College, Staples Campus#002339Mike Barnaby(218) 894-5157 or (800) 247-68361830 Airport RoadStaples, MN [email protected]

Century College #010546Lois Larson(651) 779-3305 or (800) 228-19783300 Century Avenue NorthWhite Bear Lake, MN [email protected]

Dakota County Technical College #010402Scott Roelke(651) 423-8297 or (877) 937-32821300 East 145th StreetRosemount, MN [email protected]

Fond du Lac Tribal and Community College#031291Dave Sutherland(218) 879-0816 or (800) 657-37122101 14th StreetCloquet, MN [email protected]

Hennepin Technical College, Brooklyn Park#010491Patricia Berktold(952) 995-1300 or (800) 345-46559000 Brooklyn BoulevardBrooklyn Park, MN [email protected]

Hennepin Technical College, Eden Prairie#010491Patricia Berktold(952) 995-1300 or (800) 345-465513100 College View DriveEden Prairie, MN [email protected]

Hibbing Community College #002355Paul Hatch(218) 262-7200 or (800) 224-44221515 East 25th StreetHibbing, MN [email protected]

Inver Hills Community College #006935John Pogue(651) 450-85172500 East 80th StreetInver Grove Heights, MN [email protected]

Itasca Community College #002356Patty Holycross(218) 327-4228 or (800) 996-64221851 East Highway 169Grand Rapids, MN [email protected]

Lake Superior College #005757Sandra Olin(218) 733-4895 or (800) 432-28842101 Trinity RoadDuluth, MN [email protected]

Mesabi Range Community & Technical College,Eveleth #002350Caralee (Sis) Hill(218) 744-7496 or (800) 657-38601100 Industrial Park DrivePO Box 0648Eveleth, MN [email protected]

Mesabi Range Community & Technical College,Virginia #004009George Walters(218) 749-77531001 Chestnut Street WestVirginia, MN [email protected]

Minneapolis Community & Technical College#002362Beth Stevens(612) 659-6240 or (800) 247-09111501 Hennepin AvenueMinneapolis, MN [email protected]

Minnesota State College—Southeast Technical,Red Wing #002393Ann Dahlen(651) 385-6323 or (800) 657-4849308 Pioneer Road, PO Box 409Red Wing, MN 55066-3964adahlen@southeasttech.mnscu.eduwww.southeasttech.mnscu.edu

43


Financial Aid Contacts


Minnesota State College—Southeast Technical,Winona #002393Nate Emerson(507) 453-2711 or (800) 372-81641250 Homer RoadWinona, MN [email protected]

Minnesota State Community & TechnicalCollege, Detroit Lakes #005541Judith Meyer(218) 846-7454 or (800) 492-4836900 Highway 34 EastDetroit Lakes, MN [email protected]

Minnesota State Community & TechnicalCollege, Fergus Falls #005541 Robert Anderson(218) 739-7520 or (877) 450-33221414 College WayFergus Falls, MN [email protected]

Minnesota State Community & TechnicalCollege, Moorhead #005541Kay Gnoinsky(218) 299-6539 or (800) 426-56031900 28th Avenue SouthMoorhead, MN [email protected]@minnesota.edu

Minnesota State Community & TechnicalCollege, Wadena #005541Lauren Achterkirch(218) 631-3530 x203 or (800) 247-2007405 Colfax Avenue SWPO Box 566Wadena, MN [email protected]@minnesota.edu

Minnesota West Community & TechnicalCollege, Canby #005263Amy Nemitz(507) 223-7252 or (800) 658-25351011 1st Street WestCanby, MN [email protected]

Minnesota West Community & TechnicalCollege, Granite Falls #005263David Vikander(320) 564-4511 x202 or (800) 657-32471593 11th AvenueGranite Falls, MN [email protected]

Minnesota West Community & TechnicalCollege, Jackson #005263Sharon Wieneke(507) 847-3320 x111 or (800) 658-2522401 West StreetJackson, MN [email protected]

Minnesota West Community & TechnicalCollege, Pipestone #005263Janice Pluim(507) 825-6800 or (800) 658-2330PO Box 250Pipestone, MN [email protected]

Minnesota West Community & TechnicalCollege, Worthington #005263Faith Drent(507) 372-3450 or (800) 657-39661450 CollegewayWorthington, MN [email protected]

Normandale Community College #007954Catherine Breuer(952) 487-82509700 France Avenue SouthBloomington, MN [email protected]

North Hennepin Community College #002370Jackie Olsson(763) 424-07317411 85th Avenue NorthBrooklyn Park, MN [email protected]

Northland Community & Technical College,East Grand Forks #002385Rhonda Hettervig(218) 773-4521 or (800) 451-34412022 Central Avenue NEP.O. Box 1111East Grand Forks, MN 56721rhonda.hettervig@northlandcollege.eduwww.northlandcollege.edu

Northland Community & Technical College,Thief River Falls #002385Donna Quam(218) 681-0860 or (800) 959-62821101 Highway One EastThief River Falls, MN [email protected]

Northwest Technical College, Bemidji #005759 Linda Lindseth(218) 755-4282 or (800) 942-8324905 Grant Avenue SEBemidji, MN [email protected]

Pine Technical College #005535Susan Pixley(320) 629-5100 x161 or (800)-521-7463900 4th StreetPine City, MN [email protected]

Rainy River Community College #006775Scott Riley(218) 285-2205 or (800) 456-39961501 Highway 71International Falls, MN [email protected]

Ridgewater College, Hutchinson #005252Diane Gassman(320) 587-3636 or (800) 222-4424Two Century Avenue SoutheastHutchinson, MN [email protected]

Ridgewater College, Willmar #005252Jim Rice(320) 231-2919 or (800) 722-11512101 15th Avenue Northwest, Box 1097Willmar, MN [email protected]

Riverland Community College, Albert Lea#002335JoAnn Haynes(507) 379-3323 or (800) 333-25842200 Riverland DriveAlbert Lea, MN [email protected]

Riverland Community College, Austin #002335Judy Robeck(507) 433-0511 or (800) 247-50391900 8th Avenue NorthwestAustin, MN [email protected]

Rochester Community & Technical College#002373Rosemary Hicks(507) 285-7259 or (800) 247-1296851 30th Avenue SoutheastRochester, MN [email protected]

South Central Technical College, Faribault#005537Elizabeth Prange(507) 332-5805 or (800) 422-03911225 Third Street SouthwestFaribault, MN [email protected]

South Central Technical College,North Mankato/Mankato #005537Jayne Dinse(507) 389-7269 or (800) 722-93591920 Lee BoulevardNorth Mankato, MN [email protected]

St. Cloud Technical College #005534Anita Bough(320) 308-5961 or (800) 222-10091540 Northway DriveSt. Cloud, MN [email protected]

St. Paul College #005533Susan Prater(651) 846-1471 or (800) 227-6029235 Marshall AvenueSt. Paul, MN [email protected]


Vermilion Community College #002350Deborah Miller(218) 365-7212 or (800) 657-36081900 East Camp StreetEly, MN [email protected]

State Universities

Bemidji State University #002336Paul Lindseth(218) 755-2034 or (800) 475 20011500 Birchmont Drive NEBemidji, MN [email protected]

Metropolitan State University #010374Robert Bode(651) 793-1414700 East Seventh StreetSt. Paul, MN [email protected]

Minnesota State University, Mankato #002360Sandra Loerts109 Wigley Administration Center(507) 389-1185 or (800) 722-0544Mankato, MN [email protected]

Minnesota State University, Moorhead#002367Carolyn Zehren(218) 236-2251 or (800) 593-72461104 7th Avenue SouthMoorhead, MN [email protected]

St. Cloud State University #002377Frank Loncorich(320) 308-2047 or (877) 654-7278720 Fourth Avenue SouthSt. Cloud, MN [email protected]

Southwest Minnesota State University#002375Marcia Hubner(507) 537-6281 or (800) 642-06841501 State StreetMarshall, MN [email protected]

Winona State University #002394Greg Peterson(507) 457-5090 or (800) 342-5978P.O. Box 58388th and Johnson StreetsWinona, MN [email protected]

University of Minnesota

University of Minnesota, Crookston #004069Heidi Patterson(218) 281-8569 or (800) 232-64662900 University AvenueCrookston, MN [email protected]

University of Minnesota, Duluth #002388Brenda Herzig(218) 726-8000 or (800) 232-13391049 University DriveDuluth, MN [email protected]

University of Minnesota, Morris #002389Pam Engebretson(320) 589-6035 or (800) 992-8863105 Behmler Hall600 East 4th StreetMorris, MN [email protected]

University of Minnesota, Twin Cities #003969Kris WrightFinancial Aid Director(612) 624-1665 or (800) 400-8636210 Fraser Hall106 Pleasant Street SEMinneapolis, MN 55455-0422www.umn.edu/tc

Private Colleges

Alfred Adler Graduate School (952) 988-41701001 West Highway 7, Suite 311Hopkins, MN 55305www.alfredadler.edu

Augsburg College #002334Paul Terrio(612) 330-1000 or (800) 273-06172211 Riverside AvenueMinneapolis, MN [email protected]

Augsburg Weekend College #002334Paul Terrio(612) 330-1000 or (800) 273-06172211 Riverside AvenueCampus Box 309Minneapolis, MN [email protected]

Bethany Lutheran College #002337Jeff Younge(507) 344-7328 or (800) 944-3066700 Luther DriveMankato, MN [email protected]

Bethel University #002338Jeff Olson(651) 638-6241 or (800) 255-87063900 Bethel DriveSt. Paul, MN [email protected]

Capella University #032673(612) 659-5100 or (888) 227-3552222 South 9th Street, 20th FloorMinneapolis, MN [email protected]

Cardinal Stritch University #003837Holly Ulland(952) 835-6418 or (800) 878-74823300 Edinborough Way, #320Edina, MN [email protected]

Carleton College #002340Rodney M. Oto(507) 646-4138 or (800) 995-2275One North College StreetNorthfield, MN [email protected]

College of St. Benedict #002341Jane Haugen(320) 363-5047 or (800) 544-148937 South College AvenueSt. Joseph, MN [email protected]

College of St. Catherine #002342Pamela Johnson(651) 690-6540 or (800) 945-45992004 Randolph AvenueMail #F-11St. Paul, MN [email protected]

College of St. Scholastica #002343Jon Erickson(218) 723-6725 or (800) 447-54441200 Kenwood AvenueDuluth, MN [email protected]

College of Visual Arts #007462Bonnie Clayton(651) 224-3416 or (800) 224-1536344 Summit AvenueSt. Paul, MN [email protected]

Concordia College #002346Dale Thornton(218) 299-3858 or (800) 699-9897901 South 8th StreetMoorhead, MN [email protected]

Concordia University #002347Brian Heinemann(651) 641-8204 or (800) 333-4705275 North SyndicateSt. Paul, MN [email protected]



Crossroads College #002366Kim Hudson(507) 288-4563 or (800) 456-7651920 Mayowood Road SouthwestRochester, MN 55902pkelloggbradley@crossroadscollege.eduwww.crossroadscollege.edu

Crown College #002383Cheryl Fernandez(952) 446-4177 or (800) 682-76966425 County Road 30St. Bonifacius, MN [email protected]

Gustavus Adolphus College #002353Robert C. Helgeson(507) 933-7527 or (800) 487-8288800 West College AvenueSt. Peter, MN [email protected]

Hamline University #002354Richard Manderfeld(651) 523-3000 or (800) 888-21821536 Hewitt AvenueSt. Paul, MN [email protected]

Macalester College #002358Brian Lindeman(651) 696-6214 or (800) 231-79741600 Grand AvenueSt. Paul, MN [email protected]

Martin Luther College #002361Gene Slettedahl(507) 354-82211995 Luther CourtNew Ulm, MN [email protected]

Mayo School of Health Sciences #017114Dave Dahlen(507) 284-4839200 1st Street Southwest206 Mitchell BuildingRochester, MN [email protected]

Minneapolis College of Art and Design#002365Laura Link(612) 874-3782 or (800) 874-62232501 Stevens Avenue SouthMinneapolis, MN [email protected]

North Central University #002369Donna Jager(612) 343-4488 or (800) 289-6222910 Elliot AvenueMinneapolis, MN [email protected]

Northwestern College #002371Richard Blatchley(651) 631-5321 or (800) 692-40203003 North Snelling AvenueSt. Paul, MN [email protected]

Northwestern Health Sciences University#012328Andrew Hoppin(952) 887-1387 or (800) 888-47772501 West 84th StreetBloomington, MN [email protected]

Oak Hills Christian College #016116Dan Hovestol(218) 751-8670 x220 or (888) 751-86701600 Oak Hills Road SouthwestBemidji, MN [email protected]

Pillsbury Baptist Bible College #016117Tom Lawson(507) 451-2710 x214315 South Grove StreetOwatonna, MN [email protected]

Presentation College #003467Valerie Weisser(605) 229-8427 or (800) 437-6060714 Victoria StreetFairmont, MN [email protected]

St. John’s University #002379Stuart Perry(320) 363-3664 or (800) 245-6467PO Box 5000Collegeville, MN [email protected]

St. Mary’s University of Minnesota #002380Jayne Wobig(507) 457-1438 or (800) 635-5987700 Terrace Heights Winona, MN [email protected]

St. Olaf College #002382Kathy Ruby(507) 646-3019 or (800) 800-30251520 St. Olaf AvenueNorthfield, MN [email protected]

University of St. Thomas #002345Ginny Reese(651) 962-6557 or (800) 328-68192115 Summit AvenueMail #CHC156St. Paul, MN [email protected]

William Mitchell College of Law #G02391Patty Harris(651) 290-6358 or (888) 963-5529875 Summit AvenueSt. Paul, MN [email protected]

Private Career Schools

Academy College #013505Mary Erickson(952) 851-0066 or (800) 292-91491101 East 78th Street, Suite 100Bloomington, MN [email protected]

American Indian OIC School of Business &Office Technology #016346Michael Williams(612) 341-3358 x1361845 East Franklin AvenueMinneapolis, MN [email protected]

Argosy University #021799Larry Werner(651) 846-2882 or (888) 844-20041515 Central ParkwayEagan, MN [email protected]

Arrowhead Technology Solutions(218) 279-1950118 East Superior Street, Suite 101Duluth, MN 55802www.4ats.com

Art Institutes International Minnesota, Inc.#010248Melanie Lindenmeyer(612) 332-3361 x139 or (800) 777-364315 South 9th StreetMinneapolis, MN [email protected]

Aveda Day Spa Institute #014847Marcia De Gaetano(612) 378-7407 or (800) 274-6778400 Central Avenue SEMinneapolis, MN [email protected]

Brainco: Minneapolis School of AdvertisingDesign and Interactive StudiesEd Prentiss(612) 822-13132900 Aldrich Avenue SouthMinneapolis, MN 55408www.braincomsa.com

Brown College #007351Heather Betz(651) 905-3400 or (800) 766-20401440 Northland DriveMendota Heights, MN [email protected]


Bryman Institute(651) 688-21457000 Blue Gentian Road, Suite 250Eagan, MN [email protected]

Central Beauty School—EaganCarolyn Kraskey(651) 994-7881 or (888) 818-67353906 Cedar Grove ParkwayEagan, MN 55122www.centralbeautyschool.com

Central Beauty School—CambridgeCarolyn Kraskey(763) 691-14311013 Highway 95Cambridge, MN 55008www.centralbeautyschool.com

Cosmetology Careers Unlimited #009600Gail Schwartz(218) 722-7484 121 West Superior StreetDuluth, MN 55802www.coscareers.com

Cosmetology Careers Unlimited #014777Gail Schwartz(218) 263-8354110 East Howard StreetHibbing, MN 55746www.coscareers.com

Cosmetology Training CenterNancy Buckingham(507) 345-4033111 East Hickory StreetMankato, MN 56001www.cosmetologytrainingcenter.com

Duluth Business University, Inc. #009892Gloria Coole(218) 722-4000 or (800) 777-84064724 Mike Colalillo DriveDuluth, MN [email protected]

Dunwoody College of Technology #004641Barb Charboneau(612) 374-5800 or (800) 292-4625818 Dunwoody BoulevardMinneapolis, MN [email protected]

East Metro OIC #017116Gina Carlin(651) 291-5088334 Chester StreetSt. Paul, MN [email protected]

Globe College #004642Sally Mickelson(651) 730-5100Oakdale Center7166 North 10th StreetOakdale, MN [email protected]

Hastings Beauty School, Inc.Sue Bohlken(651) 437-1225 or (800) 657-6881213 East 2nd StreetHastings, MN 55033www.hastingsbeautyschool.com

The Hazelden Graduate School of AddictionStudiesBruce Larson(651) 213-4283 or (800) 257-780015245 Pleasant Valley RoadPO Box 11Center City, MN 55012www.hazelden.org

Herzing College, Lakeland Medical/DentalAcademy Division & Minneapolis DraftingSchool Division #011017Jill Riverso(763) 231-3150 or (800) 878-37295700 West BroadwayMinneapolis, MN [email protected]

Hi–Class Beauty & Massage School, St. PaulKim Smith(651) 209-88991522 University Avenue WestSt. Paul, MN [email protected]

Hi-Class Beauty & Massage School, Richfield(612) 869-407333 West 65th StreetRichfield, MN [email protected]

Hi–Tech Beauty AcademyCarolyn Kraskey(612) 870-93582624 Nicollet Avenue SouthMinneapolis, MN 55408

High–Tech Institute #015988(952) 417-2200 or (800) 987-01105100 Gamble Drive, Suite 200St. Louis Park, MN 55416www.hightechinstitute.com

Institute of Production and Recording#017145(612) 798-3711312 Washington Avenue NorthMinneapolis, MN 55401www.iprschool.com

International Sommelier Guild, Ltd.(612) 332-336115 South 9th StreetMinneapolis, MN 55402

Jeane Thorne Career Training Center(507) 625-880012 Civic Center Plaza, Suite 2088Mankato, MN 56001

Midwest Career Institute(612) 588-94104350 Fremont Avenue NorthMinneapolis, MN 55412

Minneapolis Business College #004645(651) 636-7406 or (800) 279-52001711 West County Road BRoseville, MN 55113www.mplsbusinesscollege.com

Minneapolis School of Massage & Body Work#034734David Grocott(612) 788-890781 Lowry Avenue NEMinneapolis, MN 55418-3343www.mplsschoolofmassage.org

Minnesota School of Cosmetology #015752Susan Kronmiller(651) 714-73497166 10th Street NorthOakdale, MN [email protected]

Minnesota College of Acupuncture andOriental Medicine, Northwestern HealthSciences University #012328Andrew Hoppin(952) 887-1387 or (800) 888-47772501 West 84th StreetBloomington, MN 55431www.nwhealth.edu

Minnesota School of Barbering #025831(612) 722-19963615 East Lake StreetMinneapolis, MN 55406

Minnesota School of Beauty(952) 469-982520186 Heritage DriveLakeville, MN [email protected]

Minnesota School of Business,Brooklyn Center #017145Tom Hensch(763) 566-7777 or (800) 231-91575910 Shingle Creek ParkwayBrooklyn Center, MN 55430www.msbcollege.edu

Minnesota School of Business, Plymouth#017145(763) 476-2000 or (866) 476-21211455 County Road 101 NPlymouth, MN 55447www.msbcollege.edu

Minnesota School of Business, Richfield#017145Tim Jacobson(612) 861-2000 or (800) 752-42231401 West 76th StreetRichfield, MN [email protected]



Model College of Hair Design #009831Diane Smith(320) 253-4222 or (800) 450-3300201 8th Avenue SouthSt. Cloud, MN 56301www.modelcollegehairdesign.com

Moler Barber School of Hairstyling #070404Janet Martinson(612) 788-40452500 Central Ave. NEMinneapolis, MN 55418

MusicTech College #030012Jeff Aalbers(651) 291-0177 or (800) 594-950019 Exchange Street E.St. Paul, MN 55101www.musictech.com

NAES College, Twin Cities #016088Lynette Selvain(612) 721-6631 x2043123 East Lake Street, #200Minneapolis, MN [email protected]

Nail Tech and Beaty SchoolShelly Meyers(651) 777-02746993 35th Street NorthOakdale, MN [email protected]

National American University, Roseville#004057Brenda Otto(651) 644-12651500 West Highway 36Roseville, MN 55113www.national.edu

National American University, Bloomington#004057(952) 883-0439Mall of AmericaW-112 West MarketBloomington, MN 55425www.national.edu

National American University, Brooklyn Center#004059(763) 560-8377 or (866) 628-63866120 Earle Brown Drive, Suite 100Brooklyn Center, MN 55430www.national.edu

North Memorial Medical Center School ofRadiology #004368Colleen Kuechle(763) 520-53373300 Oakdale NorthRobbinsdale, MN 55422www.northmemorial.com

Northern Cosmetology InstituteWendy Brown(218) 759-2135 or (877) 301-2135118 3rd Street NorthwestBemidji, MN 56601-3102

NTI School of CAD Technology #008267Mike Kotchevar(952) 944-0080 or (800) 443-422311995 Singletree LaneEden Prairie, MN [email protected]

Pro-Image Beauty SchoolKaren Fuerst(651) 488-3028759 Millon Street NorthSt. Paul, MN 55104finaid@pro-imagebeautyschool.comwww.pro-imagebeautyschool.com

Rasmussen Business College, Eagan #004648(651) 687-9000 or (800) 852-6367Donna Hardy3500 Federal DriveEagan, MN [email protected]

Rasmussen Business College, Mankato#016845Toni Hobbs(507) 625-6556 or (800) 657-6767501 Holly LaneMankato, MN [email protected]

Rasmussen Business College, Minnetonka#011686Dan Vega(952) 545-2000 or (800) 852-092912450 Wayzata Boulevard, #315Minnetonka, MN [email protected]

Rasmussen Business College, St. Cloud#008694Carol J. Dockendorf(320) 251-5600 or (800) 852-0460226 Park Avenue SouthSt. Cloud, MN [email protected]

Regency Beauty Institute, Blaine #010490Gayle Yamry(763) 784-910240 Highway 10Blaine, MN [email protected]

Regency Beauty Institute, Burnsville #009602Gayle Yamry(952) 435-3882150 Cobblestone LaneBurnsville, MN [email protected]

Regency Beauty Institute, Maplewood #010490Gayle Yamry(651) 773-35913000 White Bear Avenue, Suite 37Maplewood, MN [email protected]

Regency Beauty Institute, Waite Park #010490Gayle Yamry(320) 251-0500110 2nd Street South, Suite 116Waite Park, MN [email protected]

Rice Memorial Hospital School of RadiologicTechnology #005252Luther Linn(320) 231-4530301 Becker Avenue SWWillmar, MN 56201-3391

Rita’s Moorhead Beauty College #017055Deb Murray(218) 236-720117 South 4th StreetMoorhead, MN [email protected]

Rochester School of Cosmetology(507) 285-336516 14th Street SouthwestRochester, MN 55902-3319

Scot Lewis School, Bloomington #009870Tina Kukowski(952) 746-90469749 Lyndale Avenue SouthBloomington, MN [email protected]

Scot Lewis School, Plymouth #009722Louis Starita(952) 746-90464124 Lancaster LanePlymouth, MN 55441www.scotlewis.com

Scot Lewis School, St. Paul #009722Tina Kutkowski(952) 746-90461905 Suburban AvenueSt. Paul, MN [email protected]

St. Cloud Hospital School of X-Ray Technology#004374John Falconer(320) 255-5719 or (800) 835-66521406 6th Avenue NorthSt. Cloud, MN 56303-1901

Summit Academy OpportunitiesIndustrialization Center #015950Demerious Robertson(612) 377-0150935 Olson Memorial Hwy.Minneapolis, MN [email protected]

Transportation Center for ExcellenceKelly Kendall(651) 683-8383 or (866) 206-48232811 Highway 55, Suite BEagan, MN 55121www.tce4cdl.com

Universal Academy of Animal Arts(651) 787-069181 East Little Canada RoadLittle Canada, MN 551171


As a potential post-secondary student and possibleapplicant for student financial aid, you should beaware of your rights and responsibilities.

Before selecting a school, you should have infor-mation about the school’s academic programs,

facilities, dropout rates, full cost of attendance,refund policies, and financial aid programs. Theschool is required to provide this information, butin some cases you may have to request it.

Student Rights and Responsibilities

www.mheso.state.mn.usThe Minnesota Higher EducationServices Office web site helps students and families plan and pay for higher education.

Visit for free up-to-date informationon how to prepare, save, and pay for post-secondary education!

Student’s Rights

• To expect professional service from a financialaid office.

• To know the cost of attending the school andthe school’s refund policy.

• To know the criteria used by the school toselect financial aid recipients.

• To know how the school determines yourfinancial need, and how much of your needthe school will meet.

• To know how the school determines whetheryou are making satisfactory academic progressand what happens if you are not.

• To request an explanation of the parts of yourfinancial aid package and request reconsidera-tion if you believe you have been treatedunfairly.

• To know what financial aid you must pay backand under what conditions.

• To know what information the school has toback up its advertised job placement rates.

Student’s Responsibilities

• To complete application forms completely,clearly, and accurately.

• To read and understand all forms you areasked to sign and keep copies of them.

• To know and meet deadlines for application of aid.

• To accept responsibility for all agreements you sign.

• To return all financial information or docu-mentation requested by the financial aidadministrator or agency to which you submit-ted your application.

• To maintain satisfactory progress at your insti-tution.

• To inform your school and/or the state of anychanges in your enrollment status.

• To attend an exit interview at your school ifyou have a federal loan. The school informsyou about the average amount borrowersowe, the amount of your monthly payment,and loan consolidation options.

Disclaimer: Information about state and federal financial aid programs is based on year 2004 policies and rules as of July 2004. The U.S. Congress and the Minnesota Legislature may change programs before the 2005-2006 school year.

Minnesota Higher EducationServices Office

1450 Energy Park Drive, Suite 350Saint Paul, MN 55108-5227

Telephone: (651) 642-0567 (800) 657-3866

Fax: (651) 642-0675Email: [email protected]: www.mheso.state.mn.us

For the Hearing Impaired:TTY Relay: (800) 627-3529

This document can be made available in an alternative format to individuals with disabilities by calling (651) 642-0567.

For More InformationContact the Minnesota Higher EducationServices Office to receive any of the following free services.

Financing Higher Education Presentations

Presentations to organizations on financ-ing post-secondary education. Schools,parent groups, community groups, churchgroups, children’s groups, and other organizations can learn about financing a higher education for themselves or their children.

Focus on Financial Aid Summaries

A condensed brochure version of Focus on Financial Aid available in English,Spanish, Hmong, and Somali.

FuturePlan: Life After High School

An interactive CD-ROM to help studentsconnect interests to careers, track aca-demic progress, identify goals, and learnabout higher education options and finan-cial aid. Macintosh and PC compatible.

SELF Loan: Investing in Education

A brochure describing the StudentEducational Loan Fund (SELF).

Is This a Good School?

A brochure to help students evaluate the quality of educational programs and schools.

For Adults...

A brochure for adults beginning or returning to school.

Get Ready for Your Child’s Higher Education

A publication for parents on academic andfinancial planning for their children.

www.mheso.state.mn.us

Visit the Services Office web site to learnmore about how to prepare and pay foreducation after high school. Be sure tovisit our online financial aid estimatorunder Paying for College.

The Minnesota Higher EducationServices Office does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its programsor activities.