Stafford Loan
Entrance
Counseling
Parents
Parents are welcome at this
presentation, but a parent attending
this session will not satisfy the
student’s loan counseling requirement
If your student is unable to be at this
session, he or she can complete the
counseling requirement at:
mnsu.edu/campushub
Table of Contents
Privacy and Minnesota State Mankato
Free Application for Federal Student Aid
Financial Aid Process
Financial Aid Package
Stafford Loans
Living the College Life
Satisfactory Academic Progress
Rights and Responsibilities
Odds and Ends
Family Education Rights and
Privacy Act (FERPA)
Information regarding a student’s financial aid
cannot be given to any individual other than the
student regardless of their relationship to the
student
The student may sign a release of information at
the Campus Hub to allow information disclosure
to specific individuals
Campus Hub
First point of contact for Student
Financial Services
Fastest way to get answers, and
where to turn in your forms for Student
Financial Services
Free Application for Federal
Student Aid (FAFSA)
1. FAFSA Online is available at: http://fafsa.ed.gov
2. Paper FAFSA
3. Renewal FAFSA
You can access your renewal FAFSA on the web. The
federal processing center will email you a PIN reminder.
The Federal Processor only sends a paper Renewal
Application if you previously filed a paper FAFSA and did
not provide an email address.
The FAFSA must be completed every year
Student Aid Report (SAR)
The SAR will report the information from your
application and give your Expected Family
Contribution (EFC)
You receive the SAR by an email link if you filed online
or provided an email address on a paper FAFSA:
Review it carefully to ensure correct data.
If there are errors, you can correct them online. If
you receive a paper SAR, you can correct and mail
in to the federal processor.
Requests for Information
Once you submit your FAFSA, the Federal
Processor sends Minnesota State Mankato
a copy of information you submitted
When Minnesota State Mankato receives
your data, it is reviewed. If there are any
questions, Student Financial Services will
send a letter requesting additional
information.
You must respond to these requests for
information, or your application cannot be
processed
The Financial Aid Process
Determining Cost of Attendance
(COA): What an education costs
Each year, Student Financial Services
determines average costs for attending
Minnesota State Mankato and living in
Mankato for nine months
Direct vs. Indirect Costs
Direct Costs
Expenses resulting from
enrollment in an
educational institution
 Tuition
 Fees
 Books
Indirect Costs
Expenses not directly a
result of enrollment in an
educational institution
 Rent
 Laundry
 Parking
 Entertainment
 Food
Cost of Attendance
The direct costs
+ The indirect costs
The Cost of Attendance
(COA)
How is Need Assessed?
Cost of Attendance minus
the Expected Family
Contribution (EFC) equals
Need
$ 14,988 2006-2007 MN Undergrad COA
- 2,000 (Sample EFC)
$ 12,988 Financial Aid Need
Financial Aid Package
Sent to you by Student Financial Services
Award Letter
Necessary Forms for Loan Processing
Additional Information Requests as Needed
Relevant Financial Aid Information
Definitions
Guarantor: Guarantees to the Federal
Government that they will repay the loan if it is
not paid by the student (as a result of
disability, death, or default)
Lender: Provides the money for the loan
Servicer: Company that maintains the loan for
the lender. This organization will send bills,
interest statements, disclosure statements,
and any other paperwork that is needed
Award Letter
Gives breakdown
of aid by term and
enrollment status
Keep a copy for
your records
Two Options for Completing
the Process
With your Tech Id and password, you
may complete the entire award
acceptance process.
Your Tech Id is on the top of your
award letter
Accessing eservices
Your MSU account can be accessed
at mnsu.edu/eservices
Your password is initially set to either
The last six digits of your SSN
Or
Your birth date in YYMMDD format
Response Form / LAF
If accepting Federal Stafford Loans,
complete both sides of the Response
Form / Loan Acceptance Form (LAF)
Response Form
Indicate the types of
aid that you would
like to accept
Please only accept
the aid types which
have been awarded
to you
Indicate any
additional funding
not listed on your
award letter
RESPONSE
FORM
Loan Acceptance Form (LAF)
LTF
Indicate the Lender
Code of the Lender
you have chosen
Indicate the amounts
of Stafford Loans you
would like to accept
equal or less than
what you were
awarded
Choosing a Lender
All lenders follow the same
guidelines
We recommend that you
choose one of the lenders
from the list of
recommended lenders,
however you may choose
ANY lender that
participates in the Stafford
Loan Program
Master Promissory Note
(MPN)
First time borrowers at Minnesota
State Mankato
Must complete MPN online at:
http://www.mnsu.edu/campushub
Once there click on “Master
Promissory Note”
Recap
Send Response Form /
LAF to the Campus Hub
Complete MPN online at:
http://www.mnsu.edu/campushub
Once there click on “Stafford
Master Promissory Note (MPN)”
Disclosure Statement
Sent by Guaranty Agency
Includes:
Loan Amounts
Loan Fees (if any)
Lender and Servicer
Information
Subsidized v. Unsubsidized
Subsidized:
Unsubsidized:
Need-Based Aid
Non Need-Based Aid
No interest while
you are in school
Accrues interest while
you are in school. The
interest can be paid
quarterly or capitalized.
Payment on principal begins six months after you
are finished with school (graduate, withdraw or drop
below half-time)
Capitalizing Interest
Student A
Student B
$8,000 in loans over 4
years
$8,000 in loans over 4
years
Pays $1360 interest
while in school
Pays $0 interest while
in school
Begins payment on the
principal of $8000
Begins payment on the
principal of $9,360
Repays a total of
$11,047
Repays a total of
$11,565
Savings of $518 for Student A who paid interest while
in school
Stafford Interest Rate
6.80%
Effective July 1, 2006
The Federal Stafford Loan Program
converted from a variable rate
structure to a fixed rate of 6.8%
Paying the Stafford Interest

While the student is enrolled at least half-time or in a
period of deferment, the Federal Government pays the
interest on the student’s Subsidized Stafford Loan(s).

Whether enrolled or not, it is the student’s responsibility
to pay the interest on their Unsubsidized Stafford
Loan(s).
The student may either make interest payments to
the lender/guarantor, or they may choose to not pay
the interest in which case the interest will be added to
the principal balance when the loan goes into
repayment.
Stafford Aggregate Limits
MSU Grade Dependent
Levels
Students
Aggregate
Limits
0-29
credits
$3,500
$23,000 $7,500
$46,000
30-59
credits
$4,500
$23,000 $8,500
$46,000
60-89
credits
$5,500
$23,000 $10,500
$46,000
90+
credits
$5,500
$23,000 $10,500
$46,000
Graduate
Students
Independent
Students
$18,500
Aggregate
Limits
$138,500
Stafford Loans
LOANS ARE A PRIVILEGE
Unlike other forms of aid, loans are not a
right!!!
The Federal Stafford Loan Program is
available to most students who complete
a Free Application for Federal Student
Aid (FAFSA)
Alternative Loans
If you have an amount listed as, “Other
Loan Options,” that number represents
the most that you can borrow in an
Alternative Educational Loan, SELF
Loan, and/or PLUS Loan
The eligibility for these loans is divided
evenly into two disbursements when the
loan is requested for the Fall and Spring
How to Live the College Life
(or, How to Be Poor)
Plan Ahead!
Be prepared for up front
expenses such as books,
rent deposits, supplies,
etc…
Financial aid funds are
typically available 10
business days after the
first day of classes
How to Live the College Life
Planning Ahead
Know what financial resources will be
available to you (i.e. financial aid, savings,
assistance from relatives, etc…)
Know what your costs will be
Reduce your consumer debt and credit card
bills as much as possible before you come
to school
How to Live the College Life
Reduce Expenses
Buy used books
Live on-campus, or with roommates
Use coupons, cook at home or get a meal
plan on-campus
Be aware how you spend your money day
to day
How to Live the College Life
Reduce Expenses
Buy used books
Live on-campus, or with roommates
Use coupons, cook at home or get a meal
plan on-campus
Be aware how you spend your money day
to day
How to Live the College Life
Money Management & Debt Management
Stay away from “college student” credit cards
Keep your checkbook and savings information
current
Budget your expenses
Resources Available
Apply for Financial Aid
Look for scholarship opportunities
How to Live the College Life
Borrowing
What you get now will impact what
you are able to get in the future
Borrow wisely and conservatively
Plan for your future!
Enrollment Statuses
Full
Time
Undergraduate
Students
Graduate
Students
12 – 18 Credits
6 or More
Credits
¾ Time
9 – 11 Credits
½ Time
6 – 8 Credits
Changing Enrollment Status May Affect Financial Aid
Eligibility! Please Contact the Campus Hub Before
Dropping Classes!
Satisfactory Academic
Progress Standards (SAPS)
Cumulative GPA: 2.0 for Undergrads, 3.0
for Grads
Completion Rate: 67% of registered classes
Maximum Timeframe
Undergraduate: 192 credits
Graduate: Varies by program
All SAPS Criteria are checked at the end of each
semester. You must appeal the suspension to
regain financial aid eligibility
Borrower’s Rights
Loan obligation
information
Copy of Promissory
note
Original Paid-in-full
notice
Interest rates/ fees
Loan balance
Repayment
schedule
Notification of Loan
sale/ transfer
Interest benefits
Grace period
Pre-payment without
penalty
Deferment while in
school
Request
Forbearance or
Deferment
Notify Your Servicer…
Do not enroll
Drop below 6
credits
Experience
Repayment
Difficulty
Graduate or
Withdraw
Need a Deferment
or Forbearance
Change Schools
Change Employer
or Employer
Address
Change Your
Name or Address
Consequences of Default
Ineligible for future
financial aid
Collection agency
or other legal action
Difficulty obtaining
credit
Loss of deferment
or monthly payment
options
You will have to
pay in full
Seizure of tax
refunds, wages
and/or property
Federal Student Loan
Ombudsman
The Federal Student Loan
Ombudsman’s Office works with student
loan borrowers to resolve loan disputes
and problems
http://ombudsman.ed.gov
1-877-557-2575
Keep This Stuff…
Copies of Loan
Application/Prom Note
Borrower Disclosure
Statement
Loan Repayment
Schedule
Deferment or
Forbearance Requests
Correspondence with
Lender
Records of Loan
Payment
Cancelled Checks
Money Order receipts
Name and Address of
Lender and Servicer
ALL INFORMATION
FROM STUDENT
FINANCIAL SERVICES
Helpful Web Site
www.mnsu.edu/campushub
MSU Campus Hub Website
www.ed.gov
Department of Education
www.finaid.org
Scholarship Search and EFC estimator
www.fastweb.com
Scholarship Search
www.Petersons.com
Education and Career Center Homepage
Student Financial Services
Please visit the Campus Hub if
you have any questions
(507) 389-1866
Academic Year Hours:
8:00am-6:00pm M-TH
8:00am-5:00pm F
Summer Hours:
8:00am-4:00pm M-F
Helpful Web Site
www.mnsu.edu/campushub
MSU Campus Hub Website
www.ed.gov
Department of Education
www.finaid.org
Scholarship Search and EFC estimator
www.fastweb.com
Scholarship Search
www.Petersons.com
Education and Career Center Homepage