Stafford Loan
Entrance
Counseling
It is the student’s responsibility to
understand the following information
Stafford Loan
Entrance
Counseling
It is the student’s responsibility to
understand the following information
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:
www.mnsu.edu/campushub
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:
www.mnsu.edu/campushub
Table of Contents
Privacy and MSU
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
Table of Contents
Privacy and MSU
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
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
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
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 always correct them
online. If you receive a paper SAR, you can correct
and mail in to the federal processor.
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 always 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 MSU a copy of information
you submitted
When MSU receives you 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 will not be
processed
Requests for Information
Once you submit your FAFSA, the Federal
Processor sends MSU a copy of information
you submitted
When MSU receives you 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 will not 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
MSU and living in Mankato for nine
months
The Financial Aid Process
Determining Cost of Attendance
(COA): What an education costs
Each year, Student Financial Services
determines average costs for attending
MSU 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
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)
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
$ 13,668 2005-2006 MN Undergrad COA
- 2,000 (Sample EFC)
$ 11,668 Financial Aid Need
How is Need Assessed?
Cost of Attendance minus
the Expected Family
Contribution (EFC) equals
Need
$ 13,668 2005-2006 MN Undergrad COA
- 2,000 (Sample EFC)
$ 11,668 Financial Aid Need
State Grants
The FAFSA application is the application
the State of Minnesota uses to determine
State Grant eligibility
Other states may have grant options for
their residents; students are encouraged to
inquire as to the availability of those funds
MN 800.657.3866
WI 608.267.2206
SD 605.773.3455
ND 701.328.2960
IA 800.383.45222
IL 800.899.4722
State Grants
The FAFSA application is the application
the State of Minnesota uses to determine
State Grant eligibility
Other states may have grant options for
their residents; students are encouraged to
inquire as to the availability of those funds
MN 800.657.3866
WI 608.267.2206
SD 605.773.3455
ND 701.328.2960
IA 800.383.45222
IL 800.899.4722
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
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.
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
Award Letter
Gives breakdown
of aid by term and
enrollment status
Keep a copy for
your records
Response Form / LTF
If accepting Federal Stafford Loans,
complete both sides of the Response
Form / Loan Transmittal Form (LTF)
Response Form / LTF
If accepting Federal Stafford Loans,
complete both sides of the Response
Form / Loan Transmittal Form (LTF)
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
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 Transmittal Form (LTF)
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
Loan Transmittal Form (LTF)
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 highly recommend that
you choose one of the
lenders from the list of
recommended lenders in
your “Award Letter
Information & Instructions”
folder
Choosing a Lender
All lenders follow the same
guidelines
We highly recommend that
you choose one of the
lenders from the list of
recommended lenders in
your “Award Letter
Information & Instructions”
folder
Master Promissory Note
(MPN)
First time borrowers at MSU
Must complete MPN online at:
http://www.mnsu.edu/campushub
Once there click on “Master
Promissory Note”
Master Promissory Note
(MPN)
First time borrowers at MSU
Must complete MPN online at:
http://www.mnsu.edu/campushub
Once there click on “Master
Promissory Note”
Recap
Send Response Form /
LTF to the Campus Hub
Complete MPN online at:
http://www.mnsu.edu/campushub
Once there click on “Stafford
Master Promissory Note (MPN)”
Recap
Send Response Form /
LTF 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 Guarantee Agency
Includes:
Loan Amounts
Loan Fees
Lender and Servicer
Information
Disclosure Statement
Sent by Guarantee Agency
Includes:
Loan Amounts
Loan Fees
Lender and Servicer
Information
Additional Loan Provisions
First time, first year borrowers: 1st
disbursement of Stafford loan delayed for
30 days after start of term
Stafford loans for a single term (e.g.: a
loan for Fall Semester only): Must be
disbursed in multiple disbursements
(beginning and mid-point of the term)
Additional Loan Provisions
First time, first year borrowers: 1st
disbursement of Stafford loan delayed for
30 days after start of term
Stafford loans for a single term (e.g.: a
loan for Fall Semester only): Must be
disbursed in multiple disbursements
(beginning and mid-point of the term)
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)
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
$8000 in loans over 4
years
$8000 in loans over 4
years
Pays $2352 interest
while in school
Pays $0 interest while
in school
Begins payment on the
principal of $8000
Begins payment on the
principal of $10,352
Repays a total of
$13,678
Repays a total of
$14,655
Savings of $977 for Student A who paid interest while
in school
Capitalizing Interest
Student A
Student B
$8000 in loans over 4
years
$8000 in loans over 4
years
Pays $2352 interest
while in school
Pays $0 interest while
in school
Begins payment on the
principal of $8000
Begins payment on the
principal of $10,352
Repays a total of
$13,678
Repays a total of
$14,655
Savings of $977 for Student A who paid interest while
in school
Stafford Interest Rates
Interest Rates are Subject to Change
4.70%
5.30%
 In-School (Unsub)
 Out-of-School Rate
Effective July 1, 2005
Rates are based on a 91 day T-Bill, plus 1.7%
during in-school, grace period and deferment;
2.3% during repayment **Capped at 8.25%**
Stafford Interest Rates
Interest Rates are Subject to Change
4.70%
5.30%
 In-School (Unsub)
 Out-of-School Rate
Effective July 1, 2005
Rates are based on a 91 day T-Bill, plus 1.7%
during in-school, grace period and deferment;
2.3% during repayment **Capped at 8.25%**
Stafford Aggregate Limits
MSU Grade Dependent
Levels
Students
Aggregate
Limits
0-29
credits
$2,625
$23,000 $6,625
$46,000
30-59
credits
$3,500
$23,000 $7,500
$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 Aggregate Limits
MSU Grade Dependent
Levels
Students
Aggregate
Limits
0-29
credits
$2,625
$23,000 $6,625
$46,000
30-59
credits
$3,500
$23,000 $7,500
$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
Loan Fees
There is a 3% fee that is deducted from
your loan amount at the time of
disbursement
So, If you borrow $1,000, the disbursed
amount will be $970
Loan Amount
$1,000
Loan Fee (3%)
-
Disbursed Amount
$30
$970
Loan Fees
There is a 3% fee that is deducted from
your loan amount at the time of
disbursement
So, If you borrow $1,000, the disbursed
amount will be $970
Loan Amount
$1,000
Loan Fee (3%)
-
Disbursed Amount
$30
$970
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)
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, “Add’l
Borrowing Eligibility,” 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
Alternative Loans
If you have an amount listed as, “Add’l
Borrowing Eligibility,” 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
(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
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
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!
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!
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
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
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
Borrower’s Responsibilities
Repay your loan
Maintain contact with your lender
Complete Exit Loan Counseling
Borrower’s Responsibilities
Repay your loan
Maintain contact with your lender
Complete Exit Loan Counseling
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
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
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
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
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
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:
8:30am-4:00pm M-F
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:
8:30am-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
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