Summer Financial Aid

Award Guide 2006-2007

Financial Aid Forms

Financial Aid Basics

Application Guidelines

Types of Financial Aid

Satisfactory Academic Progress

Graduate Students

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User ID and Password Information

Withdrawing From All Classes

Table of Contents

Grants and Scholarships

• Federal Pell Grant
• Federal SEOG
• Federal Academic Competitiveness Grant 
• Federal SMART Grant
• Minnesota State Grant
• Minnesota Child Care Grant Program
• Scholarships

Employment

• Work Study
• Student Help Employment
• Payroll Policy

• Federal Perkins Loan
• Stafford and Perkins Loans
  • Subsidized Stafford Loan
  • Unsubsidized Stafford Loan
• Federal Parent Loan For Students (PLUS)
• Student Educational Loan Fund (SELF)
• Book Loan
• Short term Loan Program
• Mayo Nursing Loan
• Alternative Loans   WSU does not endorse specific lenders or loan products. Please contact the lender directly for the terms and conditions of the loans.

Grants and Scholarships

Federal Pell Grant
For undergraduate students, first baccalaureate degree only. Eligibility is based on financial need. The amount of the award ranges from $400 to $4,050 per year, subject to Congressional appropriations, and will be reduced for students who enroll less than full time. Starting with the 2007-2008 school year, the new award ranges are $400 to $4310 per year.  The Federal Pell Grant processor notifies students of their eligibility by sending them the "Student Aid Report" (SAR).

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• be U.S. citizens or eligible non-citizens;
• be Minnesota residents;
• not be recipients of the Minnesota Family Investment Program (MFIP);
• must be income eligible*;
• be pursuing a nonsectarian program or course of study that applies to an undergraduate degree, diploma, or certificate;
• have a child 12 years of age or younger, or 14 years of age or younger if handicapped, and who needs child care services on a regular basis;
• be enrolled at least half-time (taking at least 6 credits per semester);
• be in good standing and making satisfactory academic progress;
• not be receiving tuition reciprocity;
• not be in default, or if in default, have made satisfactory arrangements to repay the loan with the holder of the note;
• not have earned a baccalaureate degree; and
• not have attended the equivalent of more than 8 semesters or 12 quarters of post-secondary education.

*Income eligible guidelines: The student's 2005 family income must be less than the following amounts:

 
Family of 2 - $39,000           Family of 7  - $61,000
Family of 3 - $43,000	       Family of 8  - $65,000
Family of 4 - $48,000	       Family of 9  - $70,000
Family of 5 - $52,000	       Family of 10 - $74,000
Family of 6 - $56,000           Family of 11 - $78,000
                                Family of 12 - $83,000
                                Family of 13 - $87,000

Scholarships

WSU ACADEMIC SCHOLARSHIPS 
Winona awards more than a half-million dollars annually in academic scholarships to highly qualified students. These prestigious awards, which can amount to as much as $3,500 each, are based on academic merit and potential. All Winona applicants are automatically considered for the academic achievement scholarships. This means there is no extra paperwork to complete - and you will be guaranteed the money for which you qualify.

Scholarships Awarded by the WSU Financial Aid Office
The Financial Aid Office selects the recipients for scholarships totaling more than $60,000. Awards are based on the demonstrated financial need and academic standing of the student. The only application required or accepted for these scholarships is the application for student aid, FAFSA. All students who submit this needs analysis report to WSU receive scholarship consideration based on their test scores and/or cumulative grade point average combined with their financial need. Amounts vary from $100 to $1500. Financial aid applications should be filed as soon as possible after January 1.

WSU FOUNDATION SCHOLARSHIPS
WSU Foundation Scholarship recipients are selected by the WSU Foundation Scholarship Committee, they are charged to seek excellence in qualities of mind and in qualities of person, and their goal is to make an investment in individuals.

OUTSIDE SCHOLARSHIPS
In addition to receiving the scholarships described here, each year WSU students also receive thousands of dollars in scholarships from outside sources such as government agencies, professional organizations, civic groups, corporations, sororities and fraternities, foundations, religious groups, educational associations and military/veterans organizations. Directories of these scholarship sources are available in public libraries, high school counselor offices and financial aid offices. You may also access scholarship information on the internet at: http://www.finaid.org/ and http://www.scholarships.com/.

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lf you have been awarded work study in your award letter, you are eligible to work on campus or in certain nonprofit organizations or public agencies to earn the amount shown. Since there are limited positions, work study eligibility does not guarantee employment. When you find work study employment your working schedule will be arranged around your class schedule. Your award is made for school weeks only and does not include semester break or vacation employment. The average work study award is 8 - 10 hours per week, paying $8.40 per hour. Work study earnings are not credited to student accounts; students receive pay checks by direct deposit to their personal bank accounts for hours worked.

Federal Work Study

Federal work study is federally funded with the Financial Aid Office determining eligibility.  Students who demonstrate financial need are allocated money to be earned while working on campus or in non profit organizations.  Work schedules are coordinated with class and study schedules.  Paychecks are issued every other Friday.

Minnesota State Work Study

Minnesota State work study is funded by the State of Minnesota and is available only to Minnesota residents who show financial need.

I am not interested in the work study I have been awarded, what should I do?

You may want to contact a financial aid counselor about using a student loan and/or a parent loan to provide assistance in place of work study.

How do I locate a work study job?

A listing of available work study jobs is located on the WSU home page under "Student Job Postings."  When you are hired to fill a work study position you will need to contact the Financial Aid office, 108 Somsen, to have a work study authorization form prepared for you.  You and your supervisor will complete this form and forward it to the financial aid office.

How and when will I be paid?

When you are approved for work in the department of your choice, a working schedule is arranged.  The authorization form, when signed by you and your work study supervisor, is returned to the Financial Aid office so that you are in payroll status.  Students will record their hours of work on a time sheet.  Time sheets are signed by your supervisor, and are turned in at the Payroll Office no later than 10:00 a.m. on the last day of the payroll period.  Students receive their pay checks through direct deposit to their personal bank account according to the payroll schedule, distributed to all work study students.

What are my responsibilities?

Student employees are expected to report to work as scheduled and meet the expectations of the department or agency as explained by your supervisor.  If you are ill and cannot work you must notify your supervisor.  If you do not satisfactorily perform the duties assigned, your supervisor may ask you to find another work study position. If reassignment is not possible, your work study award will be cancelled.  You will be given a payroll schedule on which to record the hours you have worked and the balance of hours left to work. If you find that you will be unable to work all of the hours allocated to you, please notify the Financial Aid Office so that the surplus hours can be awarded to another student.  If you should find that you can no longer work, please give two weeks notice to your work study supervisor and to the Financial Aid Office.  It may be possible to take out student loans and/or parent loans in place of your work study awards.

What training will I receive?

You will be trained on the job by your work study supervisor or his or her designee.

For more information on Winona State University's payroll policy.

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First-Time Borrowers: All first-time borrowers must complete an entrance loan counseling on the web.  Entrance Counseling should be done only when a student is actually applying for a Stafford or Perkins loan. Go online for Stafford Entrance Counseling or Perkins Entrance Counseling.

Exit Interviews: When leaving Winona State University, all student borrowers must complete the exit interview online. The Financial Aid Office will provide information upon graduation.

An origination fee may be deducted from your Stafford and/or PLUS loan disbursement.  This fee is required by law and is used to reduce the federal government's cost of subsidizing this loan program.  Some Stafford loan lenders will pay this fee for you.  Each lender markets their own repayment options
and borrower services differently, however, the basic terms are the same because of federal program guidelines.  You can check out the Lender List for more information.

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Subsidized Federal Stafford Loan
For graduate and undergraduates enrolled at least half-time. Low interest loans are made by commercial lenders who participate in the program. You must demonstrate financial need as determined by the information provided on the FAFSA. You do not pay interest on the loan if you continue to be enrolled at least half-time. The interest rate is fixed at 6.8%.

An origination fee may be deducted from your Stafford and/or PLUS loan disbursement. This fee is required by law and is used to reduce the federal government's cost of subsidizing this loan program.  Some Stafford loan lenders will pay this fee for you.  Each lender markets their own repayment options
and borrower services differently, however, the basic terms are the same because of federal program guidelines.  You can check out the Lender List for more information.


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Unsubsidized Federal Stafford Loan
For graduates and undergraduate students enrolled at least half-time. Unsubsidized Federal Stafford Loans are not based on need, although you must file the FAFSA to be considered. The interest rate is fixed at 6.8%. Interest will be charged from the time the loan is disbursed to you until it is paid in full. You can choose to pay the interest while you are in school or allow it to accumulate. However, allowing it to accumulate will increase the total amount you have to repay. Contact the Office of Financial Aid for application information.

An origination fee may be deducted from your Stafford and/or PLUS loan disbursement. This fee is required by law and is used to reduce the federal government's cost of subsidizing this loan program.  Some Stafford loan lenders will pay this fee for you.  Each lender markets their own repayment options
and borrower services differently, however, the basic terms are the same because of federal program guidelines.  You can check out the Lender List for more information.

Maximum Annual Loan Limits Chart - Subsidized and Unsubsidized Stafford Loans Starting July 1, 2007

Years	Dependent Undergraduate Student	Independent Undergraduate Student	Graduate Student
First Year	$3,500	$7,500 - no more than $3,500 of this amount may be in subsidized loans.	$20,500 - no more than $8,500 of this amount may be in subsidized loans.
Second Year	$4,500	$8500 - no more than $4,500 of this amount may be in subsidized loans.	$20,500 - no more than $8,500 of this amount may be in subsidized loans.
Third and beyond (each year)	$5,500	$10,500 - no more than $5,500 of this amount may be in subsidized loans.	$20,500 - no more than $8,500 of this amount may be in subsidized loans.
Maximum total debt from Stafford loans when you graduate	$23,000	$46,000 - no more than $23,000 of this amount may be in subsidized loans.	$138,500 - no more than $65,500 of this amount may be in subsidized loans.  The graduate debt limit includes Stafford loans received for undergraduate study.

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Federal Plus Loans
The law now allows graduate and professional degree students to borrow from the PLUS program.  The terms and conditions applicable to parent PLUS Loans (made to parents of dependent students) also apply to PLUS Loans made to graduate and professional degree students.  These terms and conditions include: a requirement that the applicant not have an adverse credit history; a repayment period that begins on the date of the last disbursement of the loan; and a fixed interest rate of 8.5%.  As with PLUS Loans made to parent borrowers, eligible graduate and professional degree students may borrow under the PLUS program up to their cost of attendance, minus other financial aid received.

Unlike parent PLUS applicants, graduate and professional degree student PLUS applicants must file a FAFSA.  In addition, graduate and professional degree students must have their annual loan maximum eligibility under the Stafford Loan program determined by the school before they apply for a PLUS loan.

Although not a requirement if the student will not be receiving any other federal student aid, parents are encouraged to have their dependent children submit a FAFSA so their children can receive the maximum student financial aid they're eligible for.  Graduate and professional degree students applying for a PLUS  are required to submit a FAFSA.

A 4% origination fee and insurance premium may be charged. Borrowers must begin repaying principal and interest within 60 days of disbursement.  However, you may contact the lender for deferment options to make interest only payments.

PLUS Pre-Approval and Application 

To see if you qualify for a PLUS loan click on PLUS Pre-Approval and Application.  If you are eligible, you must complete the PLUS loan application for the loan to process. 

If you want to use EAC as the guarantor click here. If completing a paper application, include dollar amount requested.

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Student Educational Loan Fund (SELF)

What is the SELF Loan Program? The Student Educational Loan Fund (SELF) Program is a long-term, low-interest educational loan provided by the Minnesota Office of Higher Education. The program is unique to Minnesota and Minnesota Office of Higher Education is the only lender in the program.

Who may borrow in the program? Minnesota residents attending eligible post-secondary institutions in-state or out-of-state, and nonresidents attending eligible post-secondary institutions within Minnesota are eligible to apply. An eligible school is one who has signed a participation contract with the Minnesota Office of Higher Education.

How much am I allowed to borrow? Freshmen and Sophomore undergraduate students may borrow up to $6,000 per year. Junior and Senior undergraduate students may borrow up to $7,500 per year. Graduate Students may borrow up to $9,000 per year. Cumulative SELF borrowing maximums are $6,000 for Freshmen, $12,000 for Sophomores, $19,500 for Juniors, $27,000 for Seniors, $34,500 for Post Baccalaureate, and $52,500 for Graduate Students. The minimum loan amount is $500. The amount borrowed cannot exceed the cost of attendance minus other financial aid for the loan period.

Effective July 1, 2007, the annual loan borrowing limit for all undergraduate students will be $7,500 per year.  There is no change in the graduate amount of $9,000 per year.  Cumulative SELF borrowing maximums are $7,500 for Freshmen, $15,000 for Sophomores, $22,500 for Juniors, $30,000 for Seniors, $37,500 for Post Baccalaureate, and $55,500 for Graduate Students. The minimum loan amount is $500. The amount borrowed cannot exceed the cost of attendance minus other financial aid for the loan period. 

What is the interest rate?

The interest rate charged to the borrower changes throughout the life of the loan, and can change every three months. SELF loans are currently being made under Phase IV.  As of January 1, 2007 the interest rate is 7.7%. The interest charged is the sum of the margin, which is currently 2.3%, added to the index, which is based on the average rounded to the nearest tenth of one percent of the three-month London Interbank Offered Rates (LIBOR) rate during the previous calendar quarter. The index rate is 5.4%. The interest rate cannot increase or decrease by more than 3% in any 12-month period. The historical average rate since 2002 is 5.67% for Phase III. The historical average rate since 2006 is 7.9% for Phase IV. No new loans are being made under Phase III.

Interest rates will vary quarterly throughout the life of the loan. The interest rate may increase or decrease depending upon changes in the index and margin.

Interest rate information is available at http://www.selfloan.org/.

Are there any application, processing, or guarantee fees deducted from my loan? There are no application, origination, processing, or guarantee fees deducted from your loan.

What are my repayment requirements? Quarterly payment (interest only) begins within 90 days after disbursement, and continues as long as you are properly enrolled. At termination of study, monthly (interest only) payments begin and continue for up to 12 months. You have a choice of two repayment plans:

A.    The Standard Plan requires monthly payment of both principal and interest for   up to nine years.

B.    The Extended Interest Plan provides two more years of monthly interest only,   followed by up to seven years of monthly principal and interest payments.

The SELF loan offers no “grace” period, or deferment options to borrowers.

If I transfer to another school or go on to graduate school can I still make interest only payments? Yes, but ONLY if you transfer before the Transition Period elapses, and ONLY if the school to which you transfer is an eligible one.

What is the maximum repayment period?

The SELF loan must be repaid on or before the earliest of:

a)   10 years from termination of study;

b)   15 years from the date of the first loan disbursement on your first SELF loan;

c)   a shorter period arranged with the Minnesota Office of Higher Education 

How is my eligibility for a SELF loan determined? There is no minimum income threshold or requirement for the demonstration of financial need. Eligibility is determined by subtracting available financial aid from the yearly cost of attendance. Cumulative SELF loan debt is considered. Every applicant must have the SELF application certified by the financial aid officer, and completed by a credit-worthy co-signer.

What is a credit-worthy co-signer? A credit-worthy co-signer is a U.S. citizen or permanent resident 18 years of age or older, with an address in the United States, who has no credit bureau balances discharged through bankruptcy, no garnishments, attachments, foreclosures, repossessions, or suits; no delinquent or unsatisfied credit obligations; or no more than five percent (5%) of credit bureau balances past due. If the co-signer cannot be located in the credit bureau listings, a Personal Financial Statement provided by the co-signer will be evaluated. Using this method, the co-signer must have a net worth equal to ten (10) times the amount of the SELF loan requested. The Minnesota Office of Higher Education performs the credit check on each co-signer for each application.

STUDENT EDUCATION LOAN FUND PROGRAM

STATEMENT OF BORROWER’S RESPONSIBILITIES

Your education loan is a serious, legally binding contract between you and the holder of your note. It is important for you to understand your responsibilities and the consequences if you become delinquent or default on your loan.

YOUR RESPONSIBILITIES:

1.   You must repay your loan even if you do not complete your program, are unable to find employment after graduation, or are dissatisfied with the education you receive.

2.   You must notify the Service if you do any of the following:

       A.   Move

       B.   Graduate

       C.   Withdraw from school

       D.   Drop below half-time status

       E.   Transfer to another school

       F.   Fail to enroll in school for the period for which the loan was intended

       G.   Change your name

3.   You do not have any deferment or grace periods on your loan.

4.   Your loan has three payment periods which are:

       A.   In-school ...quarterly interest payments are required while in school.

       B.   Transition ...monthly interest payments are required for 12 months after graduating or withdrawing from school. Transition can last from 1-3  years.

       C.   Repayment ...monthly principal and interest payments are required after completion of the transition phase.

5.   Your loan will enter transition if you transfer to a non-member SELF school.

CONSEQUENCES OF DELINQUENCY AND DEFAULT:

1.   If you fail to make timely payment on your loan, your delinquency and/or default   will be reported to a credit bureau. This will seriously affect both your and your   co-signers credit rating and your ability to borrow from any source in the future.

2.   The entire unpaid amount of your loan, as well as accrued interest, may become immediately due and payable.

3.   Holds may be placed on your college records and future financial aid payments.

4.   Your and your co-signers state tax refunds may be seized.

5.   Your account may be assigned to a collection agency which will continue to collect the balance due from you and charge collection fees.

6.   You may be charged reasonable attorney’s fees and other costs of collecting your debt.

Minnesota SELF loan offers an online loan application process.  Click here to start the pre-approval process.

MINNESOTA OFFICE OF HIGHER EDUCATION 

PHONE:   1-651-642-0567 

                  1-800-657-3866

1450 Energy Park Drive Suite 350         

St. Paul, MN 55108-5227   

E-MAIL:   selfloans@ohe.state.mn.us

Internet:   http://www.ohe.state.mn.us/

FAX:1-651-642-0675

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WSU Short-term Loan (maximum $200)
The WSU Short-term Loan fund is designed to assist students with unexpected expenses. It is a short term loan typically involving repayment between thirty and sixty days after disbursement. Expenses caused by unforeseen family, medical or personal circumstances may be temporarily defrayed through use of this fund. Normal living expenses and educational costs should be financed from other sources.

Payment is due as agreed to and is not based upon the scheduling of student aid disbursements. As the borrower, you should know the due date and be prepared to repay the loan when it is due. If this becomes a problem, contact the Financial Aid Office before the due date. The office will attempt to arrange a workable repayment with you. Do not allow the loan to become delinquent since registration materials and grade transcripts are held for delinquent borrowers.

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Mayo Nursing Loan

The following criteria need to be met for the Mayo Nursing Loan Program:

• Students admitted into the following careers are eligible to apply: Nursing with baccalaureate degree, Medical Technology, Cytotechnology.
• Priority will be given to students who do not qualify for typical loans or have exhausted other sources of financial aid but still are in need of financial assistance.
• The loan amount will not exceed $1,500 per academic year.
• Loan repayment will initially be the loan recipient's responsibility. If however, the loan recipient is employed by Mayo Medical Center at least twenty hours per week in a non-temporary position that requires him/her to have successfully completed the educational program for which he/she received the loan, repayment will be made by Mayo Medical Center. Mayo will repay the loan at the rate of $100 per month beginning at the end of the first month the loan recipient is employed and continuing so long as the loan recipient is employed. Loan recipients are in no way given priority or any assurance of employment by Mayo Medical Center.
• Loan recipients not employed by the Mayo Medical Center will repay their loan directly to Winona State University. Repayment will be at the rate of $100 per month plus 8% interest.
• Application deadline is June 1.
  
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Last Modified: Monday, March 12, 2007 10:24 by Mari Livingston