Financial aid deadline nears for students

by Brenda McDonald
MSU-Bozeman News Service

02/08/2002 --Bozeman - Students looking to secure financing for their college education at Montana State University-Bozeman have until March 1 to meet the priority filing date for the free application for Federal Student Aid (FAFSA).

According to Becky Roeder, assistant director of the MSU Office of Financial Aid Services, the FAFSA document is used by academic institutions to determine eligibility to receive money from federal grant, loan, and work-study programs and screen for financial need in awarding need-based scholarships.

According to Roeder, the goals of the financial aid office are: assist students in paying for their education investment; evaluate the family's financial ability to pay for education costs; distribute limited resources in an equitable manner and to attempt to provide a balance of gift aid; and aid through work study and loans.

The FAFSA collects a family's personal and financial information required to perform a needs analysis. Factors considered in a needs analysis include: asset equity which excludes a home or retirement fund, family size, age of older parent and number of family members in college.

Students can fill out the FAFSA form on the web at www.fafsa.ed.gov. The web is recommended because 13 percent of paper FAFSA applications are rejected due to errors. Less than one-third of one percent of FAFSA applications on the Web are rejected because the Web program flags responses that are incomplete or don't make sense before moving on to the next application question. Any errors in completing the FAFSA can cause delays in the aid process.

The second step in the aid process is to submit the FAFSA application to the federal processor. This can be done at the conclusion of the online application process. It is important to make sure that the application is complete and has all required signatures.

The student will receive a Student Aid Report from the federal processor. This can take two to four weeks. If the application was submitted by mail the response could take four to six weeks. The report should be carefully reviewed and checked for accuracy. It will indicate the Expected Family Contribution (EFC). This is the estimated amount a student's family will pay for educational expenses for one academic year.

Students who are attending MSU should read all communications received from the MSU Financial Aid Office and provide any requested documentation. Students will receive an award notification letter from the financial aid office outlining the type and amount of financial aid awarded. Students accept or reject the aid awarded and return the signature copy of the financial aid award notification letter to the financial aid office. Students will receive promissory notes for loans accepted which will be sent out by the financial aid office. Students return the completed notes and any other documents required. Financial aid loan and grant funds are applied to the student's university account. Funds exceeding the amount due are disbursed directly to the student.

The MSU Financial Aid office has put together a list of helpful websites regarding financial aid:

MSU Financial Aid Home Page, www.montana.edu/wwwfa/. This site contains information concerning all aid programs MSU administers, important dates, and links to other helpful websites.

Direct Loan Servicer, www.dlservicer.ed.gov. If a student borrows through a federal loan while attending MSU, the Direct Loan servicer will be the servicer of the loan. Students can visit this site to view information concerning their loan.

The Financial Aid Information Page, www.finaid.org. This site contains a wealth of information about many aspects of financial aid and about life before, during, and after college.

Student Guide, www.ed.gov/prog_info/SAF/studentguide. This site was developed by the U.S. Department of Education and explains the types of federal aid that are available.

Financial Aid for Students, www.ed.gov/offices/OPE/students. This site contains information about federal aid programs. It includes the Student Guide, Guide to Defaulted Loans, FAFSA on the Web, Title IV School Codes and much more.

National Student Loan Data System (NSLDS), www.nslds.ed.gov. This is a website where students can check to see all the federal loans that the students has borrowed and who holds the loans. A pin number is needed to access the information. It can be requested at www.pin.ed.gov.

Send questions or comments to Brenda McDonald: bmcdonal@montana.edu. Or you can send letters to Brenda McDonald, MSU Communications Services, 416 Culbertson Hall, Bozeman, MT 59717.

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