Students and their parents are expected to share responsibility for paying for a higher education. Financial aid is designed to help students and families pay for the difference between what they are expected to contribute to the price of education and the actual price of that education.
The price of attending a postsecondary institution varies greatly depending on the type of school, its location, and so on. Total price of attendance usually includes tuition and fees, room and board, books and supplies, transportation, and a reasonable amount of personal expenses.
Student and family financial responsibility varies according to income, assets, number of children in the family, and the number of children attending postsecondary schools. Typically, you’re only offered aid if the amount the family can contribute won’t cover the price of attending a particular school.
Students and families are expected to meet their financial responsibility from savings, earnings, loans, or other private or institutional sources.
Student and Family responsibility is determined by assessing income, assets, and liabilities through the Free Application for Federal Student Aid (FAFSA) as established by the United States Congress. Most schools use the results of FAFSA to establish family financial responsibility.
In the Minnesota State Grant Program, the FAFSA results are used, but distinctions are made between the student and family responsibilities. State policy differs by requiring all students to contribute at least 46 percent of the recognized price of attendance whereas the need analysis assigns a larger Student Contribution to students who work and save than to students who do not. Minnesota’s policy uses the results of the federal need analysis as the starting point to determine the family responsibility for State Grants, but then adjusts the federal results to ease the burden on self-supporting, or independent, students.
- For dependent students, the remaining 54 percent of the price of attendance is met by a contribution from the parents as determined by the federal need analysis (FAFSA) and reduced by four percent and by the combination of Federal Pell Grant and State Grant awards.
- For independent students, the remaining 54 percent of the price of attendance is met by a contribution from student’s income and assets (as determined by the federal need analysis) and by the combination of Pell and State awards.
To ease the financial burden on self-supporting students, the state makes an exception to the federal need analysis. Only 68 percent of the student’s contribution from the need analysis is considered when calculating a State Grant award for independent students without dependents other than a spouse while only 86 percent is considered for independent students with dependents other than a spouse.
Financial aid is designed to help pay for that part of the price of attendance that is not the responsibility of the student and family. The amount you receive depends on the availability of financial aid funds, state and school policies, and the number of students qualifying for aid at your school.