Questions

What are the steps involved in receiving financial aid at the University of Minnesota?
How much should we borrow?
What does it cost an undergraduate to attend the University of Minnesota?
When is tuition due? Will I receive a bill?
What are my student's loan options?
What is the SELF loan?
What is the PLUS loan?
What is Work-Study?
If my son or daughter was not awarded Work-Study, can he or she still work on campus?

Note: For information about how to pay bills and getting access to your student's records, see Paying Bills and Student Records Access.

Q: What are the steps involved in receiving financial aid at the University of Minnesota?

A: The following five steps take you through the financial aid process from application to payment. Our students can use the self-service link, "Financial Aid Status," to track where they are in the process. This and other self-service options are found on the One Stop Student Services website.

1. Application Review. Once we receive a student's Free Application for Federal Student Aid (FAFSA) from the federal processor, we review the application for completeness and accuracy. If additional documentation is needed or the student was selected for a detailed file review called verification, we will send a documentation request to the student's University email account. All requested documents must be submitted before financial aid will be awarded. Any required forms may be downloaded and printed from One Stop's Forms Online website.
2. Awarding. After the application review is complete, we will award all the financial aid the student is eligible to receive through our office. First, we consider the student for all available grants and scholarships; second, Work-Study employment; and last, student loans and parent loans.
3. Notification/Acceptance. When the student's award package is ready, we send an email message directing the student to respond to his or her electronic Financial Aid Award Notice (eFAAN) online. Students use their Internet ID and password to sign into a secure website where they can accept, reduce, or decline the financial aid awarded to them. For their records, students will receive an automatic email confirmation of their award responses.
4. Promissory Note. If a student accepts a loan, a promissory note (the legal document in which the borrower promises to repay the loan) is required. Promissory notes are now completed online. Ford Federal Direct Subsidized and Unsubsidized Loans require that a student complete an online Master Promissory Note (MPN) only once since it is good for one or more loans for one or more academic years. Ford Federal Direct PLUS Parent Loans require the parent borrower to complete an online MPN (good for one or more academic years) and a paper active confirmation form (required for each loan). We provide students with emailed instructions on how to complete electronic MPNs, as well as the links to download and print PLUS active confirmation forms.
5. Financial Aid Disbursement. After all required promissory notes have been processed and the student has completed registration, financial aid payments are electronically disbursed to the student's University billing account. In order to make any excess financial aid available to your son or daughter as soon as possible, we begin to review enrollment and make payments 7 days prior to the start of the semester. Financial aid payments automatically pay tuition, fees, and on-campus room and board charges before any excess aid is released to the student.

Financial aid disbursements can be applied automatically towards bookstore charges by checking "Yes" on the Financial Aid Withholding Authorization section of the electronic Financial Aid Award Notice (eFAAN). The charge must be made after the last bill of the previous term and before the disbursement of aid for the current term.

At the earliest, students can expect to receive their financial aid credit balance the week before classes begin. Students are encouraged to sign up for direct deposit to have their financial aid credit balance refund automatically deposited into their checking or savings account at their bank. The "Direct Deposit" quick link on the One Stop home page makes signing up for direct deposit easy. Otherwise, a financial aid credit balance check will be sent to the student's current mailing address on file with the University within a few days of disbursement.

Q: How much should we borrow?

A: This is a personal decision but we encourage students to borrow only what they need. Once you have determined your student's estimated expenses for the school year and subtracted any grants, scholarships, or other resources such as savings or earnings from work, the difference is likely to be the amount you will need to borrow in a student and/or parent loan.

The loans offered to your student will be the maximum amount he or she is eligible to borrow. We recommend that you and your student reduce the amount of your loans, if possible, or decline them entirely if you are able. You may reapply for certain types of loans during the school year if you later decide that you do need to borrow additonal funds.

Q: What does it cost an undergraduate to attend the University of Minnesota?

A: Every credit over 13 is free when undergraduates pay a per semester flat tuition fee of that covers 13 or more credit hours per semester. In general, students need to register for 15 credits per semester in order to graduate in four years. For specific tuition costs, please see the One Stop Costs and Tuition information page.

In addition to tuition, full-time students are assessed each semester a student service fee, University fee, technology fee (amount varies by college), and the student health benefit plan (if the student is not covered by a parent's insurance policy). For instance, the average undergraduate Minnesota resident, covered by his/her parent’s insurance policy, paid $5,378 per semester for 2008-09. Complete tuition and fee information, including reciprocity tuition rates and nonresident rates, can be found on the University's Student One Stop website.

Discretionary costs—those students have some control over—include room and board, books and supplies, and personal and transportation expenses. These costs may vary, depending on the student's individual circumstances and how much the student wants to economize. We estimate that books and supplies will cost an average student approximately $488 per semester. The cost per semester for a double room in a University residence hall and the 14-meal plan is $3,640. Transportation costs can be reduced by taking advantage of the $84 per semester U Pass that allows unlimited use of city bus services 24 hours a day.

Q: When is tuition due? Will I receive a bill?

A: Students receive bills for tuition and fees electronically. These billing statements will be emailed to students approximately three weeks before the due date. For a list of current billing due dates, please visit the Student One Stop website.

Billing statements list the amount owed, the minimum payment due, and a due date. Bills typically include charges such as tuition, fees, University housing and meal plans, books charged at the U of M Bookstores, and bus passes. To avoid paying any installment billing charges or late fees, payment must be received in full by the first due date.

Otherwise, students who do not pay the bill in full by the first due date will be set up on the installment plan. The installment plan is automatic if you pay at least the minimum amount, but less than the full amount due by the first due date. A $35 installment/rebilling fee is charged each semester. Students receive two more online bills during the semester.

Students will also have the option of paying their bill online with an electronic check (e-check) withdrawn directly from their personal checking or savings account. If preferred, students may email copies of their billing statements to their parents or other individuals; they may print and mail a copy of their online billing statement to their parents; or they can authorize parents or others to make online payments on their behalf by setting up an Authorized Payer Login ID and Password.

Online payment is convenient, with transactions possible 24 hours a day, 7 days a week, from anywhere in the world. Payments will be credited the same business day if submitted before 5 p.m. Central Standard Time (CST). Time and money is saved—no waiting for the U. S. mail, or writing checks, buying stamps, addressing, and mailing envelopes.

Q: What are my student's loan options?

A: Your student's loan options are listed on her or his electronic Financial Aid Award Notice (eFAAN). We award your student the best possible combination of federal, state, and University loans at the maximum amounts. In general, we recommend that your student accept her or his loans in the order they are offered (from top to bottom on the eFAAN) because we award the loans with the best terms first. Each loan offer contains an online description and a link to a loan comparison chart.

Q: What is the Ford Federal Direct Parent Loan for Undergraduate Students (PLUS) loan?

A: The PLUS loan is available to parents of dependent undergraduates. The purpose of this loan is to assist families who need aid other than, or in addition to, that offered through other financial aid programs. Your lender is the U.S. Department of Education. Before accepting this loan you may want to consult your local bank's investment experts. They can discuss the pros and cons of home equity loans or borrowing against pension plans or life insurance, for example. The PLUS interest rate is fixed at 7.9 percent. The borrower (the parent) is responsible for paying the interest from the date the funds are disbursed until the loan is paid in full. The borrower must also pay a 2.5 percent origination fee that is deducted from the loan before disbursement. Repayment of principal and interest begins on the day the loan is disbursed, with the first payment due within 60 days after the loan is fully disbursed, unless you qualify for a deferment. The standard repayment plan offers a minimum $50 monthly payment and a maximum 10 years to repay, depending on the total amount borrowed. Some loans are also eligible for a graduated repayment plan. See the PLUS loans FAQ for more information.

Q: What is the SELF loan?

A: The Student Educational Loan Fund (SELF) offered by the Minnesota Office of Higher Education is an attractive supplement or alternative to the Ford Federal PARENT Loan (PLUS) for many families. The SELF loan is in the student's name and payment on the principal is deferred until after the student graduates or otherwise ceases at least half-time enrollment.

SELF requires a credit-worthy cosigner and quarterly interest payments while the student is in school. For the current interest rate, please visit the SELF Loan website. No origination fees are charged. If your student declines the SELF loan, he/she may request an increase to the PLUS loan (up to the amount of declined SELF loan) by sending an email from his/her official University email account to onestop@umn.edu.

Q: What is Work-Study?

A: Work-Study is a financial aid program designed to help students meet educational costs through part-time employment with a Work-Study eligible employer. Employers are encouraged to hire work-study student employees because federal and state financial aid funding pays 70 percent of the student's wages, requiring the employer to pay only the remaining 30 percent. Employers interview and hire qualified applicants at their discretion. Employers include many campus offices and departments, government agencies, and nonprofit organizations.

Two primary benefits of work-study are: (1) work-study applicants are attractive candidates to employers, increasing their job opportunities and (2) work-study earnings are not considered income on the FAFSA when the student re-applies for financial aid for the next school year, thus, protecting their eligibility for financial aid.

A variety of work-study jobs are available; most are located on campus. Once a student accepts a work-study award, s/he can find instructions on the Office of Human Resources website on how to apply and view current student job openings online. Salaries are dependent on the skill level of the job, but all jobs pay at least minimum wage. Currently the minimum wage at the University of Minnesota is $6.50 per hour. Many student jobs on campus pay more than the $6.50 minimum wage. Students receive a paycheck every two weeks for the hours they work.

The work-study award amount reflects the maximum amount of money the student will be eligible to earn as a work-study employee. If your son or daughter wants to earn more than this amount, s/he can speak to a One Stop counselor about increasing their work-study award if they are eligibile and funds are available.

On the other hand, the award does not necessarily mean that your son or daughter will actually earn the entire amount during the academic year. Earnings are determined by the rate of pay associated with the job and the number of hours worked per week.

Work-study earnings are considered taxable income and are treated just like any other employment when completing tax returns. However, work-study earnings are not considered income on the FAFSA when the student re-applies for financial aid for the next school year, protecting their financial aid eligibility.

Q: If my son or daughter was not awarded Work-Study, can he or she still work on campus?

A: Yes! If your son or daughter was not awarded a need-based Work-Study award, they are still eligible for student employment. Most of the student employment opportunities on campus have the same pay rates and schedules, yet do not require the applicant to have a work-study award.