[In these minutes: Financial Aid]

STUDENT SENATE CONSULTATIVE COMMITTEE (SSCC) MINUTES

MARCH 1, 2001

[These minutes reflect discussion and debate at a committee of the University of Minnesota Senate or Twin Cities Campus Assembly; none of the comments, conclusions, or actions reported in these minutes represent the views of, nor are they binding on, the Senate or Assembly, the Administration, or the Board of Regents.]

PRESENT: Jason Reed (chair), Sabeen Altaf, Percy Chaby, Khaled Dajani, Paul Enever, Adam Lyche, Matt McBlair.

REGRETS: Amber Benning, Tim Dunn, YeeLeng Hang, Reid LeBeau.

GUESTS: Nancy Sinsabaugh, Craig Swan, Peter Zetterberg.

1. DISCUSSION OF FINANCIAL AID

Peter Zetterberg distributed the 1998 annual report from Scholarships and Financial Aid, which was presented to the Regents in May 1999. The report details patterns for how students pay for their education, perspectives by state, and enrollment compared to other comparable universities.

Student mainly pay for education through employment or their parents. Professional students tend to borrow more because they cannot be part-time students. The University partners with the federal government to provide financial aid to provide over $100 million per year to students. Additionally, the state has a generous state grant program. In some states this is need-based, while in some states it is merit-based. Other partners for funding are foundations and private donors.

The University distributes $37 million in institutional funding and $22 million in tuition waivers, mostly for non-resident graduate students. The University also has a high percentage of part-time students compared to other institutions.

Regarding educational costs, tuition and financial aid vary with geography. The Midwest and the Northeast have a history of higher tuition and stronger financial aid than the rest of the country. The number of private institutions also affect the financial aid available for public institutions.

Q: What is the University’s tuition plan?

A: The tuition plan is developed with the annual budget, which will probably not happen until July this year. There are also different tuition schedules for each college and campus, since some are based on market rates. Once the cost of attendance is developed, then financial aid packages can be awarded.

Q: What does a student need to do to receive financial aid?

A: A student must fill out a FAFSA form and send it to the federal government. A needs analysis is then sent to the University which describes what types of aid and at what level each student should receive. The financial aid office then puts together each package and informs the students. 25 different types of awards are available, although many depend on a specific qualification or need. Complications occur when students receive merit-based scholarships, since then their financial aid package needs to be changed to reflect the merit awards. Parental and student contributions are also expected for education.

Q: Is there a cap on grant money?

A: Yes, the cost of education.

Q: Does the state grant award mirror Pell grant award?

A: In the past, Minnesota grants have been the same as Pell grants, although this may change this year since the Governor’s funding will increase tuition.

Q: Do all states have a supportive grant program?

A: No, many have a small grant program.

Peter Zetterberg noted that there are seven major loan programs, of which Stafford loans are the biggest. There are two methods of delivery: direct and guaranteed. Direct loans represent 30% while guaranteed loans are the remaining 70%.

Q: How does the new federal administration affect student loans?

A: Direct loans originated with the previous Bush administration. President Clinton had problems with it and Sallie Mae, a big private lender, also objected. What will happen remains to be seen.

He then noted that three years ago, Congress changed the financial aid administration because they did not feel that it was operating enough as a business. At this time, the director of financial aid also became responsible to Congress, with the hope that this would increase the commitment to direct lending.

Q: Are all work study funds being spent?

A: Work study is always awarded, but Human Resources is learning new processes to hire students who have work study and check for those who are already working. Another reason for low use is that many students work off campus to earn more.

Q: In what order is financial aid awarded?

A: Grants come first, then the cheapest loans, scholarships, and finally work study.

Peter Zetterberg then said that work study is much more important to the coordinate campuses because other employment opportunities are limited.

Q: What restructuring is taking place in the office?

A: Billing and financial aid have been put together and staff are being retrained for the expanded mission.

With no further business, Jason Reed thanked members for attending and adjourned the meeting.

Becky Hippert
University Senate