13B.08.10.06

.06 Financial Need Calculation and Award Formulas.

A. Determination of Financial Need.

(1) The Office shall calculate an applicant’s adjusted financial need using the following formula:

Adjusted Financial Need =

Cost of Attendance

- Expected Family Contribution Plus/Minus Regional Cost of Living Adjustment

- Workforce Shortage Student Assistance Grant or Economic Development Student Assistance Grant

- Estimated Pell Grant.

(2) The Expected Family Contribution shall be determined using the same methodology used by the U.S. Department of Education to determine expected family contribution for purposes of federal student aid.

(3) The Regional Cost of Living Adjustment shall be determined annually by the Secretary.

(4) Cost of Attendance shall be calculated as follows:

(a) For a student living with parents, tuition and mandatory fees plus an allowance established by OSFA, with a minimum value of $3,200;

(b) For a student living off-campus, tuition and mandatory fees plus an allowance established by OSFA, with a minimum value of $5,100; and

(c) For a student living on-campus, tuition and mandatory fees, room and board, plus an allowance established by OSFA, with a minimum value of $900.

B. Determination of EEA Award Amounts.

(1) Amounts of EEA program awards shall be calculated using data from the FAFSA or the alternative application.

(2) EA Grant Formulas. Subject to the requirements of Regulation .04 of this chapter:

(a) An EA award for a student attending a 4-year institution shall be calculated using the following formula: Adjusted Financial Need x 40% = Educational Assistance Grant; and

(b) An award for a student attending a community college shall be calculated using the following formula: Adjusted Financial Need x 60% = Educational Assistance Grant.

(3) GA Grant Formulas. Subject to the requirements of Regulation .04 of this chapter, Guaranteed Access Grants shall be calculated using the following formula: Adjusted Financial Need x 100% = Guaranteed Access Grant.

(4) Award amounts shall be calculated on an annual basis and rounded to the nearest $100.

(5) Awards that are made for the fall and spring semesters in the academic year are evenly split between the two semesters.

(6) If a student’s award amount is determined to be below $400, the student shall not receive the award.

C. Errors on a FAFSA or alternative application that are corrected by a student after the deadline may be considered by OSFA. Changes in award amounts as a result of a correction shall be handled as follows:

(1) For EA Grants and GA Grants, if a correction results in a decrease in an award amount, the award shall be adjusted and the student notified of the change. If a correction results in an increase in an award, the increase shall be funded only if OSFA determines that funds are available.

(2) For GA Grants only, if a correction in family income or family size results in the student no longer being eligible for a GA Grant, the student's GA award shall be canceled and, if funding is available in OSFA’s determination, the student may be awarded as an EA Grant.