Understanding The Process
Applying for Financial Aid, Your Financial Aid Award, Definition of Need, How Your Funds Are Applied, Special Circumstances

Applying for Financial Aid
To apply for financial aid, you should fill out the Free Application for Federal Student Aid (FAFSA) and send it to the federal processor before March 1. Using federally legislated guidelines, the form asks about income, number in the household, number in college, assets of the family, and other questions to help determine your eligibility for financial aid.

The federal processor will process and return the information you submitted on a Student Aid Report (SAR), which serves as an acknowledgement that the FAFSA was processed. If you filed a paper FAFSA, you will receive a paper SAR. If you filed online, you will receive an electronic SAR. Part of this SAR is an "Information Review Form" which can be used to make corrections if there are any errors or to add additional schools to receive the information. The federal processor will also electronically send the information on the SAR to the colleges and universities you listed on the FAFSA.

Everyone who completes a FAFSA will also receive a Federal Personal Identification Number (PIN). Remember your PIN! You can use it to electronically sign next year’s FAFSA and to access your federal loan account information. Parents may also want to apply for a PIN for use in the future as an electronic signature or to access their loan accounts with the federal government.

Your Financial Aid Award
After the MU Student Financial Aid Office has received your FAFSA results, a financial aid "package" is developed based on your financial need. We will send you a "package" or "award" letter outlining the financial aid for which you are eligible and what you need to do to actually receive the money. If you are not eligible for need-based aid, we will tell you about loans offered by the federal government and others that are not based on need. The award letters for incoming freshmen are mailed the first week of April. Continuing and transfer students will receive their award letters in June.

Financial aid is awarded to students based on merit, financial need, or both. Merit-based scholarships are awarded based on academic achievement or some special characteristic, skill, talent or ability. A listing of the major MU and merit-based programs is found under Scholarships on this web site. Need-based aid is given to students who can show they have financial need after filling out the FAFSA. Most financial aid is awarded on the basis of need. There are three kinds of need-based aid:

• Grants and need-based scholarships are gift-aid that does not have to be repaid. Federal grant programs include the Federal Pell Grant and the Federal Supplemental Educational Opportunity Grant. MU and the State of Missouri also supplement the federal grant programs with their own grant programs.
• Loans are borrowed money that has to be repaid over a period of time. Federal loan programs at MU include the Ford Federal Direct Loan Program (the largest program), the Federal Perkins Loan, and the Nursing Student Loan.
• Work-Study is money you earn by working at a part-time job.

Definition of Need

Financial need is the difference between total educational expenses and the Expected Family Contribution (EFC):

Cost of Education
- Expected Family Contribution
= Financial Need

Total educational expenses (tuition, books and supplies, room and board, personal expenses and transportation expenses) are usually called the cost of education. The need analysis number computed from the FAFSA is called the expected family contribution.

How Your Funds Are Applied

All financial aid funds, except Federal Work Study, are applied directly to your MU account. Your MU account is established through the Cashiers Office when you register for classes. Your account consists of all educational and other fees, room and board (if you live in University housing), books and any other University charges.

Usually one-half of your aid is credited to your account for the fall semester and the other half is credited for the spring semester.

Funds from the state of Missouri may be sent to SFA several weeks after the start of each semester. SFA cannot apply these funds to your student account until they are received.

In order for your financial aid funds to be applied to your MU account, you must have:

• met enrollment requirements for your aid
• completed all verification documents if you were selected
• completed all loan promissory notes
• completed the Loan Entrance Counseling if you are a first time student borrower
• made proper payment arrangements with the Cashiers office to be financially enrolled

If your financial aid exceeds your University charges, the balance is paid to you by check or direct deposit into your bank account. Refunds generated from a PLUS will be mailed to the parent. For more information on direct deposit, contact the MU Cashiers Office at (573) 882-3097 or visit their web page at http://cashiers.missouri.edu.

Special Circumstances

Your eligibility for aid is based primarily on the income and asset data you reported on the Free Application for Federal Student Aid (FAFSA). If a major change occurs in your financial situation, you may ask your MU financial aid advisor to review your situation. A letter, along with documentation, will be required before any changes will be considered. Make sure your name and student ID are on any documentation you submit for review. Our Special Circumstance Form is a printable form found in the “Printable Forms ” section of this web site.

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