Policy 3:4 - Financial Aid | South Dakota State University

Policy Contact: Office of Student Affairs and Enrollment Management

Purpose
This policy and its procedures briefly summarize and explain the different types of financial aid available to students at the University and set forth the application process associated with financial aid.
Policy
1. Financial aid exists to help students and their families pay for education expenses. Student financial aid programs are primarily funded through the federal government through loans, grants, and work-study eligibility. The University is eligible for all the Title IV, Higher Education Act student financial assistance programs. Other aid programs are from state government, agencies, scholarship donors, and the University.
2. The University's Office of Financial Aid and Scholarships, or successor unit, is responsible for processing financial aid applications and distribution of assistance to students and their families as needed.
  1. The University's Office of Financial Aid and Scholarships uses the information from the Free Application for Federal Student Aid (FAFSA), specifically the calculated Student Aid Index, to perform an evaluation for financial need.
3. The formula used to determine financial need is: Cost of Attendance minus Student Aid Index equals Financial Need. The formula used to determine Unmet Financial Need is: Cost of Attendance minus Student Aid Index minus other financial assistance equals Unmet Financial Need.
4. Completion of the FAFSA is highly encouraged but not required to attend the University.
5. Federal Direct Loans are the primary source of student financial aid. These loans are available to undergraduate and graduate students who meet the eligibility requirements. Students obtaining federal loans will be required to complete entrance loan counseling to obtain information regarding their obligations and rights as borrowers, including the probable methods and rate of repayment, consequences of default, and sources of assistance if unforeseen circumstances arise. Students must complete exit loan counseling upon completion of their education at the University.
6. Federal grants are gift aid awarded to students on the basis of financial need as determined by the FAFSA. Generally, there is no requirement for repayment; however, students may need to repay all or part of a federal grant in certain circumstances, including if the student withdrew early from the program for which the grant was given to them, the student's enrollment status changed in a way that reduced their eligibility for the grant, the student received outside scholarships or grants that reduced their need for federal student aid, or other special circumstances.
  1. The most common federal grants are the Federal Pell Grant and Federal Supplemental Education Opportunity Grants for students seeking their first bachelor's degree. Eligibility for grants is determined by the FAFSA and may be subject to availability of funds and meeting the annual ��Ƶ FAFSA completion priority date and awarding parameters.
  2. The Federal Work-Study Program is a financial need-based program that provides part-time jobs for students. The maximum amount a student can earn under this federal program is determined by the FAFSA and available funds. Most Work-Study jobs are on the University campus, although some are off campus at nearby non-profit and governmental agencies. Students awarded Work-Study will receive information regarding job opportunities. Specific wage rate, hours of work, and job description are provided to students by the employer before accepting a position. Total earnings cannot exceed the Work-Study award.
  3. Scholarships are gift aid awarded to students in recognition of academic achievement or other criteria recognizing academic and talent performance, participation in activities, and other achievements or characteristics.
7. Information regarding scholarships managed by the SDBOR is available in SDBOR Policy 3.6.1 and from the Office of Financial Aid and Scholarships.
8. Non-SDBOR scholarships may be available from other organizations. Students are encouraged to check with their local high school, library, and media sources.
9. Alternative and private loans are offered by some regional and national lenders or states. Information on how to apply is found on the University's Private Lender List webpage.
10. Other student aid programs may be available for eligible students through governmental agency programs that require specific agency application requirements. These include programs through Vocational Rehabilitation, the Department of Labor, Veterans Administration, and other agencies.
11. Consumer information is available for prospective or enrolled students at the University in compliance with the Higher Education Opportunity Act of 2008. Financial aid information available specifically includes entrance and exit loan counseling (Sec. 488), private loan disclosures for loans by the University that are not made, insured or guaranteed in Title IV of the Higher Education Act, and school code of conduct (Sec. 493). The information is available at . The Voluntary System of Accountability (VSA) along with other information disclosures and consumer dissemination is also noted on the website.
12. FAFSAs completed before March 1 for the following academic year receive priority for several need-based programs such as the Federal Supplemental Grants, Federal Work-Study, South Dakota Freedom Scholarship, Pharmacy Loans, and Nursing Loans.
  1. Most federal student financial aid does not have a priority application date; specifically, the Federal Pell Grant and the Federal Direct Loan, whether subsidized or unsubsidized.
13. The FAFSA will determine eligibility for federal financial aid. The Title IV School Code for the University is 003471. The availability of funds may affect the amount and/or type of award. Students are required to notify the Office of Financial Aid and Scholarships of any financial assistance which does not appear on their award letter.
14. Students' eligibility for funding in following years is dependent upon their continued satisfactory progress in accordance with University Policy 3:5 and available funds. Students must apply for financial aid each academic year they are enrolled at the University.
Procedures
1. To apply for federal or need-based financial aid, students must complete the FAFSA at each academic year they are enrolled at the University.
2. To be considered for certain additional scholarships, students may complete the annual ��Ƶ Scholarship Application.
3. The FAFSA is generally available on October 1 of the year prior to the academic year. The Office of Financial Aid and Scholarships generally starts providing aid offers to incoming students in January and February and to continuing students in March and April. The aid offer provides the types and amounts of financial aid the student is eligible to receive and outlines the specific terms and conditions of the financial aid.
4. Financial aid that a student qualifies for and receives is credited toward the student's University account for the respective academic terms. Payment is first made to the student's tuition, fees and, if applicable, room, food service, and other University expenses as authorized. Financial aid in excess of tuition, fees, and other University expenses is distributed to students.
Responsible Administrator
The Vice President for Student Affairs and Enrollment Management, or designee, is responsible for the annual and ad hoc review of this policy and its procedures. The University President is responsible for approval of this policy.

Approved by President on 10/08/2015. Revised 01/29/2024 (clerical). Revised; Approved by President on 12/06/2024.

Sources: , University Policy 3:5

Associated Forms: /office-financial-aid/financial-aid-policies

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