Luther College Financial Aid FAQs

Does it cost anything to participate in the monthly payment plan?

Our payment plan is administered in-house; therefore, there is no cost to participate in the plan as long as payments are automatically withdrawn from a bank account.

Can I borrow my federal loans from a hometown bank?

Since Luther College utilizes the Federal Direct Loan program; a student would borrow their federal Stafford and PLUS loans directly from the government and would not need to utilize their hometown bank for this purpose.

How do I complete the FAFSA by Luther's priority filing deadline if my taxes are not completed until after that date?

An applicant can always complete the FAFSA using estimated tax information. Estimates can be derived by reviewing items such as the previous year's tax documents or current W2 wage statements. Once a tax return is filed, the applicant needs to make a correction to their FAFSA application to reflect updated values. The most accurate method of making these updates is to utilize the FAFSA- IRS Data Retrieval Tool within the FAFSA. Once corrections to the FAFSA are made, we will receive an electronic update of the applicant's FAFSA information.

Why are you requesting an IRS Tax Return Transcript instead of allowing us to provide signed copies of our tax returns?

Federal regulations now require that we collect an IRS Tax Return Transcript from any applicant and their parents (if the student is dependent) to process verification. Utilizing the FAFSA-IRS Data Retrieval Tool when completing or correcting the FAFSA lessens the likelihood that an application will be selected for verification.

In what cases would a FAFSA applicant be ineligible to use the FAFSA-IRS Data Retrieval Tool?

A student would be ineligible to use the FAFSA-IRS Data Retrieval Process in the following situations:

1. The dependent student's parents are married, but file separate tax returns.

2. It has been less than 2 weeks since the tax returns were electronically filed (allow 8 weeks for paper filing).

3. The independent student is married and files a tax return separate of their spouse.

4. The tax return filing status on the FASFA is marked as "I will file, but I have not completed my tax return".

5. The applicant's marital status has changed since January 1 of the processing year.

6. Either the student or their parents (in the case of a dependent student) has amended their tax return.

What is the IRS Data Share and why should it be used?

The FAFSA-IRS Data Retrieval Process is a function that students can use while completing a FAFSA on the web that will allow both the student's and their parent(s) (if dependent) IRS tax filing data to be automatically transferred to the correct lines on the FAFSA. The main benefit of utilizing this feature is that the correct tax information is populated on the correct lines of the FAFSA. A secondary benefit to using this process is that the applicant's FAFSA data is less likely to be selected for verification.

My taxes will not be done by Luther's priority filing date for the FAFSA. Will my student be penalized for these not being done?

The March 1st FAFSA priority deadline has been established so prospective students can receive a financial aid package in a timely manner in order to assist in the college decision-making process. Missing the March 1 FAFSA deadline does not penalize a student from a financial standpoint. Continuing students have a March 15th FAFSA priority filing date so that the Financial Aid Office can begin processing those awards so they can be distributed by the end of the academic year.

Does Luther College have a priority filing date for financial aid?

March 1st of each year is designated as Luther's priority filing date for incoming students. This means we encourage families to have both their FAFSA and Supplemental Financial Aid Application on file by March 1st. This allows us adequate time to construct a financial aid package for the upcoming year. For the first time in 2012, the continuing student priority filing date has been moved back to March 15th to allow families extra time to utilize the new IRS Data Share process within the FAFSA.

How many hours of work study are allowed each week?

Most work-study awards allow for a student to work an average of six to ten hours per week throughout the academic year. International students are allowed to work up to fifteen hours per week because the law generally does not allow them to work off campus. Continuing students who are also resident assistants (RAs) are limited to three hours per week due to the work requirements of a RA position.

Can I have more than one work-study job?

A student can have multiple positions, but the total hours per week for all positions cannot exceed what is allowed in the work-study award. This is generally between six to ten hours per week.

Will my academic scholarship change in future years?

The value of academic scholarships remains constant for four academic years of full-time study. Each scholarship is renewable providing that the student maintains satisfactory academic progress

How does the federal government come up with my EFC?

A standard formula is used to evaluate the Expected Family Contribution (EFC) of all students. The main factors that drive EFC for a dependent student include a student's income and assets, income and assets of the parent(s) a student lives with, the number of family members in the student's household and the number of family members of that household in college (excluding parents).

Can financial aid be used to pay for books?

Financial aid can be used to pay for books once the student has a remaining credit balance on their student account after other charges have been paid. Students will need to complete a refund request with the Financial Services Office. The earliest refunds are issued is one day prior to the start of each semester.

Does an outside scholarship check that is made out only to the student and sent to them at their home address need to be reported to the Financial Aid Office?

All outside scholarships must be reported to the Financial Aid Office as federal regulations require that outside scholarships be considered as a part of the total financial aid package. The Luther College Financial Aid Office will reflect those scholarships on an award letter as "Outside Scholarship Received By Student".

What lender should I use for my private loan?

Each private loan lender's loan terms and conditions will vary. Therefore, what may be right for one family may not be for another. The financial aid website contains a preferred list of lenders that offer competitive terms as well as a link to frequently asked questions regarding private loan borrowing.