Understanding your International Student Financial Aid Package

Based on a student’s financial aid application materials, the Financial Aid Office awards Kofi Annan Scholarships based on demonstrated financial need.

Macalester provides Health Insurance Grants to students who demonstrate significant need for financial aid and are taking the Macalester Health & Accident Insurance plan. The cost of the Macalester Health & Accident Insurance plan is set each year. An estimate of the price for the first year is provided on the student’s financial eligibility letter. For students using the Macalester plan and who qualify for a Health Insurance Grant, the amount of the Health Insurance Grant will be adjusted to cover the full annual cost for the Health & Accident Insurance plan each year. Students who receive an insurance waiver approved by the Hamre Center are not eligible to receive the Health Insurance Grant.

Macalester provides Campus Residence Grants to students who demonstrate significant need for financial aid and reside in Macalester housing. Students residing elsewhere, typically during their junior or senior year, are not eligible to receive a Campus Residence Grant.

Macalester offers the Macalester College International Student Loan (MCISL) to international students who applied and qualify for need-based financial aid. Macalester cannot replace the MCISL with additional scholarship.

Offering a modest loan allows Macalester to stretch our financial aid budget so we can admit and fund more international students than we could if we did not provide a loan.

Please review the Financing Options page or visit: macalester.edu/financialaid/loans for more details.

In early summer, students with a loan in their aid package will be able to accept all or part of the loan online. We recommend that students complete these steps by the end of June, so fall billing statements can accurately reflect their accepted loan amounts.

The Charles J. Turck Presidential Honor Scholarship is awarded to a limited number of international students who demonstrate special potential to excel academically at Macalester. In the 1940s and 1950s President Charles J. Turck gave new emphasis to the College’ s internationalism by recruiting international students, creating overseas study opportunities, and hiring faculty from diverse backgrounds. As a symbol of commitment to international harmony, he raised the United Nations flag on campus in 1950, and it has flown every day since then, just below the United States flag. Under his leadership, the College also broadened its base of community service and intensified its continuing interest in civic and national affairs.

There is no special application for these scholarships. Recipients are notified of scholarship awards at the time of admission. If you have been awarded the Turck Presidential Scholarship, it will be renewed at the same amount for each semester you are enrolled at Macalester (up to eight semesters). Current students are not considered for new or additional merit scholarship while attending Macalester.

More information about Macalester scholarships: macalester.edu/financialaid/policies/scholarships.

Outside scholarships or other sources of financial aid from outside sources must be reported to the Financial Aid Office. The first $500 you receive in outside scholarships will not impact the amount of your pre-existing need-based grant(s) from Macalester. If you receive more than $500 in outside scholarships, half of the amount exceeding $500 will replace pre-existing need-based grant(s). This policy differs for other outside financial aid sources like government sponsorships.

More information about our outside scholarship policy: macalester.edu/financialaid/policies/outsidescholarships.

Students who have a student employment award in their financial aid package are eligible to work on campus but are not required to do so. The amount listed as “student employment” on the letter of financial aid eligibility represents the maximum amount of money a student can earn during that academic year.

However, students who choose not to work on campus or do not work sufficient hours during the academic year will not earn the maximum amount. Students who do not work the hours necessary to earn the maximum student employment amount will NOT receive additional scholarship from Macalester to make up the difference.

In early summer, students will receive instructions to submit employment applications online, which will be used to determine job assignments.

Students who have not been awarded student employment are typically allowed to apply for campus jobs during the early part of fall semester. However, employers are asked to prioritize students who have been awarded student employment in the hiring process.

On average students work between 9 hours per week and 11 hours to earn their entire student employment award.

Unlike other types of financial aid, student employment earnings are delivered in the form of a biweekly paycheck based on the number of hours worked. By default, wages are delivered to students by check or direct deposit, but students may choose to have wages applied to their tuition account by setting up an agreement with Macalester’s Student Accounts Office. This is typically arranged during late summer.

More information and Student Employment Details: macalester.edu/employmentservices/studentemployment/studentemploymentfaq/

The Student Accounts Office produces fall semester billing statements in mid-July with payment due in mid-August. Spring semester billing statements are produced in mid-December with payment due in mid-January. Find more information and billing worksheets at: macalester.edu/financialaid/faq/billing. Please note, bill estimating worksheets will be updated with 2024-2025 prices in spring 2024.

Macalester offers a payment plan that splits the amount due into ten monthly payments. The Financing Options page contains more details.

REMINDER: International students who are offered the MCISL loan but do not officially accept the full loan amount will be responsible for paying a larger outstanding balance than would be necessary if the MCISL loan was accepted. Macalester cannot replace the MCISL loan with additional scholarship so students must accept the MCISL loan OR their families will need to use their own resources to make up the difference.

Estimating Your Macalester Bill
Prices for the 2024-2025 academic year will be set in spring 2024. However you can calculate your estimated fall 2024 bill using the information provided in your Financial Eligibility letter.

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Example for Estimating Fall Bill:
Estimated Fall 2024 Charges: $45,546 *Estimate
(1/2 Tuition, Room, Board, and Activity Fees + $3,614 *Estimated Health & Accident Insurance)

-) $25,000 *Example
(½ Year 1 Scholarships, Campus Residence Grant, & MCISL *if offered* + full Health Insurance Grant of $3,614 *if offered)

(=) $20,546
Estimated Amount Due for Fall 2024

International students are provided with a four-year financial aid package and therefore do not need to re- apply for need-based financial aid each year.

We estimate that our prices will increase by three to five percent each year. Students who applied and qualify for need-based financial aid will see their aid package also increases each year, but the increase may not be enough to completely offset the total increase in prices. The amount of financial aid cannot be revised once a student arrives on campus.

International students who did not apply for need-based financial aid during the application process will NOT be considered for need-based financial aid after an admission decision is released or at any point during their time at Macalester. This is a necessary policy to help with allocated limited financial aid funds.

Before paying the enrollment deposit, families who applied for need-based financial aid as part of admission application process can request a reconsideration (appeal) of financial aid eligibility when:

• Financial factors have changed since the time the financial aid application was completed.
• There are unusual factors that may affect a family’s ability to handle educational expenses.

If any of the above apply, we ask families to reach out to the Admissions Office directly at [email protected].

International students who did not apply for need-based financial aid during the application process will NOT be considered for need-based financial aid after an admission decision is released or at any point during their time at Macalester. Therefore they are not eligible to request a reconsideration of financial aid eligibility. This is a necessary policy to help with allocated limited financial aid funds.

Unless otherwise noted, your financial aid package is based on full-time enrollment of between 12 and 18 credits in a semester. F-1 Visa students are required to enroll in a minimum of 12 credits per semester to meet immigration requirements.

More information and policy details: macalester.edu/financialaid/policies/parttimeenrollment.

Students may receive a maximum of eight semesters of financial aid from Macalester, and Macalester financial aid is not predicated on academic performance.

macalester.edu/financialaid/policies/academicprogress

If you withdraw or take a leave of absence during a semester, you may receive a tuition refund based on the tuition refund policy published in the College Catalog.

Financial aid from Macalester will be adjusted so the percentage of tuition paid by Macalester aid is consistent.

macalester.edu/financialaid/policies/refunds

Macalester financial aid does not cover living expenses during the summer break. Students who plan to remain in the US during the summer and do not have family support to cover expenses will need to support themselves by securing a campus job or a qualifying internship.

Students should plan to speak to International Student Programs (ISP) regarding employment authorization related to your major and/or consult with Career Explorations well in advance of the summer break.

Enrolled students who plan to study at Macalester on an F or J non-immigrant visa are required to prove sufficient financial resources by submitting a Certification of Finances (COF) and supporting financial statements.

More information is listed on Macalester’s COF form, which will be made available in student portals by April..

To issue a form I-20 or DS-2019, students must show that family resources (as verified by the Macalester COF and supporting financial statements, plus any qualifying scholarships/financial aid (i.e. scholarships for education related expenses), meets or exceeds the Estimated I-20 Listed Cost of Attendance for 2024-2025. This is a combination of the Total Billed Charges AND listed estimated costs (personal expenses) listed on the Financial Eligibility Letter.

2024-2025 prices will be set in spring 2024. Final prices will be posted at macalester.edu/financialaid/tuition as soon as they are available.

Students can use the estimated costs to project the amount of funding that must be demonstrated on the Macalester COF and supporting financial statements. To do so, subtract any Macalester Financial Aid Award 2024-2025 (including all scholarships, grants, MCISL loan *if offered*, and campus employment) from the combined total billed charges and other estimated costs (listed on the Financial Eligibility Letter).

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Example:
 I-20 Listed Cost of Attendance for 2024-2025: $89,748 *Estimate
(Total Billed Charges + Other Estimated Costs)

(-) Any Macalester Financial Aid Awarded for 2024-2025: $60,000 *Example
(including all scholarships, grants, loans, and student employment)

(=) Estimated amount needed for student/family contribution: $29,748 *Example

In the example listed above, a COF and bank statements showing a family contribution of $29,747 or less would not qualify for and I-20 (and subsequent US student visa).

Taxes in the United States can be complicated. Macalester’s International Student Programs (ISP) helps students file required federal and/or state tax returns every spring. 

International students who receive scholarships above the cost of tuition and required fees, and/or earn money through student employment, paid internships, and/or gift cards are subject to U.S. Federal and State taxes.

While Macalester does not cover all of a student’s potential tax obligations, in many cases, Macalester does help.

An international student is generally considered a nonresident alien (NRA) for tax purposes in their first 5 calendar years.

While an NRA, students are (with some exceptions) subject to the following federal tax rates:

• 14% on non-qualified scholarships. Non-qualified scholarships are those scholarships/grants for expenses above and beyond tuition, required student fees, etc. For example, scholarships that apply to housing, meal plans, and health & accident insurance fees.
• Minimum 10% on campus employment earnings (sometimes called work study).
• 30% on gift cards. Students at Macalester may be offered gift cards as prizes or compensation for participation in certain events or research studies.
• In addition to federal taxes, while an NRA, students are subject to a minimum 5.35% tax on non-qualified scholarships by the state of Minnesota. 

Whether a student will have to pay federal and Minnesota state taxes, and if so, how much is owed, depends on several factors and is highly individualized. For example, students from countries that have tax treaties with the U.S. may have reduced tax rates or are not taxed at all. In addition, how much a student earns through employment and/or internships can impact whether a student will need to pay federal and state taxes and how much is owed. In general, first-year students do not earn much and their tax burden is not too great.

Read more about U.S. Income Tax Treaties.

Taxes on campus employment, and/or internship, and/or gift card earnings:
Students are responsible for paying taxes on campus employment, gift cards (if applicable), and earnings from paid internships or summer employment (if applicable).

International students are required to complete paperwork at the beginning of the year which will authorize a small withholding (deduction) from each paycheck. This withholding (generally $15 – $30 per paycheck) helps make sure students are not required to pay a large “lump sum” when taxes on campus employment and other earnings are due in April. Students who end up withholding/paying too much federal or state taxes will receive a refund, which will be applied to Minnesota state taxes.

Taxes on non-qualified scholarships:
Macalester provides assistance to international students for federal and, in certain circumstances, state taxes on non-qualified scholarships (i.e., scholarships applied to charges beyond tuition and fees such as housing, meal plan, and health & accident insurance). 

• Federal income tax obligations: Macalester employs a “gross up” policy that essentially covers the 14% income tax on non-qualified scholarships.
• Minnesota state income tax obligations: Students who meet certain conditions will receive a “Minnesota State Tax Assistance Grant.” This grant is meant to assist our highest need international students who do not benefit from a tax treaty by bridging the gap between their presumed federal tax refund and the income tax on non-qualified scholarships owed to the State of Minnesota. Qualifying students receive a letter notifying them of their eligibility for this grant.

U.S. Federal and MN State Tax laws are subject to change. International Student Programs works closely with students to understand tax responsibilities and file required tax returns.

Students will also have non-billed costs during the academic year for textbooks, supplies, and personal expenses. For 2024-2025, we estimate $2,270 for personal expenses, on average. (Reflected on the letter of financial eligibility in the admitted student portal.) “Personal Expenses” can mean many different things from dining off campus to purchasing winter clothing. But for international students, these “personal expenses” may include other costs associated with studying in the United States.

For example, international students should anticipate additional costs before arriving in the U.S. associated with applying for an F-1 visa.

While not always necessary, there can be additional out-of-pocket expenses for things like medical expenses that are not covered by health insurance and potential expenses for meals during longer campus breaks (particularly the break between fall and spring semester). Students who live in Macalester housing during the summer months are generally responsible for their own dining and residence expenses.

For students receiving need-based financial aid, the money earned through their Student Employment is meant to help cover some of these out-of-pocket expenses (like personal care products, off campus dining, etc.) while a current student.

There are many ways students at Macalester can save money on some personal expenses, including creating a budget to make sure out of pocket expenses are covered. Two signature programs:

• Universal Metro Transit Passes: All Macalester students are eligible to receive a free, unlimited Metro Pass, allowing them to use the Twin Cities buses and light rail system as often as they’d like during the academic year.
• “Shop” in the Macalester Free Swap and Summit 1550: Macalester operates an award-winning “Free Swap.” The project is based on the circular economy model and keeps the benefits of free items within the Mac community. Before buying new, students are encouraged to look through the Free Swap, and its extension space at Summit 1550 to find clothing, dorm room accessories, and more. 

Not only do these programs save money, they make positive contributions to Macalester’s sustainability efforts.