Post on 18-Dec-2015
Agenda
• How to apply for Financial Aid
• Cost of Attendance
• Definition of Financial Aid
• Federal Financial Aid programs
• Michigan Scholarships and Grants
• Institutional Scholarships
• Where to look for information about private sources of aid
Applying for Financial Aid
• ALL colleges will require the Free Application for Federal Student Aid (FAFSA)
• Some schools may also request the “Profile” application from CSS to award institutional aid/scholarships
• Submit the Free Application for Federal Student Aid (FAFSA) prior to school’s deadline
• FAFSA must be submitted annually (January/February is best)
• Most aid awarded on a, “first-come, first-served” basis
• To ensure maximum consideration for federal, state, & institutional aid, contact each school to ask about their:– Required application materials
– Application deadlines
Application Process
• Collects family’s personal & financial information in order to determine a student’s Expected Family Contribution (EFC)
• May file FAFSA in one of two ways:
– Electronically via FAFSA on the Web
– Paper FAFSA
FAFSA
• Web site: www.pin.ed.gov• Sign FAFSA electronically• Can request PIN before
January 1, 2008• Not required, but speeds
processing• May be used by students
and parents throughout aid process, including subsequent school years
PIN Registration for Electronic Signature
• Web site: www.fafsa.ed.gov– 2008-09 FAFSA on the Web available on
January 1, 2008– FAFSA on the Web Worksheet:– Used as “pre-application” worksheet– Questions follow order of FAFSA on the Web
FAFSA on the Web
General Student Eligibility Criteria
• Must be pursuing degree, certificate, or other recognized credential
• Must be U.S. citizen or eligible non-citizen• Must be registered with Selective Service (if
male & required)• May not have eligibility suspended or terminated
due to drug-related conviction• Must meet Satisfactory Academic Progress
requirements
Satisfactory Academic Progress (SAP)Schools are required to have a SAP policy
which monitors successful progress towards graduation
• Qualitative (GPA) requirement
• Quantitative (course completion) requirement
• Maximum timeframe for each degree
FAFSA Questions - Student
• Name, address, SSN, DOB, citizenship, marital status, Selective Service, grade level, degree type, etc.
• 2007 wages, AGI, taxes paid, untaxed income, assets and income exclusions
• Colleges to receive the results (up to six)
• Dependency Status
• At least 24 years old by December 31st of the award year covered by the FAFSA
• Graduate or professional student
• Married (at the time of application)
• Has children or legal dependents other than a spouse for whom the student provides more than half of their support
• Both parents deceased or ward of the court
• Veteran of the U.S. Armed Forces or currently serving on active duty (for other than training purposes) in the Armed Forces
• Determined to be “independent” by the financial aid administrator based on unusual circumstances
Dependency Status – Independent If:
FAFSA Questions – Parent(s)
• Name, SSN, marital status (at the time of application), household size, number in college in 2008-09
• 2007 wages, AGI, taxes paid, untaxed income (SSB, 401k/403b, child support received, etc.), income exclusions (child support paid, Education Tax Credits, etc.), assets
Frequent FAFSA Errors
• Parent and Student Social Security Numbers
• Divorced/remarried parent information
• Income earned by parents/stepparents
• Untaxed income (401k/403b, SSB & child support received for all family members)
• U.S. income taxes paid (not withheld)
• Missing signatures
Special Circumstances
Request a re-evaluation of a processed FAFSA due to:
• Loss of employment
• Loss of untaxed income benefits (Social Security, child support, etc.)
• Separation or divorce
• Unusual uninsured medical or dental expenses
What Happens After I Submit the FAFSA?• The FAFSA is processed by the
Department of Education.
• The Expected Family Contribution (EFC) is determined.
• Results are sent to the student and the schools listed on the FAFSA.
FAFSA Processing Results
• Students are notified of FAFSA results by:– E-mail notification containing a direct link to
the student’s on-line Student Aid Report (SAR) if the student’s e-mail was provided on paper FAFSA or FAFSA on the Web
– A paper SAR will be sent if no email address was provided
• Students with a PIN can view their on-line SAR at www.fafsa.ed.gov
What is the Expected Family Contribution (EFC)• Amount family can reasonably be
expected to contribute
• Stays the same regardless of college
• Two components– Parent contribution– Student contribution
• Calculated using FAFSA data and a federal formula
Role of the Financial Aid Office
• Determines eligibility for financial aid• Packages/awards aid• Sends an award notification* which includes:
– Programs and amount from each program for which the student is eligible
– How and when aid will be disbursed– Terms and conditions of student’s award
* May be sent by letter or E-mail notification
Cost of Attendance
• Tuition and Fees
• Room and Board (on campus or off)
• Books and Supplies
• Transportation
• Personal Expenses
Need Varies Based on Cost
X
Y
Z
Cost of Expected Family NeedAttendance Contribution (Variable) (Variable) (Constant)
1
2
3
EFC EFC
Types of Funding
• Grants – gift aid, generally based on need
• Scholarships – gift aid, generally based on academic achievement or special talent
• Loans – must be repaid
• Work-study – employment, student earns money to help with educational expenses
The FAFSA is required for:
• Pell Grant• Academic Competitiveness Grant (ACG) -1st &
2nd year in college - students must complete a “rigorous program of study” in high school
• National Science and Mathematics Access to Retain Talent (SMART) Grant - 3rd & 4th year in college, be pursuing a major in fields of study that are considered critical to the national security of the United States
• Supplemental Educational Opportunity Grant (SEOG)
FAFSA also required for:
• College Work Study
• Perkins Loan
• Stafford Loans
• Some Scholarships depending on the school policy
• State need-based aid
Subsidized and Unsubsidized Stafford Loans
(Student Borrower)
• Subsidized: Must demonstrate “need”– No interest during in-school period
• Unsubsidized: Need is not a consideration– Interest paid by student or allowed to capitalize
• Fixed interest rate of 6.8%
• Repayment begins 6 months after graduation
Parent PLUS Loan
• Borrowers are parents of dependent undergraduate students or graduate and professional students
• Annual loan limit: cost of attendance minus student financial aid
• Fixed interest rate– Federal Family Educational Loans: 8.5%– Direct Loan: 7.9%
• Repayment begins 60 days after loan is fully disbursed
Michigan Competitive Scholarship• Eligibility Criteria
– Enrolled at Michigan Public/Private Institution– Take the ACT Test by December of senior year– Qualifying ACT Score (sum of 90)– FAFSA received by March 1– Financial Need– Michigan Resident
www.michigan.gov/studentaid
Michigan Competitive Scholarship
• Renewable by filing the FAFSA each year and continuing to show “need”
• Must maintain a college GPA of 2.0 or higher
• $1,300 Public Institutions• $2,100 Private Institutions
www.michigan.gov/studentaid
Michigan Tuition Grant
• Maximum $2,100 per year award amount• File FAFSA by March 1st for priority consideration• Demonstrate financial need• Enroll at least half time at an approved independent,
(private) college/university• Michigan resident • U.S. citizen or permanent resident• Meet Satisfactory Academic Progress (SAP) policy
www.michigan.gov/studentaid
Michigan Nursing Scholarship
• Eligibility Criteria:– Admitted to a nursing program (LPN, ADN, or
BSN)
– U.S. citizen or permanent resident
– Michigan resident
• Maximum annual award is $4,000
• Must sign an agreement to work in Michigan or scholarship must be repaid
www.michigan.gov/studentaid
Michigan Promise Scholarship (formerly MI Merit Award)
• Receive qualifying scores (Level 1 or 2) on the MI Merit Exam (MME)
• $1,000 per year for first two years• Additional $2,000 after “successful
completion” of two years (Associate Degree or 50% of bachelors degree) with at least a 2.5 GPA
• Four years to claim awardwww.michigan.gov/studentaid
Michigan Educational Trust(MET)
– Prepaid college tuition plan that locks in future tuition rates at in-state public colleges at current prices
– All prepaid tuition plans must be included as an investment in the asset portion of the FAFSA
– Contact the MET program to notify them what school the student will attend
www.michigan.gov/studentaid 800-MET-4-KID
Michigan Education Savings Program (MESP)
– Investment program for college costs including tuition, fees, room, board, books, supplies, etc.
– 529 plans must be included as an investment in the asset portion of the FAFSA
– www.misaves.com or 877-861-MESP
Institutional Scholarships
Contact schools to determine their application requirements:
– Sometimes an application is required– May want an essay from the student– May require a FAFSA to determine “need”– May require an audition or portfolio
Avoid Being Scammed
• The scholarship is guaranteed or your money back
• You can’t get this information anywhere else• I just need your credit card or bank account
number to hold this scholarship• We’ll do all the work• The scholarship will cost some money• You’ve been selected by a ‘national foundation’ to
receive a scholarship or you’re a finalist in a contest you never entered
Next Steps - Summary
• Obtain and review admission and financial aid materials from each school being considered
• Meet all application deadlines
• Complete FAFSA and any additional application materials, such as the College Scholarship Service’s PROFILE application
• Investigate other sources of aid
College Goal Sunday
Sunday, February 10, 2008 2:00 – 4:00 p.m.
Host Sites:– Eastern Michigan University– Oakland Community College– U of M Dearborn– Wayne State University– Jackson High School– Lawrence Tech University– Macomb Community College
http://www.MICollegeGoal.org/(Sign up for a reminder & entry for a laptop)
LAST ONE! Websites:
• www.emich.edu/finaid - PowerPoint Presentation Financing Education Beyond High School
• www.fastweb.com – scholarship search
• www.collegeboard.com – Search & Planning
• www.studentaid.ed.gov – U.S. DOE info
• www.finaid.org/calculators/ - EFC estimator
• www.gocollege.com - The Collegiate Websource