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Understanding Financial Aid

Learn about the application process, types of funding available, and miscellaneous information related to financial aid for college students. Discover how to apply for federal aid, grants, scholarships, and loans, as well as state-specific programs. Understand why aid varies from school to school and explore options if you don't want assistance. Stay informed about important deadlines and utilize helpful websites.

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Understanding Financial Aid

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  1. Understanding Financial Aid Stephanie Petsch

  2. Agenda Application Process Types of Funding Miscellaneous Information

  3. Application Process Free Application for Federal Student Aid (FAFSA) • Only application needed for federal aid • Free application • October 1st EVERY YEAR • fafsa.gov • You will be filing the 2020/21 FAFSA using 2018 income information

  4. Application Process Some schools require the CSS PROFILE application • Not all schools need/want this application • Check with the school to see if they require it • NOT FREE ($25 first school, $16 additional school) • Consideration for private/non federal aid • css.collegeboard.org

  5. Types of Funding GRANTS (Free Money) • Reserved for the neediest families (low EFC) • Not everyone will qualify • Awarded based on the information that is on the FAFSA • Pell Grant (Award range is $6095 to $652 per year) • SEOG (Award amount varies by school)

  6. Types of Funding INSTITUTIONAL AID (Free Money) • Awarded by the school that you are attending • Usually determined when you submit your Admissions application • Could be awarded as an incentive to attend • Some schools award based on financial need of the family

  7. Types of Funding SCHOLARSHIPS (Free Money) • Could be awarded by the school or an outside organization • Awarded based on various criteria (talent/academic) • Student may be required to submit information for consideration • Scholarship search sites • Don’t fall victim to scams • Make sure you know criteria • Is it a 1 time award or multiple year • Renewal criteria (GPA, Credit hours)

  8. Types of Funding LOANS (Must be repaid) • Federal Direct Loans (In the student’s name) • Subsidized – Gov’t pays interest while student is enrolled in school at least half-time • Unsubsidized – You the student are responsible for the interest, even while in school • Yearly limit and aggregate limit (freshman yearly limit $5,500) • Interest rate for Direct loans is currently 5.045% • Awarded based on the information that is on the FAFSA • PLUS Loan (Parents borrow for the student) • Parent is responsible for the repayment • Pre-application process that a parent must submit before they can be approved for the loan • 7.595% Interest rate

  9. Types of Funding Common State of Michigan Programs Michigan Competitive Scholarship (public institution) Must file FAFSA by state deadline Achieve qualifying SAT score (1200) Demonstrate financial need Funding varies yearly. Maximum up to $1000 year Michigan Tuition Grant (private institution) Must file FAFSA by state deadline Demonstrate financial need Funding varies yearly. Maximum up to $2400 year

  10. Types of Funding Other Michigan Programs • Children of Veterans Tuition Grant • Fostering Futures Scholarship • Michigan GEAR UP • Police Officer’s and Fire Fighter’s Survivor Tuition Grant • Tuition Incentive Program Michigan.gov/mistudentaid

  11. Types of Funding PRIVATE LOANS (Must be repaid) • Outside lenders (banks or financial institutions) • Different interest rates • Different repayment terms • Should be a last resort

  12. Why Does Aid Vary From School to School? • If you file a FAFSA, your EFC should be the same at any school you apply to • The Cost of Attendance (COA) is a variable (Community College vs. 4-Year Public vs. Proprietary • Schools use COA to determine “need” for “need-based” aid

  13. What If I Don’t Want Assistance? • Scholarship searches beginning senior year, paying attention to deadline(s) and required information • Ask what type of payment options schools have for students • Some offer monthly payment plans (is it free to sign up?) • Pay in full (most schools require payment in full or payment plan option prior to semester starting) • MESP, MET or 529 Plans- Contact the holder of the fund they will tell you the process • In most cases they will be dealing with the Bursar/billing department, not Financial Aid Office

  14. Things to Watch • Emails from schools – most of the time will go to the student • Deadlines • Award Letters • Any communication from schools

  15. Web Sites • Fafsa.gov • css.collegeboard.org • Fastweb.org • Studentaid.ed.gov • Finaid.org • Mi.gov/mistudentaid • Spetsch@emich.edu

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