The Solution Center The Financial Aid Award Package Part 2: Need-Based Financial Aid Programs

Objective What you will learn? Need-Based vs. Non-Need Based Financial Aid Grants, Scholarships, Waivers (Need-Based) Student Employment (Need-Based) Student Loans (Need- Based)

Need-Based vs. Non-Need Based Aid Student must have demonstrated financial need (COA-EFC = Need) May consist of grants, scholarships, waivers, student employment and subsidized student loans Non-Need Based Aid: Does not require a student to have demonstrated financial need May consist of scholarships, waivers, and unsubsidized loans These awards are added to the award package after student is considered for all other types of aid

Grants, Scholarships, Waivers (Need-Based) Pell Grant SEOG TEACH Grant Mass Grant Mass PT Grant DHE Grant DHE Tuition Waiver UML Need-Based Grant UML Scholarship

PELL GRANT (Need-Based) What is the Pell Grant: Federally funded Awarded by the US Dept of Ed Free money, does not have to be repaid Usually a foundation of financial aid, and often determines your eligibility for other federal and state grant programs Eligibility Requirements: Must file the FAFSA Meet the general eligibility requirements (Ref: FA_02_General_Eligibility) 2014/2015, EFC less than 5,158 Awarded to students pursuing their first undergraduate degree Limited to 12 full time semesters, or the equivalent

PELL GRANT (Need-Based) (cont.) Award Amount: Federal Pell Chart issued annually Award values often change from year to year 2014/2015, awards range from $605-$5730 Award Amount Depends On: Expected Family Contribution (EFC) Cost of attendance (COA) Enrollment Status Note: You may not receive Federal Pell Grant funds from more than one school at a time

Federal Supplemental Educational Opportunity Grant (FSEOG) What is the FSEOG: Federally funded Gift Aid, does not need to be repaid Awarded by the University University receives a limited allocation for this program, thus not all students who meet eligibility criteria will be awarded the FSEOG Eligibility Requirements: Must file the FAFSA Meet the general eligibility requirements (Ref: FA_02_General_Eligibility) Must be Pell Eligible Awarded to students with exceptional need Award Amount: Awards range from $200- $4,000 Awards are based on availability of funds

Teacher Education Assistance for College and Higher Education (TEACH) Grant What is the TEACH Grant: Federal grant to students enrolled in coursework required for a career in teaching IMPORTANT: Different from other federal student grants because it requires the student to take certain kinds of classes, and then perform specific employment post graduation to retain the grant Student must complete online TEACH grant counseling, AND sign a “TEACH Grant Agreement to Serve” agreeing to teach: In a high-need field At an elementary school, secondary school, or educational service agency that serves students from low-income families For at least four complete academic years within eight years after completing the course of study for which the student received the grant IMPORTANT: If student does not complete service obligation, all TEACH Grant funds received will be converted to a Direct Unsubsidized Loan. Student must then repay loan, with interest charged from the date the TEACH Grant was disbursed.

Teacher Education Assistance for College and Higher Education (TEACH) Grant Eligibility Requirements: Must file the FAFSA Meet the general eligibility requirements (Ref: FA_02_General_Eligibility) Undergraduate/Graduate student in an educator licensure program Enrolled in a TEACH-Grant-eligible program (See https://studentaid.ed.gov/types/grants-scholarships/teach for specific details) Maintain 3.25 GPA Award Amount: The TEACH Grant Program provides grants of up to $4,000 a year

Massachusetts Grant (MASSGrant) What is the MASSGrant Program: State funded Gift Aid, does not need to be repaid Awarded by Massachusetts Office of Student Financial Assistance (OSFA) Provides need-based financial assistance to undergraduate students who are permanent residents of Massachusetts Eligibility Requirements: Must file the FAFSA by May 1st Meet the general eligibility requirements (Ref: FA_02_General_Eligibility) Must be Pell Eligible Must be a legal resident of MA (parent must also be MA residents) Be enrolled full time (at least 12 credits) in a degree seeking program Student must be pursuing their first undergraduate degree Demonstrate financial aid need

Massachusetts Grant (MASSGrant) Award Amount: Award amounts vary from $400 - $1500 depending on the student’s EFC OSFA sends notification directly to student Additional Information: The Commonwealth of Massachusetts has reciprocity agreements with the following states: New Hampshire Maine Connecticut Vermont Rhode Island Pennsylvania District of Columbia A student attending a college in any of those states, may be able to transfer the MASSGrant award to that particular college

Massachusetts Part Time Grant What is the Mass PT Grant: State funded Gift Aid, does not need to be repaid University receives a limited allocation for this program, thus not all students who meet eligibility criteria will be awarded Mass PT Grant Eligibility Requirements: Must file the FAFSA Meet the general eligibility requirements (Ref: FA_02_General_Eligibility) Must be Pell Eligible Must be a legal resident of MA (parent must also be MA residents) Be enrolled in at least 6 credits, but fewer than 12 credits per semester Student must be pursuing their first undergraduate degree Demonstrate financial aid need Award Amounts: Awards range from $200 – $750 depending on EFC

Department of Higher Education Need-Based Grant (DHE Grant) What is the DHE Grant: State Funded Gift Aid, does not need to be repaid Administered by school University receives an allocation for this program Eligibility Requirements: Must file the FAFSA Meet the general eligibility requirements (Ref: FA_02_General_Eligibility) Must be a legal resident of MA (parent must also be MA residents) Priority is given to students enrolled full time (12+ credits) Student must be pursuing their first undergraduate degree Demonstrate financial aid need Award Amounts: Awards range from $500 - $1,400 Awards Based on availability of funding

Department of Higher Education Need-Based Tuition Waiver (DHE Waiver) What is the DHE Waiver: State Funded Gift Aid, does not need to be repaid Administered by school University receives an allocation for this program Eligibility Requirements: Must file the FAFSA Meet the general eligibility requirements (Ref: FA_02_General_Eligibility) Must be a legal resident of MA (parent must also be MA residents) Priority is given to students enrolled full time (12+ credits) Student must be pursuing their first undergraduate degree Demonstrate financial aid need Award Amounts: Awards range from $500 - $1,400 Awards Based on availability of funding Waivers can only be applied to state funded courses, CE courses are not covered Waivers cannot exceed tuition charge, and student cannot receive more than one waiver unless total amount does not exceed tuition charge

UML Need Based Grant What is the UML Need Based Grant: Institutionally funded Gift Aid, does not need to be repaid Administered by the Financial Aid Office Eligibility Requirements: Must file the FAFSA Meet the general eligibility requirements (Ref: FA_02_General_Eligibility) Student must be pursuing their first undergraduate degree Priority given to full time students (12+ credits) Demonstrate financial aid need Award Amounts: Awards vary based on enrollment, residency, housing and availability of funding Continuing Education courses are not covered by this program

UML Scholarship What is the UML Scholarship: Eligibility Requirements: Institutionally funded Gift Aid, does not need to be repaid Offered to incoming students and is based on academic achievement and financial need; students are automatically considered via admission app Administered by the Financial Aid Office Eligibility Requirements: Must file the FAFSA Meet the general eligibility requirements (Ref: FA_02_General_Eligibility) Student must be pursuing their first undergraduate degree Priority given to full time students (12+ credits) Demonstrate financial aid need Award Amounts/ Renewal: Award amounts vary depending on financial need Renewable if student maintains 3.0 GPA, has demonstrated need, and is full time

Student Employment (Need-Based) UML Student Employment Program Federal Work Study Program Federal Community Service Options America Reads Program Jump Start Corps Program

UML Student Employment Program/ Federal Work Study What is UML Student Employment and Federal Work Study: UML Student Employment is Institutionally funded Federal Work Study is Federally funded Provides part time on campus employment to students with need Allows students to earn money to pay for educational expenses The program encourages community service work and work related to the student’s course of study Administered by the Financial Aid Office Eligibility Requirements: Must file the FAFSA Meet the general eligibility requirements (Ref: FA_02_General_Eligibility) Priority given to full time students (12+ credits) Demonstrate financial aid need

UML Student Employment Program/ Federal Work Study Award Amount: Awards range from $3,000 - $4,500 Awards vary depending on financial need Awards Based on availability of funding Additional Award Information: The student’s work award is not directly applied to University bill It is highly recommended that students complete a work study Withholding Authorization form (70/30) (Ref: FA_55_FORM_SE_Withholding_70-30) If students chooses not to participate in the withholding, any balance due on the account is subject to late fees and possible holds for non-payment

Student Employment/ Federal Work Study Additional Program Options Federal Community Service Program: Option for students awarded Student Employment or Federal Work Study awards Work with a Community Partner Organization Provides opportunities for students to earn money while giving back to our community Students earn $12/hr. when choosing a Community Service Program America Reads Program: Option for students who choose the Community Service Program Students are trained as reading tutors in a Lowell elementary school Jumpstart Corp Program: Opportunity to inspire young children to learn, serve in a local community, work on a team, and build professional skills Corps members complete 300 hours of service during the school year Student may be eligible for an AmeriCorps Education Award upon completion

Student Loans (Need-Based) Federal Direct Subsidized Student Loan Federal Perkins Loan

Federal Direct Subsidized Loan What is the Federal Direct Subsidized Loan: Federally Funded Loan that must be repaid Administered by school Fixed low interest rate The U.S. Department of Education pays the interest on the Loan: while student is in school at least half-time (6+ credits) for the first six months after a student leaves school (referred to as a grace period) during a period of deferment (a postponement of loan payments) Eligibility Requirements: Must file the FAFSA Meet the general eligibility requirements (Ref: FA_02_General_Eligibility) Student must be enrolled at least half time (6+ credits) Student must be enrolled in a degree seeking program Must be an undergraduate student Demonstrate financial aid need

Federal Direct Subsidized Loan Award Amount: Awards range based on grade level Award limits are as follows: $3,500 Freshman $4,500 Sophomore $5,500 Junior $5,500 Senior First Time Borrowers of a Direct Subsidized Loan: Apply for a PIN at www.pin.ed.gov, for student and at least one parent Must complete an online Entrance Counseling, a tool to ensure students understand their obligation to repay the loan Must sign an online Master Promissory Note (MPN), agreeing to the terms of the loan Both requirements can be completed at www.studentloans.gov

Federal Direct Subsidized Loan When does a student have to pay back their Subsidized Loan: Repayment starts six months following graduation, a student’s withdrawal from school, or when a student drops to less than half-time enrollment During this period, a student will receive repayment information from loan servicer, and will be notified when first payment is due Can a loan be cancelled or reduced? Yes Before loan money is disbursed, a student may cancel all or part of the loan at any time by notifying the Financial Aid Office After loan is disbursed, a student may cancel all or part of the loan within certain time frames

Federal Perkins Loan What is the Federal Perkins Loan: Federally Funded Loan that must be repaid Administered by school who is the lender Payments are made to the university’s loan servicer 5% Fixed low interest rate Eligibility Requirements: Must file the FAFSA Meet the general eligibility requirements (Ref: FA_02_General_Eligibility) Student must be enrolled at least half time (6+ credits) Student must be enrolled in a degree seeking program Demonstrate financial aid need

Federal Perkins Loan Award Amount: Awards range from $100 - $4,000 Award based on availability of funding Funding is very limited First Time Borrowers of a Direct Subsidized Loan: Must sign a Master Promissory Note (MPN), agreeing to the terms of the loan MPN must be completed and returned to the Financial Aid Office

Federal Perkins Loan When does a student have to pay back their Perkins Loan: Repayment starts nine months following graduation, a student’s withdrawal from school, or when a student drops to less than half-time enrollment Repayment may be extended over a ten-year period Principal and interest are deferred while a student is enrolled at least half-time (6+ credits) Can a loan be cancelled or reduced? Yes Before loan money is disbursed, a student may cancel all or part of the loan at any time by notifying the Financial Aid Office After loan is disbursed, a student may cancel all or part of the loan within certain time frames