Financial Aid What You Need To Know!

PRESENTED BY: Your Name Director of Financial Aid YOUR COLLEGE

AGENDA F What is financial aid? F How need is determined. F Who do you call? F Web sites for help. F Step by step directions for filling out the Free Application For Student Aid (FAFSA).

TWO CATEGORIES OF AID F Merit-Based F Need-Based

TYPES OF AID F Scholarships –Merit based –Free Money F Grants –Need based –Free Money F Loans –Need based –Must Be Repaid F Employment –Need based –Work For Pay

SCHOLARSHIPS F Michigan Merit Scholarship F Hope Scholarship F Michigan Competitive Scholarship F Sports F Academic F Other

GRANTS F Federal Grants –Pell Grant u Need based (family contribution) u Entitlement –SEOG/Supplementary Educational Opportunity Grant u Need based u Given at discretion of each college

GRANTS continued F Academic Competitiveness Grant (ACG) Pell Grant Recipient Full Time Student Show Need First or Second Year Student Rigorous Secondary School Curriculum

GRANTS continued F National SMART Grant Pell Grant Recipient Enrolled in 4 Year Degree Program Full Time Enrollment Show Need In 3 rd or 4 th academic year of program

GRANT continued F SMART Grant continued… 3.0 GPA In an Eligible Major

GRANTS CONTINUED F State Grants –MEOG/Michigan Educational Opportunity Grant u Need based u Given on first come first serve basis –APTG/Adult Part Time Grant u Out of high school two years u Independent status –Michigan Tuition Grant u Need based u Must be attending a Michigan private college

LOANS F Federal Loans –Subsidized Stafford and Direct Loan u Federal government will pay the interest until student is no longer enrolled at least one-half time (6 Credits). u Interests rate will be 6.80 % u Student can pay on principal while in school and pay no interest. u Principal payments begin 6 months after student is no longer enrolled at least one-half time (6 credits).

LOANS CONTINUED –Unsubsidized Stafford and Direct Loans u Federal government does not pay interest. u Interest rates are 6.54% during in-school, grace, and deferment periods, and 6.80% during repayment. u Student must begin paying interest upon approval of loan. u Principal payments begin six months after the student is no longer enrolled in at least one-half time(6 Credits).

LOANS CONTINUED –Perkins loans –Plus loans – 8.50% APR F State loans F Institutional loans

EMPLOYMENT F Federal College Work Study F State College Work Study –Need based –Usually work 25 hours or less per week while taking classes. –Can work around class schedule.

DETERMINING NEED F Cost of attendance or budgets –Each college determines own budget u Will have dependent and independent budget –You can find each college’s budget in school catalog or other informational material.

COST OF ATTENDANCE F Tuition & fees F Room & board F Books & supplies F Transportation F Miscellaneous personal expense

COST OF ATTENDANCE CONTINUED F Study abroad F Child care F Handicap expenses F Cost of computer

EXPECTED FAMILY CONTRIBUTION (EFC) F Determination based on information family submits on FAFSA (Free Application For Student Aid) F Each family will have it’s own EFC –EFC number can be anywhere from 0 to 99,999 F Each family will receive a Student Aid Report (SAR) and the EFC will be listed on this form.

Applying for a Pin F Go to F Enter Personal Information F Provide address F Parent and Student both must have PIN F Pin will be electronic signature

ESTIMATED COLLEGE COST OF ATTENDANCE COMPARISON

DEFINITION OF NEED

DETERMINING DEPENDENT OR INDEPENDENT STATUS F To be independent student must meet at least one of the these qualifications. –Where you born on or before Jan 1, 1983? –Are you a veteran of the U.S. Armed Forces? –Will you be working on a degree beyond a bachelor’s degree in ? –As of today, are you married? –Are you an orphan or a ward of the court, or were you a ward of the court until age 18? –Do you have u Children who receive more than half their support from you u Dependents (other than your children or spouse) who live with you and receive more than half their support from you, now and through June 30, 2007

CONTINUED F If student cannot meet one of these, the student will be considered dependent and financial information of both student and parents will be used to determine EFC. F Financial Aid Office can review dependency based on professional judgment. –Only used in unusual circumstances u Abuse, Death of both parents, etc. u Must talk directly to FA Office to see if they will consider this possibility. Everything will need to be documented.

WHO DO YOU CALL? F High school counselor for questions F Call my office at Montcalm Community College (989) F Call your college Financial Aid Office F Please be very careful of companies telling you they will guarantee financial aid if you will send them money.

WEB SITES FOR HELP F Web site to send FAFSA electronically –WWW. FAFSA.ED.GOV –Will get information much quicker –Must get a PIN number for both student and parent. This will be used as signatures. –Make a copy of your form for your records. –You will receive your copy of SAR within a month. –College will send Award Letters in early Spring.

OTHER WEB SITES F –Michigan Department of Education MI-SEARCH F –U.S. Department of Education F –Mark Kantowitz Financial Aid Information Page F –Michigan Student Financial Aid Association

College Goal Sunday F Will be held February 11, F Locations throughout the State. F Professionals available to answer questions about completing the FAFSA. F More information at

QUESTIONS F Any questions you have should be asked. –There is never a question about financial aid that is stupid! It could mean the difference between getting money or not getting money!

THE END F Your Name Your College F Your Phone