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2	Bernice Lindke Eastern Michigan University Office of Financial Aid
3	Agenda What is Financial Aid? Scholarships & Search Services How/When To Apply for Financial Aid “EFC” and Educational Costs Major Federal Financial Aid Programs MI Financial Aid and Scholarship Programs Next Steps - Summary
4	What Is Financial Aid? Scholarships – based on academic achievement, talent, need or combinations Grants – based on need Loans – interest free while in school and when based on need – must be repaid Employment – earn wages or credit (co-op)
5	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
6	Avoid Being Scammed – Watch For: 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
7	Avoid Being Scammed For information about financial aid & scholarship search scams and tips to avoid being scammed check: Department of Education’s web site at: www.studentaid.ed.gov To check the legitimacy of scholarship search organizations or individuals check Better Business Bureau’s web site at: http://www.bbb.com/
8	Applying for Financial Aid ALL colleges will require the Free Application for Federal Student Aid (FAFSA) to: Collect information about the family’s personal and financial information and determine the Expected Family Contribution (EFC) Some schools may also request the “Profile” application from CSS to award institutional aid/scholarships
9	Application Process Submit Free Application for Federal Student Aid (FAFSA) prior to school’s deadline Most aid awarded on “first-come, first-served basis Check information from each school to determine Required application materials Application deadlines
10	FAFSA Collects family’s personal & financial information used to calculate student’s EFC File FAFSA in one of two ways: Electronically via FAFSA on the Web Paper FAFSA
11	When Do I Start? Right Now! Register for a PIN: www.student.aid.ed.gov
12	FAFSA on the Web
13	What Happens After I Submit the FAFSA? The FAFSA is sent to an agency where the information is processed through a standard formula and the Expected Family Contribution (EFC) is determined. The result (EFC) is sent to the student and the school(s) listed on the FAFSA
14	FAFSA Results to the Student Results come on a form called a Student Aid Report (SAR). The SAR is used to confirm the data reported on the FAFSA, to make corrections and/or to add more schools to receive a copy. The SAR is received via E-mail notification if E-mail address was provided or on paper if no E-mail address.
15	FAFSA Questions - Student Name, address, SSN, DOB, citizenship, marital status, Selective Service, grade level, degree type, etc. 2004 wages, AGI, taxes paid, untaxed income, assets and income exclusions (such as 2004 financial aid received). Dependency Status* Colleges to receive the results (up to six)
16	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 legal dependents other than a spouse that they support Both parents deceased or ward of the court Veteran of the U.S. Armed Forces Determined to be independent by the financial aid administrator
17	FAFSA Questions – Parent(s) Name, SSN, marital status (at the time of application), household size, number in college in 05-06 2004 wages, AGI, taxes paid, untaxed income (SSB, 401k/403b, child support received, etc.), income exclusions (child support paid, Education Tax Credits, etc.), assets
18	Frequent FAFSA Errors 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) Household size Number in postsecondary education
19	Verification Verify accuracy of information reported on the FAFSA – submit signed copies of: 2004 parent federal tax returns (1040) & W-2 2004 student federal tax return (1040) & W-2 Year-end statements from state agencies Verification Worksheet to list names and ages of family members
20	Special Circumstances Request a re-evaluation of a processed FAFSA due to: Loss of employment Loss of untaxed income (SSB, child support, etc.) Separation or divorce Unusual uninsured medical or dental expenses
21	Cost of Education Tuition and Fees Room and Board (on campus or off) Books and Supplies Transportation Personal Expenses
22	Definition of Need Cost of Education - Expected Family Contribution (EFC) Financial Need
23	Need Varies Based on Cost
24	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
25	The FAFSA Is Required For: Pell Grant Supplemental Educational Opportunity Grant Perkins Loan College Work Study Stafford Loan
26	Federal Pell Grant Awarded to eligible undergraduates pursuing first bachelor’s Gift aid – does not have to be repaid) Portable (can be moved from one school to another) Actual award amount determined by federal chart and enrollment status Maximum award for 2004-05 = $4,050
27	Supplemental Educational Opportunity Grant (SEOG) Undergraduates pursuing first bachelor’s degree Gift aid – does not have to be repaid Awarded first to students with exceptional financial need (i.e., students with the lowest EFCs at that school) Priority to Federal Pell Grant recipients Annual award amounts $100 minimum – $4,000 maximum
28	Federal Work-Study Undergraduate or graduate students are eligible Employment may be on or off campus Students receive a paycheck to use towards their school bill or personal expenses
29	Federal Perkins Loan Eligible students Undergraduate or graduate students Priority to students who show exceptional need Loan must be repaid by the student borrower 5% Interest begins with repayment (9 months after graduation) Annual loan Limits $4,000 undergraduate; $6,000 grad and prof students
30	Subsidized and Unsubsidized Subsidized Stafford: Must demonstrate “need” No interest during in-school period Unsubsidized Stafford: Need is not a consideration Interest paid by student or allowed to capitalize Interest is variable but will not exceed 8.25% Repayment begins 6 months after graduation
31	Annual Borrowing Limits Base annual loan limits (combined subsidized and unsubsidized) $2,625 for 1st year undergraduates $3,500 for 2nd year undergraduates $5,500 for each remaining undergraduate year $8,500 for each year of graduate/professional study
32	Parent Loan for Undergraduate Students (PLUS) Borrowers are parents of dependent undergraduate students Annual loan limit: cost of attendance minus other aid Variable interest rate, not to exceed 9% Interest rate for 7/1/2004 – 6/30/2005 is 4.17% Repayment begins 60 days after loan is fully disbursed
33	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) File FAFSA by March 1 Financial Need FAFSA Data is Received by the State Automatically Student’s SSN is a Key Identifier
34	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 $2,000 Private Institutions
35	Michigan Tuition Grant Criteria Need Based – file FAFSA by March 1 Attend MI Independent/Private Institution $2,000 Award Maximum for 2004-05 Cannot Receive Competitive Scholarship and Tuition Grant Simultaneously
36	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
37	Michigan Merit Award Non-renewable merit-based scholarship Must meet or exceed state standards on MEAP (Level 1 or Level 2) $2,500 instate school, paid over two years $1,000 out of state Four years to claim award
38	Qualified Tuition Plans (QTPs) QTPs (529) are state-sponsored savings plans: Prepaid tuition plans (MI Educational Trust) Allow the purchase of education contracts or units for a number of semesters or years of tuition that are a fixed percentage of tuition Savings Plans (MI Education Savings Program) Permit investors to choose a prospective college student as a beneficiary and contribute on their behalf
39	Michigan Educational Trust (MET) Prepaid college tuition plans that let you lock in future tuition rates at in-state public colleges at current prices Contact the MET program to notify them what school the student will attend www.mi-studentaid.org or 800-MET-4-KID
40	Michigan Education Savings Program (MESP) Investment program for college costs including tuition, fees, room, board, books, supplies, etc. www.misaves.com or 877-861-MESP
41	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
42	LAST ONE! Websites: www.fastweb.com – scholarship search www.collegeboard.org – Search & Planning www.studentaid.ed.gov – U.S. DOE info www.finaid.org/calculators/ - estimator www.fafsa.ed.gov – FAFSA and other