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. Common State of Michigan Programs
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
Funding varies yearly. Maximum up to $2400 year

10. Michigan.gov/mistudentaid
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
s 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