Financing Education Beyond High School

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Financing Education Beyond High School

• Eastern Michigan University
• 2007-2008

2
Agenda

• How to apply for financial aid how to avoid
  errors
• Cost of Attendance
• Definition of financial aid
• Federal Financial Aid programs
• Michigan Scholarships and Grants
• Institutional Scholarships
• Where to look for information about private
  sources of aid

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Applying for Financial Aid

• ALL colleges will require the Free Application
  for Federal Student Aid (FAFSA)
• Some schools may also request the Profile
  application from CSS to award institutional
  aid/scholarships

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Application Process

• Submit the Free Application for Federal Student
  Aid (FAFSA) prior to schools deadline
• FAFSA must be submitted every year
• Most aid awarded on a, first-come, first-served
  basis
• To ensure maximum consideration for federal,
  state, institutional aid, check each school to
  determine
• Required application materials
• Application deadlines

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FAFSA

• Collects familys personal financial
  information in order to determine a students
  Expected Family Contribution (EFC)
• May file FAFSA in one of two ways
• Electronically via FAFSA on the Web
• Paper FAFSA

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PIN Registration for Electronic Signature

• Web site www.pin.ed.gov
• Can apply for a PIN before January 1, 2007
• It is not required, but speeds processing

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FAFSA on the Web

• Web site www.fafsa.ed.gov
• The 2007-2008 Pre-Application Worksheet
• is available prior to January 1st
• The worksheet questions follow the same
• order of FAFSA on the Web

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General Student Eligibility Criteria

• Must be pursuing degree, certificate, or other
  recognized credential
• Must be U.S. citizen or eligible non-citizen
• Must be registered with Selective Service (if
  male required)
• May not have eligibility suspended or terminated
  due to drug-related conviction
• Must meet Satisfactory Academic Progress
  requirements

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FAFSA Questions - Student

• Name, address, SSN, DOB, citizenship, marital
  status, Selective Service, grade level, degree
  type, etc.
• 2006 wages, AGI, taxes paid, untaxed income,
  assets and income exclusions
• Colleges to receive the results (up to six)
• Dependency Status

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Dependency Status Independent If

• 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 children or legal dependents other than a
  spouse for whom the student provides more than
  half of their support
• Both parents deceased or ward of the court
• Veteran of the U.S. Armed Forces or currently
  serving on active duty (for other than training
  purposes) in the Armed Forces
• Determined to be independent by the financial
  aid administrator based on unusual circumstances

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FAFSA Questions Parent(s)

• Name, SSN, marital status (at the time of
  application), household size, number in college
  in 2007-08
• 2006 wages, AGI, taxes paid, untaxed income (SSB,
  401k/403b, child support received, etc.), income
  exclusions (child support paid, Education Tax
  Credits, etc.), assets

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Frequent FAFSA Errors

• Parent and Student Social Security Numbers
• 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

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What Happens After I Submit the FAFSA?

• The FAFSA is processed by the Department of
  Education.
• The Expected Family Contribution (EFC) is
  determined.
• Results are sent to the student and the schools
  listed on the FAFSA.

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FAFSA Processing Results

• Students are notified of FAFSA results by
• E-mail notification containing a direct link to
  the students on-line Student Aid Report (SAR) if
  the students e-mail was provided on paper FAFSA
  or FAFSA on the Web
• A paper SAR will be sent if no email address was
  provided
• Student with PIN can view on-line SAR at
  www.fafsa.ed.gov

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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 students award
• May be sent by letter or E-mail notification

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Special Circumstances

• Request a re-evaluation of a processed FAFSA due
  to
• Loss of employment
• Loss of untaxed income benefits (Social Security,
  child support, etc.)
• Separation or divorce
• Unusual uninsured medical or dental expenses

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Cost of Attendance

• Tuition and Fees
• Room and Board (on campus or off)
• Books and Supplies
• Transportation
• Personal Expenses

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Definition of Need

• Cost of Attendance
• - Expected Family Contribution (EFC)
• Financial Need

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Need Varies Based on Cost
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The FAFSA is required for

• Pell Grant
• Academic Competitiveness Grant (ACG)
• National Science and Mathematics Access to Retain
  Talent (SMART) Grant
• Supplemental Educational Opportunity Grant (SEOG)
• College Work Study
• Perkins Loan
• Stafford Loans
• Some Scholarships depending on the school policy

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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
• Fixed interest rate of 6.8
• Repayment begins 6 months after graduation

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PLUS Loan

• Borrowers are parents of dependent undergraduate
  students as well as graduate and professional
  students
• Annual loan limit cost of attendance minus other
  aid
• Fixed interest rate
• FFEL 8.5
• Direct Loan 7.9
• Repayment begins 60 days after loan is fully
  disbursed

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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)
• FAFSA received by March 1
• Financial Need
• FAFSA data is received by MI Higher Education
  automatically

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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
• 2,100 Private Institutions

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Michigan Tuition Grant

• Criteria
• Need Based
• FAFSA received by March 1
• Attend MI Independent/Private Institution
• 2,100 Award Maximum per year
• Cannot Receive Competitive Scholarship and
  Tuition Grant simultaneously

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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

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Michigan Merit Award

• Non-renewable merit-based scholarship
• Class of 2007 must meet or exceed state standards
  on MEAP (Level 1 or Level 2)
• 2,500 paid over two consecutive years
• 500 extra for some students from Middle School
  MEAP test
• Four years to claim award
• Class of 2008 MUST take the new Michigan Merit
  Exam (MME) to qualify

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Michigan Educational Trust(MET)

• Prepaid college tuition plans that let you lock
  in future tuition rates at in-state public
  colleges at current prices
• Prepaid tuition plans must be included as an
  investment in the asset portion of the FAFSA
• Contact the MET program to notify them what
  school the student will attend
• www.mi-studentaid.org or 800-MET-4-KID

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Michigan Education Savings Program (MESP)

• Investment program for college costs including
  tuition, fees, room, board, books, supplies, etc.
• 529 plans must be included as an investment in
  the asset portion of the FAFSA
• www.misaves.com or 877-861-MESP

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Institutional 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

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Avoid Being Scammed

• The scholarship is guaranteed or your money back
• You cant get this information anywhere else
• I just need your credit card or bank account
  number to hold this scholarship
• Well do all the work
• The scholarship will cost some money
• Youve been selected by a national foundation
  to receive a scholarship or Youre a finalist in
  a contest you never entered

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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
  Services PROFILE application
• Investigate other sources of aid

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Financial Aid ExtravaganzaEMU Student Center

• Thursday, January 18, 2007
• 500 p.m. 900 p.m.
• Financial Aid
• Michigan Scholarships Grants
• QA Student Panel sessions
• Scholarship Giveaways

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College Goal Sundayhttp//www.MICollegeGoal.org/

• Sunday, February 11, 2007
• 200 400 p.m.
• Host Sites
• Eastern Michigan University
• Oakland Community College
• U of M Dearborn
• Wayne State University
• Jackson High School
• Lawrence Tech University
• Macomb Community College

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LAST ONE! Websites

• www.fastweb.monster.com scholarship search
• www.collegeboard.com Search Planning
• www.studentaid.ed.gov U.S. DOE info
• www.finaid.org/calculators/ - EFC estimator
• www.gocollege.com - The Collegiate Websource