Financial Aid for College

Grayling High School Counseling Department

Financial Aid for College

Click here for Questions & Answers About Financial Aid

There are many financial aid programs families may wish to investigate. In most cases financial need must be documented. "Need" is calculated by determining the difference between the cost of education (tuition and fees, room and board, books, transportation, personal expense) at the school you select and the amount that the Financial Aid Form (FAF) or Family Financial Statement (FFS) says the family should be able to contribute.

The types of financial assistance listed below are frequently combined to make up a financial aid "package". Since one source of aid may not cover the full need, students are encouraged to consider applying for a variety of financial aid programs in order to increase their potential for receiving aid.

Scholarships - Do not require repayment and may be based upon financial need, as well as academic performance.

Grants - These funds do not have to be repaid and usually are based only upon demonstrated financial need.

Loans - Require repayment after the student leaves school. Evidence of demonstrated financial need is generally required.

Employment - Federal work-study program is based on demonstrated need. Students can also earn money through part-time work on or off campus without demonstrating financial need.

HOW AID IS DETERMINED

Because the demand for student aid exceeds the supply of dollars available, most financial aid programs must limit their awards to students who can show that they "need" money according to a nationally accepted formula.

How is this determination made? The families of students who apply for financial aid are asked to fill out a financial statement, itemizing their resources and debts. From this information an "expected family contribution" amount is determined. This is the total amount of money which the family will be expected to provide toward the student’s educational expenses for the school year. If you would like to find out more about how this expected family contribution amount is determined, pick up a copy of either "Meeting College Costs" or "Applying For Financial Aid". These booklets are available in the counseling office.

If the expected family contribution figure is less than the cost for attending the school involved, need for financial assistance has been demonstrated.

As of April1, 2007, the Federal Department of Education has a new online tool to help students and families financially prepare and plan for college before a student’s senior year of high school. Called the FAFSA4caster, it provides students with an early estimate of their eligibility for federal financial aid, which could include a Pell grant of up to $4,310. The FAFSA4caster will instantly calculate a student’s eligibility for federal student aid, including grants, reduce the time it will take to complete the Free Application for Federal Student Aid (FAFSA) and simplify the financial aid process for students and families.

In addition to helping families make informed decisions as they plan for college, the FAFSA4caster will also reduce the application time when students file their FAFSA in their senior year in high school. The FAFSA4caster pre-populates 51 of the 102 questions on the FAFSA, significantly reducing the time it takes for the student to complete the FAFSA in their senior year of high school. For detailed information, go to www.federalstudentaid.ed.gov.

BASIC STEPS TO FOLLOW IN APPLYING FOR FINANCIAL AID

A. Take the ACT - State of Michigan Scholarship

Every college applicant should take the American College Test (ACT), because the state scholarship program for students going to public and private Michigan colleges is based on the results of this test. Most students take the ACT in March/April or June of their junior year. The last opportunity for immediate state scholarship consideration is the October test date of the senior year.

B. Complete the necessary financial aid forms

1. Students should contact the financial aid office of the college or university of their choice to determine the procedure for making application for financial aid.

2. Almost all schools will request that students complete the FAFSA (Free Application for Federal Student Aid) between January 1 and February 15. Early filing is encouraged so that the student can take maximum advantage of the state aid programs, as well as those available through the colleges.

SOURCES OF FINANCIAL AID

A. Federal

1. Pell Grant Program - Available on the basis of demonstrated need to undergraduate students attending eligible vocational schools or colleges anywhere in the nation on at least a half-time basis. Application information is available both through the high school counseling office and the postsecondary school financial aid offices. Most schools require students to apply for a Pell Grant before they can be considered for other sources of aid administered by the school.

2. SEOG (Supplemental Educational Opportunity Grant) - These grants are for students who have serious money problems, $200 to $2000 a year.

3. CWSP (College Work Study Program) - Graduate and undergraduate students may be selected for employment.

B. State of Michigan Student Assistance Programs - Michigan offers several student aid programs:

1. MICHIGAN COMPETITIVE SCHOLARSHIP PROGRAM - Available to Michigan students attending public and non-public Michigan colleges and universities or approved non-profit Michigan vocational schools. The first step in the application process is to take the American College Test (ACT) prior to college entry and release the scores to the State of Michigan, code 2076. Students qualifying on this examination must then submit a FAFSA.

2. MICHIGAN TUITION GRANT PROGRAM - Available on the basis of demonstrated need to Michigan students attending non-public, degree-granting Michigan colleges and universities. The FAFSA is required for application. It is available through the guidance office at each Michigan high school and financial aid office at each eligible, non-public, Michigan college and university. (Note: Students cannot receive both a State Competitive Scholarship and a Tuition Grant at the same time.)

3. GUARANTEED STUDENT LOAN PROGRAM - Students may borrow funds for study at eligible colleges or vocational schools anywhere in the world if the student meets program eligibility requirements. Requests for application forms may be made through participating private Michigan lenders (banks, savings & loan associations and credit unions). Michigan students unable to obtain a guaranteed student loan from a private lender may inquire concerning a guaranteed student loan made by the State Direct Student Loan Program through the financial aid office at their chosen college, university or vocational school.

4. PARENT & SUPPLEMENTAL STUDENT LOAN PROGRAM - Parents may borrow for their dependent children, and independent undergraduate and graduate students may borrow for themselves for study at eligible schools. Requests for these loans are made through participating Michigan lenders (banks, savings associations and credit unions).

5. LOCAL SCHOLARSHIPS - Each year, many dollars are made available through local organizations for graduating seniors. The availability of such funds varies from year to year. The high school counseling office will have forms and applications for all local scholarships.

Websites to visit for more detailed information:

www.cashe.com	www.fastweb.com
www.finaid.com	www.michigan.gov/treasury
www.ed.gov	www.students.gov
www.ed.gov/parents	www.gocollege.com
www.moneycentral.msn.com	www.nasfaa.org
www.fafsa.ed.gov	www.collegescholarships.org/grants
www.collegescholarships.org/grants/disabilities.htm	www.lib.msu.edu/harris23/grants/3disable.htm

QUESTIONS & ANSWERS
ABOUT FINANCIAL AID

Q: Do I have to apply for financial aid every year?

A: Yes. A new financial aid statement must be filed each year, but the ACT exam does not have to be taken again.

Q: How do I know whether or not it is worthwhile to complete a Financial Aid Form (FAFSA)?

A: To get a general estimate of your expected family contribution, obtain a copy of “Meeting College Costs” or “Applying for Financial Aid” from the Counseling Office or ask about MiCache. Without a detailed analysis of your financial situation, there is no way to predict the amount of financial aid for which you may be eligible. It is probably best to complete a financial statement if you feel your family will have trouble paying the bill. This would be true even if your family applied and was turned down when an older brother or sister entered college. Having two students in college at the same time has a definite effect on the need evaluation process. (Also see above, under How Aid is Determined)

It always helps to apply for financial aid, even if you think you might not qualify. If your family’s financial situation changes, renewed consideration for assistance is easier if you previously applied and documents are already on file in the college aid office.

Q: Where can I get the FAFSA?

A: Forms are available in the Counseling Office in January. Make sure that you complete only the financial statement of the year that you desire assistance. These forms change each year.

Q: Is it necessary to wait until my parents complete their income tax before I file a financial statement (FAFSA)?

A: No. Parents generally file their financial statement based on “estimated” prior-tax-year income information, making the best possible estimate of their financial circumstances. Never hold a financial statement beyond a program deadline waiting for final tax data. Estimate as needed to comply with the filing deadline.

Q: When should I file the FAFSA?

A: As soon as possible after January 1. February 15 is the priority consideration deadline for freshman students for the state scholarship and grant programs. Each college financial aid office also has a stated deadline for priority consideration. Consult your counselor for specific deadline information.

Q: How soon will I receive information after I file the FAFSA?

A: In six to eight weeks you will receive a summary report of the information you provided on the financial statement. A response on final determination of eligibility will take somewhat longer. Most schools notify students regarding their total aid eligibility for the next school year sometime in May or June.

Q: What if my parents are divorced/separated or I have a stepparent? Who completes the financial statement?

A: Those persons (parents and stepparents) with whom you now live usually constitute the unit that should complete the financial statement. If you have particularly complicated family circumstances, it is advisable to contact the campus financial aid office or send them a letter explaining special circumstances.

Q: How do I qualify for self-supporting or independent student status?

A: An independent student is one who has attained age 24 by December 31 of the award year. A student who has not attained age 24 is considered independent if he or she meets at least one of the following:

                 ● is married
                 ● is a ward of the court
                 ● or both parents are deceased
                 ● is a veteran of the U.S. Armed Forces
                 ● has legal dependents other than a spouse
                 ● is a graduate or professional student

Q: Who is responsible for putting the financial aid package together for students?

A: The post-secondary school (college/university) financial office receives information regarding all outside state/federal/agency/private awards, adds appropriate school funding and puts together the total aid package.

Q: If I do not receive financial aid this year, should I reapply next year?

A: Yes. Family financial circumstances and college costs vary from one year to the next. Failure to qualify one year does not necessarily mean that you might not qualify in a future year if costs or family circumstances change.

Q: If my family cannot demonstrate financial need, what can I do?

A: Contact the campus financial aid office or your counselor about other sources of aid not based on need that may be available.

Q: If I attend school part time am I eligible to any kind of aid?

A: Yes, in most cases if you are enrolled at least half time as defined by the school.

Q: If my family situation changes after I file a financial statement, what should I do?

A: Write a letter explaining the situation directly to the financial aid administrator of your selected colleges. Some examples of changes, which should be communicated, are:

                 ● major illness
                 ● death
                 ● divorce
                 ● separation
                 ● unemployment
                 ● auto accident