Most parents and students are concerned about financing post high school education. This includes technical schools, community colleges, and four-year colleges and universities. Financial aid comes in many forms and from many different sources. Most financial aid comes from federal and state sources. Most of the federal aid is need based. Certain state aid is based both on merit and need. Financial aid is also available from private sources, including the educational institutions themselves. Most of this aid, but by no means all, is merit based. Subsidized loans and grants make up the majority of need based aid. The forms of financial aid are:
1. Scholarships - Criteria usually includes GPA (grade point average), scores on certain tests such as the ACT, PSAT/NMSQT, SAT, MEAP, and often community service. Scholarships are called merit based aid even though need is taken into consideration in certain cases. Scholarships do not need to be repaid.
2. Grants - There are a number of criteria for grants; most, if not all, relate in some way to need. Therefore, grants are considered need-based aid. Grants do not need to be repaid.
3. Work-Study - Most colleges receive funds from federal and state agencies to employ students to work on the campus. Students must demonstrate need to take part in the work-study program; therefore this is considered need based aid.
4. Loans - Generally speaking loans fall under two categories: subsidized loans or unsubsidized loans. The federal government pays the interest on subsidized loans until the student either graduates or leaves school. Unsubsidized loans require the student to begin paying the interest immediately. Subsidized loans are need based - unsubsidized loans are not.
Michigan Competitive Scholarship - This award is based both on need and merit. To be eligible for this scholarship the student must:
1. Achieve a qualifying score on the ACT test (a composite score of 23 qualifies at the present time).
2. Demonstrate financial need (determined from the FAFSA).
3. Be a Michigan resident.
4. Enroll at least half time at an eligible college or university.
APPLICATION PROCEDURE for the MICHIGAN COMPETITIVE SCHOLARSHIP: Students must receive a qualifying score on the ACT test and file the FAFSA between January 1 and February 15 of the year in which the student plans to be enrolled in college.
The maximum award is presently (1) the amount of need demonstrated, (2) the tuition or fees charged or (3) approximately $1,250, whichever is least. The recipient must meet the college's standards of academic progress and maintain a cumulative 2.00 GPA (grade point average) to remain eligible.
Michigan Tuition Grant- This award is based on financial need for use at independent (private), nonprofit degree granting colleges and universities in Michigan. To be eligible for a tuition grant a student must:
1. Demonstrate financial need through the use of the FAFSA..
2. Be a U.S. citizen and a Michigan resident.
3. Attend an eligible Michigan college at least half-time as an Undergraduate or Graduate student.
A high school student may apply for this grant simply by filing the FAFSA form after January 1 and before February 15. The Tuition Grant award has ranged from $100 to $2,750 in recent years , depending on the number of applicants and the appropriation amount. The recipient must meet the college standards of satisfactory academic progress for continued consideration.
Michigan Educational Opportunity Grant (MEOG)- This grant provides assistance of up to $1,000 per academic year for undergraduate students who enroll at least halftime at public Michigan colleges.
Michigan Campus-Based Programs - These state funded campus-based programs provide grant and work-study assistance to eligible students attending Michigan degree-granting colleges and universities. The programs are administered by the college financial aid office. Award amounts are determined by college financial aid officials and are typically packaged with other forms of assistance. Applicants must file a FAFSA and a college financial aid supplement, if required.
MI-LOAN - The Michigan Alternative Student Loan Program offers another source of loan funds to creditworthy students and their families to assist in meeting the costs of higher education. To be eligible for the loan a student must be accepted for enrollment at a Michigan degree-granting college or university and certified as eligible by that school.
The minimum loan is $500. The maximum loan is $10,000; the maximum cumulative amount is $125,000. A reserve fee not to exceed 4% will be deducted from the check. The first monthly payment is scheduled within 45 days of disbursement. The minimum payment is $50 per month, dependent upon the amount borrowed. The maximum repayment period is 25 years. Included in the 15-year repayment period is the possibility of up to 5 years of interest-only payments. For additional information, call 800-877-5659, or explore the web site.
Tuition Incentive Program (TIP) - This program pays part of college tuition and mandatory fees for eligible students at participating colleges or universities.
To be eligible for this program a student must:
1. Apply before graduating from school.
2. Be receiving (or have received) Medicaid from the Family Independence Agency.
3. Be under the age of 20 at the time of graduation.
4. Take courses within 48 months following high school graduation.
5. Be enrolled at least half time in associate degree or certificate program courses.
Students may apply any time after completing the sixth grade, but before graduating from high school. Complete and mail an application card, which is included in the FIA brochure (Pub. 668), "Tips for the 21st Century." This is available at college financial aid offices, and the Family Independence Agency County Offices. For additional information, call 1-800-243-2847.
Vocational Rehabilitation - Educational benefits are available based on financial need for students with physical or mental impairments resulting in a substantial impediment to employment. For more information, call 1-800-605-6722.
Carl D. Perkins Vocational and Applied Technology Education Act - The purpose of this program is to enable Michigan community colleges and State Board of Education approved four-year institutions offering two-year degrees in occupational education to provide tuition assistance and support services to single parents/displaced homemakers and other eligible individuals. For additional information contact the financial aid director at the community college or approved four-year institution.
The application process is the same for each of the following programs. All students must fill out and file the FAFSA. For additional information on most of these programs refer to The Student Guide published by the U.S. Department of Education. You can obtain this free publication by calling 1-800-4-FED-AID or contacting the counseling department.
Federal Pell Grant Program- This is a grant program for undergraduate students with demonstrated financial need. The maximum award in recent years has been approximately $3,300.
Federal Supplemental Educational Opportunity Grant (SEOG) - This is a grant program for undergraduates with exceptional financial need. The minimum award in recent years has been $100 and the maximum award has been $4,000 per year.
Federal Work-Study (FW-S) - This program provides jobs for undergraduate and graduate students with financial need. Community service and work related to the student's course of study are emphasized to the extent possible.
Federal Perkins Loan - This is a low interest-loan for both graduates and undergraduates who demonstrate need. An amount up to $3,000 can be borrowed each year of undergraduate study with a maximum amount of $15,000 as an undergraduate. A graduate student can borrow up to $5,000 for each year of graduate study with a maximum amount of $30,000 (This includes any Federal Perkins Loans borrowed as an undergraduate.) Repayment of the loan begins 9 months after dropping below half-time status, graduation, or withdrawal.
Subsidized Federal Stafford Loan - This loan is available to undergraduates or graduates who demonstrate financial need. The federal government pays interest on the loan until you begin repayment (usually six months after dropping below half-time status, graduation, or withdrawal) and during authorized periods of deferment. Interest rates are variable, but cannot exceed 8.25%.
Unsubsidized Federal Stafford Loan - This loan is not based on financial need. As was the case with the subsidized loan, repayment begins 6 months after dropping below half-time status, graduation, or withdrawal; however the student must make interest payments from the time the loan is disbursed. Interest rate is variable, but cannot exceed 8.25%.
Federal Plus Loans - This is a loan that enables parents with good credit histories to borrow money to pay the education expenses of dependent undergraduate students. Parents may borrow amounts not to exceed the difference between the cost of attendance minus any other financial aid the student receives. The interest rate is variable, but it will never exceed 9%.
Federal Direct Student Loan - If the college participates in the Direct Loan Program (you will need to inquire to find out), the United States Department of Education is the lender. In such cases the entire loan transaction is handled by the college administrators. If the college does not participate in the Direct Loan Program, you will obtain the Stafford (or Plus loan) through a lending institution. To locate a participating institution you may call the Michigan Guaranty Agency at 1-800-642-5626.
Federal Health and Human Services (HHS) Programs - There are a variety of programs available to students going into selected health careers. The Department of Health and Human Services administer these programs. Funds are awarded directly to the schools (colleges), and they are responsible for managing and awarding them to eligible students. These include:
1. Nursing Student Loans (NSL)
2. Health Professions Students Loans (HPSL)
3. Exceptional Financial Need Scholarships
4. National Health Service Corps (NHSC)
5. Financial Assistance for Disadvantaged Health Profession Students (FADHPS)
For additional information on the above programs, contact your college financial aid office.
Each of the following publications can be obtained from:
Federal Student Aid Information Center
P.O. Box 84
Washington, DC 2004
Telephone:
1-800-4-FED-AID (1-800-433-3243)
Funding Your Education - This booklet contains federal student financial aid application information. It also describes the ED's (U.S. Department of Education's) major aid programs.
The Student Guide - A guide providing a comprehensive description of the federal student aid programs and how to apply for them.
Need a Lift? - This publication contains a survey of educational opportunities, loans, scholarships, and careers. For credit card orders only, call 888-453-4466. The cost, including shipping, is $3.95 when paying by credit card. The home web page for the American Legion is www.legion.org. Using links from the home page you may order publications. The publication is also available by writing to the following address:
The American Legion
National Emblem Sales
P.O. Box 1050
Indianapolis, IN 46206
Make it Happen! - A step-by-step guide to college for students in grades 8 through 10. Although we hope to have a few copies available in the library, it is available for $1.00 per copy from:
The Education Resources Institute (TERI) Higher Education Information Center
Youth Programs
Department
330 Stuart Street, Suite 500
Boston, MA 02116
LOCATING OTHER SOURCES OF FINANCIAL AID
FINANCIAL AID PUBLICATIONS