How to Finance a College Education. Office of Financial Aid & Scholarships Fall 2015 Open House Presentation

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1 How to Finance a College Education Office of Financial Aid & Scholarships Fall 2015 Open House Presentation

2 What is Financial Aid? Financial aid is any source of funds available to assist students in meeting the cost of a college education beyond the family s resources.

3 Types of Financial Aid Scholarships Grants Work-Study Loans

4 Sources of Financial Aid Federal Government State Government Colleges/Universities Private Organizations/Foundations

5 Financial UM-Dearborn $69 million in financial aid paid to students in $38 million in scholarships offered to new incoming freshmen for Fall % of incoming freshmen were offered financial aid 6,772 students at UM-Dearborn received financial aid in $12.7 million in Pell Grants were received by students in

6 Scholarships at UM-Dearborn Entering students scholarships are offered by the Office of Admissions and Orientation and administered by the Office of Financial Aid and Scholarships. To be considered for merit scholarships for the academic year, prospective students should submit their completed admission application by December 15, The application for admission serves as the scholarship application.

7 Freshman Scholarships for Fall 2016

8 Freshman Scholarships Chancellor s Scholarship Provides full tuition and fees for up to 8 semesters. Currently valued at $48,000 over 4 years. Requirements Grade point average of 4.0 or higher at time of admission ACT of 31 or SAT of 1380 or higher Only scores from tests taken through November of the senior year can be used for Chancellor s Scholarship eligibility.

9 Freshman Scholarships Metropolitan Scholarship Provide $5,000 annually for up to 8 semesters. Currently valued at $20,000 over 4 years. Dean s Scholarship Provides $4,000 annually for up to 8 semesters. Currently valued at $16,000 over 4 years

10 Freshman Scholarships Maize Scholarship Provides $3,000 annually for up to 8 semesters. Currently valued at $12,000 over 4 years. Blue Scholarship Provides $2,000 annually for up to 8 semesters. Currently valued at $12,000 over 4 years

11 Opportunity Scholarship Provides $2,000 annually for up to 8 semesters. Currently valued at $8,000 over 4 years. Requirements 3.0 High School GPA Admissible ACT/SAT Score Attend one of the 188 eligible schools (Criteria include geography and socio-economic factors)

12 Victors Scholarship All Opportunity scholarship recipients will interview in January/February 25 students will be selected for a full-tuition and fee scholarship valued at $48,000 over 4 years

13 Private/Local Scholarships Many organizations award grants or scholarships based on a variety of factors Check your own contacts think locally Check with Guidance Counseling Office

14 Private Scholarships There are no secrets to finding scholarships: you must work diligently to find private scholarships and be diligent in completing the applications. Beware of fee-based invitations for financial aid preparation, scholarship searches or scholarship programs with a service charge.

15 Direct Costs Cost Estimate for Michigan Residents Tuition & Fees $ 11,600 Books & Supplies $ 1,300 Total Undergraduate Cost $ 12,900

16 Indirect Costs Estimated Amounts At Home Room and Board $ 1,970 Transportation/Misc. $ 3,306 Total $ 5,276

17 Indirect Costs Estimated Amounts Away from Home Room and Board $ 7,880 Transportation/Misc. $ 3,306 Total $ 11,186

18 Cost of Attendance Tuition Cost for * $430 per credit hours 1-12 $93 for credit(s) 13 and beyond *In-state, lower division assessment

19 FAFSA: Your Key Step in Financial Aid Complete the Free Application for Federal Student Aid (FAFSA) online at

20 Getting a FSA ID: Do this in the fall of your senior year Visit to request a FSA ID. Both student and a parent should obtain a FSA ID. The FSA ID establishes your identity for the FAFSA.

21 Types of Need-Based Aid GIFT AID Grant or Scholarship * No repayment * No service obligation SELF HELP AID Loan or Work-Study Loan-repay at low market rates (4.29% for Subsidized and Unsubsidized loans starting 7/1/2015) Work study-aid earned through a job

22 Federal Grant Programs Federal Pell Grant Program Up to $5,775 annually in Federal Supplemental Educational Opportunity Grant Program (FSEOG) - Amount varies based on funding level

23 University Need-Based Grants University of Michigan-Dearborn Grant Awarded by the Office of Financial Aid based on: Expected Family Contribution (EFC) Financial need Packaging parameters Timely filing of the FAFSA Timely completion of application requirements

24 Federal Direct Loan Program All campuses of the University of Michigan participate in the Federal Direct Loan Program. Students borrow directly through the U.S. Department of Education as a result of the completing the FAFSA. $5,500 for freshmen ($3,500 maximum in subsidized) $6,500 for sophomores ($4,500 maximum in subsidized) $7,500 for juniors/seniors ($5,500 maximum in subsidized) $31,000 aggregate limit for dependent undergraduates $57,500 aggregate limit for independent undergraduates

25 Federal Direct Loan Program Federal Direct Loans are based on basic eligibility criteria (half-time status, program eligibility, etc.) and the completion of the FAFSA. There is no credit check, co-signer or collateral requirements to participate in this program. Regardless of income and assets, students can qualify for federal student loans.

26 Federal Direct Loan Program Subsidized * Must demonstrate need for amount borrowed Interest does not accrue while in school at least half-time Interest rate is 4.29% Unsubsidized * Can replace part or all of family contribution Interest accrues while in school at least half-time. Interest rate is 4.29%

27 Federal Direct Loan Program Parent PLUS Loan Loan that a Parent would apply for in their name. Does go through a Credit Check process which can be approved or denied based on the applying parent s credit standing. A Denied loan does open up additional Unsubsidized loans that a student is eligible to borrow.

28 Sample Aid Award Cost of Attendance Family Contribution $ 2,100* Pell Grant $ 3,725 University Grant $ 3,000 Private Scholarship $ 1,000 Work Study $ 3,000 Student Loan $ 3,500 TOTAL AID $14,225 $17,776 (Direct + Indirect costs) $7,725 gift aid $6,500 self help * Student can borrow unsubsidized student loan & parent may borrow PLUS to maximum of COA

29 Sample Aid Award Cost of Attendance $17,366 (direct + indirect costs) Family Contribution $ 6,000* Scholarship $ 2,000 University Grant $ 4,500 $7,000 gift aid Community Award $ 500 Work Study $ 1,350 Student Loan $ 3,500 TOTAL AID $11,850 $4,850 self help *Student can borrow unsubsidized student loan & parent may borrow PLUS to maximum of COA

30 Applying for Financial Aid January 1, 2016 is the first day to complete the FAFSA online. Recommend students and their families file the FAFSA by February 14 th Valentine s Day. Don t wait for your admissions decision to submit the FAFSA!

31 Applying for Financial Aid You must file a FAFSA online to be considered for federal, state and university need-based funds. If you don t complete the FAFSA, you have not applied for financial aid. Before you can be awarded any financial aid, you must be admitted to the University.

32 Complete the FAFSA Every Year? You file income tax returns annually. You apply for financial aid through the FAFSA annually.

33 Special Circumstances Divorce, separation or death Unemployment Change from full-time to part-time work Very high medical expenses paid out-of-pocket Private school tuition paid for younger siblings Parents in college

34 Financial Aid Workshop FREE Saturday, November 14, 2015 AM Session (9:00 11:30) PM Session (1:00 3:30) General Information Sessions Break-Out Sessions Scholarships Completing the FAFSA Special Circumstances