BasicsofFinancialAid There are 3 ways to supplement the cost of college
Grants Financial aid that doesnot have to be repaid. Offered by the federal and state government, as well as by some institutions, grants may be merit-based, need-based or student-specific.
Scholarships Scholarships donot require repayment. They are offered by individual institutions and private organizations and can be awarded based on a number of factors, such as academic performance, athletic ability, religious affiliation, and race, among others.
Loans Offered by both the federal government and private institutions, loans are money that you borrow to attend college. Youmustrepayyourloanswithinterest. Loans provide students and families with immediate access to funds to help cover the cost of college.
Howdoesmystudentreceiveaid?
Submit the FreeApplicationforFederalStudentAid(otherwise known as the FAFSA).
In order to receive grants and scholarship from the government or the college, you and your student must submit a FAFSA application together in their senior year. It is a government application based on your 2017 tax return and it is available every year from October 1-March 1. You must submit the FAFSA every year your student is in school or they will not receive aid. Never pay anyone to help you do your FAFSA. Your college adviser/counselor and the financial aid office of any college will help you for free.
You can find the application in English here; https://studentaid.ed.gov and in Spanish here; https://studentaid.ed.gov/sa/es/fafsa
FederalStudentAid
TheFreeApplicationforFederalStudentAid(FAFSA)
There are several parts of the FAFSA you need to know about.
Colleges need the FAFSA on file to award meritandneed-basedscholarshipsandgrants to your student.
The FAFSA also identifies students eligible for a Pell Grant.
PellGrant This is subsidy the U.S. federal government provides for students with financial need for up to 6 years. The amount awarded is based on a variety of factors, but the max is$6,095 a year. You do not need to repay this.
FederalStudentLoans The FAFSA gives students the option to take out federal loans (You do not need to accept the loans or any part of the FAFSA if you do not want). There are two types of federal loans available to the student.
1.DirectSubsidizedLoan This is borrowed money your student will need to pay back with interest. The interest rates are lower than private loans and the government will pay the interest incurring while the student is in college. Your student does not have to make payments during college and for 6 months after they graduate (known as a grace period).
2.DirectUnsubsidizedLoan Exactly like the subsidized loans, but with one key difference: the government will not pay the interest while the student is in school.
FederalParentLoan There is an option to take out a loan for your student with the federal government in your name.
1.DirectPLUSloan This is a loan for your student that you are responsible for paying back. The U.S. Department of Education is your lender. You must not have an adverse credit history.
StateAid
TuitionIncentiveProgram(TIP) TIP is a state grant that will provides eligible students with tuition assistance at colleges in Michigan. If your student qualified for Medicaid for at least two years between the age of nine and high school graduation, you are encouraged to contact MI Student Aid or call 888-447-2687 to learn more and complete your TIP application. You also need to complete the FAFSA to receive TIP.
MichiganCompetitiveScholarship To be considered, a student must take the SAT prior to entering college and achieve a qualifying score of at least 1200. MCS can only be used at a Michigan college. Awards pay up to a maximum of $1,000 per academic year. Student must file a FAFSA and ensure that their Michigan college of choice is listed first on the FAFSA.
Scholarships Students may be awarded some scholarships from a college as long as they submitted the FAFSA, but some require an additional application so pursue the scholarships page of the school's website.
Scholarships can also be found at local churches, employers, community organizations, and Capac High School's college advising office. Local community scholarship applications are also made available to Capac students during the Spring semester.
Private scholarships are available on websites such as Unigo, FinAid, FastWeb, CollegeBoard, & more. For more info, encourage your student to reach out to the college adviser for more info.
Common FAFSA Questions & Myths
What if I do not have a Social Security Number? Your student is still eligible for aid as long as they have a social security number. When filing the FAFSA, put all 0's for for the parent SS# and print, sign, and mail in the last page of the FAFSA to the mailing address provided on the FAFSA website.
What if my student does not have a Social Security Number? You student does not qualify for federal aid, but there are other options. Contact the college's financial aid office directly for guidance. Also visit www.thedream.us/scholars
"We make too much money- my student won't qualify for aid." There is no income cut-off for federal student aid. A student's aid eligibility is not strictly based on family income - other factors such as number of people in the household and number of family members currently attending college - are also taken into account. ALL STUDENTS who file the FAFSA are at least eligible for unsubsidized loans.
"My student will only be using scholarships to pay for schools, so they don't need to file the FAFSA." A number of scholarships including many provided by colleges and local community foundations, require students to file a FAFSA to be considered.
"My student will not be taking out loans, so there's no reason to file the FAFSA." FillingaFAFSAdoesnotrequirethatstudentand/orparentstakeanyoftheaidofferedtothem.However,filingtheFAFSAcangivestudentsaccesstofederalgrants(ifthestudentqualifies)whichdonotneedtoberepaid.Moreover,manycollegesusetheinformationprovidedontheFAFSAtodeterminewhowillreceivetheirgrantsandneed-basedscholarships.WithoutaFAFSAonfile,aidisnotavailabletostudentsintheeventthattheirsituationchangesandthestudentfindsthattheyneedthefunds.
"I don't wan't to give out my personal tax information, so I'm not going to file the FAFSA." TheinformationyourprovideontheFAFSAishighlyprotectedandisnodifferentthanfilingoraccessingyourtaxinformationthroughtheIRSonline.FAFSA.govisasecuregovernmentwebsite.FilingtheFAFSAwillnotincreaseyourchancesofgettingaudited,andtheinformationprovidedisalmostentirelythesameastheinformationalreadyprovidedtotheIRSthroughfilingtaxes.
The college adviser is also available to assist you upon request with the FAFSA, scholarships, and award letters.