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   LINKS                                      

    Get a FAFSA PIN 

    FAFSA on the Web
     FAFSA Pre-App Worksheet (pdf)  
    MI Higher Ed
    Federal Student Aid Info   
              1-800-433-3243
 
       

         FAFSA estimator and resources

                        
    
  
  DOWNLOADS                           

 

   Loans                            

   National Student Loan Data System (NSLDS)

   Nellie Mae 
 

   SallieMae 


   FSA Fact Sheets                    

Why do I need a PIN? PDF, Word

What info is needed for  FAFSA? PDF, Word

Why apply  FAFSA online? PDF, Word

Am I dependent or independent? PDF, Word

Who is my FAFSA "parent"? PDF, Word

Federal Student Aid at a Glance PDF, Word

Federal Stu Aid App Process PDF, Word

College Prep Checklist  PDF, Word

Choose a School Carefully PDF, Word

Federal Student Aid Web Sites PDF, Word

Myths About Financial Aid PDF, Word

Why Go To College? PDF, Word

Choosing a Career PDF, Word

How  Fin Aid Admin  Helps You. PDF, Word

Don't Get Scammed. PDF, Word

Be an Informed Consumer. PDF, Word

Why Get a Federal Student Loan? PDF, Word

Be a Responsible Borrower! PDF, Word

Student Aid and Identify Theft. PDF, Word

Military Scholarships PDF, Word

      

Wat is FAFSA?  The Free Application for Federal Student Aid is the form used by the federal government to determine your family’s ability to pay for college. 
It determines your eligibility for financial aid, which includes: grants, work-study, scholarships and loans.
Complete the FAFSA as soon as possible after January 1. 
Early submission maximizes your chances of receiving aid. 
File by March 1 to qualify for state of MI money.

    FAFSA APPLICATION  PROCESS                          

1.   Get a PIN  :  The Personal Identification Number (PIN) is the code that the U.S. Dept of Ed uses to identify the student AND the parent. 

A PIN allows you to:
- Electronically sign your FAFSA when you apply online
- Check the status of your FAFSA
- Make corrections to your personal information online

To obtain a PIN,  visit www.pin.ed.gov  ( A separate PIN is needed for both student AND parent)
·  You submit your name, date of birth and social security number 
·  It takes about three business days to receive a PIN by e-mail.  

 

 

 

 

FAFSA               ->          EFC          ->    Financial Need      ->        Financial Aid 

Both the parent and student submit income and savings information from the most recent tax form.

EFC is Expected Family Contribution, which is the amount of money your family can be expected to contribute each year to your college costs.

     College cost    -              EFC

= Financial Need

 Each college uses the same EFC for your aid.

Each of your prospective colleges will try to meet your financial need through federal, state, school and private sources, as well as loans, grants and student employment.

2.       Compile Federal Taxes  Both the student and parent must copy amounts from lines from the 1040 or 1040EZ forms.  Taxes do not need to  be submitted, only completed.

3.       Complete a sample FAFSA worksheet:   Print a Pre-Application Worksheet and use it as a guide before committing answers online.  DO NOT enter online answers directly from the paper FAFSA!  Web vs paper FAFSA questions are in a different order

FAFSA Demonstration Site

A demonstration site is available so you can increase your own understanding of FAFSA on the Web before you apply. At the site, you can complete a sample FAFSA, make corrections, check the status of the application, and sign it electronically. However, when you choose "submit," the information is not actually submitted. The site is purely a learning tool. To access the demo site, go to http://fafsademo.test.ed.gov. The user name is eddemo, and the password is fafsatest. The demo site is available in both English and Spanish.

4.       Complete your FAFSA www.fafsa.ed.gov Save your FAFSA online if you can’t finish it in one session: Click the “Save” button at the bottom of each step to save info for 45 days. Use a password (which you select at the start of the process) to retrieve your information later.  

 

 

 

 

 

E-filing   benefits 
The system “edit checks”  your information and will instantly alert you of any mistakes.
You will receive your SAR in  3-5 days  vs. 4-5 weeks if you fill out the paper version.   

CAUTION The FAFSA is FREE!  Do NOT use www.fafsa.com  – they look very official but will charge you to complete a FAFSA for you.

5.       Print out a copy: Keep a completed copy for your records.

6.    Review your Student Aid Report (SAR)

The SAR holds the results of your FAFSA. Review it carefully for accuracy. If you filed electronically, you should receive your SAR in 2-3 weeks (4-5 weeks if you filed a paper FAFSA).

7.     Find your EFC on your SAR  This is the total amount parent and student will be expected to contribute.

Why is there an asterisk after my EFC?  It means your SAR has been selected for verification (happens to about 30% of SARs). It means your prospective college will compare your SAR with your tax form to verify your financial status. If asked for verification, submit the forms requested to your prospective college’s financial aid office ASAP.

FAFSA Tips
 ·         The word ‘you’ always means the student
·         The correct year is the year the student will be in college – NOT the current year 
·         Do not leave any fields blank. If a question doesn’t apply, enter “0.”
·         Do not enter false information as a way to qualify for more aid. Doing so is a federal crime and can be punishable with fines or prison.
·         Fill out the FAFSA every year, even if you don’t think you will qualify for aid. It may be a prerequisite for scholarships.
·         Professional Judgement:  If your family has unusual circumstances – medical bills, change in employment, other parochial tuition – contact each college financial aid office directly NOT the FAFSA people
·         File a FAFSA for every college student in your family. 
·         Stepparent:  Income and assets must be included
·         Divorced/Separated:  List only the parent the student lived with most
·         Do include the student in the household size question
·         List up to 6 schools to get your financial data from 1 FAFSA.  To add more schools, you need to amend a submitted form
·         Submit a FAFSA even if you think you will not get aid
·         File a renewal FAFSA each year
·         Say “YES” to WorkStudy or Loan consideration – saying NO does not get you more gift aid

 

Types of Financial Aid      

 

 

Program

Description

Application

Annual/Aggregate Amounts

Eligibility

Repayment

 

Federal Pell Grant

Grant program

FAFSA; must apply annually

$400 to $4,050

No aggregate

Undergraduate students;

Max EFC $3,850

No

 

Federal Supp Ed Opp Grant (FSEOG)

Funds awarded by institution

FAFSA; must apply annually

$100 - $4,000

No aggregate

Undergraduate students; priority given to Pell Grant recipients with exceptional financial need.

No

 

Federal Work-Study (FWS)

On Campus-jobs program

FAFSA; must apply annually

No min or max; award amount is dictated by school policy

Undergraduate and graduate students; based on need

No

 

Federal Perkins Loan

5% interest

FAFSA; must apply annually

·     $4,000/yr. Undergrad

·     $20,000 undergrad total;

First priority given to students with exceptional financial need;

 Yes; 9 months after

 

Federal Stafford Loan (subsidized and unsubsidized)

Federal Family Education Loan;

2.77%

Master Promissory Note from school or lender;

·     $2,625 1st year undergrad;

·     $3,500 2nd year undergrad;

·     $5,500 other undergrad;

·     $23,000 undergrad aggregate; 

Must determine eligibility for Subsidized before applying for Unsubsidized; based on need; unsubsidized funds may be used to replace EFC

 Yes;

6 months after grad;

 

Additional Federal Unsubsidized Stafford Loan -

Maximum of 8.25% interest

Master Promissory Note from lender or school;

·     $4,000/yr 1st or 2nd year undergrad;

·      $5,000 each remaining year at undergraduate level;

·     $46,000 undergrad aggregate

Dependent students whose parents are unable to borrow a Federal PLUS; may be used to replace EFC

 Yes;

 Same as Federal Stafford Loan

 

Federal PLUS

4.17%

Federal PLUS Promissory Note obtained from lender or school;

No annual or aggregate limits, parents may not borrow more than the difference between cost of attendance and estimated financial assistance

Parents of eligible dependent undergraduates who are enrolled at least half time; no adverse credit history; may be used to replace EFC

Yes;  60 days after final disbursement;

 

Direct Subsidized/ Unsubsidized Loan

 William D. Ford Federal Direct Loan; max 8.25%

Federal Direct Stafford Loan Master;

·     $2,625 1st year undergrad;

·     $3,500 2nd year undergrad;

·     $5,500 each remaining year;

·     $23,000 undergrad aggregate

 

Must determine eligibility for Subsidized Loan before applying for Direct Unsubsidized Loan; subsidy based on need; unsubsidized funds may be used to replace EFC

Yes;  6 months after grad;

 

Additional Direct Unsubsidized Loan

William D. Ford Federal Direct Loan; max 8.25%

Same as above

·     $4,000/yr. 1st or 2nd year undergraduates;

·     $5,000 each remaining year at undergraduate level.

·     $46,000 undergrad aggregate

Must determine eligibility for Subsidized Loan before applying for Direct Unsubsidized Loan; subsidy based on need; unsubsidized funds may be used to replace EFC

Yes;  6 months after grad;

 

Direct PLUS

William D. Ford Federal Direct Loan; funds maximum of 9% interest

Federal Direct PLUS Master Promissory Note obtained from institution;

·                     No annual or aggregate amounts, except cannot borrow more than the difference between cost of attendance and estimated financial assistance

Parents of eligible dependent undergraduates who are enrolled at least half time; no adverse credit history; not in default of a federal loan; may be used to replace EFC

Yes;  6 months after grad;


Types of Financial Aid      

Most government financial aid programs are "need-based" - the amount of aid depends on your families income and savings.  Other programs are "merit-based" – earned by academic, artistic, or athletic talent.  

What Aid can be Awarded?

GIFT AID  38% of all aid  

Gift aid does not need to be paid back.

·      GRANTS are awarded based on the applicant's demonstrated financial need.

·      SCHOLARSHIPS are awarded to undergraduate students based on the applicant's academic merit, although financial need is sometimes taken into account in determining the award amount. Scholarships provide funds toward tuition, fees, and other required educational expenses. Most scholarships  do not provide funds for living expenses.  

SELF-HELP   This aid is provided by the student or parent           

·      LOANS 58% of all aid   are financial assistance that must be repaid. Need-based student loans do not have to be repaid until you leave school and they carry lower interest rates than most other kinds of loans. This is because the government pays the interest for you while you are enrolled in school. Loans are also available to the parents of college students. These loans are non-need based and can have a higher interest rate and fewer special provisions than loans made directly to students. Some student loans may be partly or entirely canceled if you perform certain services.

·      WORK STUDY 4% of all aid   programs help you earn money so you can pay your educational expenses as you go.  The work is part-time, up to under 10 hours per week. Part of the salary is paid by the government.

What Are the Sources of Financial Aid?

1.        Federal (82 Billion, 67%):  U.S. Department of Education 

·         Federal Pell Grants are need-based gift aid. The award amount varies with cost of tuition. The money for the Federal Pell Grant comes to the school, which then delivers it to the student. 

·        Federal Family Education Loan (FFEL) Program 

The money comes from banks, but the loans are guaranteed by the federal government

Federal Stafford Loan borrowers pay origination fees of up to 4% (deducted up front).

The interest rate varies each year beginning on July 1. The max interest rate is 8.25%.  

o    Federal Stafford Loans are made to students.  Repayment begins 6 months after graduation.  There are two types of Federal Stafford Loans:

§   Subsidized Awarded based on need, the government pays the interest.

§   Unsubsidized Not based on need.  May be used to replace the student's expected family contribution.  The borrower pays the interest from the time the money is borrowed, including when you are in school. The interest can be capitalized, which means it can be added to the principal amount of the loan for later payment. In this case, you end up paying interest on the capitalized interest.

o     Federal PLUS Loans for Parents Not based on need.  May be used to replace the student's expected family contribution.  Made to parents of dependent college students. The interest rate varies annually - max interest rate is 9%. Repayment begins 60 days after the loan is fully disbursed and ends no later than 10 years after repayment begins.

·         William D. Ford Federal (Direct Loan) Program  Under the Direct Loan Program, the lender is the federal government. There are the Direct Subsidized and Direct Unsubsidized Loans, and the Direct PLUS Loan programs. The terms of the Direct Loan Program are identical to those under FFEL.

·         National and Community Service  AmeriCorps allows students to earn upt o $4,725 by performing community service jobs that address human, educational, environmental, and public safety needs. Students aged 17 or older may serve before, during, or after their college education. A student must complete one year of full-time service or two years of part-time service in an approved community service job in order to earn an educational award. www.americorps.org

2.      Private: Local organizations; religious organizations; civic clubs ; employers

3.      Campus Based (35 Billions, 28%): The federal government gives each participating school a certain amount of money for each of these programs. The school then decides which of its needy students will receive the money and how much they will receive. The type and amount of aid you might be offered from these programs will probably vary from school to school. 

·         The Federal Supplemental Educational Opportunity Grant (FSEOG) is gift aid that must be given to the neediest students, according to federal law.

·         Federal Work-Study (FWS) allows schools to provide jobs for students who need to work to meet some of their educational expenses. You can use Federal Work-Study earnings to pay for expenses. 

·         If the school offers you a Federal Work-Study award, the number of hours per week you will be expected to work depends on the amount of your award and your hourly pay rate. The school will generally award you an amount to earn that will not be so great that it interferes with the time you have available for studying. Some schools also allow students to earn their Federal Work-Study funds during the summer or other vacation periods.

·         Federal Perkins Loans are low-interest loans (5%) with generous repayment conditions over 10 or more years. You don't start repaying the loan, or interest on the loan, until 9-months after you finish school or drop below half-time attendance. All or part of your loan may be canceled if you teach in certain areas, become a nurse or serve as a full-time volunteer in certain programs. Your actual monthly payment will depend on how much you borrowed. 

4.       State  (6 Billion, 5%) : MI Promise Scholarship and MI Tuition Grant 

How is Financial Need Calculated?   

Basic Financial Aid Principles

·         Paying for the student’s educational costs is the primary responsibility of the student and the parent(s).

 ·