FINANCIAL AID BASICS

State and Federal Financial Aid Programs

Below is a listing of state and federal financial aid programs.  Check with your guidance counselor or college financial aid officer for more details or to learn about other opportunities!

CONSOLIDATION LOANS

A Consolidation Loan is designed to help student and parent borrowers simplify loan repayment by allowing the borrower to consolidate several types of federal student loans with various repayment schedules into one loan. Flexible repayment options are available and the interest rate on the Consolidation Loan may be lower than what you are currently paying on one or more of your loans. If you are in default on a federal education loan, you may receive a Consolidation Loan if certain conditions are met.

FEDERAL PELL GRANTS

A Federal Pell Grant, unlike a loan, does not have to be repaid. Generally, Pell Grants are awarded only to undergraduate students who have not earned a bachelor’s or professional degree. In some cases, you may receive a Pell Grant for attending a postbaccalaureate teacher certification program.

FEDERAL PERKINS LOANS

A Federal Perkins Loan is a low-interest (5%) loan for both undergraduate and graduate students with exceptional financial need. Your school is your lender. The loan is made with government funds with a share contributed by the school. You must repay this loan to your school.

FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITYGRANTS (FSEOG)

A Federal Supplemental Educational Opportunity Grant (FSEOG) is for undergraduates with exceptional financial need and gives priority to students who receive Federal Pell Grants. An FSEOG does not have to be paid back.

MICHIGAN CAMPUS-BASED PROGRAMS

Student financial assistance comes from a variety of sources including the federal government, individual colleges, private entities and individual state governments. One set of Michigan funded resources is the Michigan Campus-based Programs. These programs provide grant and work-study assistance to eligible Michigan students attending Michigan degree-granting colleges and universities.

MICHIGAN COMPETITIVE SCHOLARSHIP

One of the largest state-funded financial aid programs, this award is based on financial need and merit (defined by ACT score). It is available for use at Michigan public and private post-secondary colleges. Awards are restricted to tuition and fees.

MICHIGANTUITION GRANT

A state-funded financial aid program that provides funding for use at independent, nonprofit degree-granting colleges and universities in Michigan. Awards are restricted to tuition and fees.

PLUS LOANS

PLUS Loans enable parents with good credit histories to borrow to pay the education expenses of each child who is a dependent undergraduate student enrolled at least half time. PLUS Loans are available through both the Direct Loan and FFEL programs. Most of the benefits to parent borrowers are identical in the two programs. (See Stafford Loans below.)

ROBERT C. BYRD HONORS SCHOLARSHIP

The Robert C. Byrd Honors Scholarship, which provides $1,500 to high school graduating seniors, is a federally funded program administered by the State of Michigan. The awards are renewable for up to four years. The program is intended to promote student excellence and achievement and to recognize exceptionally able students who show promise of continued achievement.

STAFFORD LOANS

Direct and FFEL Stafford Loans are the U.S. Department of Education’s major form of self-help aid. Direct Stafford Loans are available through the William D. Ford Federal Direct Loan Program and FFEL Stafford Loans are available through the Federal Family Education Loan (FFEL) Program. The major differences between the two are the source of the loan funds, some aspects of the application process and the repayment plans. Under the Direct Loan Program, the funds are lent to students directly by the U.S. government. Under the FFEL Program, the funds are loaned from a bank, credit union, or other lender that participates in the FFEL Program.

CHECK OUT THESE RESOUCES

Resources at the Public Libraries of Saginaw

Title Reference #

Black Student’s Guide to Scholarships

378.34

5th Edition, 1999

BI

Barry Beckham, Ed.

 

Madison Books

 

Cash for College

378.3

1999

McK

Morrow

 

College Board Scholarship Handbook

378.3

2002

Co

The College Board

 

College Costs & Financial Aid Handbook

YA 378.38

2002

Co

The College Board

 

College Financial Aid for Dummies

378.3

2nd Edition, 1999

Da

Herm Davis

 

FDG Books Worldwide

 

Complete Scholarship Book

378.34

3rd Edition, 2000

Co

Sourcebooks

 

Don’t Miss Out

378.3

26th Edition, 2002-2003

Do

Octameron Press

 

Everyone’s Money Book on College

378.3

2002

Go

Dearborn Trade Publications

 

Ferguson’s Guide to Apprenticeship Programs

R 331.25

2nd Edition, 1998

Fe

J.C. Ferguson Publishing Co.

 

Financial Aid Book

378.3

Perpetual Press, 1999

Fi

Financial Aid Financer

378.3

2002-2003

Re

Octameron Associates

Financial Aid for African Americans

378.3

2001-2003

Fi

Reference Service Press

 

Financial Aid for Asian Americans

R 378.3

2001-2003

Fi

Reference Service Press

 

Free Money for College

YA 378.3

5th Edition, 1999

Fr

Facts on File, Inc.

 

Peterson’s Guide to Vocational & Technical Schools

R 370.1133

4th Edition, 1999

Pe

Peterson’s

 

Scholarship Advisor

378.3

2001

Sc

Random House

 

Scholarship Almanac

378.3

2002, 2003

Pe

Peterson’s

 

Scholarship Book

378.3

2002

Ca

Prentice Hall

 

Scholarships, Grants & Prizes

378.3

2002

Pe

Peterson’s

 

Worldwide Graduate Scholarship Directory

378.3

5th Edition, 2000

Da

Career Press

 

INTERNET AID

Resources of Financial Aid Information on the Internet

The Financial Aid Information Page...................................................... www.finaid.org

Financial Aid Eligibility Estimator................................... www.finaid.org/calculators/finaidestimate.phtml

American School Counselor Association................................www.schoolcounselor.org

U.S. Department of Education....................................................www.ed.gov/index.jsp

Financial Aid for Students Home Page...................................................................www.ed.gov/studentaid

FAFSA on the Web..........................................................www.fafsa.ed.gov

The Student Guide ..................................................................www.ed.gov/prog_info/SFA/StudentGuide/

 Funding Your Education...............................................................................................www.ed.gov/prog_info/SFA/FYE

askERIC (Educ Resources Information Clearinghouse).................................................ericir.syr.edu

Michigan Department of Education...........................................................................www.michigan.gov.mde

Colleges and Universities

College Financial Aid Offices......................................................................www.finaid.org/otheraid/fao.phtml

American Universities.................................................... www.clas.ufl.edu/CLAS/american-universities.html

Community Colleges (U.S.)...........................................www.mcli.dist.maricopa.edu/cc

CollegeNet.............................................................www.collegenet.com

Virtual Campus Tours................................................................................ www.campustours.com

Peterson’s Education Center......................................................... www.petersons.com

Scholarship Search Services

MI Student Aid...............................................................................www.michigan.gov/mistudentaid

FastWEB..................................................................................... www.finaid.org

Scholarship Scams........................................................www.finaid.org/scholarships/scams.phtml

WWW Searching Tools

Hint:  Searching for “contests” may lead to unusual scholarship opportunities.

Google..................................................... www.google.com

Excite............................................................................... www.excite.com

Lycos...................................................................................... www.lycos.com

Yahoo........................................................................................................ www.yahoo.com

Web Crawler........................................................................................www.webcrawler.com/info.wbcrwl/

Libraries

Library of Congress.................................................................................... www.loc.gov

Michigan Electronic Library........................................................................................... www.mel.org

Public Libraries with Internet Services.............................................................. http://sunsite.berkeley.edu/libweb

Help for the Internet Novice

Beginners Central.....................................................................................................northernwebs.com/bc

Glossary of Internet Terms.............................................. www.matisse.net/files/glossary.html

Interactive HTML Tutorial.....................................................www.davesite.com/webstation/html

GLOSSARY OF FINANCIAL AID TERMS

ACT - American College Test.  Usually given in all high schools in the spring of the junior year.

DEPENDENCY STATUSWhen applying for federal aid, students are classified as dependent on your parents or independent.  You are independent if one of the following applies to you:

-you were born before January 1, 1978;

-you’re married;

-you’re enrolled in a graduate or other professional program beyond a bachelor’s degree;

-you have legal dependents other than a spouse;

-you’re an orphan or ward of the court;

-you’re a veteran of the U.S. Armed Forces.

EXPECTED FAMILY CONTRIBUTION – The amount you and your family are expected to contribute toward your education, based upon a formula established by the U.S. Congress.

FAFSA – Free Application for Federal Student Aid.

FINANCIAL AID PACKAGE - The total amount of financial aid (federal and nonfederal) a student receives.

GSL - Guaranteed Student Loan.  Offered by most banks or lending institutions.

GPA - Grade Point Average. Many collegesrecompute your GPA when they receive your record and use only academic grades, i.e., English, Math, Science, Social Studies and Foreign Language.

GRANTSFinancial aid you do not have to pay back.

MICHIGAN MERIT AWARD – A scholarship available to all Michigan students to help pay for college or vocational/technical training based on MEAP test results.

NATIONAL MERIT SCHOLARSHIP PROGRAM – A nationwide competition among academically talented high school students for undergraduate scholarships.

“NEED” ANALYSIS - The method of arriving at an estimate of student’s need for financial aid.

PELL GRANT – Unlike a loan, a Pell Grant does not have to be repaid.  It generally is awarded only to undergraduate students who have not earned a bachelor’s or professional degree.  The Pell Grant often provides the foundation of financial aid to which other aid may be added.

PERKINS LOAN – A low-interest (5%) loan for both undergraduate and graduate students with exceptional financial need.

PLUS LOANS - PLUS Loans enable parents to borrow to pay the educational expenses of each child who is a dependent undergraduate student enrolled at least half time.

PSAT - A preliminary test, a run-through before the SAT test, to see how well you may do.  If acceptable, PSAT scores can be used on some applications.

SAT– Scholastic Aptitude Test.  A multiple choice test used by most U.S. colleges and universities to measure students’ academic performance and make admission decisions.

SELECTIVE SERVICE REGISTRATION – If required by law, you must register, or arrange to register, with the Selective Service to receive federal student aid.  The requirement to register applies to males who were born on or after January 1, 1960, are at least 18 years old, and are not currently on active duty in the U.S. Armed Forces.

SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT (SEOG) - An award to help pay for education after high school.  It is for undergraduates with exceptional financial need and does not have to be paid back.  Apply early since awards are based on the availability of funds.

STAFFORD LOANS – One of the major forms of federal financial aid.  Both subsidized and unsubsidized loans are available. 

SPECIAL CONDITION APPLICATION - In general, this application can be submitted to your financial aid office whenever there has been a serious change in your family financial situation, such as death, separation or divorce, loss of full-time job, or loss of other support.

WORK-STUDY – Employment provided by the school to help meet the student’s financial need.

KEEP A JOURNAL

It is most helpful to set up a personal data sheet of pertinent information about yourself and to keep a listing of applications made.  Here are two examples you may use in setting up your own information file.

Personal Data Sheet

High school courses and grades.
Extra curricular activities, group affiliations (including offices held).
List of honors/awards received.
Names and addresses of references.
Special experiences (workshops, travel, etc.).
Personal essay information regarding yourself and your future goals.

Keep an ongoing record of the scholarships or loans you have applied for, when filed, who the contact person was, and what information has been received from them.  Update this journal every time you submit an application.

 

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