Making College Affordable

Scholarships & Financial Aid

What You Need to Know
about Financial Aid
Presented By
Michelle McNier
Director of Financial Assistance
Alma College
 AGENDA
1. What is Financial Aid
2. Financial Aid Process
3. Types of Financial Aid
4. Outside Scholarships
5. Special Circumstances
6. Financial Management Tools
7. Resources
8. Questions?
What is Financial Aid?
Financial Aid is the general term used for the
money given and loaned by the government
and colleges to help students pay for higher
education.

There are 4 types of Financial Aid:

1. Scholarships
2. Grants
3. Loans
4. Employment
The Financial Aid Process
1. Anytime
• Create your FASFA (FSA) ID
• Student and parents must have one to sign FAFSA
• Apply to colleges
2. October 1st – March 1st
• Complete the FAFSA
• Student and Parent(s) enter financial information
3. December-April
• Award packages will be sent
• Review and respond to your award package
4. May-July
• Complete the necessary Financial Aid paperwork
– Repeat the process every year you are in college and an individual FAFSA
for each student in college.
FAFSA www.fafsa.ed.gov
Items you will need
• Social Security Number
• Driver's License Number
• Student and Parent 2018 W-2 Forms a
• Student and Parent 2018 Federal 1040/1040A/EZ
• Student and Parent 2018 untaxed income(child support,
worker’s compensation)
• FSA ID and password for student and one parent
Common Errors
• Leaving blank fields
• Entering incorrect SSN or date of birth
• Using commas or decimal points (round to nearest dollar)
The FAFSA
Free Application for Federal Student Aid

www.fafsa.ed.gov
The FAFSA
DEPENDENT
IRS Data Retrieval Tool
Estimated Family Contribution (EFC)
• Calculated using FAFSA data
• Amount a family can reasonably be expected to
contribute towards college expenses
• Different for each family
– EFC can be anywhere from $0 to $999,999
• Two components
– Parent contribution
– Student contribution

• Remains the same regardless of college

• Determines if you are eligible for Pell Grant and Loans
Cost of Attendance (COA)
• Cost of attendance
– Each college determines own

• COA is:
– Tuition & fees
– Room & board
– Books & supplies
– Transportation
– Miscellaneous personal expense
 Financial Need
The financial aid process for each school begins with
determining the individual student’s level of need. This is done
by looking at two values:
1) The EFC of the student.
2) The college’s cost of attendance
Example:
Private COA $41,000 – EFC $6,500 = Need of $34,500
Community College COA $16,211 – EFC $6,500 = Need of $9,711
Parent Plus Loan $ 7,000 $4,211
Grants (need-based aid—from the FAFSA!)
1. Federal Grants
– Pell Grant: $6,095 EFC between $0-$5,401
– Supplemental Educational Opportunity Grant (SEOG):
$500-$1,000
– TEACH Grant: $4,000, but can become a loan!

2. State Grants
– Michigan Competitive Scholarship: $2,000
– Michigan Tuition Grant $2,000
• Must list your school of choice as #1 on the FAFSA by June
– TIP (Phase I & Phase II)

3. College Grants
– Named differently at each college and awarded based on
different need or EFC at each college
TIP (Tuition Incentive Program)
To qualify for TIP
• A student must have (or have had) Medicaid coverage for 24 months
within a 36-consecutive month period as identified by the Michigan
Department of Human Services (DHS).
• http://www.michigan.gov/documents/mistudentaid/3981TIPFactSheet
_2016-17_544515_7.pdf
• 1-888-447-2687
• Application must be done before August 31 of senior year!
Aid comes in 2 phases for TIP
• PHASE 1: Covers the cost of tuition at the current in-district rate at
participating Michigan community colleges. And tuition at the lower
level resident rate is covered at participating Michigan public
universities
• PHASE 2: Provides tuition and mandatory fee assistance not to exceed
$500 per semester or $400 per term up to a maximum of $2,000 for
credits earned in a four-year program at a Michigan degree granting
college or university. (THIS WOULD ONLY BE IN THE STUDENT’S JUNIOR
AND SENIOR YEAR)
Loans
1. Federal Loan Programs
– Subsidized Stafford Loans (4.53%)*
– Unsubsidized Stafford Loans (4.53%)
– PLUS Loans (7.08%)
2. Alternative or Private Loans
– Offered by banks or similar lending institutions
– Interest rate based on credit score of applicant and
cosigner
– Variable or fixed rate
* Need Based
Scholarships

1. Academic Scholarships
2. Athletic Scholarships
3. Performance Scholarships
4. Other awards based on select criteria
– Most scholarships are specific to a particular
college.
– Scholarships are not need-based.
Financial Aid Package
• After processing your FAFSA, the financial aid office
will provide an award letter
• Expect a combination of the various forms of aid.
• Make sure to accept your awards
• You can accept/modify awards by:
1. Signing and returning the award letter to the college
2. Electronically accepting/modifying the award package
 Award Package Example
Example:
Private COA $41,000 – EFC $6,500 = Need of $34,500
Community College COA $16,211 – EFC $6,500 = Need of $9,711
Sample awards: Private Community
Merit Scholarship $16,000 $3,000
Other School Sch/Gants $ 2,000
State Grant $ 1,500
Outside Scholarship $ 1,000 $1,000
Federal Work Study $ 1,000 $1,000
Direct Subsidized Loan $ 3,500 $3,500
Direct Unsubsidized Loan $ 2,000 $2,000
Financial Aid Package - Questions to Ask
1. Are the scholarships/grants renewable? If YES…
– What does the student need to do to renew them?
– How many semester/terms will they be renewed?
– Will it be the same amount renewed?
2. How do you locate on/off campus employment?
3. Question work study awards that exceed $3000. Can
you possibly earn this amount in the school year?
4. Make sure you know what awards are loans and the
terms of those loans.
5. Is it possible to get your degree in 4 years?
Complete Paperwork
Federal Loans will require you to complete the
following:
1. Entrance Counseling
2. A Master Promissory Note (MPN)

Only when these items are complete can the loan amounts be
applied to your account.
Employment
1. Federal College Work Study
– Need-based
– The Federal Government pays a portion of the
student’s wages
– Doesn’t have to be “work study” to work
– Usually work 15 hours or less per week while
taking classes
Outside Scholarships
• Provided by outside individuals, organizations, foundations, groups,
businesses

• Must find and apply these resources on your own

• High School Foundation or other local community foundations. Find your
foundation at: http://www.gratiotfoundation.org/
• State of Michigan Scholarship Search Tool:
https://www.michigan.gov/mistudentaid/0,4636,7-128-
60969_61030_86221-466937--,00.html
• Some of the most popular online scholarship search engines include:
Fast!Web http://www.fastweb.com
Broke Scholar http://www.brokescholar.com
The College Board http://www.collegeboard.com
Finaid http://www.finaid.org
• Claims that seem too good to be true
Special Circumstance
• Change in employment status
• Change in marital status
• Medical expenses not covered by insurance
• Bankruptcy
Financial Management Tools
• Seek out all forms of aid available
• Consider how to pool money from graduation, summer jobs,
etc.
• Finalize documents for all forms of aid you want to use
• Payment plans
• Graduate in 4 years!
– It avoids tuition and fees in years 5 and 6
– AND students earn college-graduate salaries
• And of course, ask questions!
Resources
• Tax Credits
– For more information, see IRS 970 - Tax Benefits for Education
or consult a qualified tax advisor
• Useful Websites
– www.studentaid.ed.gov
– www.finaid.org
– www.msfaa.org
 WE ARE HERE TO HELP YOU
EVERY STEP OF THE WAY!

1-800-321-ALMA

Michelle McNier
mcnierml@alma.edu

Caroline Heitzman
heitzmanca@alma.edu
989-463-7382