Paying for College

Financial Aid

What is Financial Aid?

Financial aid is money that can be used for educational expenses.

Financial Aid Principles
  • Paying for college is the primary responsibility of the student (and the parent in some cases).
  • Aid is distributed based on ability to pay — not willingness.
  • Families are reviewed and assessed in their present financial condition.
  • Families are evaluated in an equitable and consistent manner.

Types of Financial Aid

There are two basic categories of financial assistance: need-based and non-need-based aid.

Need based aid uses a formula to determine a family’s financial strength and eligibility for a program.

Non-need based aid does not use the financial strength of the family but may take into consideration other factors such as grade point average. All programs, criteria and funding are subject to change without notice.

Need based vs. Non-need based

Gift Aid - not repaid

  • Grants and Scholarships

Self Help Aid

  • Work Study employment - work for a paycheck
  • Loans - repay with interest

Federal Programs

Enrollment requirements vary by program, and you can range from less than half-time to full-time enrollment each semester. Awards are made based on meeting eligibility criteria, satisfactory academic progress and the availability of funds.

www.fafsa.ed.gov

Need based
  • Pell Grant
  • Academic Competitiveness Grant
  • Supplemental Educational Opportunity Grant
  • Work Study
  • Subsidized Student Loan
Non-need based
  • Unsubsidized Student Loan
  • Parent Loan

State Programs

The state programs listed may be available for the 2009-2010 financial aid award year, as each program is subject to legislation.

www.michigan.gov/mistudentaid

Need based
  • MI Competitive Scholarship
  • MI Educational Opportunity Grant
  • MI Adult Part-time Grant
  • MI Work-Study
Non-need based
  • Native American Tuition Waiver
  • Tuition Incentive Program
  • MI Merit Award/MI Promise

Institutional Resources at Schoolcraft College

Scholarships will vary greatly from school to school.

Schoolcraft College offers:
  • Trustee Scholarships
  • Foundation Endowment Scholarships
  • Faculty Academic Scholarships
  • Honors Scholars
  • Athletic Scholarships
  • Ambassador Scholarship
  • Nursing Scholarship
  • Payment Plan

Private Resources

Check in your local community for scholarship opportunities. Remember that you should not have to pay a fee to obtain or apply for a scholarship. Listed below are types of organizations that may offer scholarships.

  • Professional Associations
  • Foundations
  • Corporations
  • Community Organizations and Clubs
    • Civic
    • Religious
  • Commercial Lending Institutions
  • Place of Employment

Determining Financial Aid Eligibility

General Eligibility
  1. U.S. citizen, permanent resident or other eligible non-citizen with a valid social security number
  2. Ability to benefit (high school graduate, GED recipient, or achieve required scores on a standardized test)
  3. Regularly admitted student in a degree or certificate program (may not be a high school student at the same time)
  4. Register with Selective Service, if required
  5. Result of eligible or partially eligible on drug conviction question
Expected Family Contribution (EFC)

Student contribution (from income & assets) + Parent contribution (from income & assets) = Expected Family Contribution (EFC)

Cost of Attendance (COA)
  • Tuition and fees
  • Room and board
  • Books, supplies, equipment, transportation and miscellaneous expenses
  • Loan fees
  • Study abroad costs
  • Expenses associated with a disability
  • Dependent or elder care expenses

Cost of Attendance (COA) - Expected Family Contribution (EFC) = Financial Aid Eligibility (need)

Type of College: 2 year 4 year Private
  COA $5,800 $9,000 $15,000
− EFC − $3,000 − $3,000 − $3,000
= Financial Need $2,800 $6,000 $12,000

Your need based financial aid cannot exceed your demonstrated need.