University of Michigan Frequently Asked Questions About Financial Aid

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Frequently Asked Questions About Financial Aid

What is financial aid?
Financial aid is any source of funds available to assist students to pay for the cost of a college education. Sources of aid are usually take the form of a loan, grant or scholarship. It can also be a resource like employer tuition benefits. Any student who may need assistance in meeting college costs should make an application for financial aid.

One of the guiding principles of financial aid administration is that all student aid applications be treated in a fair and equitable manner. If you have special circumstances that impacts family income, you may wish to file a Special Circumstances Form.

Most financial aid assistance is based on demonstrated financial need; however, some scholarships and some types of loans do not require financial need. Most scholarships are based on special abilities and merit.

Who is eligible to receive financial aid?

Each financial aid program has special criteria, but the following requirements are fundamental to federal, state and university need-based programs. To be eligible for financial aid, you must:

* Demonstrate financial need (except for some loan programs).
*Have a high school diploma or its equivalent or have a certificate of completion for a home-study program recognized by the student’s home state. You may file for financial aid prior to receiving your diploma, but must be awarded it as a condition of admission to the University.
* Be enrolled or admitted to an eligible program of study. You may file for financial aid before you have been admitted to your program of study, but you will not be awarded before you have been admitted.
* Be a U.S. Citizen, national or an eligible non-citizen.
* Have a valid Social Security Number.
* Be registered with Selective Service if you are a male born after December 31, 1959.
* Be making satisfactory academic progress as defined by the Office of Financial Aid (see Consumer Information for more detail).
* Use federal student aid for only educational purposes.
* Not owe a refund on a federal grant or be in default on any federal educational loan.

How do I file for financial aid?

You may file using the secured Web site FAFSA on the Web at www.fafsa.ed.gov and print a signature page to mail to the Student Aid Processing Center or use your U.S. Department of Education PIN (Personal Identification Number) as your electronic signature. If you are a dependent student, at least one of your parents must also have U.S. Department of Education PIN to use as his or her electronic signature. Don't forget to print a copy of your application and confirmation page.

I don’t have a Federal PIN. How do I get one?

You apply for a PIN at the Department of Education Web site at www.pin.ed.gov.If you are considered a dependent student for financial aid purposes, one of your parents should also obtain a PIN to use as an electronic signature.

Do I use my Federal PIN to access my University records?

No. The University assigns you an identification number and a PIN. You can change your PIN to any allowed numeric sequence, but it may still differ from your Federal PIN.

What if I have trouble completing the form on the Web site?

You can call (800) 801-0576 for general information as well as technical assistance.
When should I file for financial aid?

The Office of Financial Aid recommends that all students (regardless of the term they start) file for financial aid by February 14.

I didn’t know that I should file. Is it too late?

No. The Office of Financial Aid will process your application even if you file after the recommended filing date. Your application, however, must be received and completed while you are still enrolled on at least a half-time basis (six credits for undergraduates and four credits for graduate students.) Your aid will probably be processed after the start of the academic year. You are also less likely to receive grant assistance from the University because funds may be expended. Undergraduate and graduate students who enroll in a degree program AND have at least half-time status student loans. Eligible undergraduates may also be considered for Federal Pell Grant.

Do I need to file every year?

Yes. Students (and their families) are required to complete a Free Application for Federal Student Aid (FAFSA) each year. Even if the circumstances have not changed, the new application will confirm your situation.

I’ve lost my tax return. Does that mean that I can’t file a FAFSA?
You can file with estimated information if you still have your core documents and your tax return isn’t very complicated. You may need a copy of your tax information if you are selected for a process called verification in which income and household size are confirmed. Even if you were not selected for verification or planning to file for financial aid, you should always keep copies of your tax return.To request a tax return transcript (for simple filers) or an actual copy of your original tax return, please visit this section of the IRS website for information and instructions at http://www.irs.gov/taxtopics/tc156.html.

What if I’ve already filed my FAFSA at my former school? Do I need to complete a new one for your school?

If you filed a FAFSA for the academic year in which you plan to attend the University of Michigan-Dearborn, you do not need to refile a FAFSA. The information that you’ve already submitted can be released to the University of Michigan-Dearborn. Add UM-Dearborn to the list of colleges you want to receive your information online. The UM-Dearborn Federal School Code number is 002326.

I’m really confused about the FAFSA and don’t know how to fill it out. What should I do?

If you need more assistance than is available at the FAFSA on the website, call the Office of Financial Aid at (313) 593-5300 to make an appointment with one of the counselors. You should bring in as much income documentation as possible to the appointment. The counselor should be able to help you complete your FAFSA.
How do I know if I’m independent or dependent for financial aid?

Your age will usually determine if you are considered to be dependent or independent for purposes of filing for financial aid. For the 2009-10 academic year, students who were born before January 1, 1986 will be considered to be independent on the basis of age.

There are other “automatic” independent status categories in addition to age. Students who are not yet 24 by December 31, 2009 but who:

are orphans (both parents are deceased)
are wards of the court, or were until age 13
are veterans of the U.S. Armed Forces
Are currently serving on active duty in the U.S. Armed Forces for purposes other than training
have children who will receive more than half of their support from you between July 1, 2009 and June 30, 2010
have legal dependents ( persons other than a spouse): they must live with you and receive more than 50% of their support from you between July 1, 2009 and June 30, 2010
are an emancipated minor as determined by a court in your state of legal residence at the time of application
are in a legal guardianship as determined by a court in your state of legal residence at the time of application
will be graduate or professional students in 2009-2010
are married at the time of application
at any time after July 1, 2008, were determined to be an unaccompanied youth who was homeless by a high school or school district homeless liaison
at any time after July 1, 2008 were determined to be an unaccompanied youth who was homeless by the director of an emergency shelter program funded by the Housing and Urban Development
at any time after July 1, 2008 were determined to be an unaccompanied minor who was homeless or was self-supporting and at risk of being homeless by the director of a runaway or homeless youth basic center or transitional living program
What if I don’t meet any of these categories and still think that I should be considered independent?

Your first step would be to meet with a financial aid counselor to discuss your situation. The Office of Financial Aid will consider waiving parental information based on documented appeals.

If a student has been abused, neglected or abandoned by parents, an appeal can be made. Also students whose parents may be incapable of completing a FAFSA because of institutionalization or incarceration may be considered.

Students who are not claimed as a dependent on their parents’ income tax return and/or do not live with the their parents cannot be considered independent without additional special circumstances.

Students may also complete the FAFSA without parental information and may be able to qualify for Federal Direct Unsubsidized Loans without having met the standard to be considered independent based on circumstances by the Office of Financial Aid.
I’ve got special problems that aren’t reflected on the FAFSA. What should I do?

You should contact the Office of Financial Aid at (313) 593-5300 to talk with one of the staff members about your situation. A Special Circumstances Form can be sent to you or you can print it from the forms section on our website.

You can also make an appointment to meet with one of our financial aid counselors to discuss your situation in detail.
How is financial aid determined?

Financial aid programs are based on the premise that the primary responsibility for paying for college lies with the student and his family. Need-based financial aid is available to those students whose family resources are inadequate to meet their college costs.

The simple calculation used is:

Cost of Attendance

- Expected Family Contribution (EFC)

- Scholarships and Resources (e.g., employer tuition benefits)

= Need for Aid (Demonstrated Need)

* Cost of Attendance represents a reasonable estimate of attending the University for an academic year. Components include an average of tuition and fees and allowances for books, supplies and equipment, transportation, miscellaneous expenses and even room and board. Although the University of Michigan-Dearborn is not a residential campus, an allowance for room and board is included to reflect the totality of educational costs. You may view all of the academic year’s budgets based on status, residency for both graduate and undergraduate categories in the Cost of Attendance section of this web site.
* Expected Family Contribution When a student submits a FAFSA (Free Application for Federal Student Aid) using either the electronic or paper format, the personal and financial information is analyzed for family financial strength using a formula called “need analysis”. The family’s ability to contribute to educational costs is based on income and assets of the parents and student. The product of this process is called Expected Family Contribution (EFC). The closer to zero, the greater the need for financial aid.

*The parent contribution considers income (taxed and untaxed), assets (excluding the family home and certain retirement accounts) with offsets for living expenses, family size, taxes paid, number of dependents in college and a special asset protection allowance based on the older parent’s age.

*The student contribution considers student income and assets with offsets for certain taxes, a small income allowance and a percentage of savings/assets.

You may visit the Financial Aid EFC Calculators on this web site to estimate the amount of your EFC.

How is financial aid awarded?
If your Cost of Attendance – Expected Family Contribution (EFC) = Need for Aid indicates that you are eligible for financial aid, you will be offered a financial aid package. (Students who do not demonstrate any need using this calculation may still receive a financial aid award without need-based funds, such as Federal Direct Student Unsubsidized Loan.)
In addition to awarding University grants, the Office of Financial Aid coordinates aid for eligible students from federal, state and private sources as well as university scholarships. As notices of new scholarships and/or resources are received, the original award offer must be reviewed to prevent an overaward (an award beyond the student’s eligibility for need-based aid.) With each change to their awards, students will receive an updated revised award.

Need-based University Grants are reserved for our higher need students. To be considered for the academic year, a student’s EFC must be 4617 or less. Other factors include: a timely application (recommended filing date is Valentine’s Day) and a timely completion of requested documentation

What happens if I withdraw or stop going to classes?

If you withdraw or stop attending classes, you may be required to repay some of all of your aid for the term. Students are subject to a formula called Return to Title IV (Federal) Aid to determine how much federal and university need-based aid will be reduced. The State of Michigan has a separate formula to determine the amount of Michigan Competitive Scholarship can be retained by the student.

Can I lose my financial aid if I don't keep up my grades or drop a lot of classes?

All financial aid recipients are required to meet the same or higher standards of academic performance (measured by cumulative grade point average, course completion and completion of degree within a maximum timeframe) as other students at the University. Students who fail to meet the requirements of Satisfactory Academic Progress will be first placed on probation but can still receive aid. Students who do not meet the terms of their probation will be suspended from financial aid eligibility.

I'm not a regular student in a bachelor's or master's degree program. Are there any financial aid programs available to me?

Some students in pre-degree programs (PDS or SOAR/Women on the Move) and consortium students have eligibility at the University of Michigan-Dearborn filing the FAFSA and may be eligible for federal financial aid. Guest students do not qualify for federal aid, but may qualify for some state programs and alternative loans. You should visit the special enrollments section of our website for details.

What about scholarships?

Take some time to review our Scholarships section. Remember that scholarships for all entering students are handled through the Admissions and Orientation Office

While the Office of Financial Aid does not award scholarships for the University, it does coordinate the scholarship process for the UM-Dearborn Current Scholarship Application. Applications are available during the first week of November and the deadline is the first business day in February. To apply, students must have completed at least 12 credits towards their degree, be an U.S. citizen/eligible non-citizen and have a minimum of a 3.0 cumulative grade point average. This scholarship application must be downloaded from in our Forms section.

How can I find out about other scholarships?

It is always good to check your own possible resources: employers, high schools, clubs and organizations. You can also do free online scholarship searches at www.scholarships.com and www.finaid.org or one of the many sites listed in the scholarship search section of our website.

The Office of Financial Aid website has private scholarship section that posts scholarship information received in the office. It also maintains a scholarship board where new scholarship information is posted. If we have received a scholarship application from the organization, you will be able to obtain it directly from our office.

I received a letter telling me that I am guaranteed money for school if I just pay $75, $100 or $1200. Isn’t this a good deal?

No. While there are legitimate organizations that sell their information to students, many of these businesses take advantage of a student’s fears about the cost of education. There are many free websites available to you to locate scholarships in addition to completing a FAFSA. You shouldn’t pay for this information.