FAFSA – Free Application for Federal Student Aid

What is federal financial aid?

o Grant Programs
™ Federal Pell Grant
9 Available to undergraduate students pursuing first baccalaureate or professional degree
9 A minimum of $400; maximum of $4,050 per year
9 To qualify EFC (expected family contribution) must be less than $3,851

™ Federal Supplemental Educational Opportunity Grant (SEOG)

9 Available to undergraduate students pursuing first baccalaureate or professional degree
9 Awarded to first students with exceptional financial need
9 Priority given to Pell Grant recipients
9 Minimum of $100; maximum of $4,000 per year

o Work Program
™ Federal Work Study
9 Student works on or off campus during school for employer who is in the program
9 Income is taxable but is excluded from student’s total income or next year’s FAFSA

o Loan Programs
™ Federal Perkins Loan (need based)
9 Available to undergraduate or graduate students
9 Must file FAFSA to be eligible
9 Priority given to those with exceptional need
9 Interest rate 5%
9 Nine-month grace period
9 Deferment and cancellation provisions available
9 Up to $4,000 per year for undergraduates and up to $6,000 a year for graduates may
be borrowed

™ Federal Stafford Loan (subsidized and unsubsidized)

9 Largest source of federal financial aid
9 Subsidized Stafford must demonstrate “need” on FAFSA – interest is paid by the federal
government
9 Unsubsidized “need” is not a consideration – individual pays interest
9 Annual loan limits - $2,625 for freshmen, $3,500 for sophomores, $5,500 for juniors and
seniors, $8,500 each year of graduate or professional study

™ Federal Plus Loan _ (FAFSA is not used to determine eligibility)

9 Loan to parents
9 Credit worthiness application determines eligibility
9 Loan limit is the cost of education
9 Loan period – 10 years
9 Parents apply through banks, credit unions, college or university

To apply for any or all of these types of federal financial aid (except for the Federal Plus Loan) all the
students needs to do is complete the FAFSA (Free Application for Federal Student Aid)
 The 2006/07 FAFSA forms are now available in the counseling center. They are printed in blue. Student
and/or their parents may pick up the FAFSA forms at this time; however, they cannot be submitted until
January 1, 2006. Submit your FAFSA as soon as possible after January 1, 2006. Early submission
maximizes your chances of receiving aid. The priority deadline for the FAFSA is March 1, 2006 (date
received). Students may continue to submit their FAFSA after March 1, 2006, however they will not be
in line for best consideration for all financial aid programs.

We strongly suggest that students and parents use FAFSA on the web. Go to www.fafsa.ed.gov.

2006/07 FAFSA on the WEB Worksheets are available in the counseling center. Students planning to
complete FAFSA on the web should use these worksheets to prepare. Sections requiring parent information
are in purple.

You can also apply faster by using FAFSA on the web with a PIN (personal identification number) that will
serve as an electronic signature. Both student and parent must sign so both must have a PIN. Apply for your
PIN at www.pin.ed.gov. This is also explained on the FAFSA on the web homepage under “Before Getting
Started”.

When filling out the 2006/07 FAFSA you will use your information from 2005. You will need the following:
• Social security number(s)
• 2005 W2 and/or tax return (1040, 1040A, 1040EZ, etc.)
• Driver’s license
• 2005 federal income tax return
• Parents’ 2005 income tax return (if a dependent)
• 2005 untaxed income records (if any) – Social Security, child support, welfare benefits
• Current bank statements
• Current mortgage and investment records (if any)
• Alien registration card (if not a U.S. citizen)

The federal government uses this information that you submit on this form to determine your eligibility for
financial aid, which includes: grants, wok-study, scholarships and loans. The federal government uses this
formula to determine eligibility –

FAFSA → EFC (expected family contribution) → Financial Need → Financial Aid

Not only will the FAFSA form determine eligibility for federal financial aid programs, it will also be used to
determine state and college/university financial aid.

Need help completing the FAFSA? Attend College Goal Sunday – February 12, 2006 at 2:00 p.m.
Financial aid experts will be available at 22 colleges and universities across the state to assist students and
parents with the FAFSA. St. Clair County Community College In Port Huron and Macomb Community
College – South Campus on 12 Mile in Warren will be host sites. Bring with you your families completed
2005 tax forms (or W2s and 1099s). The program will conclude at 4:00 p.m. at each college or university.
You even have a chance at one of four $500 scholarships just for participating. Get maps and details at
www.MICollegeGoal.org or call 1-800-832-2464.

ALL students attending any post-secondary school (community college,

college, university, trade or technical school) should complete the FAFSA!
You just may qualify for free money for school!
 Also bookmark – Federal Student Aid of the Web at www.studentaid.ed.gov -
This is geared toward the student reader.

The State of Michigan Office or Scholarships and Grants administer all the
state run financial aid programs.
Here’s a run down of their programs:

The phone number for the Office of Scholarships and Grants is 1-888-4-GRANTS or (1-888-447-2687)
Students can also access information at Michigan’s Scholarship On-Line website at
www.Michigan.gov/mistudentaid

¾ Michigan Competitive Scholarship

ƒ Maximum award - $1,300
ƒ Based on need (FAFSA) and Qualifying ACT score
ƒ Qualifying ACT score – composite 23
ƒ Seniors should have taken ACT by December 10, 2005 test date to be eligible
ƒ FAFSA and ACT contact state if student is eligible and state or institution contact student
ƒ No application needed

¾ Michigan Tuition Grant

ƒ Need based (FAFSA)
ƒ Student must be attending a private college
ƒ Minimum award - $2,000
ƒ No application needed other than the FAFSA

¾ Michigan Merit Award

ƒ $2,500 maximum award (a maximum or $1,250 may be used per year)
ƒ Award may be used up to four years after high school graduation
ƒ For any post-secondary schooling – college, university, trade and technical school
ƒ Based on MEAP test scores – student must score a level 1 or 2 on Math, Science, Reading and
Writing
ƒ Students will be notified by letter from the state as to whether or not they have earned award
ƒ $1,000 can be used out-of-state
ƒ Next MEAP testing will be late March or early April
ƒ Seniors (class of 2006) must have all MEAP testing done by June 2006 to earn award
ƒ Deadline for class of 2006 to certify award is November 15, 2006. Information on how to do this
will be mailed home by the state to parents.

¾ Tuition Incentive Program (TIP)

ƒ Eligibility – must have been on Medicaid for 24 months out of 36 consecutive month period
ƒ No application needed
ƒ OSG (office of Scholarships and Grants) contacts eligible students via letter
ƒ Must return forms to OSG by high school graduation or 20th birthday
ƒ Students may have been identified as early as grade six (age 12)
ƒ Visit the website for explanation on what Phase I pays and what Phase II pays
 ¾ Michigan Nursing Scholarship
ƒ Maximum award - $4,000 per year
ƒ Renewable
ƒ College select recipients – contact college regarding their application process

¾ Robert C. Byrd Honors Scholarship

ƒ Maximum award - $1,500
ƒ Renewable
ƒ High Schools nominate one student based on GPA and ACT/SAT
ƒ No application for student –student notified of nomination by school

¾ Work-Study
ƒ Student works on or off campus during school for employer who is in the program
ƒ Income is taxable but is excluded from student’s total income or next year’s FAFSA

Two basic kinds of scholarships (money that is not paid back) are:
9 NEED BASED (based on financial need)
9 MERIT BASED (based on grades - GPA) and scores on college
entrance examinations (ACT and/or SAT)

More scholarship information can be found by visiting the AHS website – www.algonac.k12.mi.us -
Counseling Center link – click on Counseling News. Weekly updates are posted there regarding
scholarship opportunities and college/university open house information. Also click on Financial Aid.
Lots of valuable links are provided there also.

Corporate and private scholarships can be found using a scholarship search engine like Fast Web –
www.fastweb.com All the student must be is create a free account and then the search engine will search for
the student and send emails daily with updates on scholarships that are available.

LOCAL Scholarship Packets will be distributed to all seniors March 1, 2006. This packet
contains applications for nearly 30 local scholarships valued at $30,000. All seniors should
take the time to complete these applications. Completed applications will be submitted to Mrs.
Blair who will then give all the completed applications to the respective organizations who will
then choose their winner(s). Students and their parents will be notified of the winners of these scholarships at
the
Senior Award Assembly May 26, 2006.