Financial Aid Award question?????

<p>We received an email from UMich saying that my son's financial aid award was ready to be viewed. After some fumbling with getting into the system to view it, we were stunned! Almost nothing...one next-to-nothing loan that won't even cover books! My question is...is that all there is? I've never seen a financial aid award report, so I was wondering if anything may be added after the report is issued. Or is this all we can expect from UMich? Does this mean that the university itself has given him nothing? Thanks for any input. ~berurah</p>

<p>Hi Berurah,</p>

<p>Your son is an out of state student attending a public university where their first financial priority is to their in-state residents. I would have thought that going to the honors college would have some merit component to it but it sounds as if it does not.
I too am a little confused because at first glance UMich states that they meet demonstrated need .</p>

<p>The information on UMich's website concerning Financial aid States:</p>

<p><a href="http://www.finaid.umich.edu/Financial_Aid_Basics/howneed.asp%5B/url%5D"&gt;http://www.finaid.umich.edu/Financial_Aid_Basics/howneed.asp&lt;/a&gt;&lt;/p>

<p>*How Need-Based Aid Eligibility is Determined *</p>

<p>Financial aid programs were created with the idea that the primary responsibility for paying college costs rests with the student and his or her family. Need-based financial aid is available to families who demonstrate a need for additional resources to help pay college costs. The formula used to determine whether you are eligible for need-based aid is:</p>

<p>[ul]
Cost of Attendance
- Expected Family Contribution
-Scholarships/Other Resources (Michigan Education Trust, veteran's benefits, etc.)</p>

<p>=<br>
Need for Aid
[/ul]</p>

<p>Cost of Attendance represents a reasonable estimate of the cost of attending the University for a full academic year (two semesters — Fall and Winter terms), including estimated amounts for tuition and fees, books and supplies, room and board, plus a modest allowance for personal/miscellaneous expenses. Please note, the budget allows the same amount for room and board whether you live on or off campus, UNLESS you are living with your parents (in which case the budgeted amount will be less).</p>

<p>*Expected Family Contribution (EFC) * is calculated using information you report on your Free Application for Federal Student Aid (FAFSA), along with other documents you may file with the Office of Financial Aid (OFA) when applying for financial aid. A formula called Federal Methodology, legislated by the U.S. Congress, uses information from your FAFSA and a consistent analysis of your family's situation to calculate the EFC.</p>

<p>The Expected Family Contribution includes two parts:</p>

<p>The Parent Contribution — an estimated amount, based on your parents' income and assets (including cash, checking, savings, and money market accounts, etc.; investments and real estate holdings other than your family's primary residence; and business equity) that your parents are expected to pay toward your college costs for the year. Allowances for living expenses, taxes paid, number of family members in college, and asset protection for retirement are built into the formula. </p>

<p>The Student Contribution — an estimated amount, that you are expected to pay toward your college costs for the year. It is based on your income and a percentage of your savings and other assets.
Need for aid equals the total cost of attendance minus the family contribution. If your family contribution is less than the cost, you may be eligible to receive financial aid.</p>

<p>**How Need-Based Financial Aid is Awarded **</p>

<p>If the Cost of Attendance (Budget) - Expected Family Contribution = Need for Aid calculation indicates that you are eligible for financial aid, you may be awarded a financial aid package/offer that consists of a combination of grants, scholarships, loans, and Work-Study. </p>

<p>The financial need amount listed in the eligibility section of your award notice is the figure upon which your financial aid award(s) are based. Award amounts are determined by a combination of demonstrated financial need, federal award maximums, and the funds available, among other factors. OFA attempts to distribute grant, loan, and Work-Study funds equitably among the population of all eligible applicants who apply by established deadline dates.</p>

<p>A maximum grant eligibility is established each year for undergraduates; from this, the gift aid resources (EFC for example) available to each applicant are subtracted to determine each student's grant eligibility. Awards are then made from the appropriate grant sources such as Michigan Grant, Federal Supplemental Educational Opportunity Grant (FSEOG), etc. Because FSEOG funds are very limited, they are awarded only to applicants with the most need.</p>

<p>Every student who applies for aid is first awarded the maximum amount of grant funds for which he or she is eligible. A student whose parents do not have sufficient resources to contribute very much to his or her education may receive more grant funds than a student whose family can make a more substantial contribution. Whatever your family situation, you can be sure that you will be treated fairly and equitably with respect to students in similar financial circumstances.</p>

<p>If there is remaining unmet need, eligibility for loan and Work-Study awards will be determined. Perkins Loans, Health Professions Loans, Nursing Loans, and Work-Study employment, by federal regulation, must be awarded to the students with the most need. Because there are not enough of these funds to meet all students' needs, those who have the fewest family resources are awarded funds from these programs. Students with remaining financial need are awarded Federal Direct Loans, up to award maximums. Students who require additional funds to cover their expenses, should see information on the PLUS Loan and private/alternative loans.</p>

<p>Scholarships and Other Resources:
Students are encouraged to seek scholarships from private sources and U-M Schools and Colleges, as well as to utilize other resources such as Michigan Education Trust, ROTC Scholarships, or veteran's benefits. Although federal regulations and University policies require that these forms of assistance be counted as financial resources when determining eligibility for need-based aid, they will improve your overall aid package. These scholarships and other resources will first be used to meet any gap between the cost of attendance, the EFC, and the financial aid offered. Next, they will reduce the amount of loan or Work-Study offered. Only if all loan and Work-Study funds have been replaced by scholarships or other resources will the amount of grant aid be reduced.</p>

<p>However, if you receive a Michigan Competitive Scholarship (MCS), a Detroit Compact Scholarship, or a Wade McCree Scholarship, any one of these scholarships will reduce your eligibility for need-based grants BEFORE reducing your eligibility for need-based loan or Work-Study awards. Receiving either a Wade McCree or a Detroit Compact Scholarship may also reduce your eligibility for MCS. Additionally, if you have Michigan Education Trust funds included in your resources, your eligibility for MCS may be reduced.</p>

<p>*Chart of Major Financial Aid Programs * </p>

<p><a href="http://www.finaid.umich.edu/Types_of_Financial_Aid/programs.asp%5B/url%5D"&gt;http://www.finaid.umich.edu/Types_of_Financial_Aid/programs.asp&lt;/a&gt;&lt;/p>

<p>Berurah,</p>

<p>I really don't have much of an answer to give you, as we did not apply to any public schools because as out of state students we were afraid of being caught between a financial rock and a hard place. From the sound of your post it sounds like most of the cost of funding your son's education lies with your family. (stupid question- how are you suppose to do this and help your other children?) I am quite sure that you can request a financial review, but what would be the best that they could give you?</p>

<p>Attached is their scholarship book, I am shocked that your son did not get any merit money. I am sad for you, that something that started out so wonderful turned out to be something so disappointing. Keep your head up as your son is going to have a lot more amazing choices coming down the pike, that are going to be affordable options for your family.</p>

<p><a href="http://www.finaid.umich.edu/media/pdf_brochuresguides_autogen/scholguide04.pdf%5B/url%5D"&gt;http://www.finaid.umich.edu/media/pdf_brochuresguides_autogen/scholguide04.pdf&lt;/a&gt;&lt;/p>

<p>Awwwww, Sybbie, thanks so much for the kind and empathetic post. I am SO down right now. I am tired of having my son's and my hopes dashed. To be honest with you, I don't see much good coming our way in April. Even if he were to be admitted to some of his reach schools, I see now that we would not be able to afford them. :( I mean, our EFC is so riduculous (based on reality) that the hope for need-based aid has been all but completely dashed. I am probably one of the few who CAN wait for April....<em>sigh</em></p>

<p>~berurah</p>

<p>I would send them an email or phone call.
Ann Arbor is listed as one of top schools for finaid for outof state students and as an honors student I would expect that much of their aid is reserved for them
I think you have reason to ask if other aid is going to be forthcoming, it is possible that the honors program has their own funding that they just havent'released yet.
<a href="http://www.kiplinger.com/tools/colleges/%5B/url%5D"&gt;http://www.kiplinger.com/tools/colleges/&lt;/a&gt;&lt;/p>

<p>emeraldkity,</p>

<p>Thanks SO much! I will call them. I don't plan to give up on this yet. I just felt like I had gotten hit in the solar plexus when I looked at that report. Kinda what I felt like when I looked over my son's shoulder at the online Yale rejection note...<em>sigh</em></p>

<p>~berurah</p>

<p>
[quote]
To be honest with you, I don't see much good coming our way in April.

[/quote]
</p>

<p>That's where faith comes in, because when you don't see it you can still believe it to be ;)</p>

<p>Thanks, sybbie--I needed to hear that tonight. ~berurah</p>

<p>Berurah, when I went to the parents info session at UMich (my son applied to their MT program, was deferred, he withdrew, and was rejected in that order!), they were very pessimistic about out of state financial aid packages. Sybbie is right on the mark about that. She is also correct that the Honors programs often have special scholarships and your son may well be entitled to something from that. It is possible that those awards are not posted on the financial aid award report as those monies are NOT need based and are awarded by admissions, departmental commities and any number of special groups. You should call and ask about this possibility. For instance, Penn State gives every student who is accepted to their Honors College, I believe a minimum of $2500, and it is not at all need based. Pitt has the Chancellor's scholarships that give up to a full ride, and, again, are not based on financial aid criterion. Those awards are your best bet, as your EFC is high enough that it is doubtful that you are going to get much need based aid. Those schools that give 100% of need and are not out of state publics will give you your EFC or if they require Profile or another app, will give money based on that determination. You are not likely to get more than that from financial aid unless you have some truly extenuating circumstances. But merit is a whole different story. UMich does give merit money to their top candidates even if they are out of state. And since your son is not applying to the MT department where there are hardly any scholarships for merit, he may get something in that area. Fingers crossed--give them a call. If those scholarships have not been determined yet, I would not hesitate to send additional good info to bolster your case. My kids all targeted the merit awards their prospective colleges offered and flat out asked for them with a reason why they felt they were eligible, and a resume attached. And they got them. In a couple of cases, I don't think they would have necessarily been considered as they were not the top kids in that applicant pool, but demonstrated interest never hurts. Why should they give an award to someone who may not come to the school? A letter saying that the school is a top choice, that the scholarship is an important determinant, and here is why I am a good candidate for that award can make a difference. Certainly does not hurt. My son is getting all kinds of merit scholarship letters from schools where he withdrew the apps! No actual $$$s , but responses, as he did directly ask for awards even when the college said that all applicants are equally considered and no separate form is required. I suggest you have your son start the research and send the letters. It is not too late, I know at some schools as the letters we have gotten indicate those decisions are not yet made. There may be such situations with the schools where you son applied. Gotta ask, if you want, I say, though, yes, many do get without asking which is wonderful. I have generally had to ask. Also , did you check about the reciprocal agreement betw your state and Michigan? That would have brought down your need numbers to where your EFC is, and there would be no way Michigan would give more than that through financial aid.</p>