<p>Quick financial aid lesson: The government funds Title IV financial aid programs. All schools that participate must follow the rules set forth by the government to determine financial need. The way financial need is determined for federal funding is by filling out the FAFSA. The FAFSA is processed by a central processor, where the info you enter is checked against federal databases (homeland security, social security, selective service). If the info passes the database checks, you will get an Expected Family Contribution, or EFC. The very important thing to know about the EFC is that it is NOT what you will actually pay for school. It is simply a number that is used by schools to award aid. The EFC will automatically qualify you for a Pell grant if it is low enough; this is the only entitlement in the financial aid world - you will get it no matter how much your school costs or how much other aid you get (including scholarships). </p>
<p>Each college has a particular Cost of Attendance, or budget, that it sets using averages - it includes average tuition, living expenses (room & board), fees, and miscellaneous personal expenses. The COA can be found on the college’s financial aid website. This is not necessarily what a school will actually cost you … you might spend less for room & board than the budget allows, or your personal expenses might be less … but the COA budget is an average & that’s what is used.</p>
<p>The COA minus your EFC is your Need. Aid is awarded to try to meet your Need. Pell is awarded first. Then your non-need-based scholarships are subtracted. If there is still Need, ACG is awarded (if you qualify). If there is still need, schools can award you their campus based Title IV funds - these funds, such as SEOG, work study, and Perkins loans - are limited & they are awarded by the college to the neediest students who apply by their priority date (and after, if there is remaining funding). No one can tell you whether or not you will get these funds at a particular school. It depends on the school, its student body’s needs, and your own situation. After all of this is awarded, schools will award loans (some award loans first, then work study - again, it’s the school’s choice). Subsidized loans are not due until 6 months after a student stops attending college, are interest free while a student is in school. The annual limits are $3500 freshman/4500 sophomore/5500 junior and senior - you only get the max if you have enough Need. </p>
<p>If there is still Need left, unsubsidized loans are awarded (same rules as sub loans EXCEPT interest begins to accumulate immediately). Unsub loans are different than sub loans in another way - take COA minus all aid including sub loans to determine eligibility (don’t subtract EFC). If you don’t have Need for any or all of the max in sub loans, you can get your entire annual year in school max in unsub or in a mix of sub & unsub. The maximum sub/unsub mix for year in school is 5500 (up to 3500 can be sub) freshman, 6500 (up to 4500 sub) sophomore, 7500 (up to 5500 sub) jr/sr. for dependent students. Independent students have same sub component with max sub/unsub mix of 9500 freshman, 10500 sophomore, 12500 jr/sr.</p>
<p>The caveat is, the sum total of all aid - including scholarships and institutional grants -cannot exceed the COA.</p>
<p>UMich does promise to meet need for 0 EFC instate students, from what I have heard. I do not believe they make the same promise for OOS students, though, since the school is supported by state taxpayers. You will not know how good your personal financial aid package will be from them until you apply - they could give you scholarships, so you just have to wait & see. You just need to know that your need may not be met to the degree you hope (and yet, it could be).</p>