Understanding my Financial Aid Package & Questions about loans/workstudy

Paying for College
1

<p>I recently got my Financial aid estimate from University of Michigan, and this is what it looks like (I'm out of state, by the way.):</p>

<p>Fed. Unsub Direct Loan: $1448
Scholarship: $20000
Michigan Grant: $20152
Est Fed Academic Comp Grant: $750
Fed Pell Grant: $3900
Federal Work Study: $953</p>

<p>Total:$47203
-without Loan total:$45755 ($1244 gap)
-without Work-study total:$46250 ($749 gap)
-without Either total:$44802 ($2197 gap)</p>

<p>UM OOS CoA: $46999</p>

<p>The website automatically didn't accept the loan, so I assume I can't exceed the $46999 estimated CoA. Anyone with experience, can you tell me what exactly I would be doing in a Work Study program? Especially $953 worth, which is less than most. I want to avoid working in college if I can so I can focus on my studies, as well as enjoy "the college experience"</p>

<p>Alternatively, I was thinking about accepting the loan, and maybe taking another loan. This way I can avoid work distracting me, cover my parents' EFC of $1600, and maybe have some spending money so I don't have to worry about the cash-strapped college student lifestyle. Would this be a good idea and would my loan be justified and have low-interest like other student loans? Also, where should I go to get this loan? UM typically offers $5500 in loans, but only offered me $1448, is there a way I can take advantage of the unsubsidized $5500? Because I think they offered me that because they didn't think I needed it based on my other aid.</p>

<p>Overall though, I'm not worried about student loans, because I'll be going into Computer Engineering, a very highly paid field. Couple that with coming from a prestigious engineering school like Michigan's and I should be able to get a decent job and pay off student loans in 1-2 years most likely.</p>

<p>Question to parents: How much does it cost to have a kid live at home (generally)? Between the energy they use (I use my computer all the time, and have a tv running, lights, etc.), Water, food, gas, entertainment, etc.? I'm hoping that my parents can just give me some sort of monthly allowance instead of loans, but I don't want it to make it any harder on them than it is now. They want to do all they can to help, but they can't always be reliable financially. I just want to see if there is a fair amount of money that I'll save them just by not living there, and if they can send part, or all of that money to me to use for my living expenses. Keep in mind we're pretty strapped financially, so we already do our best to save money on everything.</p>

<p>Any help would be greatly appreciated!</p>

2

<p>Others will answer your questions, but let me just be the first on CC to congratulate you on your “Full Ride.” New rule: 95% of published CoA counts as a Full Ride for bragging purposes.</p>

3

<p>That is a fantastic aid package – congratulations! All I can say is, they must REALLY want you!</p>

<p>It’s not just the amount that makes it great, but the makeup of the package. It’s very heavy on scholarship and grant money, which of course you will never have to pay back. </p>

<p>The work/study is really nice; by my calculations you’ll only have to work about 4-5 hours a week to earn that over the school year. The way that works is, during the first few days of school, you’ll go to the FA office and they’ll tell you where to look for the work/study jobs. You choose something that looks interesting or easy. You may need to apply, or maybe not. Jobs will usually be on-campus, usually extremely easy, and the hours are usually flexible. Think: re-shelving library books, running errands for a professor, or making copies of class handouts in a department office (that’s my daughter’s work/study job). </p>

<p>The only part of your package that you have to pay back is, of course, the loan. Even that is a small amount. It’s unsubsidized, meaning that interest will accumulate while you’re in school, so you may want to pay the interest off every year while you’re in school. You’ll need to fill out some forms to accept the loan; the school can tell you about that if they haven’t already.</p>

<p>Other than that – take it!</p>

4

<p>Lightja, that is a great package. Congratulations!</p>

5

<p>You must have some fabulous stats in order for UMich to be so generous to an OOS student. I see that you got a $20 Engineering scholarship. </p>

<p>edited to add stats from another thread…</p>

<p>I have a 33 ACT and a 3.91 GPA uw/4.0 w</p>

<p>BTW…isn’t the COA for engineering at UMich higher than $46999? I know it’s higher for juniors and seniors, but I thought it was higher than that for frosh/soph engineering students. Maybe the higher COA includes things like personal expenses and travel.</p>

6

<p>there are two CoA’s for Umich that i’ve seen, both on their webiste. One says $46999, one says $47203, I’m guessing the $47203 is the real one, especially since total ended up being 47203, while 46999 might have been last year’s</p>

<p>I’m just surprised to see such a great financial aid package from such a stingy, 90% need met, public school (of a poor state no less), when I’m out of state. Even with 33 ACT and 3.91 gpa, that’s not uncommon for UMich engineering, which is top 10 in all of its programs. I suppose I’m just lucky, I’m not gonna fight it lol :D</p>

7

<p>If you refuse the work study your unsub loan should go up and some of it may become a subsidized loan. I think I’m “saving” at least $150/month between food and utilities now that my D is at school but of course there are increased expenses in other areas (she doesn’t work at school due to time/lack of WS jobs that fit her schedule). The COA includes expenses that you will not be billed for so you may just choose to cover them from savings/income/parent’s help as they come up rather than borrow.</p>

<p>Congrats…and good luck!</p>

8

<p>You are lucky to have been given such a great OOS package from a public not known to give OOS students much. You may be from a desirable state, too. Another parent posted that last year UMich gave her OOS student nothing with an ACT 35 & high GPA. So, who knows how this all works.</p>