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Thank you for visiting this section of our Office of Financial Aid website, especially if you are the parent of an enrolled or a future student at the University of Michigan-Dearborn. It is our bet that you are checking out this section to see if there are things that you can do to help your student. You’ll be glad to know that the answer is “Yes, you can”.
We hope to offer information on the financial aid process that will increase your understanding and provide other information that will be helpful to your family.
FILING FOR FINANCIAL AID
RESOURCES
Filing for Financial Aid
Free Application for Federal Student Aid (FAFSA): What is it?
The Free Application for Federal Student Aid (FAFSA) is the first step in making an application for financial aid. The FAFSA (you’ll use this acronym more then the full name) allow a student to apply for Federal, State of Michigan and UM-Dearborn need-based aid using one application.
What determines eligibility for financial aid?
The FAFSA collects personal and financial information about income, assets, family size and number in college in order to analyze a family’s financial strength and its ability to pay for higher education. The product of the need analysis process is called an Expected Family Contribution or EFC, which is the combination of the parent and student contribution. To determine financial need at an individual school, there is a simple calculation: | Cost of Attendance (Budget) | - | Expected Family Contribution (EFC) | - | Scholarships and Resources (e.g., Michigan Education Trust) | = | Need for Aid (or Demonstrated Need) |
To take a “trial run” at determining “Need for Aid” without completing the FAFSA, visit our Financial Aid Estimators section. After you have an EFC, you can subtract it from our UM-Dearborn at home resident of $13,885 or off-campus non-resident of $28,160 to determine “Need for Aid”.
Recommended Filing Priority Dates
The Office of Financial Aid recommends that students and their families complete the FAFSA and mail it to the Federal Student Aid Processing Center by February 14th –Valentine’s Day—to insure adequate mailing and processing time.
Can my student be considered independent?
To be considered an independent student (no parental information required), a student must meet one of these criterion: - Born before January 1, 1986 (for 2009-10)
- Married at the time of application
- Is or will be enrolled as a graduate student
- Has children who receive more than half of their support from the student
- Has legal dependents who live with the student in his household and receive more than half of their support from the student through June 30, 2010 (for 2009-2010)
- Is an orphan or at the age of 13 or older in foster care or classified as a ward/dependent of the court
- Is a veteran of the U.S. Armed Forces (includes student who attended a U.S. service academy and who were released under a condition other than dishonorable)
- Servicing on active duty in the U.S. Armed Forces for purposes other than training
- As of today, is an emancipate minor as determined by a court in state of residence
- In legal guardianship as determined by court in state of residence
- At any time on or after July 1, 2008, was/is classified as an unaccompanied youth who was homeless by the high school or high school district
- At any time on or after July 1, 2008, was/is classified as an unaccompanied youth who was homeless by the director of an emergency shelter fund by the U.S. Department of Housing and Urban Development
- At any time on or after July 1, 2008, was/is classified as an unaccompanied youth who was homeless or were self-supporting and at risk of being homeless by the director of a runaway or homeless youth basic center or transitional living program
Whether the student lives at home or is claimed as a dependent on a parent’s tax return are not factors in meeting the independent student criteria.
Should I estimate income information on the FAFSA?
It can be difficult for many families to have their Federal Income Tax Returns completed in order to meet the recommended filing date of Valentine’s Day.
You can estimate your income and tax information on the FAFSA if your tax return isn’t a particularly difficult one. You should have had all of your key documents for at least two weeks (e.g., w-2s, 1098 and 1099 forms). Review last year’s 1040 and update new information on a blank 1040 for this tax year. Look up your taxes on your tax table and calculate any credits.
It is easier if you enter your information into a tax preparation software.
What is most important is that you provide a reasonable estimate of income and taxes—reasonable is not leaving the taxable income section blank because the 1040 isn’t completed yet.
Once your 1040 is completed, you and your student will be able to update information on the FAFSA on the Web.
U.S. Department of Education Personal Identification Number (PIN): Should I get one as well as my student? 
| The Office of Financial Aid strongly recommends that parents obtain a PIN as well as the student for completing the FAFSA online. The PIN website is www.pin.ed.gov. The PIN will serve as an electronic signature in the signature/ certification section. Dependent students as well as one parent must sign the FAFSA. With a PIN for both student and parent, the FAFSA completed online is submitted | in a complete format—the Federal Student Aid Processing Center is not waiting to receive the printed signature/ certification page that is mail after the application has been transmitted. Without both signatures—actual or electronic—the application is considered incomplete and cannot be processed.
What is verification?
Some students are selected for a process called verification by either the Federal Student Aid Processing Center or the UM-D Office of Financial Aid. The applicant will be asked to submit copies of his/her 1040, his/her parents’ 1040, confirm untaxed income, household size and number in college.
This is not the equivalent of an IRS audit: it is a required process to complete a student’s application and evaluate eligibility. As a result of verification, a student’s eligibility may remain the same, increase or decrease.
It is important to submit documents requested as soon as possible. Failure to do so after three (3) letters of request will result in a closed application. While submitting the requested documentation can reactivate an application, the student may lose his priority status for gift aid.
What if my student demonstrates little or no need?
Even if family has a relatively high EFC and demonstrates little or no need, they still need help in meeting educational costs. While a student can still pursue scholarships that do not have a need component, loans may provide the greatest portion of financial aid.
Students are able to borrow in the Federal Direct Student Loan Program at the University of Michigan-Dearborn. All or part of their loan will be in Unsubsidized Loan. While the interest rate for Unsubsidized Loans is the same as Subsidized Loans (a fixed 6.8% for 2009-2010) and no payment of principle is required, interest will accrue from the date of disbursement. While students are not required to pay quarterly interest, unpaid interest will capitalize. The Office of Financial Aid encourages students to pay all or a portion of their interest each quarter to reduce the cost of the loan over their lifetime. For additional details, please visit the Direct Stafford Loan Program on our website.
Parents are also eligible to borrow through the Direct Loan Parent/PLUS Program. This loan program requires a credit-worthy borrower. The interest is usually lower than prime. If a parent’s application for a PLUS Loan is declined, the student will have an increase in the amount of Unsubsidized
Loan funds that he can borrow. For additional details, please visit the Direct Loan Parent/PLUS Loan section of our website.
Are there payment plans available?
Yes. The University of Michigan-Dearborn has a semester-by-semester payment plan. No credit check is needed and there is a nominal charge each semester for participation. This is not a loan and no interest is charged.
Please contact our Cashiers/Student Accounts Office at (313) 593-5255 for additional information.
Resources
Educational Tax Benefits
While this website is not indicated to provide tax preparation advice, the Office of Financial Aid would like to make both parents and students aware to existing educational tax benefits. We encourage you to discuss these programs with your tax preparer or visit the IRS website at www.irs.gov.
Scholarship Scams
Students, particularly high school seniors, will be targeted by many organizations selling their products and services, including organizations that sell scholarship searches.
The Office of Financial Aid urges families to be very cautious in paying for scholarship searches. While there are legitimate organizations that do charge a fee, there are organizations that take advantage of student and parent fears about meeting the costs of higher education. Estimates show that families lose significant amounts of money to scholarship fraud every year.
The College Scholarship Fraud Prevention Act enhances protection against fraud in student financial assistance. The Federal Trade Commission (FTC) cautions students to look for these telltale lines: - “The scholarship is guaranteed or your money back.”
- “You can’t get this information anywhere else.”
- “I just need your credit card or bank account number to hold this scholarship.”
- “We’ll do all of the work.”
- “The scholarship will cost some money.”
- “You’ve been selected by a ‘national foundation’ to receive a scholarship” or “You’re a finalist in a contest that you never entered.”
To file a complaint, or for free information, call (877) 382-4357 or visit the FTC website at www.ftc.gov/scholarshipscams.
Scholarship Searches
One of the most popular subjects at Financial Aid Nights is scholarships: whose awarding them and how do I apply?
The University of Michigan-Dearborn, like most educational institutions,supports scholarship programs for entering, transferring and continuing students. The scholarships section details the programs available to students.
While university-sponsored scholarships are easy to find, private scholarships are not as readily identified. With the advent of online search engines, students are able to access much more information than was available through library research and postings on school bulletin boards.
It can seem overwhelming, but there is some guidance to help in the search for scholarships. The Office of Financial Aid Scholarship Searches and Other Resources directly links students to more than a dozen sites.
When a student links to one of these sites, s/he will enter a personal profile for cross matching for scholarship possibilities. Normally, there is a nearly immediate response with scholarship information. Students must now evaluate the information provided to determine how well they meet the criteria of each scholarship program and begin contacting the sponsoring groups by telephone, by letter or on their website to obtain applications and guidelines.
Students should not be required to make a payment on any of the scholarship websites linked to the Office of Financial Aid’s Web site. Please notify the Office of Financial Aid if any search requires a fee.
Students and their parents should not forget about other possible resources to help meet educational costs. Parents and students should check with their Human Resource Office for company sponsored educational funds. There are also local organizations that may not be included in national scholarship search information.
Don’t overlook churches, synagogues and mosques or local professional or fraternal groups.
While it seems obvious, students are reminded to complete all of the forms and recommendations and transcripts required by each scholarship organization. If the application is incomplete or late, it may not matter how talented the student is or how good the excuse is, the application may not even be considered for review.
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