The document outlines various options for funding a college education, including family savings, scholarships, grants, work-study programs, loans, and paying as you go while enrolled. It emphasizes applying for financial aid through the Free Application for Federal Student Aid (FAFSA) to be eligible for federal and state grants, loans, and work-study. Federal loans tend to offer lower interest rates than private loans but should be pursued after exhausting grant and scholarship options. Private loans should be a last resort.

1. PART 3:
PAYING FOR COLLEGE
© 2010, Michigan Campus Compact. All rights reserved

2. The CPV’s Job
 To let the youth know
there are a wide range
of possible options to
fund a college education
 To direct the youth and
their parents to resources
they can use to consider
these options

3. College Funding Options Section 5
 Family/Personal Savings
 Scholarships
 Grants
 College Work Study Programs
 Working and Paying as You Go
 Federal and State Financial Aid
 State and Federal Loans
 Private Loans
© 2010, Michigan Campus Compact. All rights reserved

4. Family/ Personal Savings
 Savings Plans
 Michigan Education Savings Plan - tax free growth
 www.misaves.com
 Pre-paid tuition plans
 Allow the purchase of college credits at current tuition
rates
 Michigan Education Trust (MET)
 www.setwithmet.com
© 2010, Michigan Campus Compact. All rights reserved

5. Scholarships
 Scholarships are great sources of funding
 Finding and applying for them can be overwhelming–
therefore students should start early and search often
 The Internet is a good, free source for scholarship information
 All scholarships should have free applications
 Utilize
the Michigan College Access Portal’s “Scholarship
Search” function to find available scholarships
© 2010, Michigan Campus Compact. All rights reserved

6. Scholarship Types
 Scholastic achievement (grades, honor society membership, etc.)
 Religious affiliation
 Gender
 Ethnicity
 Sports students participated in
 The college a student wants to attend
 The field/major a student intends to pursue
 Disabilities or handicaps students may have
 Special talents
© 2010, Michigan Campus Compact. All rights reserved

7. Grants
 Usually given by colleges, non-profit organizations, or
government agencies
 Often given to individuals based on financial needs,
meeting a certain criteria, or a commitment to study a
particular field. Students often have to report
information to the donor.
© 2010, Michigan Campus Compact. All rights reserved

8. Working and Paying As You Go
 Students take a limited number of classes per term
(about two), possibly live at home to keep expenses
minimal, and pay the tuition for their college classes out
of their earnings.
 It does take a longer amount of time, however, students
graduate DEBT FREE!
© 2010, Michigan Campus Compact. All rights reserved

9. The FAFSA p. 36
 The “Free Application for Federal Student Aid”
 Needed for State and Federal
 Scholarships
 Grants
 Work Study
 Loans
 Applicable for students planning to attend four-
year colleges, two-year colleges, and other career-
focused training institutions
© 2010, Michigan Campus Compact. All rights reserved

10. The FAFSA
 Can be completed online or on paper, as early as January
1st by students and their parents in their senior years.
 The FAFSA should be completed by the date’s posted on
the college’s website, which is typically March 1st.
© 2010, Michigan Campus Compact. All rights reserved

11. The FAFSA
To file the FAFSA, the following documents are required:
 Social Security card
 Driver’s license (if any)
 W-2 forms and other records of money earned
 Income tax return
 Records of child support paid
 Current bank statements
Because filing the FAFSA requires these sensitive documents, CPVs
should not help students fill out the FAFSA, unless they are trained
in filing the FAFSA or will be volunteering at an event where
trained professionals will be in attendance.
© 2010, Michigan Campus Compact. All rights reserved

12. The FAFSA
 Sources of Information About the FAFSA and Financial Aid:
 High school guidance counselors
 College financial aid offices
 The Federal Student Aid website -www.federalstudentaid.ed.gov
 College Goal Sunday - www.collegegoalsundayusa.org
© 2010, Michigan Campus Compact. All rights reserved

13. State and Federal Grants
 Michigan Grants – michigan.gov/mistudentaid
 Children of Veterans Tuition Grant
 Michigan Merit Award
 Michigan Tuition Grant
 Police Officer's and Fire Fighter's Survivors Tuition Program
 Tuition Incentive Program
 Federal Grants – studentaid.ed.gov
 Federal Pell Grant
 Federal Supplemental Educational Opportunity Grant (FSEOG)
 Teacher Education Assistance for College and Higher Education Grant (TEACH Grant)
 Iraq and Afghanistan Service Grant
 Institutional Grants
© 2010, Michigan Campus Compact. All rights reserved

14. Federal Work Study Programs
 College work study programs are paying jobs offered to certain
students based on their financial needs as part of federal, state
or college-based financial aid.
 Students usually work on campus or locally for at least the current
minimum wage and the federal government funds up to 100% of
the student’s paycheck.
 The amount of aid given is based on the student’s pay rate and
the number of hours they work.
 Information about applying for Federal Work Study
© 2010, Michigan Campus Compact. All rights reserved

15. Federal Loans
 Loans must be repaid. Alternatives after applying for
grants, scholarships, and before private loans
 They offer lower interest rates and the variety of
repayment options compared to private loans
 Offered directly to students or their parents/guardians
 Stafford Loans
 Subsidized (government pays interest while student is in school)
 Unsubsidized (student is responsible to pay for interest)
© 2010, Michigan Campus Compact. All rights reserved

16. Private Loans
 Filing the FAFSA is not necessary for these loans
 Private loans should be the last option after applying for
all other forms of aid!
 Provided by private lenders, such as banks, credit unions,
and other financial institutions
 The least cost-effective way to finance a college
education, however sometimes the easiest to obtain
© 2010, Michigan Campus Compact. All rights reserved

17. Part 3
 Please continue to the Part 3 Review Questions
below to complete this module.