State of Michigan Department of Treasury Bureau of Student Financial Assistance 2002-03 Counselor’s Guide to Michigan Student Financial Assistance Programs

State of Michigan

Department of Treasury

Bureau of Student Financial Assistance

2002-03Counselor’s Guide to

Michigan Student Financial Assistance

Programs

Directory of State Programs

Office/Program(s) & E-Mail Phone Mailing Address

Office of Scholarships and Grants([email protected])

Michigan Competitive ScholarshipMichigan Tuition GrantPaul Douglas Teacher Scholarship ProgramPostsecondary Access Student Scholarship (PASS)Robert C. Byrd Honors Scholarship

1-888-4-GRANTSor

1-888-447-2687

(517) 373-3394

P.O. Box 30462Lansing, MI 48909-7962

Michigan Merit Award & Office of Information andResources([email protected]) ([email protected])

Michigan Merit Award Program

Adult Part-Time GrantMichigan Educational Opportunity GrantMichigan Work-Study ProgramsMichigan Nursing Scholarship ProgramMI-SEARCH Scholarship ServicePublications/Informational Materials/Web siteTuition Incentive Program

1-888-95-MERITor

1-888-956-3748

1-877-FA-FACTSor

1-877-323-2287

(517) 373-0457

P.O. Box 30716Lansing, MI 48909

P.O. Box 30466Lansing, MI 48909-7966

Directory of State ProgramsOffice/Program(s) & E-Mail Phone Mailing Address

Office of Michigan Guaranty Agency([email protected])

Federal Stafford Loans (Subsidized and Unsubsidized)Federal PLUS LoansFederal Consolidation Loans

1-800-MGA-LOANor

1-800-642-5626 Ext. 77009

(517) 373-0760


Office of Student Loan Authority Programs([email protected])

MI-LOAN ProgramMichigan Direct Student Loan ProgramState Secondary Market

1-888-MHESLA1or

1-888-643-7521

(517) 373-3662


Michigan Education Trust (MET)([email protected])

Michigan Education Savings Program (MESP)([email protected])

1-800-MET-4-KIDor

1-800-638-4543

1-877-861-MESPor

1-877-861-6377


High School Counselor Workshops

State of Michigan

Department of Treasury

Bureau of Student Financial Assistance

2002-03

Counselor’s Guide to Michigan Student Financial Assistance Programs

OFFICE OF SCHOLARSHIPS AND GRANTS

• WHAT’S NEW/ANNOUNCEMENTS– MI Scholarships On-line (www.Michigan.gov/mistudentaid)

• Live 11/16/01 - New Web-based Computer System• For User ID & Password, e-mail [email protected]• Update Contact Information Periodically• Student Can Obtain User ID & Password After FAFSA Data

Processed• Students Can Obtain Award Amount Information or Reason for

Ineligibility


• THREE STATE PROGRAMS

– Michigan Competitive Scholarship– Michigan Tuition Grant– Postsecondary Access Student Scholarship

(PASS)


• THREE FEDERAL PROGRAMS

– Robert C. Byrd Honors Scholarship– Leveraging Educational Assistance Partnership

(LEAP)– Special Leveraging Educational Assistance

Partnership (SLEAP)


• Robert C. Byrd Honors Scholarship

– Federally Funded, State Administered– Students Nominated by High Schools– Portable to any College in the Country– Renewable for Four Years– Students Must Attend Full-Time– $1,500 Maximum Award for 2002-03


• LEAP/SLEAP

– These Federal Funds are Combined with the Michigan Competitive Scholarship Program to Allow for Additional MCS Awards


• Michigan Competitive Scholarship: Eligibility Criteria

– Both Merit-Based and Need-Based– Enrolled in MI Public or Private Institution– Qualifying ACT Score (90 Sum = 23 Comp.)– Financial Need– Take ACT by December of H.S. Senior Year– File FAFSA by February 21


• Michigan Competitive Scholarship: Points to Remember

– Students Can Re-Take ACT (by December)– OSG Keeps Highest Score– OSG Receives all Score Information if:

• Student is a MI resident, or• Student attends a MI high school, or• Student uses Code 2076


• Michigan Competitive Scholarship: Points (cont.)

– Students With Sum Score of 90 Receive Certificate in Spring

– Certificate is Mailed to High School so School Code on ACT Must be Correct


• Michigan Competitive Scholarship: Maximum Award for 2002-03

– $1,300 at MI Public Institutions– $2,750 at MI Private/Independent Institutions


• Michigan Tuition Grant: Eligibility Criteria

– Need-based (no ACT score requirement)– Students Attending MI Private Institutions– $2,750 Maximum Award for 2002-03– Student Cannot Receive Both Competitive

Scholarship and Tuition Grant Simultaneously


• PASS: Eligibility Criteria

– Enrolled in Associates Degree Program at Eligible Institution

– Up to Equivalent of Two Years Full-Time Enrollment

– Student Must be Pell Grant Eligible– Amount of PASS = Tuition & Fees minus Pell,

MCS/MTG, and imputed Hope Tax Credit


• PASS: Eligibility Criteria (cont.)

– Take MEAP Tests in Reading, Writing, Math, Science

– Score Level I or II on Those MEAP Tests• Two years of award eligibility

– If Required MEAP Scores Not Achieved• One year of eligibility

• Meet college’s SAP standard to get year two award

OFFICE OF SCHOLARSHIPS AND GRANTSFAFSA: General Information

• FAFSA color for 2003-04 is YELLOW• Federal government processes the FAFSA and distributes to

schools• FAFSA information is released to the State if Question 24 lists

Michigan• State residency questions on the FAFSA (#24 students, #66

parents) are important• Year In College question #30 must be answered; H. S. seniors

always answer “0”• Students must list at least one MI college in Step 6 for state aid

consideration• Students should list college choices in order of preference

OFFICE OF SCHOLARSHIPS AND GRANTSFAFSA: General Information (cont.)

• Students can call OSG at 888-447-2687 to change college choice

• Advise students to make sure SSN is correct since it is key identifier used to match student records

• Advise students to write full name on FAFSA as it appears on Social Security card

• Advise students to make SAR corrections quickly• Advise students to keep copies of all forms submitted• If counselors need additional FAFSA’s, call 800-394-7084,

or access the Web site www.edpubs.org/ml, or encourage students to file on the Web at www.fafsa.ed.gov


• Accessing MI Scholarships Online

– www.Michigan.gov/mistudentaid– Click on “Quick Link” Item– Welcome Page– Click on Photo Icon: “High Schools”– Log-in Box: Enter User Name and Password– Update School Contact Information as Needed

OFFICE OF INFORMATION AND RESOURCES

• WHAT’S NEW/ANNOUNCEMENTS

– OIR Will Administer These Programs:

• Michigan Merit Award Program

• Michigan Nursing Scholarship Program (New)


• Michigan Merit Award

– Merit-Based Scholarship– Student Must Meet or Exceed State Standards– Based on MEAP Scores on High School Tests in

Reading, Writing, Math, Science (students must take all four tests)

– Non-renewable: $2,500 at In-State Institution, $1,000 at Out-of-State Institution


• Michigan Merit Award: Eligibility Criteria

– Score Level I or II on the Four MEAP Tests– Alternate A: I or II in Two MEAP areas

Combined with Qualifying ACT or SAT Score (ACT - 24, SAT - 1170)

– Alternate B: I or II in Two MEAP areas Combined with Qualifying Scores on Four WorkKeys Job Skills Assessment Tests


• Michigan Merit Award: Eligibility Criteria

– Enroll in Approved Postsecondary Institution– High School Graduate or GED– Cannot Have Violent Felony Conviction– Up to $500 Additional Award Beginning with

Class of 2005 for Good Performance on MEAP Middle School Tests (7th and 8th Grade)



– Funds Can Be Used for Education Related Expenses

• Tuition and Fees

• Room and Board

• Books and Supplies

• Transportation

• Day Care



– Funds Are Paid to the Institution• Option A: Lump Sum

• Option B: Two Consecutive Year Payments

• In-State and Out-of-State



– Years of Eligibility• Class of 2000 and 2001 - Has Seven (7) Years To

Claim The Award

• Class of 2002 Forward - Has Four (4) Years To Claim The Award



– Certification Window - New Legislation• Students Must Certify By September 30th If They

Wish to Receive Payment in That School Year

• Students Wishing to Use Their Merit Award During the 2002-03 Academic Year MUST Have Certified by September 30, 2002



– Fall Cycle• Second chance for SENIORS to take the High School

Test. Test window opens 10/28/02 and runs through 11/8/02.

– Spring Cycle• Third and last chance for SENIORS to take the High

School Test. Test window opens 4/21/03 and runs through 5/9/03.



– Ballot Proposal 02-4• This amendment will appear on the November 5th

general election ballot. This would require money now used for the Merit Award to be diverted for other purposes. Should voters approve this proposal, the Merit Award funding source will end on January 1, 2003. Unless a new funding source is legislatively approved to cover the $115 million shortfall, the program will cease to exist.


• Michigan Nursing Scholarship Program– Begins Academic Year 2002-03 (2nd quarter)– Funded via Merit Award Trust Fund– Ballot Proposal 02-4– Maximum Award is $4,000 Per Year– Student Must Sign Agreement to Work in Michigan

or Scholarship Must be Repaid– State Delivers Funds to Colleges, Student

Recipients Selected by Financial Aid Offices


• Tuition Incentive Program (TIP)

– High School Completion Program– Phase I Pays Tuition & Fees in an Associate

Degree Program– Phase II Pays up to $2,000 for 3rd and 4th Year


• TIP: Eligibility Criteria

– Medicaid Eligible 24 Months out of 36 Consecutive Month Period

– Meet Requirement between 6th Grade and High School Graduation (or GED)

– Achieve Diploma or GED Before Age 20– Initiate Use of TIP Within 4 Years of

Graduation or GED


• TIP: Eligibility Criteria (cont.)

– U.S. Citizenship and State Residency– Enrolled in Participating College at Least Half-

Time– Student Must Complete Application Before

High School Graduation (applications sent to all students accumulating required months of Medicaid)


• Campus-Based Programs: Eligibility Criteria

– Adult Part-Time Grant• Financial Need and Part-Time Enrollment

• Independent Status, Attending MI Public or Private College/University

• Award Maximum $600/Year

• College Financial Aid Office Makes Award


• Campus-Based Programs: Eligibility Criteria (cont.)

– Michigan Educational Opportunity Grant• Financial Need

• Attend a MI Public College/University

• Award Maximum $1,000



• Campus-Based Programs: Eligibility Criteria (cont.)

– Michigan Work-Study (Grad and Undergrad)• Financial Need

• Attending MI Public or Private College/University

• Award Amount Variable



• Other Programs and Services

– MI-SEARCH• Free, Fast Scholarship Search Service on the Web

• Accesses National Scholarship Database

• Includes Michigan-Specific Listings

• Available at www.Michigan.gov/mistudentaid


• Other Programs and Services (cont.)

– MI-SourceBook• Available on Web site

www.Michigan.gov/mistudentaid

• Profile Information on all MI Institutions

– Help With Any Financial Aid Question• 1-877-FA-FACTS (1-877-323-2287)

MICHIGAN EDUCATION TRUST &MICHIGAN EDUCATION SAVINGS PROGRAM

• WHAT’S NEW/ANNOUNCEMENTS

– Michigan’s “529” State Tuition Plans– Online Enrollment– MET Office Move (address, phone the same)– Annual Review of MESP Investment Options– Full Disclosure Ruling (MSRB)– Pending Federal Legislation

MICHIGAN EDUCATION TRUST & MICHIGAN EDUCATION SAVINGS PROGRAM

• What MET Provides– For Parents

• Tomorrow’s Tuition at Today’s Costs

• Peace of Mind/Insurance

• Shows Child That Parents Value Education

– For Students• Reason to Excel

• Encouragement to Study Hard

• Minimize Education Debt


• MET: Features & Benefits– MET Obligation– Transfer of Risk– Flexibility– Portability– Payment Options– Refund Options– Tax Benefits


• MET: Contract Options

– Three Types of Contracts:• Full Benefits

• Limited Benefits

• Community College


• Michigan Education Savings Program

– Administered by MI Department of Treasury– Managed by Tuition Financing, Inc., Subsidiary

of TIAA-CREF– Also Selected as Manager for Many Other

States Including California, Connecticut, Kentucky, Minnesota, New York, Vermont


• MESP: Features & Benefits

– Minimum Contribution Amount ($25)– Gift Tax Exemption– Three Investment Options– Contribute $600 First Year for Newborn to 6

Year Old to Receive $200 Match


• MESP: Investment Options

(IRC 529 Regulation: Account owner does not control how the savings are invested)

– Core Option• Managed Allocation - age based

– Supplemental Options• Guaranteed

• 100% Equity


• MET/MESP: Similarities & Differences– Similarities

• Benefits of Section 529 Plan

• State & Federal Tax Exemption on Qualified WD’s

• Open an Account for Any Child

• State Income Tax Deduction for Contributions

• Transfer Contracts/Accounts Among Siblings

• Gift Tax Exemption

• Payroll Deduction or ACH


• MET/MESP: Similarities &Differences– Differences

• MET - Prepay Tuition & Mandatory Fees• MESP - Save for all Qualified Higher Education

Expenses

• MET - Pays Tuition & Mandatory Fees at MI Public Two or Four Year College/University (Can obtain refund to attend MI private or out-of-state college)

• MESP - Can Be Used to Pay for Expenses at Any College in Country


• MET/MESP: Similarities & Differences– Differences (cont.)

• MET - Prepay with Monthly Installments, Payroll Deduction, or Lump Sum. Ignore Rising Tuition.

• MESP - Save as Much as $235,000. Deposit as Little as $25.


• MET/MESP: Similarities & Differences– Differences (cont.)

• MET - Purchase for MI Child Newborn to 10th Grade, Allowed 9 Years to Complete College

• MESP - Open Account for Anyone; No Age Limit, No Residency Requirement

• MET - Counted as Student “Resource” for Financial Aid

• MESP - Counted as Parent Asset for Financial Aid

Documents

State of Michigan Department of Treasury Bureau of Student Financial Assistance 2002-03 Counselor’s Guide to Michigan Student Financial Assistance Programs