During Financial Education Month, we want to provide you with information and tools to assist you on your financial journey. One key way we can ensure you are financially informed is by helping you understand how to pay for college. In this week’s article, we will cover who is eligible for financial aid, the sources and types of financial aid, and how to apply for it.

Financial aid eligibility
In order to be considered for financial aid, students must meet eligibility requirements, including the following:

• Be a U.S. citizen or an eligible non-citizen;
• Show you are qualified to obtain a college or career school education (most students fulfill this requirement by graduating from high school or completing a GED certificate);
• Enroll or be accepted for enrollment as a regular student in an eligible degree or certificate program;
• Have a valid Social Security Number (some exceptions apply*); and
• Complete the Free Application for Federal Student Aid (FAFSA®) form, provide consent and approval to have your federal tax information transferred directly into the form, and sign the certification statement on the FAFSA form stating that you are not in default on a federal student loan, you do not owe money on a federal student grant, and you will use federal student aid only for educational purposes.

Eligible non-citizens are students who are not U.S. citizens but may have another accepted status to receive financial aid. After obtaining financial aid, students maintain their eligibility by maintaining satisfactory academic progress (SAP) at their college or career school.

If you do not meet one or more of the eligibility requirements for financial aid, reach out to your success coach or the financial aid office to learn more about ways you can pay for college without federal financial aid.

Types of financial aid
Now that you’ve reviewed the checklist and confirmed you are eligible to apply for financial aid, let’s cover the sources and types of financial aid so you know where to find it and what you might be offered. There are four main sources of financial aid: the federal government, your state’s government, your community and your school.

Most federal and state aid is accessed by completing the FAFSA form, while community and school aid options usually require the FAFSA and additional, specific applications. With these sources in mind, let’s review the four main types of financial aid: scholarships, grants, work-study and loans. 

• Scholarships are a form of financial aid offered to students based on merit (such as academic achievement or volunteerism) or a skill or talent (like artistic or athletic ability). Scholarships do not have to be repaid after they are awarded. Students generally need to apply for these through the State of Michigan, their college or external donors, and may need to enroll in a designated number of credits or type of coursework. 
• Grants are a form of financial aid offered to students based on financial need and do not have to be repaid. Students generally only need to apply for the FAFSA and list the school of their choice for the school to receive their data and determine their eligibility. 
• Work-study is a form of financial aid where a student obtains a job on campus or with a campus partner, gains work experience, and receives a paycheck to cover education-related and living expenses. Students must demonstrate financial need to be eligible for work-study and maintain at least half-time enrollment status. 
• Loans are a form of financial aid offered to all students, regardless of need, and must be repaid by the student to a loan servicer. Next week’s Financial Education Month article will go into more detail on loans, eligibility, smart borrowing and repayment.
  
  

How to access financial aid
We’ve covered who is eligible for financial aid, as well as the sources and types of aid. Now you might be wondering how to access these funds to pay for school. There are two main ways you access financial aid: the Free Application for Federal Student Aid (FAFSA®) form and scholarship applications.

The FAFSA is the free application students complete each year to receive financial aid for college or career school. It takes into account a variety of factors, including income, assets, family size, various personal circumstances and previous educational attainment. When completing the form, dependent students will include their personal information and parents’ information, while independent students (as determined by FAFSA) will include their personal information and spousal information, if married. Schools that the student lists on the FAFSA form will receive the data after the form is processed and will send the student award offers. FAFSA forms are also sent to the state for awarding grants.

In addition to the FAFSA, students can complete scholarship applications for opportunities to be awarded additional funds to combine with their federal and state financial aid. We recommend starting your scholarship search in your local community (like your K-12 school district, civic or faith-based organizations, employers, and volunteer organizations) first and then broadening it to include state and national opportunities. Continue reading to find links to scholarship resources at the end of this article.

Keep in mind that some scholarship applications may involve writing short essays, creating projects or attaching supporting documentation. Don’t shy away from completing them; the short-term effort you invest now may pay off in hundreds or thousands of dollars in rewards down the line!

Myth vs. fact
Before we wrap things up, let’s cover a few myth-versus-fact scenarios related to financial aid.

• Myth: Our household brings in too much income to receive financial aid.
  Fact: Households aren’t excluded from receiving financial aid because of income. You may not receive need-based awards like the Pell Grant, but you will be awarded student loan options and your FAFSA will be sent to the state for consideration for various grants and scholarships that may not be need-based, like the Community College Guarantee or Michigan Reconnect.
• Myth: I am an independent student because I live on my own and support myself financially.
  Fact: To be considered an independent student for financial aid purposes, you must be 24 years of age or meet one of the conditions outlined by Federal Student Aid.
• Myth: I completed my FAFSA this year. I don’t need to complete another.
  Fact: The FAFSA form must be completed each academic year you plan to attend school and receive financial aid. Keep in mind that the FAFSA is associated with the academic year (fall, spring and summer semesters), not the calendar year (January through December).

If you have additional questions or want more information, we encourage you to contact LCC’s Financial Aid Office directly. Everyone’s financial aid situation is unique, and we want to ensure you have the most accurate information to make informed decisions about paying for college. 

In addition, LCC has partnered with WhichWay.org to provide financial education modules that assist with budgeting, setting goals and applying for financial aid. Visit our website to learn more.

Resources

• LCC Financial Aid Office Contact
• Eligible Non-Citizens
• Dependency Status
• LCC Scholarships
• State of Michigan Student Aid
• Fastweb Scholarship Search Engine
• Financial Education Month article about budgeting
• Financial Education Month article about top money tips

*Social Security Number exceptions apply for students from the Republic of the Marshall Islands, Federated States of Micronesia or the Republic of Palau.