Types of Financial Aid
There are three basic categories of financial aid: gift aid (scholarships and grants), loans and part-time employment. Most assistance is offered as a package of two or more kinds of aid. Undergraduates (in pursuit of the first bachelor’s degree) who apply to the OFAS are considered for all three types of assistance. Undergraduates in pursuit of a second bachelor’s degree are considered only for loans and work assistance.
Scholarships and grants do not require repayment or work. Gift aid takes the following forms:
Freshman & Transfer Scholarships
The University offers a variety of scholarship resources for freshman and incoming students. University scholarship funds for incoming students are the following:
Adnan Aswad Transfer Student Scholarship
Alumni Legacy Scholarship
AMP Industry Scholarship
James Baughman Scholarships
Brick Program Endowed Scholarship
Center for the Education of Women (CEW) Scholarship
City Year Detroit Alumni Scholarship
College of Engineering and Computer Science Scholarships
Community College Transfer Scholarship
Community Service Personnel Scholarships
Dependent Tuition Scholarship
Detroit Compact Scholarship
Detroit Edison Scholarships
Ford Motor Company Scholarships
General Dynamics Scholarships
General Motors Scholarships
Junge Family Endowed Scholarship
Henry Patton Endowed Scholarships
Maize and Blue Scholarship
Natural Science Scholarship
Retired Persons Scholarship
Frederick P. and Violet Sharpe Scholarships
UM-Dearborn Opportunity Scholarships
Wade McCree Scholarship
Each of the scholarships above has specific selection criteria. Some of the funds require prior commitment and participation, most do not. For detailed information regarding criteria for these scholarships, please refer to the OFAS website (umdearborn.edu/financialaid), or contact the Office of Admissions and Orientation at 313-593-5100.
Most scholarships have terms and conditions. These are accessible online at umdearborn.edu/accept.
Eligibility for the following Federal, State and University grant funds are determined according to demonstration of need (based on the outcome of the FAFSA), and availability of funds. The grants are considered for undergraduate students pursuing a first bachelor’s degree. Unless otherwise stated, at minimum, eligibility requires adherence to Federal fund criteria, maintenance of the University’s Satisfactory Academic Progress guidelines and enrollment on an at-least-half-time basis.
Federal Pell Grants
Pell Grant is a federal program with award ranges from approximately $717 to $5,730. An Expected Family Contribution (EFC) of 0 results in an award of $5,730 based on full-time enrollment for the academic year. The Federal Pell Grant Program is considered the foundation grant to which all other sources are added to create a financial aid package. Pell Grant is one of the few programs that permit some students to receive a prorated portion of the award at a less-than-half-time enrollment status.
The Federal Pell Grant Program has lifetime eligibility limitations for all Pell Grant recipients. Pell Grant recipients are eligible to receive a maximum of 12 full-time semesters of this grant. Once a student has used 12 full-time semesters, he/she is no longer eligible for any additional Federal Pell Grant. There is no appeal for this restriction.
Students are able to track their eligibility used on the National Student Loan Data System (NSLDS). Access is gained using your Federal Student Aid PIN.
The limitations of financial aid eligibility impact financial aid and scholarship programs. It is important to work closely with your academic advisor to stay on track to meet degree requirements to make the best use of financial aid funds.
Federal Supplemental Educational Opportunity Grants (FSEOG)
FSEOG is a federal campus-based program used to supplement the Pell Grant of the neediest Pell Grant recipients. At UM-Dearborn, FSEOG is reserved for students with an Expected Family Contribution (EFC) ranging from $0 – $1,000.
(Teacher Education Assistance for College and Higher Education)
Funded by the federal government, the TEACH Grant provides up to $3,708 per year for students whose intention is to teach in a “high need field” (subject area), in an elementary or secondary school serving students from low-income families. As a recipient, students agree (in advance of receipt) to teach a “high need field”, full-time, for a minimum of four years within the eight years following program completion (or progress interruption from the program for which the grant was awarded). The FAFSA is required to be considered for a TEACH Grant. However, recipients do not have to demonstrate “need.”
The TEACH Grant will remain a grant if recipients meet the specific criteria. If recipients do no meet the criteria, the TEACH Grant converts to an unsubsidized loan with interest calculated back to the initial disbursement date(s). For this reason, UM-Dearborn has defined our eligibility criteria as cautiously as possible.
The population UM-Dearborn currently considers for the TEACH Grant are: Seniors (at the undergraduate level) and graduate level students, with a high Cumulative Grade Point Average (CGPA), admitted into a degree-granting program of the College of Education, Health, and Human Services and pursuing majors that align with the “high need fields.”
The minimum CGPA requirement for the TEACH Grant is 3.25.(on a 4.0 scale). The undergraduate degree programs currently considered are: Bachelor of Arts and Bachelor of Science. Eligible majors at UM-Dearborn are: Education, General Science, Mathematics, Mathematics Studies, Reading Science Education, Science Studies, Special Education and Teaching.
Michigan Competitive Scholarship (MCS)
Funded by the State of Michigan, the Michigan Competitive Scholarships are available to many Michigan high school graduates from the Office of Student Scholarships and Grants, Michigan Department of Treasury. Scholarships are awarded to qualifying undergraduates attending public colleges and universities in Michigan. To qualify for the scholarships, students must demonstrate aptitude based on their performance on the American College Test (ACT) as well as financial need as determined by uniformly applied methodology via information from the FAFSA. Recipients must also meet Michigan residency requirements.
Children of Veterans’ Tuition Grant Program
The Children of Veterans’ Tuition Grant Program offers Tuition Grant assistance to the children of Michigan veterans who were killed while in service, died as a result of service-related disabilities, or is considered 100% disabled because of service-connected disabilities. The child must be a Michigan resident between the ages of 16 and 25. Upon admission to a Michigan institution of higher learning, eligible undergraduates may qualify for a Tuition Grant of up to $2800 each academic year for full-time enrollment (amounts are prorated for less than full-time enrollment.) Students must maintain a 2.25 or higher cumulative grade point average. Inquiries may be directed to the State at 888-447-2687.
University of Michigan-Dearborn Grants
Funded by the University of Michigan-Dearborn, UM-Dearborn Grants are awarded to help high need students defray tuition costs. The Expected Family Contribution (EFC) is used to determine eligibility for these grants. Some UM-Dearborn Grants are strictly need-based, some are need-and merit-based. Given eligibility and funding, applicants are automatically considered for the appropriate type of grant.
Eligibility for the following Federal loan programs are determined according to demonstration of need (based on the outcome of the FAFSA), availability of funds and also individual, annual and aggregate borrowing parameters. Eligibility requires adherence to Federal fund criteria, maintenance of the University’s Satisfactory Academic Progress guidelines and at minimum enrollment on an at-least-half-time basis. Requirements are subject to change over time. Additional documents may be required (e.g., Promissory Notes and/or Entrance Counseling) prior to disbursement of funds.
William D. Ford Federal Direct Loan Program
Federal Direct Loans are available through the William D. Ford Federal Direct Loan Program. Under the Federal Direct Loan Program, funds are lent to student or parent borrowers directly by the U.S. government. There are several types of Direct Loans: the Federal Direct Subsidized Loan (Subsidized FDSL), Federal Direct Unsubsidized Loan (Unsubsidized FDSL), Federal Direct Parent Loan for Undergraduate Students (FDPLUS), Federal Direct PLUS Loans for Graduate and Professional Degree Students and the Federal Direct Consolidation Loan program.
Federal Direct Subsidized loans are awarded on the basis of financial need. No interest will accrue during half-time enrollment or authorized periods of deferment. You can help to remember the term by thinking of the Federal government subsidizing interest during these periods. Subsidized loan are available to only to undergraduate students.
Federal Direct Unsubsidized loans are not awarded on the basis of financial need. Interest will accrue from the time of disbursement until the loan is paid in full. While you are not required to make monthly payments during half-time enrollment or authorized periods of deferment, interest will accrue on the loan. Each quarter, unpaid interest will capitalize (interest will become additional loan principal). If you make quarterly interest payments on your unsubsidized loan during periods when no repayment is required, you will reduce the amount that you repay over the life of the loan.
|Class Level||Dependent Undergraduate||Independent Undergraduate||Graduate|
|Freshmen (0—24 credits)||$5,500 (only $3,500 can be in subsidized loans)||$9,500 (only $3,500 can be in subsidized loans)|
|Sophomores (25—54 credits)||$6,500 (only $4,500 can be in subsidized loans)||$10,500 (only $4,500 can be in subsidized loans)|
|Juniors and Seniors (55 credits and above)||$7,500 (only $5,500 can be in subsidized loans)||$12,500 (only $5,500 can be in subsidized loans)|
|Graduate (Masters or Doctoral)||Up to $20,500 in unsubsidized loan|
|Maximum Total Debt From Stafford Loans Upon Graduation||$31,000 (only $23,000 can be in subsidized loans)||$57,500 (only $23,000 can be in subsidized loans)||($138,500 (only 65,500 can be in subsidized loan). Graduate loan debt will also include Stafford Loans received as an undergraduate.|
Federal Direct Parent Loans for Undergraduate Students
Federal Direct Parent Loans for Undergraduate Students (FDPLUS) are for parent borrowers of dependent, undergraduate students. FDPLUS loans provide additional funds for educational expenses and, like Subsidized and Unsubsidized FDSLs, are funded by the federal government. FDPLUS enables parents to apply for an amount equal to the cost of education (minus the amount of other financial aid for the loan period). Borrowers should refer to studentloans.gov for current interest rates. FDPLUS is limited to parent borrowers who do not have adverse credit histories. FDPLUS funds are disbursed via the (dependent) student's tuition account. FDPLUS proceeds (after tuition is paid) are refunded to the parent borrower via check by mail, (unless the parent borrower authorizes post-tuition proceeds to be released to the student).
Repayment of principal and/or interest generally begins 60 days after the loan is disbursed. However, parent borrowers may also opt to schedule repayment to begin six months after their dependent student (on whose behalf the parent borrowed) ceases continual enrollment on an at least a half-time basis. For those choosing the later, interest will be capitalized on to the principal.
Federal Direct PLUS Loans for Graduate or Professional Students
Graduate and professional degree students may also borrow under the PLUS Loan Program. The terms and conditions of the Graduate/Professional PLUS Loan are similar to those of a Parent PLUS Loan, (including the requirement that the applicant does not have an adverse credit history). Applicants are required to complete the FAFSA.
The amount an applicant may borrow is determined by calculating their cost of attendance minus other financial aid. They also must have applied for their annual loan maximum eligibility under the Federal Direct Subsidized and Unsubsidized Loan Programs before applying for a Graduate/Professional PLUS loan. Like the Parent PLUS, applicants may arrange for current or deferred repayment.
Federal Direct Consolidation Loan
Federal Direct Consolidation Loans are designed to help student and parent borrowers simplify loan repayment. This loan allows the borrower to consolidate several types of federal educational loans with various repayment schedules into one loan, requiring only one payment per month. Interest rates, however, may differ depending on the loan category as well as repayment and deferment options for the borrower.
Borrowers in default on a previous federal education loan may be able to obtain a Direct Consolidation Loan as a method of resuming the educational process and regaining eligibility for financial aid funds. (Those in default are ineligible for any and all financial aid while the default status is unresolved).
Those interested may contact the Direct Loan Servicing Center at 800-848-0979 or access their web site studentloans.gov for additional information.
Federal Work-Study Program—Federal Work-Study is a Title IV program offering part-time work for students who demonstrate financial need. Students work up to 25 hours per week during the regular semester, depending upon the student’s financial need, availability of federal funds and the student’s class schedule. Seven percent of the school’s annual Federal Work-Study allocation will be used to fund community service jobs. Priority is given to those who apply by the March 1 priority deadline. For more information please contact the Office of Career Services.
On-campus employment is funded by UM-Dearborn. There are many part-time and temporary jobs available in the academic departments and in the support offices. Eligibility for Federal financial aid funds is not a factor for University employment. Students may contact the Office of Career Services and inquire about job availability. The departments pay 100 percent of these wages. To locate an on-campus job, visit umdearborn.edu/693914.
Other Sources of Financial Aid
Other sources of financial assistance are available through government agencies such as Vocational Rehabilitation, Veterans Administration and Social Security. Students needing information on these programs should contact the nearest appropriate agency.
Assistance for educational expenses may also come in the form of tax allowances. The Internal Revenue Service publishes Publication 970. Publication 970 provides information on educational benefits allowed within the tax code. Publication 970 may be obtained from the Internal Revenue Service or viewed online at irs.gov/publications/p970.