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Types of Student Aid

Grants
Money a student receives based on financial need. Grant money award does not have to be paid back.

Scholarships
Scholarship money awarded does not have to be repaid. Eligibility requirements vary.

Loans
Money a student borrows that must be paid back.

Work-Study
Money a student earns while attending college; does not have to be repaid.
 

Kalamazoo Promise

All students who graduate from KPS, are residing in the district, and have been KPS students four years or more are eligible. (Enrollment and residency must be continuous.) The tuition benefit will be graduated on the basis of length of attendance in the Kalamazoo Public School system.

Student must be admitted to and enrolled at any public State of Michigan university or community college and making regular progress toward a degree or certification, maintaining a 2.0 grade point average at the post-secondary institution and completing a minimum of 12 credit hours. If the GPA drops below 2.0, a student may be reinstated if he/she is able to bring their GPA back to at least a 2.0.
 

Private Scholarships

Many private scholarships are offered each year by a variety of corporate, professional, trade, governmental, civic, religious, social, and fraternal organizations. The amounts of the scholarships and deadline dates vary. Applying for private scholarships is time-consuming, so start early.

Check with the Financial Aid Office regularly for information about available private scholarships.
Please note: Some scholarships require full-time enrollment before disbursement.

 

Work-Study Employment


Federal College Work-Study Employment

 

Work-Study Employment is a financial aid program that is awarded to students who have financial need. The program provides jobs for students, allowing them to earn money to help pay educational expenses.

Description

  • Awards are earned by working for eligible employers on and off campus.
  • Maximum 20 hours per week

Eligibility

  • Must submit a FAFSA each academic year
  • Need-based
  • Enrolled at least half-time in a degree program

Terms

  • Award amounts vary, based on available funding and student’s financial need.
  • Locate Work-Study employment opportunities by reviewing job postings on the college Concourse and on the Glen Oaks employment page from www.glenoaks.edu.
  • Student will be required to interview with Supervisor.
  • Students receive paychecks for work performed.

 

Students who wish to be considered for the Work-Study program must complete the FAFSA financial aid application process and request a Student Worker application from the Financial Aid Office.
 

General Information about Student Employment


A basic premise governing need-based financial aid programs is that students and/or families have the primary responsibility to pay for college costs. Part of this expectation is that students, to the extent that they are able, should help pay for their college expenses. Student employment can make an important contribution to available financial resources.

Many students and/or families assume that it is unwise for students to work during the academic year. However, compared to students who do not work, studies show that students who work a modest number of hours per week–no more than fifteen–will, on average:

  • Have higher grade point averages,
  • Graduate at a faster rate,
  • Be less likely to drop out, and
  • Have important job skills to include on their resumes.

Why? Some possible explanations are:

  • Working students become better organized and manage their time better.
  • Employment exposes students to more mentor-type relationships and increases interactions with “real world” people.

Employment provides financial resources that may be critical to meeting college costs.
 

Federal Loans


Loans are borrowed funds that must be repaid, with interest. As college costs climb, many students and/or families find that supplemental borrowing by the student, or parent, becomes an important resource for financing educational expenses.

Your financial need and grade level determine the types and amounts of loans you receive. The Direct Stafford Subsidized loans are need-based, the Direct Stafford Unsubsidized Loan and the Direct PLUS Loan are non-need based.

Important information for first time loan borrowers as of July 1, 2013: There is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program. This is called your “maximum eligibility period”. You can usually find the published length of any program of study in your school’s catalog.

Note: The difference between the Subsidized and Unsubsidized Direct Loan is that students borrowing the Subsidized Loan do not have interest accruing on the loan while they are enrolled at least half-time; conversely, students borrowing the Unsubsidized Loan have interest accruing while they are enrolled in school. The Unsubsidized Loan does allow you to defer the interest payments until you graduate; however, this will result in a higher loan payment over the life of the loan.

 

Federal Direct Stafford Loan, Subsidized

 

Students accepting Direct Loan funds for the first time must complete an online Direct Loan Master Promissory Note before receiving their loan funds.

First-time borrowers who are first-year college students must also complete Direct Loan entrance counseling.

Description

  • Federally funded
  • 3.76% fixed interest rate for undergraduate loan See Borrowing Maximums Chart below.
  • Existing Direct Loans can be consolidated.

Eligibility

  • Need-based (Cost of Attendance minus EFC minus other aid)
  • Enrolled at least half-time in a degree or certificate program

Terms

  • Repayment of principle is deferred and there is no interest while enrolled at least half-time.
  • Limited deferment provisions; see the Repaying Your Student Loans and the Dept. of Education website (information specifically for teachers)
  • 1.068% origination fee. Because of this fee, the actual Direct Loan amount applied to your account will be lower than that listed on your award notice.

 

Federal Direct Stafford Loan, Unsubsidized

 

Students accepting Direct Loan funds for the first time must complete an online Direct Loan Master Promissory Note before receiving their loan funds.

First-time borrowers who are first-year college students must also complete Direct Loan entrance counseling.

Description

  • Federally funded
  • 3.76% fixed interest rate
  • See Borrowing Maximums Chart below
  • Existing Direct Loans can be consolidated.

Eligibility

  • Non-need based (Cost of Attendance minus other aid)
  • Enrolled at least half-time in a degree or certificate program

Terms

  • Interest begins accruing immediately, may be paid periodically or capitalized (see promissory note)
  • Repayment of principle is deferred and there is no interest while enrolled at least half-time.
  • Limited deferment provisions; see the Repaying Your Student Loans and the Dept. of Education website (information specifically for teachers)
  • 1.068% origination fee. Because of this fee, the actual Direct Loan amount applied to your account will be lower than that listed on your award notice.

 

Federal Direct PLUS Loan

 

If a parent is accepting PLUS Loan funds for the first time, Parent must complete an online Master Promissory Note before receiving their loan funds.

Description

  • Federally funded
  • 6.31% fixed interest rate
  • Existing PLUS Loans can be consolidated.
  • PARENT borrows on behalf of undergraduate student

Eligibility

  • Non-need based (Cost of Attendance minus other aid)
  • Student must be enrolled at least half-time in a degree or certificate program
  • Borrower cannot be 90 days or more delinquent on the repayment of any debt (180 days delinquent on mortgage loan or medical bill payments) or the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a Title IV debt during the last five years.

Terms

  • This loan will be listed on your award letter only if a separate application is submitted and approved.
  • Repayment of principal and interest begins 60 days after loan disbursed. For PLUS loans first disbursed after July 1, 2008, parents have the option of deferring repayment until six months after the dependent student is no longer enrolled at least half-time. To request deferment, call 1-800-848-0979.
  • 4% origination fee, with a 1.5% rebate if the first 12 monthly payments made on time. Because of this fee, the actual Direct Loan amount applied to your account will be lower than that listed on your award letter.

 

Direct Loan Borrowing Maximums


Subsidized Base Loan Amount Additional Unsubsidized Loan Amount
(as of July, 1 2008)
For All Undergraduates
For Dependent Undergraduates* For Independant Undergraduates**
First Year

(0-28 credit hours)

$3,500 $2,000 ($5,500 total) $6,000 ($9,500 total)
Second Year

(29+ credit hours)

$4,500 $2,000 ($6,500 total) $6,000 ($10,500 total)
Subsidized Loan Debt
Lifetime Limit
Total Loan Debt Lifetime Limit (Subsidized + Unsubsidized)
$23,000 Dependent Undergraduate

$31,000 (only $23,000 can be subsidized)

Independent Undergraduate

$57,000 (only $23,000 can be Subsidized Loan)

*Excluding students whose parents are unable to obtain a PLUS Loan.
**Or dependent students whose parents are unable to obtain a PLUS Loan.
 

To Apply For Loans


  • Complete the Free Application Federal Student Aid (FAFSA) process.
  • Submit all required paperwork to the Glen Oaks Financial Aid Office.
  • Complete the PLUS loan at studentloans.gov

 

Cancellation Provisions


  • All loans are cancelled in case of death or disability of the loan maker.
  • To decrease or cancel a loan disbursement, please request a Loan Adjustment Form from the Financial Aid Office.
  • Loan disbursement will be cancelled by the Financial Aid Office if the student is enrolled in less than 6 credit hours at the time of disbursement.

 

Loan Counseling


Direct Loan “Entrance” Counseling is REQUIRED for first-time Direct Loan borrowers (Subsidized and Unsubsidized) who are first-year students. This counseling session will be held in person and helps students develop a budget for managing educational expenses and also helps borrowers understand their loan responsibilities. You must complete the counseling before your loan will be disbursed to you.

Direct Loan “Exit” Counseling is REQUIRED for Direct Loan borrowers (Subsidized and Unsubsidized) who are graduating or are enrolled less than half-time. This counseling session, which is on the U.S. Department of Education’s Direct Loan Servicing site www.studentloans.gov, helps borrowers understand their rights and responsibilities in repayment. You must use your Department of Education FSA ID to access this counseling session.

Additional Direct Loan Counseling GOCC has been selected to participate in the Loan Counseling Experiment under the U.S. Department of Education’s Experimental Sites Initiative (ESI). The Loan Counseling Experiment will test the effectiveness of requiring additional loan counseling for student borrowers beyond the required entrance counseling for first-time borrowers. As a returning direct loan borrower, you could be randomly assigned to complete this additional loan counseling before any loan funds are disbursed to you. The Financial Aid Office will notify you if you are required to do so.
 

Loan Repayment


No matter which loan program you choose, remember to borrow only what you absolutely need–what you borrow today you will need to pay back (with interest) later! You may not need to borrow as much, if at all, if you are able to work or cut costs (such as personal/miscellaneous costs). Many students wisely maintain a lower-cost student lifestyle in order to borrow the least amount necessary to cover their college costs. The result is lower debt and loan payments that will be easier to manage after graduation.

Use the repayment calculator on the Department of Education’s Direct Loan website to determine the estimated amount of your monthly payments:

► Go to the Direct Loan Repayment Calculator Website

Go to the Interactive Calculators site, select the appropriate monthly repayment calculator (Standard/Extended/Graduated or Income Contingent), and provide the following information:

  • Loan Type: Select “Direct Stafford/Ford” (not PLUS).
  • Loan Amount: Type in the “Projected Total” amount of your Direct Stafford Loan

Once you’ve typed in the above information in the calculator fields, click on the “Calculate” button. If you select the “Details” button next to the appropriate repayment plan, you will see more information about your loan repayment (how much of your repayment will be interest, etc.)