Most Commonly Asked Questions About Financial Aid
Your Award Notice
When students complete the Free Application for Federal Student Aid (FAFSA), the Federal Processor uses a system developed by Congress that determines the Expected Family Contribution (EFC). The EFC is an estimate of the family’s ability to pay for post-secondary education based on this federal methodology.
What types of aid can students get at CMU?
CMU “packages” students with a combination of the following types of awards, based on merit and/or financial need: scholarships, grants, job and loans.
What is the difference between a scholarship and a grant?
Both scholarships and grants are considered to be Gift Aid. Gift Aid is free educational funds that never need to be repaid. Scholarships are awards based on the student’s achievement (academic, talent, athletic.) Grants are awards based on financial need as determined by completing the FAFSA.
Q. What do I do with my Award Notice?
The Award Notice lists the Cost of Attendance (COA) at CMU. Financial need is determined by subtracting the EFC from the COA. The amount of financial aid you have been awarded by CMU is listed in the Financial Aid Package section of the award notice.
It is not necessary to return the Award Notice to CMU if you are accepting all of the offered aid.
You must return a copy of the Award Notice to the OSFA if: you have made adjustments to the offered loan or work study awards or you are receiving other outside assistance.
Q. Do I have to accept the loans if I just want the scholarships and grants listed?
No. You may reduce or reject some or all of the offered loans or work awards and still receive the offered scholarships and grants. Rejected loans and work awards may result in unmet financial need. CMU will not replace rejected loans and work awards with additional scholarship or grant awards.
Q. Do I have to go to a bank to get an application for a Stafford Loan?
Central Michigan University participates in the Federal Direct Loan Program. No separate application is necessary. The OSFA will notify you of your eligibility for a student loan and the steps you must take to activate the loan(s).
Q. What is a Master Promissory Note (MPN)?
It is a single promissory note that may be used for all of a borrower’s Federal Direct Subsidized and Federal Direct Unsubsidized Loans. The MPN does not include a specific loan amount since it may serve as the promissory note for future loans. Loans for subsequent years will not require a new promissory note as long as the borrower is at a school in the Direct Loan Program. The borrower is agreeing when he or she signs the MPN to repay the lender (the U.S. Department of Education) all loans made to the borrower under the terms of the MPN. It is important for the borrower to read all of the information on the MPN before signing it. Complete the MPN on-line at: http://StudentLoans.gov/.
Q. What is a Disclosure Statement?
The Disclosure Statement is sent to the borrower (student and/or parent) from the Direct Loan Origination Center. It gives the borrower specific information about loan types (subsidized and unsubsidized (student loans) or Parent Loan for Undergraduate Students (PLUS) [parent loan]), amounts and anticipated disbursement dates for each new loan that he or she borrows. It is mailed to the borrower's permanent address. The borrower should keep the disclosure statement for his or her records since this provides the information on the individual loans that are included in the Master Promissory Note.
Q. What is the difference between a subsidized and unsubsidized student loan?
The federal government pays the interest for the student during the student’s enrollment and through any deferments the borrower qualifies for if the student has a subsidized loan. If the student’s loans are unsubsidized the student is responsible for the interest during school, the student’s grace period and any deferments.
Q. Can a graduate student receive a subsidized loan?
Effective 7/1/12, Congress has eliminated subsidized graduate student loans.
Q. If my student has an unsubsidized loan must he or she pay the interest while in school?
The student has the choice of paying the interest quarterly or allowing the loan servicer to add the interest to the loan (capitalization).
Q. If my parents borrow the Parent Loan for Undergraduate Students (PLUS), when do they start repaying the loan?
The first payment is due within 60 days of the second disbursement. The first payment will be due in February or March for most of our PLUS borrowers.
Q. Is there a Master Promissory Note for PLUS Loans?
Yes. Your parent may complete the PLUS Master Promissory Note (MPN) on-line at: http://StudentLoans.gov by using your Federal Personal Identification Number (PIN) and your parent's PIN. If you do not have a PIN, you and/or your parent can obtain one at: http://www.pin.ed.gov .
Q. What happens if the PLUS Loan is denied?
Your parent and the OSFA will receive notification from the Direct Loan Origination Center of a credit denial. The OSFA will automatically process an additional unsubsidized loan up to $4000 for a freshman/sophomore or up to $5000 for a junior/senior. The notification from Direct Loans will outline the options available to your parent to contest the credit denial or to secure an eligible endorser.
Q. My parents don’t want to borrow a PLUS Loan. They think all loans should be in the student’s name. How can we do this?
If your parents are willing to co-sign a loan for you, there are alternative loans that may be borrowed by the student through private lenders. There is a list of alternative loan lenders on the reverse side of the Parent Loan Data Form.
Q. How are loan proceeds paid to the student?
Federal Direct Subsidized, Federal Direct Unsubsidized and Federal PLUS Loans are paid directly to student accounts in two disbursements. One disbursement is applied in the fall and one disbursement is applied in the spring. Any excess funds will be sent to the student.
Q. Is there anything I must do before the loan proceeds are applied to my account?
Yes. If you do not have a prior Master Promissory Note (MPN) on file with the Direct Loan Program you must complete a (MPN) on-line at: http://StudentLoans.gov and you must complete Entrance Counseling. Entrance Loan Counseling can be completed on-line at: https://StudentLoans.gov. Once this has been done and you meet all other eligibility requirements the loan(s) will be applied to your student account.
Q. Must we borrow as much as you have suggested on the award notice?
No. The amount on the award notice is your maximum eligibility for student loans based on the budget, student grade level, status and the student’s other financial aid. You need to decide as a family what you will be able to manage without loans and then how much you need to borrow.
Q. What forms are needed to apply for financial aid?
For all types of federal, state and most institutional student aid, students must complete the Free Application for Federal Student Aid (FAFSA) or Renewal FAFSA each year. CMU strongly encourages all students to submit the FAFSA electronically at: www:fafsa.ed.gov.
Q. When do I apply for financial aid?
Students must apply for financial aid every year. The FAFSA on the Web (FOTW) or Renewal FAFSA on the Web should be completed as quickly as possible after January 1 each year. For optimal consideration, all students must submit the FOTW or Renewal FOTW by February 15 each year. Applications received after the priority deadline will continue to be processed throughout the academic year. Financial aid awards are based on a combination of funds available and financial need.
Q. What types of financial aid are covered by this application?
Federal Pell Grants
Federal Supplemental Educational Opportunity Grants
Federal Perkins Loans
Federal Direct Loans
Federal Work Study
Michigan Competitive Scholarship
Michigan Educational Opportunity Grant
Michigan Adult Part-time Grant
Michigan Work Study
Q. What other sources of aid are available?
There are many local, state and national organizations that grant scholarship funds. A comprehensive free scholarship search service is available on the Internet. The Financial Aid Information Page is accessible on the World Wide Web at: http://www.finaid.org . Students should click on FastWeb for an individualized scholarship search. MI-Search is a state-sponsored scholarship search available on the World Wide Web at: http://www.MI-StudentAid.org .
Q. How do I apply for a Pell Grant?
When you complete the FAFSA, you are automatically considered for a Pell Grant.
Q. How do you get a student loan?
CMU includes student federal loan eligibility as part of the financial aid award package. Students must apply for financial aid to be considered for federal student loans.
Q. What do I do with the Student Aid Report (SAR) that I received?
The Student Aid Report (SAR) is a summary of the information you provided on the FAFSA. SARs are sent electronically to the email address you provided on the FAFSA. Review the SAR and make corrections on-line. If you are correcting parent data, as well as student data, both you and your parent must use your PINs to electronically sign the SAR. If you did not provide an email address, a paper SAR is mailed to you. Read the comments and review the data presented on the SAR to determine that the information is accurate. Make any corrections necessary on the SAR and sign and return it to the Central Processing Service (CPS). Corrected information will automatically be sent to all schools listed on the SAR. If all the information is correct, keep the SAR with your other financial aid documents for your records.
Q. My SAR said I was selected for verification. What is it and what do I need to do?
Verification is a process of review that determines the accuracy of the information submitted by the student and family on the FAFSA and that resolves conflicting data resulting from changes made by the student and family on the SAR. If you are selected for verification by CMU, you will receive a request for documentation. This request may include W-2 forms, parent and student tax returns and other records as required. Please wait until you receive a request from CMU before mailing your documentation.
Q. What is the Quality Assurance Program?
CMU participates in the U.S. Department of Education’s Quality Assurance (QA) Program.. The goals of this program include improving equity and fairness in awarding public dollars to needy students and assessing the quality and accuracy of the financial aid process. Participation in the QA Program assists us in evaluating and improving our service to students by identifying the types of errors made by students and their families as they complete the financial aid application process. We will also use this process to evaluate our internal procedures. The evaluation will include the selection and verification of federal financial aid applications. We will notify you if you have been selected for this process.
Q. If my parents are separated or divorced, do they both have to contribute to my education?
When completing the FAFSA, financial information for the custodial parent and current spouse must be reported. The non-custodial parent is not required to report information. If the student is receiving money from the non-custodial parent for educational expenses, the student must also report that amount on the FAFSA.
Q. How does having more than one student in the family attending college impact financial aid eligibility?
Families with two or more students attending college have the parent contribution (PC) adjusted by the number of students who will be enrolled at least half time in a certificate or degree granting program for at least one semester. For example, in a family with a PC of $3000, the contribution per student would be as follows: 1 student = $3000; 2 students = $1500 per student; 3 students = $1000 per student.
Q. How do I become an independent student for federal aid purposes?
You will be treated as an independent student if you can answer “ YES” to one of the following questions:
- Were you born before January 1, 1986?
- As of today, are you married? (Also answer "Yes" if you are separated but not divorced.)
- At the beginning of the 2009-2010 school year, will you be working on a master's or doctorate program (such as an MA, MBA, MD, JD, PhD, EdD, graduate certificate, etc.)?
- Are you currently serving on active duty in the U.S. Armed forces for purposes other than training?
- Are you a veteran of the U.S. Armed Forces?
- Do you have children who will receive more than half of their support from you between July 1, 2009 and June 30, 2010?
- Do you have dependents (other than your children or spouse) who live with you and who receive more than half of their support from you, now and through June 30, 2010?
- At any time since you turned age 13, were both your parents deceased, were you in foster care or were you a dependent or ward of the court?
- Are you or were you an emancipated minor as determined by a court in your state of legal residence?
- Are you or were you in legal guardianship as determined by a court in your state of legal residence?
- At any time on or after July 1, 2008, did one of the following individuals determine you were an unaccompanied youth who was homeless:
- high school or school district homeless liaison
- director of an emergency shelter or transitional housing program funded by the U.S. Dept. of Housing and Urban Development
- director of a runaway or homeless youth basic center of transitional living program
Q. What is the difference between the University Billing Office and the Office of Scholarships and Financial Aid (OSFA)?
These two offices are separate from one another administratively. The OSFA awards scholarships, grants, loans and work-study. The University Billing Office sends bills, collects payments for university charges, and sends refund checks. Financial aid is disbursed to student accounts to help meet university charges. Financial aid advisors in the Student Service Court can assist students with all financial aid and receivable accounting activities.
Q. How will outside scholarships affect my financial aid award package?
Federal regulations require that students who receive Federal Title IV aid not receive more financial aid than their demonstrated financial need. Your award package will be reviewed and adjusted as necessary. CMU will first reduce your loan or work award. If an over award situation continues to persist, we will then reduce need-based gift aid. We will send you a revised financial aid Award Notice that reflects the changes in your award.
Q. How are outside scholarships disbursed?
Non-CMU Scholarship disbursement policy:
- Estimated scholarships, i.e., Michigan Competitive, Michigan Promise and outside agency, will not reduce the amount of tuition payable by posted deadlines.
- Donors may specify the semester(s) in which the scholarship is paid.
- If a student wants the scholarship distributed in a way that differs from what the donor requests, the student will be asked to get an authorization letter from the donor.
- If the donor letter does not specify a distribution schedule, CMU will disburse scholarships of less than $500 all in the fall semester. Scholarships of $500 ore more will be split with half in the fall and half in the spring.
- If the scholarship has been split and the donor has not given instructions, the student may request the entire award be moved to the fall semester. However, the student is then cautioned that he or she may be short of funds for the spring semester.
Q. Do I need to tell you about a scholarship that I am receiving from my high school or an organization in the community?
Yes. If you are receiving federal aid, we are required to include the scholarship in your package. In addition, most scholarship donors send the checks to the University and make them payable to CMU and the student. This is done to verify that you are enrolled at CMU. Informing us early reduces the number of corrections that must be made to your package and allows us to begin processing any loans included in your package.
Q. If I have the MET or Michigan Competitive Scholarship, can I have the Leader Advancement and the Board of Trustees Academic Honors Scholarships also?
Yes. The value of the Board of Trustees Academic Honors and Leader Advancement scholarships can be used toward room and board.
Q. Are scholarships available regardless of financial need?
Yes. Scholarships are awarded to students based on high academic achievement, athletic ability, or other talent, without consideration of need.
Q. Are new freshmen eligible for the donor-endowed scholarships listed in the CMU Bulletin?
Very few of the Bulletin scholarships are available to incoming freshmen. Most scholarships require that the student have a signed major and an established GPA in a specific field of study.
Q. If I don’t achieve the GPA required to renew my CMU scholarship by the end of the fall semester, will I lose my scholarship?
No. The grade point average for scholarships is reviewed at the end of the academic year, so you will have two semesters to meet the GPA requirement.
Q. If I drop out of school for one semester, will my CMU scholarship be renewed?
No. You must maintain full-time continuous enrollment at CMU to renew your scholarship.
Q. If there is a delay in receiving my outside scholarship, what should I do?
Please contact the Office of Scholarships and Financial Aid. Unless you are enrolled full-time (minimum of 12 credit hours), the scholarship will not automatically pay to your account. Most outside agencies require that the student be enrolled full-time to receive the scholarship.
Q. Should I return an outside agency scholarship check as payment with my billing statement to the CMU University Billing Office?
No. If you choose to pay your bill with an outside agency scholarship check, we suggest that you send the bill and check to the Office of Scholarships and Financial Aid. The payment will be applied promptly.
Q. What other scholarships are available?
There are many local, state and national organizations that grant scholarship funds. A comprehensive free scholarship service is available on the Internet. The Financial Aid Information Page is accessible on the World Wide Web at: http://www.finaid.org . Students should click on FastWeb for an individualized scholarship search. Additionally, MI-Search is a state-sponsored scholarship service available on the Internet. The Michigan Department of Treasury’s Student Financial Aid web site is: www.MI-StudentAid.org . From this site, a link is provided to two national scholarship database services. CMU does not endorse any scholarship search that charges a fee.
Q. If I scored 23 or above on my ACT and received a notice that I am eligible for the Michigan Competitive Scholarship, when should I expect to receive it?
The Michigan Competitive Scholarship award is based on your ACT score and financial need as determined by the federal application process. If you listed another school first on your FAFSA, the Michigan Office of Scholarships and Grants will assume you are attending that school. You will need to notify the Michigan Office of Scholarships and Grants of your decision to attend CMU. You can do this by sending them the bottom portion of the Michigan Competitive Award Notice requesting that the award be sent to CMU or by calling their toll-free number 1-888-447-2687