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Financial Aid
Financial aid programs are designed to provide assistance to students who otherwise would not be able to pursue a post-secondary education. A basic principle of most aid programs is that students and their parents pay for an education according to their capabilities. Therefore, student financial aid programs are designed to supplement-not replace-a family's contribution toward educational costs.
Even with relatively low tuition and fee charges, the cost of a college education still can be a financial burden for many families. (Estimated expenses for an undergraduate student at the University appear in Table 3 of the Tuition and Fee Schedule.) However, no student should fail to apply for admission because his or her family feels unable to pay the full cost of a college education.
The Office of Student Financial Aid (Student Services Arcade Building, 620 East John Street, Champaign IL 61820) administers most federal, state, and institutional financial aid programs at the University of Illinois at Urbana-Champaign. If a family's resources are determined to be insufficient to meet necessary educational expenses, financial aid in the form of loans, employment, grants, and/or scholarships may be made available to the student and his or her parent(s).
Staff Members in the Office of Student Financial Aid are available to help those seeking information on financial assistance. Office hours are from 9:00 a.m. to 5:00 p.m. Monday through Friday, except on all-campus holidays. Students and their parents may call the office at (217) 333-0100 or visit its home page at http://www.osfa.uiuc.edu.
APPLYING FOR AID
Students must complete a Free Application for Federal Student Aid (FAFSA) to apply for all need-based financial aid administered by the Office of Student Financial Aid-including federal, state, and institutional grants, scholarships, loans, and work-study. Those continuing students who filed a FAFSA to apply for aid during the preceding academic year should receive a Renewal FAFSA directly from the federal processor around January or February prior to the academic year for which aid is desired. Students who are applying for aid for the first time should complete and submit to the federal processor a regular FAFSA. FAFSAs are available at most college or university financial aid offices, or from most high school guidance counselors and libraries.
When completing the Renewal FAFSA or regular FAFSA, students should identify the University of Illinois at Urbana-Champaign as the school to which the information on the FAFSA should be sent. In Step Six, they should list Federal School Code: 001775; College Name: University of Illinois at Urbana-Champaign; College Address: 620 East John Street; City: Champaign; State: IL. All students must follow the instructions for question 28. DO NOT leave this question blank.
The University's preferential filing date for financial aid is mid-March prior to the academic year for which aid is desired. All requests for assistance filed by March 15 will be given equal consideration for campus-based aid (awards made by the Office of Student Financial Aid). Students who apply after March 15 will be considered for the Federal Pell Grant and Federal Direct Loans, but will receive campus-based aid only if funds are still available. Because eligibility for need-based financial aid depends upon a family's financial situation, which can change on an annual basis, students must reapply for financial aid each year.
After a student completes a FAFSA, he or she should send it to the U.S. Department of Education's federal processor in the envelope provided with the application. Applying a needs-analysis formula to the information the student provides on the FAFSA, the federal processor will determine his or her Expected Family Contribution (EFC)-the amount that the federal processor calculates the student and his or her family should be able to contribute toward that student's college education during the academic year. The processing time usually takes four to six weeks from the time the processor receives your FAFSA.
Upon determining the student's EFC, the federal processor will mail to him or her a Student Aid Report (SAR). The SAR explains how the EFC was calculated, as well as whether the student has been selected for a process called verification. Approximately 30 percent of all financial aid applicants are selected for verification and are required to submit to the Office of Student Financial Aid copies of documents from which the Office can ensure the accuracy of the information provided on the FAFSA. (These documents include, but are not limited to, copies of the student's and/or his or her parents' federal tax returns). The student should read and follow any instructions on the front of the SAR.
The Office of Student Financial Aid will receive the student's needs-analysis information from the federal processor electronically and will determine his or her financial need and eligibility for aid by subtracting his or her EFC from the estimated cost of attendance.
AWARD LETTERS
After the Office of Student Financial Aid has received the student's data from the federal processor and calculated his or her financial need, it will determine the types and amounts of aid for which the student is eligible. Then the Office will send the student a Student Financial Aid Award Letter. Students should read their Award Letters carefully and thoroughly, and follow any instructions. To receive aid without unnecessary delays, students need to follow through on each required procedure.
SOURCES OF FINANCIAL ASSISTANCE
There are several types of financial aid available. As the University's funds are limited, students should seek assistance provided by national, state, and local organizations.
SCHOLARSHIPS
Most University merit-based scholarships are awarded by academic departments or colleges. Usually, departments notify students if they are eligible to receive a scholarship on the basis of their academic records or admissions information.
There are many scholarships that are offered and awarded by private corporations and nonprofit organizations each year. While it is the student's responsibility to search and apply for such scholarships, there are scholarship search services available to help. Two such services are the Illinois Student Assistance Commission's Higher EdNet service and an online service called FastWEB. For more information about both of these services, please see the Office of Student Financial Aid Web page (http://www. osfa.uiuc.edu).
GRANTS
The Office of Student Financial Aid automatically considers students for each of the grant programs it administers when the student applies for aid using the FAFSA. Students do not complete a separate application for these grants.
Two major sources of financial assistance for undergraduate students are the Federal Pell Grant and the Illinois Student Assistance Commission (ISAC) Monetary Award Program (MAP) grant. For 2000-01, Federal Pell Grant awards ranged from $400 to $3300 and ISAC MAP grants ranged from $300 to $4730.
The Federal Supplemental Educational Opportunity Grant is a program distinct from the Federal Pell Grant. The federal government annually provides post-secondary institutions with allocations from which awards are made. During 2000-01, awards ranged from $100 to $2,500.
Students for Equal Access to Learning (SEAL) and Student-to-Student Matching (STSM) grant programs are funded by voluntary student contributions and matching funds provided by the state through the Illinois Student Assistance Commission. Students at Urbana-Champaign initiated the SEAL program by referendum in 1970 and have reaffirmed it every four years since then. STSM grants are awarded in accordance to rules prescribed by the Illinois Student Assistance Commission. During academic year 2000-01, awards ranged from $100 to $1,000.
EMPLOYMENT: A FORM OF SELF-HELP FINANCIAL AID
The Office of Student Financial Aid offers employment assistance to University students seeking part-time work. The University employs more than 14,000 part-time student workers across campus. Each year, these students earn more than $11 million. Additionally, many students work in the community.
Hourly wages for student workers vary according to the type of work and responsibilities involved, but equal at least minimum wage. Most jobs require from 10 to 15 hours of work per week.
FEDERAL WORK-STUDY
Federal Work-Study is a financial aid program that helps colleges and universities provide jobs for students. To participate in the program, a student must apply for financial aid and have a Federal Work-Study award as part of a financial aid package from the Office of Student Financial Aid.
STUDENT LOANS: ANOTHER FORM OF SELF-HELP FINANCIAL AID
The Office of Student Financial aid offers University of Illinois Long-Term Loans and Federal Perkins Loans to students demonstrating considerable financial need. These loans carry an interest rate of 5 percent and repayment is deferred until six months after the borrower ceases to be a full-time student.
FEDERAL DIRECT STUDENT LOANS
The University of Illinois participates in the William D. Ford Federal Direct Student Loan program. Under the Direct Loan program, the University disburses loans directly to students through funds received from the federal government. All students who apply for financial aid using the FAFSA and who are enrolled at least half-time are automatically considered for Direct Loans by the Office of Student Financial Aid.
Subsidized Direct Loans are available to students demonstrating financial need. The interest subsidy is paid by the federal government while the borrower is in school, and payments are deferred until six months after the borrower ceases to be enrolled at least half-time. Based on year in school and financial need, students may borrow up to annual maximums set by the federal government. At the freshman level (under 30 credit hours), a student may borrow up to $2,625; at the sophomore level (3059 credit hours), $3,500; and at the junior and senior levels (60+ credit hours), $5,500. The aggregate maximum that a student can borrow for undergraduate study is $23,000. The interest rate varies, but the maximum is 8.25 percent.
Parents of dependent students can borrow a Federal Direct PLUS Loan through the Direct Loan program For each dependent student each year parents may borrow up to educational costs minus the amount of other aid the student receives. Payments begin while the student is still in school. The interest rate varies, but the maximum is 9 percent.
Graduate students and students who meet the federal government's definition of an independent student (defined on the FAFSA) generally are eligible to borrow unsubsidized Direct Loans in addition to subsidized Direct Loans. While payments on the amount borrowed are deferred until the student borrower leaves school, and a relatively attractive interest rate (maximum 8.25 percent) is charged, interest accrues while the student is in school. Based on class level and the amount of any subsidized Direct Loans that the student is receiving, independent undergraduates may borrow up to the following annual amounts: freshman, $6,625; sophomore, $7,500; and juniors and seniors, $10,500.
SPECIALIZED AID PROGRAMS
Although most guidelines for awarding financial aid to Urbana-Champaign students are determined by the Office of Student Financial Aid, some aid programs are administered by groups and agencies to which the student applies directly. Such programs include the Illinois Veterans Grants, Illinois Department of Children and Family Services Assistance, Illinois Department of Rehabilitation Services, Children of Veterans Scholarships, General Assembly Scholarships, Illinois National Guard/Naval Militia Scholarships, Illinois Reserve Officers' Training Corps (ROTC) Scholarships, and MIA-POW Dependents Grants. For more information about these scholarships, students should visit the Office of Student Financial Aid home page at www.osfa.uiuc.edu or contact the administering agency directly.
SHORT-TERM LOANS
To meet expenses in emergencies, undergraduates may borrow up to $400 for approximately 30 days or until the last day of instruction for the semester, whichever comes first. To make more money available to a maximum number of students, applicants should borrow as little as is necessary for as short a period of time as possible. A service fee of $3 is charged. The interest charge on overdue short-term loans is 18 percent annually on the unpaid balance.
Students who are U.S. citizens or permanent residents should apply in person to the Office of Student Financial Aid. Students are special programs required to provide their i-cards for identification. International students (noncitizens who are not in the United States as permanent residents) should contact the Office of International Student Affairs (610 East John Street, Champaign IL 61820) for information.
Produced by the Computing and Communications Services Office (CCSO) and the Office of Publications and Marketing for the Office of the Provost and Vice Chancellor for Academic Affairs. The University of Illinois is an equal opportunity, affirmative action institution. Cover photograph by Don Hamerman.