1

MBA FINANCIAL AID PROGRAM GUIDE 2019 - 2020 Revised 03/11/2019

Welcome to Michigan Ross! The Full-Time MBA (Day MBA) is a two-year program. Students attend four terms (Fall, Winter, Fall, Winter) and complete 57 credit hours to earn their degree. The Ross Financial Aid Office is a satellite office of the University of Michigan Central Financial Aid Office. Our job is to work directly with Ross graduate students, assisting with all aspects of financial aid, from initial application to entering loan repayment.

ADDRESS AND CONTACT INFORMATION

Ross Financial Aid Office University of Michigan Ross School of Business Phone: (734) 764-5139 700 East University, K3521 Fax: (734) 764-2129 Ann Arbor, MI 48109-1234 Email: rossfinaid@umich.edu

Michelle Gurski, Assistant Director of Financial Aid Barbara Stevens, Financial Aid Coordinator

Drop-In Advising Hours (No Appointment Needed):

Monday, Wednesday, and Friday: 10:00 AM - 11:00 AM Tuesday and Thursday: 1:30 PM - 2:30 PM

To request a 15-minute telephone conference call with Michelle Gurski please email rossfinaid@umich.edu.

Please include your eight-digit student ID number when emailing our office.

Table of Content

BILLING DUE DATES (for Tuition and Fees) 2 FINANCIAL AID RESOURCES 3-5

TYPES OF LOANS COST OF ATTENDANCE 6 STEPS TO APPLY FOR FEDERAL FINANCIAL AID FOR U.S. CITIZENS OR PERMANENT RESIDENTS 7-8 OTHER FINANCIAL AID RELATED INFORMATION 9-10 Financial Aid Disbursements

Loans—Cancellation /Adjustments Loan Servicer Required Reading Residency Issues (In-State or Out-of-State) Veterans Multidisciplinary Action Projects (MAP)

FINANCIAL AID CHECKLIST 11-12

2

BILLING DUE DATES (for Tuition and Fees)

Term Due Date

Fall Term 2019 August 31, 2019

Winter Term 2020 January 8, 2020

Fall Term 2020 August 31, 2020

Winter Term 2021 January 6, 2021

Bills, Payments, Payment Plan, Credits and Refunds (including Enrollment Deposit) Students receive an e-bill from the University of Michigan Office of Student Financial Operations approximately 2 weeks prior to the tuition due date. Find information on paying bills, payment plans, late charges, and more on the Student Financial Services website. Student Financial Services 2226 Student Activities Building Phone: (734) 764-7447 515 E. Jefferson Fax: (734) 647-0061 Ann Arbor, MI 48109-1316 Email: um-sfo@umich.edu Toll Free: (877) 840-4738 (within U.S. and Canada only) Credits and Refunds (Including Enrollment Deposit) If payments to your student account (financial aid and/or other payments) exceed the charges due, you may be eligible to receive a refund. Most refunds automatically process. However, some financial aid and cash payments in excess of student account charges (including electronic payments and budget plan payments) will not automatically refund—they become account credit. If your bill is paid in full and excess financial aid remains on the account as a credit, contact Ross Financial Aid to determine if the credit can be refunded. If your bill is paid in full and cash payments remain on the account as a credit, you may leave the credit on the account to apply toward future charges, or you may contact Student Financial Services to request the credit be sent to you as a refund. Direct Deposit We highly recommend all students set up direct deposit via Wolverine Access. Without direct deposit, refunds will be mailed to your current active address in Wolverine Access. Be sure your current active address is updated. To set up direct deposit, log into Wolverine Access > Students tab > Student Business > Payroll and Compensation > Direct Deposit. Direct deposit will remain in effect until you cancel it. Corporate Sponsorships If your company will pay the University of Michigan directly, contact Sandy Taylor at Student Financial Services for assistance: sandyt@umich.edu or (734) 647-0062.

3

FINANCIAL AID RESOURCES Assistantships Appointments for Graduate Student Research Assistantships, Graduate Student Assistants, Graduate Student Instructors and Graduate Student Staff Assistants are considered separately from the financial aid application process.

General appointment information.

Graduate Student Appointment Postings. Scholarships All full-Time MBA students are considered for scholarships during the admission process. Selected students are notified in their admission letters. This applies to U.S. citizens, permanent residents, and international students. No separate application is required. Awards are based on academic ability, professional and personal achievements, and potential to contribute to our community. Scholarships range from $10,000 to full tuition.

The Ross Financial Aid office additionally posts specific scholarship opportunities each academic year. Many of the scholarships are need based. Ross MBA students (U.S. citizens and permanent residents) are encouraged to complete the Free Application for Federal Student Aid (FAFSA) to be considered for all scholarships.

The J. Ira Harris awards is announced via a Ross Financial Aid email sent in mid to late September. This is a need-based award that requires an application. Five MBA1 students are selected to receive $5,000 each. Selected students are notified in late September to early October. The award is renewable in the MBA2, provided the student meets the award criteria.

The J. Ira Harris Merit award is awarded to students selected by the MBA program. No application is required. Ten MBA2 students are selected to receive $5,000 each. Selected students are notified in mid to late August. The award is not renewable.

The McGowan is by invitation-only via a Ross Financial Aid email sent in early June. Eligible MBA2 students must be in the top 5% of their class, pursuing only a Ross MBA degree (not a dual degree) and meet other qualifications. An application is required. One MBA2 student will receive a full tuition scholarship in their MBA2 year. The selected student is notified in mid to late July. The award is not renewable.

The Alumni Board of Governors award is announced via a Ross Financial Aid email sent in mid to late September. This is a need, merit, and community service award. An application is required. One MBA2 student is selected to receive $5000. The selected student is notified in late September to early October. The award is not renewable. For International Students International students with F-1, F-2, J-1, J-2 and G-series visas are required to show proof of enough resources to meet their expenses while attending U-M. Federal regulations limit financial assistance to most non-citizens. Learn more about qualified non-citizen student financial aid programs here.

For information about financial aid and private scholarships for international students contact:

The U.S. Department of State

The Consulate or Embassy of your home country

If you have been admitted to U-M, MBA admissions office for other possible funding sources.

Private Loans. Some U.S. lenders will provide private education loans for international students who have a qualified U.S. co-signer. Some lenders require that the student have a Social Security number prior to applying. To browse a selection of approved lenders, please visit the University of Michigan's FASTChoice Private Education Loans site. U-M has not endorsed these programs, but is making the information available to you.

4

The university adheres to a Code of Conduct for Student Loans that prohibits inducements or incentives by private lenders. For U.S. Citizens and Permanent Residents Students have the option of borrowing through federal loan programs or through a private loan lender of their own choosing. Students seeking federal loan borrowing, will need to complete two Free Application for Federal Student Aid (FAFSA) during the MBA program:

1. 2019 - 2020 FAFSA to use towards the Fall 2019 and Winter 2020. 2. 2020 - 2021 FAFSA to use towards the Fall 2020 and Winter 2021 terms.

FAFSA University of Michigan Title IV Code: 002325

5

TYPES OF LOANS Note: Federal loan interest rates adjust each July and origination fees adjust October each year.

Federal Direct (Stafford) Loan – Unsubsidized

Eligibility Criteria Loan Terms Additional Information/Requirements

Non-need-based Maximum borrowing amount $10,250 per

term.

Borrower can choose to have the accrued interest capitalized (added to principal

balance) or make periodic payments. No penalty for early pay off.

Student must be enrolled at least half-time in a degree program

6.6% fixed interest rate for graduate students (effective July 1, 2018. Rates

change each July 1)

Typical repayment period is 10 years (other repayment options available).

Borrower must be a U.S. citizen or eligible noncitizen

1.066% for loans originated Oct. 1, 2017. (Changes to 1.062% Oct. 1, 2018)

More information is available from the U.S. Department of Education

Interest accrues immediately; paid

periodically or capitalized Can be consolidated with other federal

loans

Principal repayment deferred while

enrolled at least half-time

Federal Direct Loan - Graduate PLUS

Eligibility Criteria Loan Terms Additional Information/Requirements

Credit check approval process Students may borrow up to the cost of

attendance minus other financial assistance.

Borrower must complete the Free Application for Federal Student Aid (FAFSA)

Non-need-based 7.6% variable-fixed interest rate (effective

July 1, 2018. Rates change each July 1)

Borrower can choose to have the accrued interest capitalized (added to principal

balance) or make periodic payments. No penalty for early pay off.

The graduate student is the borrower 4.264% origination fee for loans originated

Oct. 1, 2017. (Changes to 4.248% Oct. 1, 2018)

Typical repayment period is 10 years (other repayment options available).

Student must be enrolled at least half-time in a graduate-level program

Interest accrues immediately; paid periodically or capitalized

More information is available from the U.S. Department of Education

Borrower must be a U.S. citizen or eligible noncitizen

Loan is deferred while you are enrolled at least half-time and for an additional six

months after you are no longer enrolled at least half-time. Interest accrues during

deferment; you may pay accrued interests or allow it to capitalize when deferment

ends. Details at the U.S.Dept. of Education

Can be consolidated with other federal loans

Private Educational Loans Private loans may offer favorable rates. Most private loan lenders require half-time enrollment. Fees from 0-12%, depending on borrower’s credit. Some may have origination fees. Loan amounts often are cost of attendance minus financial aid offers. Private loan processing averagely takes 1 month to fully process. To browse a selection of approved lenders, please visit the University of Michigan's FASTChoice Private Education Loans site. The University of Michigan does not endorse any specific private loan program.

6

COST OF ATTENDANCE

All federal Cost of Attendance budgets include the estimated costs for tuition and fees, books, and living expenses. Below is the current in-state/out-of-state estimated Cost of Attendance budget for Fall 2018 and Winter 2019. The 2018 - 2019 tuition rates were approved by the University of Michigan’s Board of Regents in June 2018.

Fall 2018 and Winter 2019 Tuition $63,646 / $68,646

Registration Fees $328

Books and Supplies $1,716

Food and Housing $15,570

Personal Expenses (including Health Care Insurance)

$6,352

Loan Fees $222

TOTAL COA: $87,834 / $92,834

*The 2019 - 2020 tuition rates will be approved by the University of Michigan’s Board of Regents in June 2019. 2019-2020 cost of attendance budgets will be available early July 2019. Please note that other budget costs may also be adjusted. Your financial aid is awarded based on your budget. You can borrow to cover tuition and registration fees only, or if you wish, you can borrow up to the Cost of Attendance, less other aid (such as scholarships and department aid) to cover the other budget expenses. If you completed a FAFSA, you will receive a $10,250 unsubsidized loan each term you are enrolled. The balance of the Cost of Attendance, can be borrowed through a Grad PLUS or a private loan. NOTE: Federal loans have loan origination fees, and private loans may or may not have processing fees. The principal amount you borrow is applied toward total allowable Cost of Attendance budget, however only the amount of borrowed loan minus the loan origination fees will be applied towards your University charges. For example, the $10,250 unsubsidized loan has a 1.062% loan origination fee. The $10,250 is the amount we calculate as borrowing against the Cost of Attendance. The actual amount that will apply toward your tuition bill is $10,141. Keep fees in mind if you are borrowing only to cover tuition and fees or another specific amount that is less than the Cost of Attendance. The University of Michigan bills all students for tuition and registration fees. Housing is billed if you live in University of Michigan housing. International students are billed for insurance (part of personal expenses) each month. For information on current tuition and fee rates, please visit the Office of the Registrar website. Sometimes the estimated Cost of Attendance does not realistically meet a student’s actual expenses. See below Budget Re-Evaluation – Increase Loan Funds section to learn more about how to increase your standard estimated Cost of Attendance budget to include actual expenses.

7

STEPS TO APPLY FOR FEDERAL FINANCIAL AID FOR U.S. CITIZENS OR PERMANENT RESIDENTS

1. Complete the Free Application for Federal Student Aid (FAFSA) online at studentaid.ed.gov.

Although we highly recommend you submit your FAFSA by March 31 each academic year, you can apply after this date, for loan consideration only.

You must complete a new FAFSA each academic year to receive your federal loans.

Use the University of Michigan Title IV School Code 002325 to apply for aid at the Ross School of Business.

Upon completion of the FAFSA, all students are eligible for $20,500 per academic year ($10,250 per term) in Federal Direct Unsubsidized (Stafford) Loans. See details of Unsubsidized loan below under the TYPES OF LOANS AND AID section.

2. Additional supplemental documentation may be required

You may be selected to submit additional supplemental documents, in order for us to finalize an Award Notice.

The Office of Financial Aid will send an email notification if additional supplemental documentation(s) are needed to complete the FAFSA award processing.

Students may sign in to Wolverine Access to view the status of their FAFSA application.

Please note that the award processing may take 2-3 weeks from receipt of the FAFSA AND any required supplemental documents. Note: we are unable to finalize an award until all supplemental documents have been received/reviewed.

3. Financial Aid Official Award Notice email notification

A notice will be sent to you via email that your Financial Aid Official Award Notice has been created.

You may view this on Wolverine Access.

Please read carefully over the Official Award Notice and review Required Reading.

Decline any unwanted financial aid offered per the instructions in the Award Notice, under the Accept/Decline section of Wolverine Access.

4. To fully Accept Unsubsidized loan offer

All aid is automatically placed to the assumption of “Accept” on Wolverine Access. However as a first time loan borrower at the University of Michigan, you may be required to complete additional documents to fully accept your loan offer. If this is your first time borrowing a loan at University of Michigan, you will be emailed instructions a month prior to scheduled disbursement to complete an online Entrance Counseling session, and to sign an unsubsidized Master Promissory Note (MPN). Or you may go to the following website and do this any time prior to receiving notification from our office at: studentloans.gov

The address below is required in the Master Promissory Note process:

University of Michigan - Ann Arbor 503 Thompson Street Ann Arbor, MI 48109-1340 - G02325

5. Need Additional Borrowing?

Alternative loans include the Federal Grad PLUS (see below section on TYPES OF LOANS AND AID) or Private Loan Programs. Please note that alternative loans require a credit check. Processing time is estimated at 4 weeks, but could be longer depending upon individual circumstances.

If approved for an alternative loan, the student will be able to borrow up-to the remaining Cost of Attendance that’s not met by University’s financial aid award.

A new applications must be submitted each academic year, student wishes to borrow these loans.

8

For Fall/Winter terms we suggest to apply for the Federal Grad PLUS or Private Loans after July 1 but ideally before August 1 if you wish to have funds before the Fall billing due date. We can still create a loan after this date for a term that is still active.

o NOTE: Students that apply late and are using an alternative loan to pay for the remaining difference of their bill not covered by their Official Award Notice may be subject to a late fee assigned by Student Financial Services for unpaid balance after the initial billing due date.

o Unresolved past due balance will result in a hold against the student’s account. Holds will prevent students from graduation, requesting for transcripts, bidding and registering on future terms.

o Once the term ends, we will not be able to create a federal unsubsidized or Grad PLUS loan for a past term. Some private loan lenders offer Retroactive Educational Loans.

6. Sign up for Direct Deposit in Wolverine Access.

Funds in excess of tuition and fees refunded to you by Electronic Funds Transfer (EFT).

Without Direct Deposit, the refund check is mailed to the current active address in Wolverine Access. Be sure to updated or review your address on Wolverine Access two weeks before each term.

Once Direct Deposit is initiated, it remains in effect until you cancel it. To cancel, complete a Direct Deposit Authorization Form and submit it to the Payroll Office.

To set up Direct Deposit: Go to Wolverine Access > Student Tab> Student Business > Payroll and Compensation > Direct Deposit. You may set up direct deposit at any time during the year; however, allow 10 days for processing.

HOW TO APPLY FOR A FEDERAL DIRECT GRAD PLUS LOAN

1) First complete the Free Application for Federal Student Aid (FAFSA). 2) Than complete separate application for Grad PLUS.

Use Federal School Code 002325 – for University of Michigan Ann Arbor. 3) Follow instructions to complete Grad PLUS Master Promissory Note, if you have not completed one. If not

approved, select from the available options. First-time borrowers must also complete the Direct Loan Entrance Counseling session.

9

OTHER FINANCIAL AID RELATED INFORMATION

Financial Aid Disbursement Financial aid funds disburse approximately 10 days prior to the first day of the term. Financial aid pays tuition and fees first. If you have financial aid funds that exceed the charges on your student account at the time of disbursement, you will receive a refund, which may be used to pay other educationally related expenses. Note: that if subsequent charges are made to your account, you are responsible for paying them.

Your refund will be issued in the form of either a direct deposit into your bank account or a check mailed to your current active address in Wolverine Access. We highly recommend that students set up direct deposit in Wolverine Access. (See information regarding Direct Deposits, above in the BILLING DUE DATE section)

Loans—Cancellation /Decrease Should you need to cancel or adjustment your loan amount, please email rossfinaid@umich.edu. Please be sure to include your eight-digit student ID number in the email. Note: Students can cancel federal loan offers any time prior to disbursement. Students are allowed 60 days after the first initial date of loan disbursement to cancelling or decreasing a federal loan amount. Private loans have greater restrictions with cancellation and adjustments. Private loans may not be adjusted at any point after loan certification. Cancellations must take place before we receive funds from Private loan lender. Budget Re-Evaluation—Increased Loan Funds Budget Re-Evaluations are only offered during the Fall and Winter terms. The Budget Re-Evaluation form becomes available October 1 and closes March 20. Budget adjustment considerations can only be for student expenses. Expenses for Family members or others cannot be included. Moving expenses, club fees, interview costs (including travel and clothing) also cannot be included. Some examples of allowable expenses are rent, phone, internet, travel expense to home state (out-of-state students only) and a one-time computer expense. There are limits to the adjusted amounts. Documentation is required for each expense you submit, and it takes approximately two to three weeks to process. Loan Servicer Federal loan borrowers are assigned a federal loan servicer to assist during borrowing and repayment. Go to the National Student Loan Data System for servicer information. Required Reading The Central Office of Financial Aid publishes Required Reading. Check it out for a wealth of information - from receiving your award notice to using Wolverine Access.

10

Residency Issues (In-State or Out-of-State) Contact the Residency- Registrar’s Office at:

University of Michigan Office of the Registrar 5000 LS&A Building Phone: (734) 764-1400 500 S. State St Fax: (734) 615-2432 Ann Arbor, MI 48109-1382 Website: http://www.ro.umich.edu/resreg.php

Veterans The Stephen M. Ross School of Business is proud to support our veterans and military members. The Board of Regents at the University of Michigan offers in-state tuition status to all those who serve or who have served. Please reference our U.S. Veterans webpage for information on using your benefits at Ross. Dual Degree Students There are more than 20 established dual degree programs available to Michigan Ross students. Most dual programs require a three-term enrollment at Michigan Ross and three terms at your dual program. Contact Ross Graduate Academic Advising for more information on dual degrees, and keep in contact with Ross Financial Aid during your dual degree studies at the University of Michigan. The Ross Financial Aid office processes general financial aid for all Ross dual programs with the exception of Law and Medical. Dual Law and Medical students should contact their Law and Medical financial aid offices for assistance. Ross Financial Aid will post Ross scholarships awarded to dual degree students (including Law and Medical dual students). Multidisciplinary Action Projects (MAP) All MBA1 students are enrolled in MAP during their Winter 2020 term. During MAP, all students have payments made on their behalf. Per federal policy, all students must have all sources of financial aid payment reported. This includes any payment made on the student’s behalf toward his/her education expenses. Ross Financial Aid calculates an estimated MAP payment each academic year and uses this estimate for all MBA1 students. The estimate for MBA1 students entering Ross in Fall 2019 is $2,122. To record these expenses, your Winter 2020 budget has been increased by $2,122, and a $2,122 placeholder has been added to your financial aid summary. These two actions record the estimated expenses you will incur during your MAP project and document the expenses paid on your behalf. Please note the $2,122 is not refundable. This budget and the corresponding placeholder cancel each other out and create an equal balance of expenses and payments on your account. Please contact Ross Financial Aid if you have any questions regarding this process.

11

U.S. CITIZEN AND PERMANENT RESIDENT FINANCIAL AID CHECKLIST

___/ Complete the Free Application for Federal Student Aid (FAFSA) online at: studentaid.ed.gov Use the University of Michigan Title IV School Code 002325 to apply for aid at the Ross School of

Business. ___/ Submit additional documentation, if required. Be sure to check your umich email regularly. You will be notified by email if additional documentation

is needed. ___/ Financial Aid Official Award Notice email notification. ___/ Complete the Entrance Counseling and sign your Direct Loan Master Promissory Note (MPN) online at:

https://studentloans.gov/myDirectLoan/index.action

The address below is required in the Master Promissory Note process: University of Michigan – Ann Arbor 503 Thompson Street Ann Arbor, MI 48109-1340 – G02325 ___/ Submit an alternative loan application if you plan to borrow additional funds to help with remaining

tuition, or remaining Cost of Attendance budget.

Processing time is estimated at 4 weeks, but could be longer depending upon individual circumstances. ___/ Set up Direct Deposit in Wolverine Access.

To set up direct deposit, log into Wolverine Access > Students tab > Student Business > Payroll and Compensation > Direct Deposit.

___/ Review your student account regularly in Wolverine Access. ___/ Questions regarding refunds from credits on your account contact Student Financial Services at

um-sfo@umich.edu or call (734) 764-7447.

12

INTERNATIONAL STUDENT FINANCIAL AID CHECKLIST

___/ Select a Private loan lender. ___/ Submit your loan application, and work with private loan lender

Processing time is estimated at four weeks, but could be longer depending upon individual circumstances. Check with Private Loan Lender for estimate of loan processing time and add 2 additional weeks for University processing time.

___/ Set up Direct Deposit in Wolverine Access.

To set up direct deposit, log into Wolverine Access > Students tab > Student Business > Payroll and Compensation > Direct Deposit.

___/ Review your student account regularly in Wolverine Access. ___/ Questions regarding refunds from credits on your account contact Student Financial Services at

um-sfo@umich.edu or call (734) 764-7447.