According to a report from the Higher Education Washington, Inc., NewsLine, the University of Michigan is expanding its M-PACT financial aid program. More than 400 UM students will see the effects immediately and save at least $5,000 a year because of these changes. The M-PACT program replaced student loans with grants for the neediest students and is part of a 10-percent increase in financial aid grants for both new and returning Michigan students. About two-thirds of UM students receive some form of merit- or need-based financial aid.
M-PACT is open to low-income Michigan resident undergraduates and supplements traditional financial aid. Unlike loans, students do not have to repay grants and work-study assistance; and the total M-PACT financial aid package covers their tuition, room and board, books, and other expenses. For example, a typical UM freshman in the College of Literature, Science, and the Arts who would receive the full benefits of the expanded M-PACT program would receive $2,500 in federal work-study plus $17,678 in grants from federal, state, and other University of Michigan sources.
The M-PACT program is projected to disburse more than $3 million next year to more than 1,800 students. Even before the new changes were instituted, Kiplinger's had rated the University of Michigan number 16 on a national list of the 100 best values in public higher education. The original M-PACT program will remain in effect, which originally increased the need-based grant assistance to $12,200 per year for students from families whose financial circumstances made them eligible for a full Pell grant. M-
PACT aid will top off the university's existing financial aid package with additional grants of $1,500, $1,000, or $500, depending upon the student's financial need. In every case, the new aid produces a dollar-for-dollar reduction in loans. Financial aid officials regularly advise students to apply for aid at least once to find out what options might be available to them, as family income, family size, and total family assets can influence the amount of aid packages.
Students from low-income families typically shy away from taking on student loans. The burden of a large amount of undergraduate debt is especially hard on the lowest-income students; the prospect of having to pay back loans for years to come may discourage the students from enrolling in graduate or professional school.
The program was launched by University of Michigan President Mary Sue Coleman in early 2005 and intends to leave low-income students with an expected financial contribution of close to nothing. Although it provides the greatest amount of assistance to families at the lowest end of the income scale, M-PACT also was designed to assist those students whose families may earn slightly more than the cutoff amount to qualify for a Pell grant. The University of Michigan is working through its Michigan Difference campaign in an attempt to raise a permanent endowment of at least $60 million to support M-PACT.
Article Title : Expansion Of UM's M-PACT Plan
This article is enjoyable to read and aside form that this is also informative o ne. I also found some relevant topics here that are very useful for my research. You really have a good point of sharing this one and this could be a big help f or all of us.
Posted By : tracy faust
This blog makes me realize the energy of words and pictures. As always your thin gs are just gorgeous and I am grateful that you let us look in! Keep coming up w ith ideas.
Posted By : carrie prather
Share this story:
EdFed introduces… Awareness… Learnal
At, EdFed, we proudly introduce 'articles on student loans' and 'Learnal - the journal to learn from', our free newsletter on student loan management, which is sure to keep you informed of the latest events and happenings in the student loan market. To receive your copy of the above just use the RSS feed below and add this to your "My Yahoo", blogs, newstickers, and other similar channels accepting distributable content.
Click here to sign up for our Weekly Newswire now!
How EdFed Helped others!
The service I received from EdFed was unbeatable in comparison to other lenders. They were highly trained and very friendly. I felt confident that they could help me, and they did. I saved $23,261 on my federal loans. Thank you EdFed! - Jake K. Omaha, NE
Student Loan Consolidation Info - How to Choose the Right Loan Company
The Career Resources column is presented by Granted, America's leading job search engine dedicated to getting people jobs.
Education is one of the most basic right of any human, but with the increase in prices and the costs involved in education this has made these rights turn into a privilege which very few can enjoy. Any normal person today in the whole of United States has to take an education loan at one point of time to pay for their education fees.