The University of Michigan has increased financial aid packages in an effort to reach out to the school’s most needy students. The university has expanded its M-PACT program, replacing loans with grants for qualified students.

Joe Serwach, a U-M spokesman, said he hopes the program inspires more people to go to college.

“Studies have shown that if students have to take out a lot of loans, they’re less likely to go to college,” Serwach said. “I encourage everyone to apply for financial aid at least once, just to find out what you’re eligible for. It could affect someone’s decision to come here (college).”

M-PACT, which was launched in 2005, is designed to supplement traditional financial aid for low-income, undergraduate, Michigan residents. Criteria for qualification are based on family income, family size and assets.

Under the original M-PACT program, which will remain in effect, students receive grant funds to help reduce their need for loans. The expanded M-PACT will replace all loans with grant money and offer students a $2,500 federal work-study grant to cover personal expenses. Combined with traditional financial aid, M-PACT and expanded M-PACT will cover the cost of tuition, room and board and books, leaving a students expected contribution at $0 or close to it.

“That sounds excellent,” said Teaira Bryant, a senior at U of M. “I used to have nightmares about paying back my loans.” Bryant hasn’t qualified for M-PACT, but says students who do are lucky.

“Interest rates are on the rise, and tuition is increasing, so it’s good to see that some students are getting some help.

Pam Fowler, director of financial aid for the University of Michigan said 1,800 students will receive grants from M-PACT this year and of those students, 400 will benefit from the expansion.

“We’ve improved financial aid for everyone, not just M-PACT students” Fowler said. “But, we want to make sure that we continue to attract these (needy) students. We’re hoping that the expanded M-PACT will keep these students away from borrowing.

This entry was posted by Taman Siswa on Monday, August 14, 2006 at 12:40 am and is filed under Education News, Financial Aid. Tags: College, Financial Aid, Grant, Loans, Student, Study, . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.