When you think of how federal stimulus money is being used, you probably think big road construction projects and big bailouts.
But 13 On Your Side found a good percentage of stimulus money in West Michigan is going to individuals, perhaps your friends and neighbors.
Almost one third of the undergraduates at Grand Valley State University, about 6,000 students, qualify for some amount of Pell grant from the federal government. That's up 25% from last year. GVSU Director of Financial Aid Ed Kerestly says he's seeing "an increased need because families don't have the same amount of income that they have had in other years."
Kerestly says Pell grants help needy students pay for college. He says the amount a student can receive also went up this year, from a maximum of $4,700 to a max of $5,300.
Kerestly says, "I think for many students it's the difference between going to college and not going to college. These grants go to the students who have the least ability to pay for college."
A lot of students around the country are waiting to see how much Pell funding the federal government budgets for next year.
Pell grants can be used at most any college or university around the country, so students all around Michigan are benefitting.
Anyone who is interested in getting federal financial aid has to fill out a FAFSA form, which you can find by clicking here.
In rural parts of West Michigan, some homeowners are using federal stimulus money for their home loans.
The US Department of Agriculture's Rural Development Agency runs the single family housing program, helping people to purchase houses in rural areas. Area Specialist Aileen Waldron says, "We're looking at households where the income is such that they cannot afford a conventional monthly, mortgage payment. Most of the individuals who come to us have good paying jobs, but not high paying jobs."
Depending on their income, they may qualify for a guarantee of their loan through a conventional lender. Or, families with lower incomes can qualify for a partial government subsidy of the mortgage payment. Waldron says, "Every month the homeowner's going to pay a part of the house payment and the government is going to pay a part of the house payment. As the homeowner's income goes up, the subsidy goes down."
Waldron says they are seeing a lot more need for these home loans, especially with the tightening of conventional mortgage lending. And she says the stimulus money is coming in handy. She explains, "In a typical year, we do not have funding that carries us through a 12 month period. We typically have funds that become exhausted before that 12 month period comes up." Because of stimulus money, rural development staffers hope they'll be able to continue helping home-buyers all year.
If you think you may be eligible for help through the Rural Housing Program, you can call (800) 944-8119 for more information. There are income requirements, which you can find out about by clicking here. Only homes in designated rural areas are eligible for the program, you can find out where those areas are in West Michigan by clicking here.
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