Financial Assistance for Childcare
I. U-M Childcare Subsidy program for students
The U-M Child Care Subsidy Program provides up to $3,630 per academic year for undergraduate or graduate students with one child who meet application and financial guidelines (award amounts increase significantly if applicants have more than one child, and spring/summer half-term awards are also available). To qualify, a student must demonstrate financial need and utilize child care because the student is a single parent or, if married, has a spouse/partner who is either also a student or working at least 20 hours per week outside the home. Also, the family must use child care that is licensed by the State of Michigan (center or home-based facilities; U-M families may contact our Child Care Referral Specialists at worklife@umich.edu or 734-936-8677 for referrals). International students may also be eligible.
The U-M Office of Financial Aid administers this program. For more information on eligibility criteria and to access the Child Care Subsidy application form, please visit: http://www.finaid.umich.edu/Types_of_Financial_Aid/child.asp or call 734-763-6600.
II. U-M Financial Aid Office—Loans covering child care expenses for students
Students with unmet financial need may apply for loans to cover the full cost of their childcare expenses through the financial aid office.
III. U-M Tuition Grant Program for faculty, staff and students
The Child Care Tuition Grant (CCTG) is a U-M program designed to assist families with young children meet the cost of licensed child care at University of Michigan Central and North Campus child care centers. It is available to University faculty, staff and students who have children enrolled at the U-M Northwood Child Development Center, UM Pound House Children’s Center, U-M Children’s Center and U-M Children’s Center for Working Families. Support for this program is made possible through the Provost.
Eligibility for the Child Care Tuition Grant is determined by Housing and Urban Development (HUD) guidelines for Washtenaw County based on family size and median income and awards vary according to these criteria. Interested families may pick up an application from the participating Central Campus or North Campus child care center in which their child is enrolled. Completed applications should be submitted to the Director for evaluation and determination of eligibility. Written notification of a center’s decision will be provided to applicants.
All awards made under this program will be paid directly to the child care center. Enrollment in the program is on a continuous basis, with applications accepted at any time. However, participating families must reapply each semester if they wish to continue in the program. For further information, please contact the Center Director of one of the four participating child care centers.
- ALL UM STUDENTS: A reminder that applying for the CHILD CARE SUBSIDY (through the Office of Financial Aid) is required prior to applying for the Child Care Tuition Grant. Once eligibility for the Child Care Subsidy is determined, the family may then apply for the Child Care Tuition Grant. A reminder that any amount awarded through the Child Care Tuition Grant will reflect dollars remaining, after the deduction of the Child Care Subsidy Scholarship amount.
IV. Earned Income Tax Credit (EIC)
The Earned Income Tax Credit is available to employees with children who earned less than $36,348 in 2006 ($38,348 married filing jointly) with two or more children; $32,001 ($34,001 married filing jointly) with one qualifying child. Depending on income and number of children, employees may receive a credit (or refund, if they pay no taxes) of up to $4,536. Employees can collect a portion of their EIC payment in their paycheck. Although this money need not be used for child care, it can help with the cost of care. If you wish to receive an advance in your paycheck, you must submit a Form W-5 to Payroll (734) 615-2000 (central campus) or (734) 764-3125 (Health System). For complete information, consult your tax advisor and please visit: http://www.irs.gov/individuals/article/0,,id=96406,00.html
V. Child and Dependent Care Credit
The credit is a percentage of the amount of work-related child and dependent care expenses you paid to a care provider if you meet specific conditions. For more information, consult your tax advisor and please visit: http://www.irs.gov/newsroom/article/0,,id=106189,00.html
VI. Flexible Spending Accounts (Dependent Care FSA)
The University’s Flexible Spending Accounts allow you to set aside pretax dollars for certain out-of-pocket health care and dependent care expenses, thus lowering the amount of income tax you will pay while providing more value for every expenditure you make.
Managing a Flexible Spending Account is simple. Each year, you set aside an amount you reasonably predict you will spend on work-related dependent care and contribute this sum on a pretax basis into the Dependent Care Flexible Spending Account.
Contribution amounts are reported to SHPS (the University’s new external claims processor) monthly at the end of the month in which the payroll deduction is taken. Then, as you incur eligible expenses, you simply submit the required documentation to SHPS. SHPS will usually reimburse all claims for eligible expenses within ten business days from the date it receives your request. See SHPS Web site at http://www.myshps.net for more information.
To receive a reimbursement from your Dependent Care Flexible Spending Account, you must have accumulated sufficient contributions to cover your claim at the time your request is made. For further information, please contact the HR/Payroll Service Center at (734) 615-2000 or 1-866-647-7657 (toll free).
VII. Department of Human Services (DHS) Child Development and Care Program
The State of Michigan has a program for income-eligible families who need assistance with child care costs. Parents may qualify if they need child care for employment, high school completion, or family preservation (treatment activity for a health or social condition). For income guidelines and eligibility, please click here.
VIII. Child Care Network Scholarships
Child Care Network/Washtenaw Regional 4C has some funding to assist income eligible undergraduate families with a portion of the cost of their licensed child care (degreed programs beyond undergraduate are not eligible for CCN scholarship assistance). Working families have priority.
Undergraduate students may be eligible for assistance if they demonstrate a history of low-income status, are a single parent, or have a spouse/partner who is either also a student or employed outside of the home. For consideration, please call 734-975-1840 and ask for a Family Support Specialist.
IX. Affordable child care options
Our Child Care Referral Specialists can discuss creative ways to maximize your child care dollars while looking for quality care; contact them at worklife@umich.edu or 734-936-8677. Referral information on child care program costs and options is available, including programs that may offer scholarship assistance or sliding scale rates.
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