Understanding Financial Aid

Agenda

• Types of financial aid

• Application process

• Financial aid award letter

• Special circumstances/professional judgment

• Resources

• Questions

What is Financial Aid?

Types of Scholarships – Free Money!

• General vs. college-specific

• Scholarships for 2-year vs. 4-year institutions

• Merit (academic) scholarships

• Need-based scholarships

• Scholarships for minorities

• Student-specific scholarships

• Community service scholarships

• First in family scholarships

• Athletic scholarships

• Legacy scholarships

• Military scholarships

• Prestigious scholarships

• Scholarships for men/women

• Scholarships for unique talents

Tips for Scholarship Search

• Complete the FAFSA to become eligible for need-based

scholarships and grants

• Check the Sanford Herald and the BUZZZ Scholarship

Newsletter in the Guidance Office (& website)

• Talk to specific colleges about their opportunities

• Check with civic, church, and community-based

organizations

• Every little bit helps; free money is free money

• Do not pay for scholarship search resources or advice!!

Things to Consider:

• Is the scholarship renewable; is it 1 year or X amount for

each year of college?

• Is the scholarship available to students who are not US

citizens?

• Does the scholarship have conditions which must be

maintained or completed to keep it?

• There are scholarships available beyond your freshmen

year search

• There are also scholarships for graduate students too

• Some scholarships do not require any writing…!

Need-based Grants – Free Money!

• Pell

• SEOG

• ACG / SMART

• NC contractual

• Student Incentive

• Educ. Lottery

• Complete list: www.cfnc.org

• Institutional Scholarships

Federal Student Loans - Not Free

• No repayment until after graduation

• Deferment for graduate school

Federal Perkins Loan Federal Stafford Loan

• limit: $5,500/year

• 5% fixed interest rate

• Loan forgiveness programs

• Subsidized vs. unsubsidized

• 2014-2015 subsidized interest rate: 4.66%

• Unsubsidized fixed interest rate: 6.66%

Work Study

• Money to be earned

• On-campus job

• <19.9 hrs/week

(typically 8-10 hrs/wk)

• Spending money

Duke awards $2200/year as part of financial aid

package, but amount may vary by school

Free Application for Federal Student Aid

• Available after January 1

• Used to determine federal aid eligibility (i.e.Pell grant, work study, Stafford loan)

• Expected Family Contribution (EFC) is an annual amount based on parent and student information

• Basic tax return and asset information for custodial parents and student

http://www.fafsa.ed.gov

FAFSA Day: February 2015

Check www.cfnc.org for locations

FAFSA Tips

Do NOT include

home, business, or

retirement assets

Verify accuracy

of SSN, DOB,

household size,

# in college

Only include

income from

custodial

parent

household

Untaxed income includes:

-Child support

-Box 12 401(k) contributions

-disability

Untaxed income

does NOT include:

-social security

-EIC, ACTC

Federal Pell Grant

• Entitlement grant

• Awarded amount based on

EFC (<$5158 for 2014-

2015) and University’s COA

• 2014-2015 Pell grant max:

$5730

• No specific income

requirements, although

generally awarded to families

with income below $30,000

Federal Dependency Status

• Considered independent only if the student can answer yes to one of the following:– Is married;

– Has dependents;

– Is an orphan or ward of the court;

– Is a veteran or serving active duty; or

– Is 24 years of age or older

• If a student is considered independent, parent information is not required on the FAFSA

Federal dependency status would apply toward federal aid ONLY.

A student may still be considered dependent for institutional aid eligibility, and the University would still require parent information.

CSS Profile

• Required by many private and

some public universities

• Determines eligibility for

University funds

• Asks more detailed parent

and student tax and asset

information

• Noncustodial Profile may be

required as well

• Fee to complete, but it is

waived for low-income filers http://profileonline.collegeboard.com

NOTE: For universities requiring the CSS Profile, Parent and Student federal tax

returns are usually required. These would be sent through the College Board’s

IDOC service: http://idoc.collegeboard.com or directly to the university. Check the

university’s Financial Aid website for deadlines, requirements, and more information.

Divorce and noncustodial parents

Typical Public University

• Requires FAFSA only

• FAFSA will ask for

custodial parent and

stepparent information,

but does NOT include

noncustodial parent

• Financial aid based on

custodial family financial

information ONLY

Typical Private University

• Requires the FAFSA,

Profile, Noncustodial

Profile, and tax returns

from both parents

• Financial Aid based on

both biological parents’

information

• Contact University about

special circumstances re:

noncustodial parent

Deadlines

Deadlines are extremely important!!!

Missing a deadline may mean losing out on $$$$

FAFSA available after January 1- estimated tax

information may be used if necessary

=

Role of the Financial Aid Office

• Determine aid eligibility

• We need as much information as

possible; when in doubt, tell us

• Help you navigate the process

– We know what’s available

– Consultation on services / institutional

& federal resources available

• Answer questions about aid award

– when in doubt, ask us!

The Award Letter

• Cost of attendance

• Student contribution

• Parent contribution

• Demonstrated need... “financial aid”

– Work study & loans

– Federal & state grants

– Outside scholarships

– Institutional grants and scholarships

Meeting Your Financial Need

Institutional grants and scholarships

Student loans and work study

Federal and state grants

Outside scholarships resources must be accounted for as well

(and may reduce loans/work study or institutional resources)

Factors Affecting Parent Contribution

• Income

• Assets

• Household size

• Siblings in college

• Built-in income and asset allowances for saving

for younger siblings’ college tuitions

Professional Judgment

• Financial Aid officers are there to help and can make

professional judgment in certain situations:

– High out-of-pocket medical expenses

– Loss of employment

– Repayment of educational loans

– Elder care

– Change in marital status

• We need as much dollar-specific documentation as you

are comfortable with sharing

• If change occurs during the academic year, we can

make mid-year adjustments

Comparing Awards

• Cost of Attendance

– Hidden costs?

– Average figures vs. actual costs

• Amount of need met with loans/work study vs. grants/scholarships

– Federally subsidized?

– One loan or multiple loans?

• Renewal process

– Academic requirements?

– Application requirements/deadlines

– Will the loan/work study component change in subsequent years

• How are outside scholarships or other resources factored in?

Fulfilling the Parent Contribution

• Income

• Assets (including 529 plans)

• Federal Student Loans

– Subsidized

– Unsubsidized

• Federal Parent PLUS loan

• Private parent or student loans

• Billed per semester – monthly

payment plans available

Outside Scholarships

• In schools that meet 100% of demonstrated

need, outside scholarships must be used to

reduce part of the need-based aid award on a

dollar-for-dollar basis

• To give the most benefit to the students:

– loans and work study in aid package replaced first

– institutional grant reduced last

• Outside scholarships do not reduce family

contribution

Other Resources

• www.fafsa.gov

• www.collegeboard.com

– https://bigfuture.collegeboard.org/scholarship-search

• www.cfnc.org

– https://www.cfnc.org/paying/schol/info_schol.jsp

• www.collegenet.com

• www.fastweb.com

• www.scholarships.com

• www.scholarshipmonkey.com

Kelly Hagerty – College Adviser

Room 1319 – Career Counseling Building

lchscollegeadvising@gmail.com

www.lchs2college.com