Financial Aid presentation for high school students

1. Understanding Financial Aid

2. Agenda
• Types of financial aid
• Application process
• Financial aid award letter
• Special circumstances/professional judgment
• Resources
• Questions

3. What is Financial Aid?

4. 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

5. 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!!

6. 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…!

7. Need-based Grants – Free Money!
• Pell
• SEOG
• ACG / SMART
• NC contractual
• Student Incentive
• Educ. Lottery
• Complete list:
www.cfnc.org
• Institutional
Scholarships

8. 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%

9. 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

10. 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

11. 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

12. 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

13. 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.

14. 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 filershttp://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.

15. 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

16. 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
=

17. 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!

18. 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

19. 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)

20. Factors Affecting Parent Contribution
• Income
• Assets
• Household size
• Siblings in college
• Built-in income and asset allowances for saving
for younger siblings’ college tuitions

21. 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

22. 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?

23. 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

24. 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

25. 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

26. Kelly Hagerty – College Adviser
Room 1319 – Career Counseling Building
lchscollegeadvising@gmail.com
www.lchs2college.com