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FINANCIAL AID 101 by Levone

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									FINANCIAL AID 101
Orange County Schools Closing the Gap Summit October 24, 2006

What is Financial Aid? Where does it come from?
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Fin Aid refers to money given to a student to help him and his family pay for education after high school.

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Magic? Nope!

Money tree? I wish!

There are four sources of aid:  The Federal Government  The State Government  The College  Private Companies and Organizations

What are the 2 Categories of Financial Aid?
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Merit Based
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Need Based
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Depends on how good you are at something, like music, football, or science Does not depend on the financial situation of the family

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Student and family expected to pay some—called the Expected Family Contribution (EFC) Student “needs” the remaining amount that family cannot pay.

What are the 3 Types of Financial Aid?
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Grants and Scholarships

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Loans



Work-Study

Grants and Scholarships
“Gift Aid”
Some examples are:
   

Funds that do not have to be repaid Small to large amounts Some competitive; others are not Federal, state, college, and private sources

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Federal Pell grants, Federal SEOG NC Legislative Tuition Grant; NC Teaching Fellows Morehead (at UNC-CH) or Park (at NC State) Gates Millenium; Pepsi employees’ children; your church;

Loans
“Self Help”
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Funds that must be repaid, with interest Most loans are in student’s name Repaid over 10 years after student leaves college Most from federal or private sources

Some examples are:  Stafford (subsidized and unsubsidized)  Perkins  PLUS (loans to parents)  Private sources (banks; Pickett and Hatcher Ed. Found.)

Work—Study
The On-Campus Job
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Studies suggest better organization and time management lead to better grades WS earnings are not taxable/reported “Boss” knows #1 priority = academics

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Funded by federal or college sources

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Work 10-20 hrs/wk
Most job sites on campus (ex: library, gym, Dean’s office)

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Who is Eligible to Receive Aid?
  

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US citizen, or eligible non-citizen, w/ valid SSN Have high school diploma or equivalent & be enrolled/accepted at eligible institution If male aged 18-24, be registered with SS Willing to sign ed. purpose and intent to repay Have financial “need”
Maintain SAP (satisfactory academic progress) Not be in default on previous loans or over the lifetime limit

How Much Does College Cost?
The Cost of Attendance includes:
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Tuition and Fees Room and Board

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Books and Supplies
Transportation

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Personal Expenses

College Costs Comparison
(Chart A)

College
T and F R and B B and S

Elon
$ 17,555 6,010 900

A&T
$ 3,066 5,070 800

ACC
$ 1,246 n/a 800

Transport
Personal Total COA

800
1,400 $ 26,665

1,200
1,700 $ 11,836

750
800 $ 3,596

What is Financial Need? How is it determined?


“NEED” is the difference in what a college costs (COA) and what a family can pay (Expected Family Contribution or EFC) Family completes financial aid application (FAFSA) to learn their EFC and apply for aid

─ =

COA EFC
___________________

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NEED

College Cost Comparison
(Chart B)

College T and F R and B B and S Transport Personal Total COA EFC NEED

Elon $ 17,555 6,010 900 800 1,400 $ 26,665 2,500 $ 24,165

A&T $ 3,066 5,070 800 1,200 1,700 $ 11,836 2,500 $ 9,336

ACC $ 1,246 n/a 800 750 800 $ 3,596 2,500 $ 1,096

Note: EFC remains constant. If COA changes, NEED changes

How to Apply:
The FAFSA and PROFILE
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The FAFSA Free Application for Federal Student Aid All colleges using federal funds must use it Must NOT be sent in before Jan 1; NC deadline = Mar 15, but sooner is better! Best done online; get your PIN (one for student; one for parent) at www.fafsa.ed.gov

The PROFILE
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Only used by a few private colleges to supplement info from FAFSA Not free Do early (Oct or Nov) and estimate income Must be done online at www.collegeboard.com

Do It Yourself! And Avoid the Scams!
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Local Scholarships  Usually after Christmas or first of January  Check OHS and CRHS websites, newsletters  Take home a list of some local scholarships and also a list of our favorite websites for college and fin aid info.

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“Scholarship Search” companies charge for services you can get FREE on the internet If a scholarship charges a fee, just forget it! FAFSA Day: get free help with the FAFSA at area colleges Feb 17, O7


								
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