Winston-Salem, NC | October 20, 2011

Paying for College: Merit and Need Based Scholarships

Financial Aid PresentationFinancial Aid Presentation

Tom BenzaAssistant Director of Financial Aid

Wake Forest University

Website: www.wfu.edu/finaidEmail: financial-aid@wfu.edu

Phone: (336) 758-5154

1. What is financial aid?

2. Cost of attendance (COA)

3. The Expected Family Contribution (EFC)

4. What is financial need

5. Categories, types, and sources of financial aid

6. Free Application for Federal Student Aid (FAFSA)

7. Special Circumstances

•Financial aid is funds provided to students and families to help pay for postsecondary educational expenses•‘Financial aid’ generally refers to what is known as ‘need-based aid.’ However, at most Universities there are 3 classifications of ‘financial aid’

1.Athletic

2.Merit

3.Need Based

Merit Scholarships

•In addition to need-based aid, colleges and universities have special endowed merit scholarship programs:•Varying Criteria

Academic achievement Public service Artistic talent Athletic ability

•Highly Competitive•Application process can vary: Umbrella application vs. individual applications

Need-based aid:Who is eligible?

1. Not dependent upon ability

2. ANY student is potentially eligible

3. Strictly based upon a family’s ‘demonstrated need,’ as calculated by the financial aid application(s)

Cost of Attendance

– Expected Family Contribution

= Financial Need

•Direct costs

•Indirect costs

•Direct and indirect costs combined into cost of attendance

•Vary widely from college to college

Direct Costs

•Tuition•Required Fees•Room•Meals•Books and Supplies

Indirect Costs

•Transportation•Personal Expenses•Loan Fees•Study Abroad Costs

•Amount family can reasonably be expected to contribute

•Stays the same regardless of college

•Two components

• Parent contribution

• Student contribution

•Calculated using FAFSA data and the federal need analysis formula

•Need-based

•Non need-based

•Scholarships

•Grants

•Loans

•Employment

• Money that does not have to be paid back

• Awarded on the basis of merit, skill, demonstrated need, or a unique characteristic

• Money that does not have to be paid back

• Usually awarded on the basis of financial need

•Money students and parents borrow to help pay educational expenses

•Repayment usually begins after education is finished

•Only borrow what is really needed

•Look at loans as an investment in the future

•Allows student to earn money to help pay educational costs

•A paycheck

• Non-monetary compensation, such as room and board

Where’s the money?

Offers to help get aid are everywhere:

• In the mail

• Over the Internet

• In newspapers

• In magazines

• Over the phone

Offers may be:

• Legitimate offers of information and assistance– Example: CFNC.org and FAFSA Day

• Misleading offers from individuals or companies trying to make money off of unsuspecting parents and students

What to avoid?

How do you identify offers that should be avoided?

• Organizations that say they can help you locate more aid and then charge you a fee

• Anyone who charges you a fee:

• for information about financial aid

• to complete the FAFSA

• to apply/receive a scholarship

Scam Examples:

• “The scholarship is guaranteed or your money back.”

No one can guarantee your scholarship before it is awarded.

• “Come to our seminar and we’ll show you how to get more financial aid.” This is a sales pitch. Don’t pay for information that you can get elsewhere for free.

Other Misleading Offers

• “The scholarship requires a small fee.” Never pay a fee to get a scholarship.

• “You are a finalist” for an award you never applied for.

If you did not apply, it is not alegitimate offer.

• “You can’t get this information anywhere else.”

Everyone has access to the same information.

So What’s Legit?

Where can you find truly free information about financial aid?

• Contact College Foundation of North Carolina at CFNC.org or toll free at 866-866-CFNC

– Service of the State of North Carolina

• Talk to the financial aid administrator at the college of choice

• Ask your high school counselor or visit the local library

• Apply for federal financial aid at FAFSA.ed.gov (notice it is not FAFSA.com!)

•Federal government

•States

•Private sources

•Civic organizations and churches

•Employers

•Largest source of financial aid

•Aid awarded primarily on the basis of financial need

•Must apply every year using the FAFSA

•Federal Pell Grant•Academic Competitiveness Grant and National Science and Mathematics Access to Retain Talent Grant•Teacher Education Assistance for College and Higher Education Grant

•Federal Supplemental Educational Opportunity Grant•Federal Perkins Loan•Federal Work-Study•Stafford Loans•PLUS Loans

•Residency requirements

•Award aid on the basis of both merit and need

•Use information from the FAFSA

•Deadlines vary; check College Foundation of North Carolina’s website:

www.cfnc.org

NC State Grants

•Need-based Grants State contractual scholarship

Applicants with demonstrated need Combined with institutional and federal funds to

meet full need Incentive grant (NCSIG)

Only the most needy of NC residents•Entitlement Grant (NCLTG)

Legislative tuition grant ($1,850 per year) Residents attending a private institution in NC

•North Carolina Educational Lottery Scholarship•NC Community College Grants, Teacher Scholarships and Loans, Nurse Scholarship and Loans•North Carolina Learn and Earn Program•Visit www.cfnc.org for full details and descriptions

•Foundations, businesses, charitable organizations

•Deadlines and application procedures vary widely

•Begin researching private aid sources early

•Research what is available in community

•To what organizations and churches does student and family belong?

•Application process usually spring of senior year

•Small scholarships add up!

•Companies may have scholarships available to the children of employees

•Companies may have educational benefits for their employees

Free Application for Federal Student Aid (FAFSA)

•A standard form that collects demographic and financial information about the student and family•Information used to calculate the Expected Family Contribution or EFC

• The amount of money a student and his or her family may reasonably be expected to contribute towards the cost of the student’s education for an academic year

•Colleges use EFC to award financial aid

Web site: www.fafsa.ed.gov2012-13 FAFSA on the Web available on

January 1, 2012

Good reasons to file electronically:•Built-in edits to prevent costly errors•Skip-logic allows student and/or parent to skip unnecessary questions•More timely submission of original application and any necessary corrections•More detailed instructions and “help” for common questions•Ability to check application status on-line•Simplified renewal application process

•Web site: www.pin.ed.gov

•Sign FAFSA electronically•Can request PIN before January 1, 2012•Not required, but speeds processing•May be used by students and parents throughout aid process, including subsequent school years

•Social Security Numbers•Divorced/remarried parental information•Income earned by parents/stepparents•Untaxed income•U.S. income taxes paid •Household size•Number of household members in college•Real estate and investment net worth

•Central Processing System (CPS) notifies student of FAFSA processing results by:

• Paper Student Aid Report (SAR) if paper FAFSA was filed and student’s e-mail address was not provided

• SAR Acknowledgement if filed FAFSA on the Web and student’s e-mail address was not provided

CPS notifies student of FAFSA processing results by:

E-mail notification containing a direct link to student’s on-line SAR if student’s e-mail was provided on paper or electronic FAFSA

Student with PIN may view SAR on-line at www.fafsa.ed.gov

Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA submitted

College reviews ISIR

May request additional documentation, such as copies of federal tax returns

VERIFICATION

Tax returns / W-2 forms

Untaxed income

Assets

Family size

Family members attending college

If necessary, corrections to FAFSA data may be made by:

• Using FAFSA on the Web (www.fafsa.ed.gov) if

student has a PIN;

• Updating paper SAR (SAR Information Acknowledgement cannot be used to make

corrections); or

• Submitting documentation to college’s financial aid office

What if my tax information doesn’t reflect my true circumstances?

SPECIAL CIRCUMSTANCES/Appeal Process•Unemployment of parent•Death in family•Change in parents’ marital status•Medical expenses not covered by insurance

Make direct contact with the financial aid office of each school to which you are applying.Be prepared to document changes.

•Cannot report on FAFSA

•Send explanation to financial aid office at each college

•College will review special circumstances

• Request additional documentation• Decisions are final and cannot be appealed to

U.S. Department of Education

Advice!

•Meet Earliest Deadlines

•Complete Applications Accurately Copy student’s SSN from SS card

•Estimate If Necessary

•Don’t Wait To File

•Keep Photocopies of All Documents

Advice!

Don’t let ‘sticker shock’ deter you, but DO pay attention to the amount of loan debt included in your financial aid award

Maximize your eligibility: complete a general Merit Scholarship application AND financial aid application (combination funds)

Be prepared to submit your U.S. tax returns to schools upon request: some will require Verification (federal or otherwise)

Follow up with university’s financial aid office1. Potential missing documents2. Ensures timely award

Advice

• Know that financial aid application is not a one time process; it is a yearly application process

• Be wary of anything requiring you to ‘pay’ for help

1. FAFSA

2. Scholarship scams

Additional Information

The Financial Aid Information Pagewww.finaid.org

FAST Web Scholarship Searchwww.fastweb.com

The College Boardwww.collegeboard.com

College Foundation of North Carolinawww.cfnc.org

Additional Information

Dept. of Ed. Student Financial Assistancewww.ed.gov/finaid.html

VA Benefitswww.gibill.va.gov

FAFSA on the Webwww.fafsa.ed.gov

CSS PROFILE Onlinehttp://profileonline.collegeboard.com

Tom BenzaAssistant Director of Financial Aid

Wake Forest University

(336) 758-5154 www.wfu.edu/finaid(336) 758-4924 financial-aid@wfu.edu