Winston-Salem, NC | November 13, 2014 Paying for College: Merit and Need Based Scholarships Financial Aid Presentation

Tom Benza Associate Director Student Financial Aid Wake Forest University Website: Phone: (336)

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 consists of funds provided to students and families to help pay for postsecondary educational expenses.

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 Books and Supplies

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

Cost of Attendance – Expected Family Contribution = Financial Need (aka Demonstrated Financial Need or Need)

Need-based Non need-based

What is Financial Aid 3 Types of Financial Aid Athletic Merit 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

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 Federal Supplemental Educational Opportunity Grant Teacher Education Assistance for College and Higher Education Grant Federal Perkins Loan Stafford Loans PLUS Loans Federal Work-Study

Residency requirements Award aid on the basis of both merit and need Use information from the FAFSA Deadlines vary For NC, see College Foundation of North Carolina’s website:

NC State Grants North Carolina Need Based Scholarship North Carolina Educational Lottery Scholarship NC Community College Grant Program Nurse Education Scholarship-Loan Program Nurse Scholars Program Forgivable Education Loans for Service Visit for full details and descriptionswww.cfnc.org

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

Merit Scholarships Varying Criteria Academic achievement Public service Artistic talent Athletic ability Highly Competitive Visit college websites for application process Be aware of deadlines

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”

Free Application for Federal Student Aid (FAFSA) Collects demographic and financial information about the student and family Must be completed for each year that aid is desired May be filed electronically or using paper form -- Available in English or Spanish Used to calculate the Expected Family Contribution (EFC) Colleges use EFC to award need-based financial aid Contact colleges of interest to determine FAFSA filing deadlines March 1 is the deadline for the 16 UNC campuses

Free Application for Federal Student Aid (FAFSA) 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

Free Application for Federal Student Aid (FAFSA) May be filed at any time during an academic year, but no earlier than the January 1 st prior to the academic year for which the student requests aid For the 2015–16 academic year, the FAFSA may be filed beginning January 1, 2015 Most colleges set FAFSA filing deadlines– check each school’s financial aid website for deadlines

Web site: FAFSA on the Web available on January 1, 2015

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: Sign FAFSA electronically Can request PIN before January 1, 2015 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 address was not provided SAR Acknowledgement if filed FAFSA on the Web and student’s address was not provided

CPS notifies student of FAFSA processing results by: notification containing a direct link to student’s on-line SAR if student’s was provided on paper or electronic FAFSA Student with PIN may view SAR on-line at

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 IRS Data Retrieval Tool or Tax Transcript Untaxed income Assets Family size Family members attending college

IRS Data Retrieval Tool (DRT) DRT is available within the FAFSA on the Web (FOTW) Available in February 2015 for FOTW Within several days for electronic tax filers Within several weeks for paper tax filers Available to those who have filed 2014 federal taxes and now are: Completing the FAFSA Correcting their FAFSA (updating with IRS data) DRT not available when: Married filing separately tax filing status is used Marital status changed after 12/31/14 Amended or foreign tax returns filed

DRT Continued To use the Tool, must have: A valid Social Security Number Filed a 2014 federal tax return (usually available 6 weeks after) The exact street address and filing status used on the tax return Filtering question on FAFSA helps determine if you can use DRT IRS Data Retrieval Process meets verification requirements Secure and FAST option Students (and parents) not using the “Tool” and selected for verification: In most cases, must submit an IRS Tax Return Transcript rather than a Tax Return

If necessary, corrections to FAFSA data may be made by: Using FAFSA on the Web ( 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

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

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? 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 a legitimate offer. “You can’t get this information anywhere else.” Everyone has access to the same information.

So What’s Legit? Contact College Foundation of North Carolina at CFNC.org or toll free at CFNC Service of the State of North Carolina Talk to a 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 not FAFSA.com!

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. Be prepared to submit your U.S. tax returns to schools upon request: Pay attention to s from schools requesting additional information and be prepared to respond promptly Follow up with university’s financial aid office if you do not have an award with the published timeframe.

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 Page FAST Web Scholarship Search The College Board College Foundation of North Carolina

Additional Information Dept. of Ed. Student Financial Assistance VA Benefits FAFSA on the Web CSS PROFILE Online

Tom Benza Associate Director Student Financial Aid Wake Forest University Website: Phone: (336)