Class of 2015: Senior Lunch & Learn Funding Sources for College

What you will learn…  Terminology  Different funding sources and how to obtain them.  Helpful hints  Web resources  Question/Answer Session

Terminology you need to know:  What is FAFSA?  Free Application for Federal Student Aid.  Gives you access to the largest source of financial aid.  Many states and colleges use FAFSA to determine your eligibility for state & school aid. Private funding sources may use it also.

Terminology you need to know:  What is “Need-Based” Aid?  Refers to a financial situation of the student’s family.  One’s family’s income, family size, expenses, and assets are examined to determine your Expected Family Contribution (EFC).

Terminology you need to know:  What is “Merit-Based” Aid?  Funding based on achievement in a specific category, such as Academics, Art, Athletics, etc….  Although scholarships are the most common type of “merit- based” aid, some grants may be also.

Grants  What is a Grant?  Free money that you don’t have to repay.  Most are need-based; some are merit based.  Amount awarded depends on the your financial need, the cost of attendance, status (full time or part-time) and more.  How to Obtain:  Complete the FAFSA to see if you qualify. If so, you’ll get an award letter from your school and the school will distribute it to you.

Types of Federal Grants  Federal Pell Grant (up to $5730/yr.)  For undergraduates that have not earned a degree.  Can receive the Federal Pell Grant for no more than 12 semesters.  Federal Supplemental Educational Opportunity Grant (from $100 - $4000/yr. )  For undergraduate students with exceptional financial need.  Students receiving Pell Grants and have the most need will receive FSEOG’s first.

Types of Federal Grants  Teacher Education Assistance for College and Higher Education (TEACH)(up to $4000/yr):  For students aspiring to be teachers.  Must agree to work in a high-need field for four academic years.  Contract agreement must be signed in order to receive. If broken, grant is converted to a loan.  Iraq and Afghanistan Service Grants (up to $5,730)  For students who’s parents died as a result of military service in these areas (after 9/11).

Scholarships  What is a scholarship?  Funding that you don’t have to repay.  Usually awarded based on merit, financial need, or student specific (e.g. – gender, race, major, etc….)  Variety of sources so you will have to search for them.  Be sure to complete all of the information requested, as that may help match you to more scholarships.  To maximize your chances, apply for every scholarship you qualify for (it’s a number’s game).

Scholarships  How to Obtain Scholarships:  Check with the college/university you are applying to for the scholarships they offer.  Information will be listed in their Financial Aid Section.  Use various resources to research outside scholarships.  Research Early and Apply on time!  Once awarded, the gift may go directly to the school or given directly to you.

Student Loans  What is a student loan?  Funding that you borrow and have to repay, with interest, after college.  May be Public loans (from the Federal Government) or Private (Banking institutions).  How to Obtain:  Complete the FAFSA  Submit your FAFS early; Government aid is on a first-come first served basis.

Types of Student Loans  Perkins Loan:  Based on Financial Need. Amount determined by the college’s financial aid office.  No interest accrues while in school. Start repaying 9 months after graduation.  Stafford:  Direct Subsidized: The government pays interest on the loan while you’re in school.  Direct Unsubsidized: You pay the interest on the loan, but can defer payments until graduation  Will need to show financial need for subsidized loan; not for unsubsidized loan

Types of Student Loans  Parent “PLUS” Loan :  Loans your parents can take out to help you pay for school.  Direct Consolidation Loan:  Allows you to combine all of your eligible federal loans into one single loan with one service provider.  Goal is to simplify your parents, but may result in a loss of benefits.  Private Loans:  Loans borrowed for a banking institution.  Often the most expensive option due to the terms and conditions. Remember - with all loans, make sure you understand the terms and conditions!!

Work Study or Co-Op  What is it?  Part-time employment for enrolled students to help them earn money to meet their college expenses.  Positions may be Tutoring, Clerical, Research Assistant, etc….  Available through schools that participate in the Federal Work Study program.  How to Obtain:  Fill out the FAFSA to determine your eligibility for federal work study. After you qualify, find work-study jobs through the college’s online job search or their Financial Aid office.

Helpful Hints  If you have to borrow money, borrow smart and only borrow what is necessary to cover your education expenses.  Check the “net cost” of attending (what’s left once all aid has been awarded), not the “sticker price” (the full cost).  Don’t put off applying for essays because you don’t like writing essays. Ask for help.  Visit Mrs. Morris in the CCC for up to date information on scholarships.  Check with your parent’s employer or your church for scholarship opportunities.

Web Resources:  Visit for more information on Types of Aid.  Use FAFSA4caster to estimate your federal student aid (you can do this before Jan. 1)FAFSA4caster to estimate your federal student aid     

Questions?