Where does the money come from? Merit Scholarships and need-based financial aid

What is Financial Aid? Money supplied by a source other than the family to help pay for educational costs after high school

Financial Aid Gift Aid Financial Aid that does not require payment or work to be performed Examples: Scholarships Awards Grants Self-Help Aid Financial Aid provided through the work and effort of the student Examples: Loans Student Employment

Criteria for Awarding Aid Financial aid awards are distributed based on criteria set by the awarding entity Most awards provided are based on either The Student’s Merit/Talent OR The Family’s Financial Need

Merit-Based/Talent-Based Financial Aid Financial Aid awarded without consideration of a family’s ability to pay for college Common Sources Colleges and Universities Corporations Community Organizations

Merit-Based/Talent-Based Financial Aid cont. Eligibility for the awards Application processes will vary greatly Criteria will depend on the objectives of the awarding entity Typically, the more selective the institution, the fewer the opportunities for merit-based awards

Need-Based Financial Aid Financial Aid awarded with consideration of a family’s ability to pay for college. Need based awards are distributed after a family’s financial situation is considered. Common Sources Federal Government Colleges and Universities

The FREE APPLICATION for FEDERAL STUDENT AID (FAFSA) Used in all Federal Funds awarding –PELL, SEOG, Perkins Loans, Stafford Loans, Work Study, etc. Uses parental, student income and assets to generate the Expected Family Contribution (EFC) Available January 1 of the student’s Senior Year in high school

CSS PROFILE Used by organizations to award nonfederal student aid funds Mainly, Private Institutional Grants $25 Fee for initial application and one college (or program report) Additional reports are $16 –Completing Online requires a valid credit card or checking account – Fee waivers are granted automatically — based on the information entered on the PROFILE application Available October 1 of the student’s Senior Year

Non-Custodial PROFILE When marital status of the biological or adoptive parents is separated, divorced, or never married (FAFSA doesn’t ask for NC information) Waivers should be pursued where abuse, a restraining order, incarceration, or total disability, etc. exists. documentation is necessary Unwillingness is not a reason for a university to waive their requirement Students need to be proactive and adhere to posted deadlines

Need-Based Financial Aid Eligibility for the awards is based on the formula COA – EFC = NEED COA (Cost of Attendance): Includes tuition, room, board, books, travel, etc. EFC (Expected Family Contribution): A figure arrived at by each individual institution following consideration of a family’s financial data. NEED: This resulting amount may be fully or partially accounted for with gift and/or self-help aid.

Need-Based Financial Aid Example: $48,000COA - $23,000EFC $25,000NEED The $25,000 may be fully or partially accounted for by the University with gift and/or self-help aid.

Award Detail For a School that meets 100% of Demonstrated need, an Award for a family with a $23,000 EFC may appear as follows: Cost of Attendance: $48,000 Federal Loan, Freshman: $5,500 Federal Work Study:$1,500 Institutional Need-Based Grant:$18,000 The math: cost – EFC = 25000need – 7,000 self help = Demonstrated Need/Grant

Need-Based Financial Aid The Expected Family Contribution Different institutions may use different criteria Required forms may include the FAFSA, CSS PROFILE, Institutional Forms, and/or Tax Returns A award is based on the consideration of a family’s income, household size, and asset information

Helpful Hints Start early and involve the student Adhere to due dates Understand the criteria at each school Contact an advisor if you have a special circumstance Prepare for “sticker shock” Do not pay an outside advisor