Financial Aid Overview Chad Spencer Senior Assistant Dean Davidson College January 28, 2010

What Will We Cover? Applying for AidApplying for Aid Cost ComponentsCost Components Need-Based AidNeed-Based Aid Merit-Based AidMerit-Based Aid PackagingPackaging Consumer TipsConsumer Tips QuestionsQuestions

Forms CSS ProfileCSS Profile –College Scholarship Service – FAFSAFAFSA –Free Application for Federal Student Aid –

Forms At School’s DiscretionAt School’s Discretion –Institutional application –Tax returns and W-2 forms –Non-custodial PROFILE –Business/farm supplement

How is Eligibility Determined? Cost of education Cost of education - Outside Resources -Family contribution = Student’s financial need need

Components of Need Equation CollegeCollege –Tuition –Fees –Room –Board –Books –Supplies –Personal –Transportation FamilyFamily –Parent Income AllowancesAllowances –Assets ProtectionProtection –Number in College –Student Income & Assets

Types of Aid  Gift Aid GrantsGrants ScholarshipsScholarships  Self-Help Aid Student LoansStudent Loans EmploymentEmployment

Need-Based Aid Awarding strategy varies by institutionAwarding strategy varies by institution Many factors in awardingMany factors in awarding

Merit-Based Aid Availability varies by institutionAvailability varies by institution Strategies underlying merit awards varyStrategies underlying merit awards vary –Recruiting device –Awarded after student is admitted Procedures for being considered varyProcedures for being considered vary –Nomination –Scholarship application –Admission application

Questions To Ask About Merit-Based Aid Is the scholarship renewable?Is the scholarship renewable? If so, what are the requirements for renewal?If so, what are the requirements for renewal? Will it affect my need-based aid eligibility?Will it affect my need-based aid eligibility?

Packaging GrantsGrants Merit-Based AidMerit-Based Aid Self HelpSelf Help –Student Loans Federal Family Education Loan ProgramFederal Family Education Loan Program –Perkins & Stafford –Parent Loans (PLUS) Alternative LoansAlternative Loans –Student Employment

Sample Aid Packages DavidsonPublicU.Private U. DavidsonPublicU.Private U. Cost $48,000 $20,000 $35,000 EFC $10,000 $10,000 $10,000 Need $38,000 $ 10,000 $25,000 Merit $ 0 $ 0 $10,000 Grant $35,900 $ 5,000 $ 7,000 Loan $ 0 $ 3,500 $ 4,000 FWS $ 2,100 $ 1,500 $ 1,000 Total $38,000 $ 10,000 $22,000 Unmet $ 0 $ 0 $ 3,000 Paid $10,000 $13,500 $17,000

Other Helpful Options Outside scholarships in some casesOutside scholarships in some cases Summer/academic year employmentSummer/academic year employment Payment plansPayment plans Federal Stafford LoansFederal Stafford Loans Federal PLUS LoansFederal PLUS Loans Lines of credit and education loansLines of credit and education loans Home equity loansHome equity loans

Other Things to Know Deadlines are importantDeadlines are important Early Decision/Early ActionEarly Decision/Early Action May 1: National Candidate’s Reply DateMay 1: National Candidate’s Reply Date

Consumer Tips Avoid financial aid consultantsAvoid financial aid consultants Avoid scholarship programs that charge application feesAvoid scholarship programs that charge application fees Avoid scholarship search services that charge feesAvoid scholarship search services that charge fees

Questions???

Thank You Chad Spencer January 28, 2010