1. An Introduction for Parents and Students

2. What is Financial Aid? Money available to help families pay for their student’s higher education (to cover the “Cost of education”). Three basic kinds of financial aid Need Based Merit Based Alternative Financing

3. What is the “Cost of a College Education”? Tuition and Fees Room and Board Books and Supplies Transportation Miscellaneous Supplies Other: Computer, Health Insurance, Special Needs, Child Care, etc… Interest on loans

4. Reasons Behind Need Based Aid Why provide need based aid? So that students from all socio-economic backgrounds can have an equal opportunity for education. To make higher education available to more students. To allow students to enroll in their first- choice school.

5. Basics of Need Based Aid Primary responsibility to pay for college falls on the student’s family. Families are expected to contribute to the extent they are able. (Not to the extent that they want to contribute.) Both income and assets are considered. “Unusual Circumstances” may be considered.

6. Need Based Aid Primary responsibility to pay falls on the family. Exceptions: Student is 24 years old or older The student is married They have a dependent child and provide more than 50% of the child’s support They are pursuing a graduate degree They are in the Armed Forces or are a veteran They are orphaned or have been a foster child They have been legally emancipated They are homeless They have a court-appointed legal guardian

7. Need Based Aid Who determines whether or not you have need? *The Federal Government (FAFSA) *College Scholarship Search Service (CSS Profile) used only at selected colleges and universities and for some scholarships. *Sometimes donor organizations have other, specific criteria.

8. Need Based Aid Who is a “parent?” Biological parents or adoptive parents. Parent with whom you live or who provided most support. Parent who provided the most support the last time you were supported by parents “If you have a stepparent who is married to the legal parent whose information you’re reporting, you must provide information about that stepparent as well.” (http://studentaid.ed.gov/fafsa)

9. Need Based Aid: FAFSA Free Application for Federal Student Aid – also known as the FAFSA Basis for most need-based aid. Many colleges require it for any student receiving aid… even those receiving merit-based scholarships. Provides a comprehensive picture of family financial situation. Complete the FAFSA in the spring of your student’s senior year in high school and every subsequent year that you wish to receive aid. Requires information on family income and some/most assets. Based on your taxes for the year prior to enrollment. IRS Data Retrieval – you can move data from taxes directly to FAFSA on initial application, during updates or corrections, or for verification. Determines “Expected Family Contribution”

10. Need Based Aid CSS Profile Done in October prior to year of enrollment More comprehensive than FAFSA Takes all forms of assets into consideration “Non-Custodial Parent Profile” now available to colleges Six colleges in NC use the Profile: Davidson, Duke, Elon, High Point, UNC at Chapel Hill and Wake Forest.

11. Need Based Aid What is “NEED?” Cost of Education —Expected Family Contribution —Estimated Financial Assistance __________________________ = Student’s Financial Need NOTE: Scholarships do not take the place of the Expected Family Contribution

12. Need Based Aid Pell Grants: 2014-2015 maximum award of $5,730. If you qualify for the maximum Pell Grant, your maximum EFC is $4,860. Supplemental Educational Opportunity grant Work Study programs Institutional programs (UNC’s Covenant Scholars, NCSU’s Wolfpack Promise, etc…) Other Sources (Community, Employers, Need-based Scholarships, etc…) Subsidized Loans (More on this later!)

13. Need Based Aid Continued Pell Grants: 2014-2015 maximum award of $4,860. If you qualify for the maximum Pell Grant, your maximum EFC is $5,157. 4,860 + 5,157 (Last year’s number!!) ________ $10, 017.00 But what if my college costs more? Colleges make up the difference with work-study, loans, other grants, merit or need based scholarships, and other sources of “alternative financing.”

14. Merit Based Aid What is a Merit Based Scholarship? It’s a college paying YOU to come to their school or an organization paying you to go to college! Why would they do that???? College – because they expect you to bring something special and valuable to their campus. Organization – Investing in you! They expect you to give something valuable back to the community or the world. **What is the single best predictor of a student’s success and behavior in college?

15. Merit Based Aid Scholarships * Academic, Athletic, Service/Leadership and/or Special Talents * Small to All-Expenses-Paid * Criteria: Whatever the donor individual or organization sets! * How to get one: APPLY! * What is required for the applications? Academic Transcripts Essays Letters of Recommendation Records of Community Service and Leadership (Resume) Work History Interviews Auditions Athletic Recruiting Videos and Information

16. Merit Based Aid How do you become a candidate for scholarships? In high school, take the strongest course load you can handle and do well in it. Remember: in high school, every grade counts! Prepare for and do well on SAT/ACT exams. Be a leader. Continue and expand community service record. Be well-rounded… but also… Find your passion and pursue it. Show a drive to learn outside the classroom. If you’re an athlete, remember that academics still make a difference in scholarship awards. (about 5% of high school athletes play in college. Less than 1 % make “pro”)

17. Alternative Financing Loans Subsidized Part of the cost of the loan is subsidized by the government (Usually lower interest rates) Unsubsidized Full cost carried by the borrower

18. Alternative methods Student Employment/ Summer Employment 529 Savings Plans Other savings plans Payment Plans from Colleges

19. Financial Aid Package Offers will be made to the student in form of an “Award Letter” by colleges where they are accepted. You may decide to take everything they offer or you may take only some items. Sign and send back to the college where you plan to enroll.

20. Other Considerations Negotiations Early Decision –vs— Early Action Deadlines are Important… no… they’re CRITICAL!! “Net price Calculator” is found on every college’s web page and is mandated by the federal Government. BUT they differ by institution. Financial Aid/Scholarship Search Services: Most are fee-paid. Are they worth it?? Sometimes “yes,” sometimes, “no.” Questions??