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

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

3. Topics We Will Discuss Today
What is financial aid?
Cost of attendance (COA)
The Expected Family Contribution (EFC)
What is financial need?
Categories, types, and sources of financial aid
Free Application for Federal Student Aid (FAFSA)
Special Circumstances

4. What is Financial Aid?
Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses.

5. What is Cost of Attendance (COA)
Direct costs
Indirect costs
Direct and indirect costs combined into cost of attendance
Vary widely from college to college

6. Cost of Attendance
Indirect Costs
Direct Costs
Tuition
Required Fees
Room
Meals
Books and Supplies
Transportation
Personal Expenses
Loan Fees
Study Abroad Costs
Books and Supplies

7. What is the Expected Family Contribution (EFC)
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

8. What is “Financial Need”
Cost of Attendance
– Expected Family Contribution
= Financial Need
(aka Demonstrated Financial Need or Need)

9. Categories of Financial Aid
Need-based
Non need-based

10. 3 Types of Financial Aid Athletic Merit Need Based
What is Financial Aid
3 Types of Financial Aid
Athletic
Merit
Need Based

11. Types of Financial Aid
Scholarships
Grants
Loans
Employment

12. Money that does not have to be paid back
Scholarships
Money that does not have to be paid back
Awarded on the basis of merit, skill, demonstrated need, or a unique characteristic

13. Grants
Money that does not have to be paid back
Usually awarded on the basis of financial need

14. Loans
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

15. Allows student to earn money to help pay educational costs
Employment
Allows student to earn money to help pay educational costs
A paycheck
Non-monetary compensation, such as room and board

16. Sources of Financial Aid
Federal government
States
Private sources
Civic organizations and churches
Employers

17. Federal Government
Largest source of financial aid
Aid awarded primarily on the basis of financial need
Must apply every year using the FAFSA

18. Common Federal Aid Programs
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

19. States
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:

20. 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 descriptions
North Carolina Education Lottery Scholarship (for NC community colleges and all 16 UNC campuses)
North Carolina Community College Grant (for NC community colleges)
UNC Need-Based Grant (for all 16 UNC campuses)
North Carolina Need-Based Scholarship (for NC independent non-profit campuses)
Nurse Education Scholarship-Loan Program – based on need, service requirement
Nurse Scholars Program – merit, NC college, not need based
Forgivable Education Loans for Service – service requirement, GPA requirements, field of study limitations

21. Private Sources
Foundations, businesses, charitable organizations
Deadlines and application procedures vary widely
Begin researching private aid sources early

22. Civic Organizations and Churches
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!

23. Employers
Companies may have scholarships available to the children of employees
Companies may have educational benefits for their employees

24. Merit Scholarships Varying Criteria Highly Competitive
Academic achievement
Public service
Artistic talent
Athletic ability
Highly Competitive
Visit college websites for application process
Be aware of deadlines
1)      Discuss  the structure and importance of the scholarship essay question and answer.
The essay is one of the best opportunities for a student to bring an application to life.  Much of the rest of the application is simply courses and grades and lists of activities.  The essay is where students can add flesh and blood to the applications skeleton through elements like intellect, humor, and poignancy.   An essential rule for all essays: students should answer the question asked in the scholarship prompt.  Reusing or recycling an essay from class or for another application might be easier, but nothing annoys scholarship committees more than having to read something that they think is answering someone else’s question.  In many instances (though not all), the best essays answer the question in the form of a story.  People like to read essays that are vivid and descriptive.  That is, instead of simply telling the reader what you think—add the element of showing it as well.  Rather than saying you like science and hope to be an engineer, give us the story about the time when you entered the bridge building competition and describe your initial failures that eventually led both to greater knowledge and a bridge that could withstand hurricane force winds!
2)      Scholarship deadlines
Deadlines vary from school to school.  At Wake Forest, for instance, we ask that students submit their Admissions application by December 1 (one month before the official Admissions deadline) if students want to be considered for all of our merit-based scholarship deadlines.  Students really need to be pro-active in the process and determine what every school requires and when it is required.  They’ll want to read the material that schools send to them, check on-line, or call the schools to make certain that they aren’t missing anything.  Calling the school in April after all of the awards have been made is too late.  If the scholarship application requires letters of recommendation then you will need to start even earlier because recommenders need time to write thoughtful letters on the behalf of students.  Asking too late results in late letters, weak letters, or no letter at all—and all of these problems would hurt or perhaps eliminate a student from consideration.
3)      What students should focus on when deciding which scholarship is right for them.
In most instances, students should only expect a merit-based scholarship if they bring something unique or special to a school.  Students almost never receive merit-based scholarships to their reach schools (if they are even admitted) and they really shouldn’t expect to win a merit-based scholarship to a school at which they are just an average students.  Students are wise to apply for scholarships if their academic profile is better than the average student at a school.  Students should also be encouraged to apply for scholarships if they bring a unique talent or story to a school that is in need of that particular talent.  At Wake Forest, for instance, we have the talent-based Presidential Scholarships because we are trying to enhance our Arts programs.  Someone with many, many years of experience playing the piano or taking voice lessons might be competitive; a student who began playing the piano in high school would probably not be competitive.  A student who started community theatre in middle school and has performed in every high school production would also stand a better chance of receiving a Presidential Scholarship in theatre than one who has performed only in two high school plays.

25. Need-based aid: Who is eligible?
Not dependent upon ability
ANY student is potentially eligible
Strictly based upon a family’s “demonstrated need”

26. 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

27. 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

28. Free Application for Federal Student Aid (FAFSA)
May be filed at any time during an academic year, but no earlier than the January 1st 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

29. FAFSA on the Web Web site: www.fafsa.ed.gov
FAFSA on the Web available on January 1, 2015

31. FAFSA on the Web 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

32. Student Financial Aid (SFA) PIN
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

33. Frequent FAFSA Errors
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

34. FAFSA Processing Results
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

35. FAFSA Processing Results
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

36. FAFSA Processing Results
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

37. FAFSA Processing Results
VERIFICATION IRS Data Retrieval Tool or Tax Transcript Untaxed income Assets Family size Family members attending college

38. 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

39. 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

40. Making Corrections
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

41. 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.

42. Special Circumstances
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

43. Where’s the money?
Offers to help get aid are everywhere:
In the mail
Over the Internet
In newspapers
In magazines
Over the phone

44. Legitimate offers of information and assistance
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

45. Anyone who charges you a fee: for information about financial aid
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

46. 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.

47. 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.

48. 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!

49. Copy student’s SSN from SS card
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

50. 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.

51. 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
FAFSA
Scholarship scams

52. Additional Information
The Financial Aid Information Page
FAST Web Scholarship Search
The College Board
College Foundation of North Carolina

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

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