1. Winston-Salem, NC | October 20, 2011 Paying for College: Merit and Need Based Scholarships Financial Aid Presentation

2. Tom Benza Assistant Director of Financial Aid Wake Forest University Website: www.wfu.edu/finaid Email: financial-aid@wfu.edu Phone: (336) 758-5154

3. 1.What is financial aid? 2.Cost of attendance (COA) 3.The Expected Family Contribution (EFC) 4.What is financial need 5.Categories, types, and sources of financial aid 6.Free Application for Federal Student Aid (FAFSA) 7.Special Circumstances

4. Financial aid is funds provided to students and families to help pay for postsecondary educational expenses ‘Financial aid’ generally refers to what is known as ‘need-based aid.’ However, at most Universities there are 3 classifications of ‘financial aid’ 1.Athletic 2.Merit 3.Need Based

5. Merit Scholarships In addition to need-based aid, colleges and universities have special endowed merit scholarship programs: Varying Criteria  Academic achievement  Public service  Artistic talent  Athletic ability Highly Competitive Application process can vary: Umbrella application vs. individual applications

6. Need-based aid: Who is eligible? 1.Not dependent upon ability 2.ANY student is potentially eligible 3.Strictly based upon a family’s ‘demonstrated need,’ as calculated by the financial aid application(s)

7. Cost of Attendance – Expected Family Contribution = Financial Need

8. Direct costs Indirect costs Direct and indirect costs combined into cost of attendance Vary widely from college to college

9. Direct Costs Tuition Required Fees Room Meals Books and Supplies Indirect Costs Transportation Personal Expenses Loan Fees Study Abroad Costs

10. 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

11. Need-based Non need-based

12. Scholarships Grants Loans Employment

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

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

15. 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

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

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

18. 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

19. What to avoid? How do you identify offers that should be avoided? 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

20. 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.

21. 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.

22. So What’s Legit? Where can you find truly free information about financial aid? Contact College Foundation of North Carolina at CFNC.org or toll free at 866-866-CFNC –Service of the State of North Carolina Talk to the 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 (notice it is not FAFSA.com!)

23. Federal government States Private sources Civic organizations and churches Employers

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

25. Federal Pell Grant Academic Competitiveness Grant and National Science and Mathematics Access to Retain Talent Grant Teacher Education Assistance for College and Higher Education Grant Federal Supplemental Educational Opportunity Grant Federal Perkins Loan Federal Work-Study Stafford Loans PLUS Loans

26. Residency requirements Award aid on the basis of both merit and need Use information from the FAFSA Deadlines vary; check College Foundation of North Carolina’s website: www.cfnc.org

27. NC State Grants Need-based Grants  State contractual scholarship  Applicants with demonstrated need  Combined with institutional and federal funds to meet full need  Incentive grant (NCSIG)  Only the most needy of NC residents Entitlement Grant (NCLTG)  Legislative tuition grant ($1,850 per year)  Residents attending a private institution in NC North Carolina Educational Lottery Scholarship NC Community College Grants, Teacher Scholarships and Loans, Nurse Scholarship and Loans North Carolina Learn and Earn Program Visit www.cfnc.org for full details and descriptionswww.cfnc.org

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

29. 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!

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

31. Free Application for Federal Student Aid (FAFSA) A standard form that collects demographic and financial information about the student and family 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

32. Web site: www.fafsa.ed.gov 2012-13 FAFSA on the Web available on January 1, 2012

33. 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

34. Web site: www.pin.ed.gov Sign FAFSA electronically Can request PIN before January 1, 2012 Not required, but speeds processing May be used by students and parents throughout aid process, including subsequent school years

35. 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

36. Central Processing System (CPS) notifies student of FAFSA processing results by: Paper Student Aid Report (SAR) if paper FAFSA was filed and student’s e-mail address was not provided SAR Acknowledgement if filed FAFSA on the Web and student’s e-mail address was not provided

37. CPS notifies student of FAFSA processing results by: E-mail notification containing a direct link to student’s on-line SAR if student’s e- mail was provided on paper or electronic FAFSA Student with PIN may view SAR on-line at www.fafsa.ed.gov

38. 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

39. VERIFICATION Tax returns / W-2 forms Untaxed income Assets Family size Family members attending college

40. If necessary, corrections to FAFSA data may be made by: Using FAFSA on the Web (www.fafsa.ed.gov) 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. What if my tax information doesn’t reflect my true circumstances? 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. 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. 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

44. 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 (combination funds) Be prepared to submit your U.S. tax returns to schools upon request: some will require Verification (federal or otherwise) Follow up with university’s financial aid office 1.Potential missing documents 2.Ensures timely award

45. 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 1.FAFSA 2.Scholarship scams

46. Additional Information The Financial Aid Information Page www.finaid.org FAST Web Scholarship Search www.fastweb.com The College Board www.collegeboard.com College Foundation of North Carolina www.cfnc.org

47. Additional Information Dept. of Ed. Student Financial Assistance www.ed.gov/finaid.html VA Benefits www.gibill.va.gov FAFSA on the Web www.fafsa.ed.gov CSS PROFILE Online http://profileonline.collegeboard.com

48. Tom Benza Assistant Director of Financial Aid Wake Forest University (336) 758-5154 www.wfu.edu/finaid (336) 758-4924 financial-aid@wfu.edu