Class of 2015: Senior Lunch & Learn

Funding Sources for

College

What you will learn…

TerminologyDifferent funding sources and

how to obtain them.Helpful hintsWeb resourcesQuestion/Answer Session

Terminology you need to know:What is FAFSA?

Free Application for Federal Student Aid.

Gives you access to the largest source of financial aid.

Many states and colleges use FAFSA to determine your eligibility for state & school aid. Private funding sources may use it also.

Terminology you need to know:What is “Need-Based” Aid?

Refers to a financial situation of the student’s family.

One’s family’s income, family size, expenses, and assets are examined to determine your Expected Family Contribution (EFC).

Terminology you need to know:What is “Merit-Based” Aid?

Funding based on achievement in a specific category, such as Academics, Art, Athletics, etc….

Although scholarships are the most common type of “merit-based” aid, some grants may be also.

GrantsWhat is a Grant?

Free money that you don’t have to repay. Most are need-based; some are merit

based. Amount awarded depends on the your

financial need, the cost of attendance, status (full time or part-time) and more.

How to Obtain: Complete the FAFSA to see if you qualify. If

so, you’ll get an award letter from your school and the school will distribute it to you.

Types of Federal GrantsFederal Pell Grant (up to $5730/yr.)

For undergraduates that have not earned a degree.

Can receive the Federal Pell Grant for no more than 12 semesters.

Federal Supplemental Educational Opportunity Grant (from $100 - $4000/yr. ) For undergraduate students with

exceptional financial need. Students receiving Pell Grants and have the

most need will receive FSEOG’s first.

Types of Federal Grants Teacher Education Assistance for

College and Higher Education (TEACH)(up to $4000/yr):

For students aspiring to be teachers.Must agree to work in a high-need field for

four academic years.Contract agreement must be signed in order

to receive. If broken, grant is converted to a loan.

Iraq and Afghanistan Service Grants (up to $5,730) For students who’s parents died as a result of

military service in these areas (after 9/11).

Scholarships What is a scholarship?

Funding that you don’t have to repay. Usually awarded based on merit, financial

need, or student specific (e.g. – gender, race, major, etc….)

Variety of sources so you will have to search for them.

Be sure to complete all of the information requested, as that may help match you to more scholarships.

To maximize your chances, apply for every scholarship you qualify for (it’s a number’s game).

Scholarships How to Obtain Scholarships: Check with the college/university you are

applying to for the scholarships they offer. Information will be listed in their

Financial Aid Section. Use various resources to research

outside scholarships. Research Early and Apply on time! Once awarded, the gift may go directly to

the school or given directly to you.

Student LoansWhat is a student loan? Funding that you borrow and have to repay,

with interest, after college. May be Public loans (from the Federal

Government) or Private (Banking institutions).

How to Obtain: Complete the FAFSA Submit your FAFS early; Government aid is

on a first-come first served basis.

Types of Student LoansPerkins Loan: Based on Financial Need. Amount determined by the

college’s financial aid office. No interest accrues while in school. Start repaying 9

months after graduation.Stafford:

Direct Subsidized: The government pays interest on the loan while you’re in school.

Direct Unsubsidized: You pay the interest on the loan, but can defer payments until graduation

Will need to show financial need for subsidized loan; not for unsubsidized loan

Types of Student Loans Parent “PLUS” Loan: Loans your parents can take out to help you pay

for school. Direct Consolidation Loan:

Allows you to combine all of your eligible federal loans into one single loan with one service provider.

Goal is to simplify your parents, but may result in a loss of benefits.

Private Loans: Loans borrowed for a banking institution. Often the most expensive option due to the terms

and conditions.Remember - with all loans, make sure you understand the terms and conditions!!

Work Study or Co-Op What is it?

Part-time employment for enrolled students to help them earn money to meet their college expenses.

Positions may be Tutoring, Clerical, Research Assistant, etc….

Available through schools that participate in the Federal Work Study program.

How to Obtain: Fill out the FAFSA to determine your eligibility

for federal work study. After you qualify, find work-study jobs through the college’s online job search or their Financial Aid office.

Helpful Hints If you have to borrow money, borrow smart

and only borrow what is necessary to cover your education expenses.

Check the “net cost” of attending (what’s left once all aid has been awarded), not the “sticker price” (the full cost).

Don’t put off applying for essays because you don’t like writing essays. Ask for help.

Visit Mrs. Morris in the CCC for up to date information on scholarships.

Check with your parent’s employer or your church for scholarship opportunities.

Web Resources: Visit https://studentaid.ed.gov for more

information on Types of Aid. Use FAFSA4caster

 to estimate your federal student aid (you can do this before Jan. 1)

www.fastweb.com www.atlantascholarships.com www.collegeboard.com www.collegenet.com www.scholarships.com

Questions?