Financial Aid Financial Aid OverviewOverview

Chad SpencerChad SpencerSenior Assistant DeanSenior Assistant Dean

Davidson CollegeDavidson CollegeJanuary 28, 2010January 28, 2010

What Will We What Will We Cover?Cover?

• Applying for AidApplying for Aid• Cost ComponentsCost Components• Need-Based AidNeed-Based Aid• Merit-Based AidMerit-Based Aid• PackagingPackaging• Consumer TipsConsumer Tips• QuestionsQuestions

FormsForms• CSS ProfileCSS Profile

– College Scholarship ServiceCollege Scholarship Service– www.CollegeBoard.comwww.CollegeBoard.com

• FAFSAFAFSA– Free Application for Federal Student Free Application for Federal Student

AidAid– www.FAFSA.ed.govwww.FAFSA.ed.gov

FormsForms

•At School’s DiscretionAt School’s Discretion– Institutional applicationInstitutional application– Tax returns and W-2 formsTax returns and W-2 forms– Non-custodial PROFILENon-custodial PROFILE– Business/farm supplementBusiness/farm supplement

How is Eligibility How is Eligibility Determined?Determined?

Cost of educationCost of education- Outside Resources- Outside Resources-- Family contributionFamily contribution= Student’s financial = Student’s financial needneed

Components of Components of Need EquationNeed Equation

• CollegeCollege– TuitionTuition– FeesFees– RoomRoom– BoardBoard– BooksBooks– SuppliesSupplies– PersonalPersonal– TransportationTransportation

• FamilyFamily– Parent IncomeParent Income

• AllowancesAllowances– AssetsAssets

• ProtectionProtection– Number in CollegeNumber in College– Student Income & AssetsStudent Income & Assets

Types of AidTypes of Aid Gift AidGift Aid• GrantsGrants• ScholarshipsScholarships

Self-Help AidSelf-Help Aid• Student LoansStudent Loans• EmploymentEmployment

Need-Based AidNeed-Based Aid

•Awarding strategy varies Awarding strategy varies by institutionby institution

•Many factors in awardingMany factors in awarding

Merit-Based AidMerit-Based Aid• Availability varies by institutionAvailability varies by institution• Strategies underlying merit awards varyStrategies underlying merit awards vary

– Recruiting deviceRecruiting device– Awarded after student is admittedAwarded after student is admitted

• Procedures for being considered varyProcedures for being considered vary– NominationNomination– Scholarship applicationScholarship application– Admission applicationAdmission application

Questions To Ask Questions To Ask About Merit-Based About Merit-Based

AidAid• Is the scholarship renewable?Is the scholarship renewable?• If so, what are the requirements If so, what are the requirements

for renewal?for renewal?• Will it affect my need-based aid Will it affect my need-based aid

eligibility?eligibility?

PackagingPackaging• GrantsGrants• Merit-Based AidMerit-Based Aid• Self HelpSelf Help

– Student LoansStudent Loans• Federal Family Education Loan ProgramFederal Family Education Loan Program

– Perkins & StaffordPerkins & Stafford– Parent Loans (PLUS)Parent Loans (PLUS)

•Alternative LoansAlternative Loans– Student EmploymentStudent Employment

Sample Aid Sample Aid PackagesPackages DavidsonDavidson PublicPublic U.U. Private Private

U.U.CostCost $48,000 $48,000 $20,000 $20,000 $35,000 $35,000

EFCEFC $10,000$10,000 $10,000$10,000 $10,000$10,000

NeedNeed $38,000 $38,000 $ 10,000 $ 10,000 $25,000 $25,000

MeritMerit $ 0 $ 0 $ 0 $ 0 $10,000 $10,000

GrantGrant $35,900 $35,900 $ 5,000 $ 5,000 $ 7,000 $ 7,000

LoanLoan $ 0 $ 0 $ 3,500 $ 3,500 $ 4,000 $ 4,000

FWSFWS $ 2,100$ 2,100 $ 1,500$ 1,500 $ 1,000$ 1,000

TotalTotal $38,000 $38,000 $ 10,000 $ 10,000 $22,000 $22,000

Unmet Unmet $ 0 $ 0 $ 0 $ 0 $ 3,000 $ 3,000

PaidPaid $10,000$10,000 $13,500 $13,500 $17,000 $17,000

Other Helpful Other Helpful OptionsOptions

• Outside scholarships in some casesOutside scholarships in some cases• Summer/academic year Summer/academic year

employmentemployment• 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 Other Things to KnowKnow

•Deadlines are importantDeadlines are important•Early Decision/Early Early Decision/Early

ActionAction•May 1: National May 1: National

Candidate’s Reply DateCandidate’s Reply Date

Consumer TipsConsumer Tips

•Avoid financial aid Avoid financial aid consultantsconsultants

•Avoid scholarship programs Avoid scholarship programs that charge application feesthat charge application fees

•Avoid scholarship search Avoid scholarship search services that charge feesservices that charge fees

Questions???Questions???

Thank YouThank You

Chad SpencerChad Spencer

January 28, 2010January 28, 2010