Paying for College

1. Paying for College Summer Nance Assistant Vice President Financial Planning Gardner-Webb University

2. Paying for CollegeA Combination of Resources

3. Direct Cost vs. Indirect Cost • Direct Cost • Tuition, on-campus room and board, and any special fees • Indirect Cost • Books • Fees • Transportation • College Supplies

4. Family Contribution • Savings plan • Current assets • Income • Payment plans

5. Internal College Scholarships • Institutional Scholarships • Athletic, music, art, leadership, etc. • Other merit-based scholarships • Endowed scholarships • Need-based grants

6. External Scholarships • Civic Organizations • Lion’s Club • Rotary Club • Veterans Benefits • Guidance Counselor • Websites • Military Service Scholarships (ROTC) • Vocational and Educational Services for Individuals with Disabilities

7. Private Loans • Alternative education loans • Student or parent can apply • Credit based

8. Federal and State Aid • FAFSA • Free Application for Federal Student Aid (file each year) • Can be used for Early Estimated Awards • A standard form that collects demographic and financial information about the student and family • Use it to apply for federal and state student grants, work-study, and loans

9. Financial Aid Formula Cost of Attendance - Expected Family Contribution = Financial Need

10. Estimated Family Contribution(EFC) • Calculated by the Federal Government • based of family's FAFSA data • Amount family can, reasonably, be expected to contribute to college • Colleges use EFC to award financial aid

11. FAFSA Application • Complete the FAFSA as soon after January 1st online at www.fafsa.gov • Have 2011 tax return information available in order to complete accurately • List the schools you want to receive your information • The results (EFC) will be used by the schools to determine your financial aid award

12. FAFSA TIPS • Parents: remember if you are completing the FAFSA for the student, use the student’s social security number and birth date • Try not to leave any questions blank- this could cause delays in the processing of your application • You must provide signatures using your FAFSA pin • Provide a reliable email address- all notification will be sent here

13. Special Circumstances • Change in employment status • Medical expenses not covered by insurance • Change in parent marital status • Unusual dependent care expenses

14. Sources of Federal Aid Need- based Federal Aid • Federal Pell Grant • Federal Supplemental Educational Opportunity Grant • Federal College Work Study Federal Direct Stafford Loans 6.8% Interest Rate • Direct Subsidized Stafford Loan • does not accrue interest while enrolled at least ½ time • Direct Unsubsidized Stafford Loan (interest accrues) Federal Perkins Loan 5% Interest Rate • Schools receive limited allocation of funds to award Federal Direct Parent Plus Loan 7.9% Interest Rate • Credit based, in Parent’s name

15. North Carolina State Aid Forgivable Education Loans for Service • Available to North Carolina Residents committed to working in NC in a field designated as critical employment shortage areas • Apply online at College Foundation website: www.cfnc.org/fels The North Carolina Need Based Scholarship • Available to North Carolina Residents attending a Private Institution • Must Complete the FAFSA • Expected Family Contribution (EFC) of $15,000 or less • Award amounts range from $1,200 to $6,800

16. Helpful Websites • Free Application for Federal Student Aid (FAFSA): www.fafsa.gov • FAFSA Pin: www.pin.ed.gov • College Foundation: www.cfnc.org • Direct Loans (student and parent): www.studentloans.gov • Scholarship Search: www.fastweb.com • General Financial Aid Information: www.finaid.org

17. Questions or Comments? • Financial Aid Office at the Institution you are interested in attending • High School Guidance Counselor