scholarships 101 loans, grants, scholarships and everything in between!

Scholarships 101Loans, Grants, Scholarships and

Everything In Between!

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We will talk about:

• What is Financial Aid?

• Federal Student Aid. FASFA – Free Application for Federal Student Aid

• Loans vs. Grants

• Bridging the Financial Aid Gap with Grants & Scholarships

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What is Financial Aid?

• Money to pay for college or career school– Grants

– Loans

– Work-study

– Scholarships

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Who can get federal student aid?• U.S. citizen or permanent resident• High school graduate/GED holder• Eligible degree/certificate program• Valid Social Security number• Males registered for Selective Service• Satisfactory academic progress

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How much federal student aid can I get?In general, depends on your financial need.• Financial need determined by Expected

Family Contribution (EFC) and cost of attendance (COA)

• EFC comes from what you report on FAFSA• COA is tuition, fees, room and board,

transportation, etc.

COA – EFC = financial need

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How much federal student aid can I get?Example: first-year student in 2012-13Maximum amounts allowed: • Federal Pell Grant: TBD [$5,500 in 2011-12]• Direct Subsidized and Unsubsidized Loans: $5,500 total• Federal Perkins Loan: $5,500• Federal Supplemental Educational Opportunity Grant:

$4,000• Federal Work-Study: depends on funds available at

school• Direct PLUS Loan (for parents): COA minus other aid

received

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How much federalstudent aid can I get?

For early estimate, use FAFSA4caster:• Go to www.fafsa4caster.ed.gov• Enter some financial information• Get an estimate

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How do I apply for aid?• Federal student aid: fill out Free Application for

Federal Student Aid (FAFSA) at www.fafsa.gov• School aid: contact financial aid office at schools

you are considering• Scholarships: visit scholarship website or call

contact number for information

*College, Universities, and Trade Institutions are responsible for distributing Financial Aid Award Letters.

Loans vs. grants and scholarships

What is a loan? - A sum of money that is EXPECTED to be paid back with interest.

What is a grant? - A sum of money given by an organization, especially a government, for a particular purpose, which you DO NOT pay back.

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Doing your financial math!

What additional funds would be needed to attend Temple University at a per year cost of $17,500?You received the following Financial Aid:•Federal Pell Grant: $2,000•Federal Supplemental Educational Opportunity Grant: $1,500•Direct Subsidized and Unsubsidized Loans: $5,500 total•Federal Perkins Loan: $5,500

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Bridging the financial aid gap with scholarshipsWhat is a scholarship? - A grant or payment made to support a student's education, awarded on the basis of academic or other achievement, which you DO NOT pay back.

Scholarships are awarded based on merit, financial need and other unique talents/characters.

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Bridging the financial aid gapwith scholarshipsWho offers scholarship opportunities?

•State and Private Institutions, Colleges and Trade School Institutions

•Do I have to accept my TOTAL financial aid award package?NO, you DO NOT! The more scholarship monies you apply for and are awarded, the greater your chances to replace loans!

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Searching for scholarships

• Start searching as soon as possible– If you wait until spring to start searching, you

will miss half the deadlines

– There are many scholarships available to students in grades 9, 10 and 11, not just high school seniors

– There are even scholarships for current college students

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Searching for scholarshipsUse a free scholarship matching service like:•Sallie Mae - http://go.salliemae.com/scholarship/default.aspx•Scholarships.com - http://www.scholarships.com/scholarship-search. aspx•Fastweb.com - http://www.fastweb.com/•GOOGLE IT! – www.google.com•FLP - (Finance Your Education) http://collegeprep.freelibrary.wikispaces.net•Scholly (Phone App)- http://www.myscholly.com/

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Key scholarship resources• www.finaid.org/scholarships

• www.finaid.org/websearch

• www.finaid.org/scholarshipscams

• www.ftc.gov/scholarshipscams

• www.finaid.org/taxbenefits

• www.irs.gov/pub/irs-pdf/p970.pdf

More ways to search for money

• Look for scholarship listing books at the library or bookstore, but check the publication date

• Look for local scholarships on bulletin boards near the guidance counselor or financial aid offices, or the library’s jobs and careers section

• Use the Free Library of Philadelphia! Go to the Regional Foundation Center, Central Library, 2nd floor, for grant and scholarship information.

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Tips on winning scholarships• Prioritize your applications by deadline and the expected

value of the scholarship• Use a calendar and checklist to get organized• Create an accomplishments resume• Tailor your application to the sponsor’s goals• Read and follow the instructions• Make your application stand out from the crowd• Ask to be nominated• Practice on a copy of the application form

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Where can I get more info?

• www.studentaid.ed.gov – Information about aid programs– Free scholarship search– Free college search

• 1-800-4-FED-AID– Information about aid programs – Help with the FAFSA