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Financial Aid FAQ (Frequently Asked Questions)
This is not only a list of the most frequently asked questions that
we've heard about financial aid, but also a financial aid primer. We
suggest that you read the questions in the order they are presented,
but skip around if you prefer.
- What is student financial aid?
- What is student financial aid based on?
- What are college costs?
- Who pays for college costs?
- What about need-based grants, loans, and
employment?
- How do I apply for student financial
aid?
- Are there some tips for applying for
student financial aid?
- How is eligibility for need-based aid
determined?
- What are major sources of financial aid?
- What is a "financial aid package?"
- What if I have special circumstances or
want more aid?
- How do I compare financial aid packages
from different colleges?
- Is that all there is?
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College is Important!
College is Affordable!
The Role of Financial Aid
Return to Paying for College
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1. What is student financial aid?
Financial aid is money from federal, state, and private sources
used to pay college costs. There are two general
types of aid: gift aid and self-help aid.
Gift aid: The two types of gift aid are grants and scholarships.
Generally grants and scholarships are the same thing - aid given to
a student for which the student does not have to work or have an
obligation to repay.
Self-help aid: There are also two kinds of
self-help aid, loans and employment.
- Loans - money used to pay current expenses with an
obligation for repayment at some future time, usually with
interest
- Employment - part time campus or off-campus job
There are multiple sources of financial aid awards. Some examples
are:
- State programs
- Federal programs
- College and University programs
- Local, regional, national private programs (foundations,
clubs, organizations)
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2. On what is student financial aid based?
There are different qualifications for various financial aid
programs: "merit", "need", and other criteria.
- Merit-based: Financial aid based on special talents,
achievements, or skills of a student. Examples of merit-based
awards are academic, drama, music, and athletic scholarships.
- Need-based: Financial aid based on the difference between
the total cost of attending a specific college program and a
family's ability to pay that cost as calculated using standard
formulas.
- Other based: Financial aid based on neither merit nor
need. Examples include grants based on state residence, jobs,
campus work, parent loans, some student loans.
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3. What are college costs?
College costs vary widely. Most of the difference is in tuition and
fees, which are lower at public institutions because the state subsidizes
in-state residents. Other costs are
much the same at public or private institutions. Costs that
are generally considered are:
- Tuition
- Required fees
- Room
- Meals
- Books and Supplies
- Personal expenses
- Transportation
North Carolina offers students a variety of excellent college
choices, both public and private. Don't let the costs scare you off;
financial aid can offset the costs for many
students and families, as the rest of this outline will make
clear. For more information on total costs of North Carolina
colleges and universities, click
here.
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4. Who pays for college costs?
Paying for college is a shared responsibility, among:
- The family
- The state
- The specific college or university
- The federal government
- Private sources
The amount your family has to pay varies depending on the cost of
the college you attend and other factors. You may want to
visit our College
Aid Calculator to help you compute how much your family may need to pay
towards the cost of a particular school.
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5. What about need-based grants, loans and employment?
Most available financial aid is need-based. Need-based aid is
seldom all gift aid; often it is a combination called a "package" of
gift, loan, and work; sometimes it is offered in the form of loans
and/or work only. Your family is responsible for costs to the extent
of its ability to pay college costs. Our Financial Aid
Estimator will help you determine how much will likely be your
families responsibility. The purpose of need-based aid is to provide
access to college, and choice of a college. Every year there is a
new determination of eligibility for need based aid, annual
applications are required (see below).
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6.How do I apply for student financial aid?
File the Free Application for Federal Student Aid (FAFSA).
- FAFSA Application - www.fafsa.ed.gov.
As the name states, the form is free; you should not have to pay anyone to
complete the form. If you need help, check out FAFSA Day.
- Required annually for all types of need based state and federal aid (file as
soon as possible after January 1 of the senior year in high school
and each year thereafter)
- Applications processed centrally by a federal processor
- Application results sent to institutions listed by student
on FAFSA and to the state agency
- Student Aid Report sent to student to confirm data
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Other forms may
also be required by the college or university of your choice (check
with each college). Among these forms are:
- Their own institutional applications for need-based aid
- College
Scholarship Service PROFILE (a national form used
by some colleges and universities for awarding their own need-based
student financial aid funds)
- Specific college merit scholarship applications (often
with fall deadlines, so apply early)
- Scholarship applications from sources outside the college
or university (foundations, clubs, etc.) can be important also.
Find out about these "outside scholarships" by using resources
including:
- High School Counselor's Office
- Fraternal, civic and church groups in your area
- Free Internet Scholarship Searches.
You should never have to pay for scholarships or scholarship searches.
Note that some search engines will sell/share your personal information
with other “partners”.
View a Timeline for the Financial Aid
Process!
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7. Are there some tips for applying for student financial
aid?
- Be sure to complete all required forms by deadlines.
- Complete all questions accurately; estimate if necessary
to meet early deadlines.
- Don't wait until you are admitted to file the FAFSA.
- Keep a photocopy of all documents for your records.
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8. How is eligibility for need-based aid determined?
Standard formulas compute a Parent's Contribution and a Student's
Contribution:
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To be considered for FEDERAL and some STATE financial aid, you must
meet the following criteria:
- Complete and submit the Free Application for Federal
Student Aid (FAFSA)
- Be a U.S. citizen or eligible non-citizen
- Have a valid Social Security number
- Be enrolled at least ½ time in an eligible program and working
toward a degree or certificate (may be eligible for only Federal
Pell Grant if less than ½ time student)
- Have a high school diploma or General Education
Development (GED) Certificate, or pass a test approved by the U.S.
Department of Education
- Make satisfactory academic progress
- Register with the Selective Service, if required (males
only)
To receive STATE student aid from North Carolina, you also must:
- Be legal North Carolina resident for tuition
- Attend an eligible institution in North Carolina
- Fill out applications specific to the state (while most state programs require only the FAFSA as the application,
state scholarship-loans have their own separate applications). Use our financial
aid search to find the programs of interest to you
To receive institutional and other need-based aid, be sure to check
the specific requirements of the institution or program.
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9. What are major sources of financial aid (scholarships,
grants, loans, employment)?
There are many sources of aid - state programs, federal programs,
colleges and university programs, local and other
programs. Some are need-based, some are merit-based, and some are
based on other factors. Major programs are listed below. Each
program is listed in the scholarships, grants or loans section of
our site.
| Major state programs for North
Carolinians: |
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A. Grants/Scholarships |
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B. Scholarship - Loans |
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| Major federal programs: |
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A. Grants
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B. Jobs and Loans
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North Carolinians
can view many more federal and state sources of aid available to
them by using our Financial Aid
Search. College-sponsored aid opportunities are plentiful, but these
opportunities vary widely from college to college. To find out just
what opportunities may be available for you, review college websites and
catalogs (sometimes called bulletins) or contact the school's financial aid office.
Many colleges and universities offer both need-based and merit-based financial aid, including:
- Grants & Scholarships
- Alternative parent and student loans
- Student Employment
Local and government organizations are another good source of
scholarships. Your school counselor or public library will
have information on local financial aid opportunities. Examples of
groups that may offer this type of scholarship include:
- Churches
- Civic Groups
- Parents' employers
- Veterans' Administration (multiple links)
- Vocational Rehabilitation Services
- ROTC Scholarships
- Robert C. Byrd Honors Scholarship Program
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10. What is a "Financial Aid Package?"
A Financial Aid Package represents the best efforts of the college
or university financial aid office to meet a student's demonstrated
need or to offer other suggestions for available aid. Some colleges
are able to meet full demonstrated need, but some cannot.
Colleges communicate aid options to the student by an "award
notice" that lists programs of aid and amounts available.
Financial aid packages generally include a combination of gift and
self-help. The proportion of gift and self help will vary by college
or university and sometimes by other factors as well. The package
may be adjusted if/when other resources are awarded to student.
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11. What if I have special circumstances or want more aid?
Significant change in your family can lead to financial aid. Let the
college financial aid office know about changes such as:
- Unemployment of a parent
- Death in the family
- Change in parents' marital status
- Major non-discretionary expenses such as medical bills
- Be prepared to provide documentation of any change
- Adjustments to aid awards - especially need-based awards -
are not made based on "negotiations" but on changed circumstances
and new information
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12. How do I compare financial aid packages from different
colleges?
Ask yourself these questions in evaluating financial aid offers:
- With the aid offered to me, can I afford to attend my
first choice college or university? Remember, the goal of aid is to
provide access and choice, not to lure you to a college you don't
really want to attend
- Is there a commitment from the financial aid office to
continue the aid after the first year of college? Under what terms
and conditions? What are my responsibilities in securing
continuation (application deadlines, grade average, etc.)?
- Is the amount of loan and/or work a reasonable
amount? How many hours of weekly work does the award imply?
- Can I afford the monthly payments on a loan once I have graduated?
Use our Smart
Borrower Calculator to learn more about how much is too much to borrow and the
Stafford
Loan Repayment Calculator to estimate your monthly payments.
- Are there other options available to me at my first choice
college or university? If the aid offer is not sufficient to
enable you to attend your first choice, ask the aid office at that
college or university if they can suggest other options for
financing your education
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13. Is that all there is?
- Payment Plans - Some colleges offer a payment plan to make
paying your portion of expenses easier. Contact your college
or university to find out if they have such a plan
- Family Savings - North
Carolina's National College Savings Program - It's important to
save and plan ahead when possible
- Taxpayer Relief Act, and other Tax
Savings
- Off-campus employment - be sure to keep the times and
number of hours limited in a way that will not hinder academic
work
- Cooperative education programs - alternate terms of
college with terms of work to help pay for educational expenses and
gain career experience
- Employer reimbursements - normally limited to full time
employees who are taking a limited number of courses
- The Academic Common Market enables North Carolina residents to pursue certain graduate (not undergraduate) degree programs in other states at reduced tuition rates when the program is not offered through the University of North Carolina, and is an approved participating program. To learn more, visit the UNC Academic Common market at: http://acm.northcarolina.edu/.
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Where do you go from here? It depends. Here are some
suggestions:
Use the navigation tools to the left to get detailed
information on scholarships and grants, student and parent loans,
saving for college expenses, and ways to get tax reductions to pay
for college. You also can directly access a variety of tools,
calculators, and publications to help you find ways to pay for
college.
What you need to know about paying for college is different
at different ages. Find out special information for the following
groups:
Parents and students - 9th and
10th grade
Parents and students - Middle
School
Families of children age 11 or
younger
See a list of major federal and state grants,
scholarships, loans, and work-study.
Search for scholarships and other financial aid.
Go to the
College Fair to learn costs and aid facts about 110 North Carolina
colleges and universities.
Read Insider
Information - articles containing advice from financial aid
professionals.
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