Financial Aid and Scholarship Advocacy Lesson

WHAT IS FINANCIAL AID? Financial aid is funding provided to students to help pay their educational expenses. Financial aid can be used for colleges/universities, community colleges and trade/technical schools. There are several types and sources of aid.

Types of Financial Aid Scholarships Grants Loans Work-study

Scholarships and Grants Grants and Scholarships are money that does not have to be paid back. Scholarships are typically awarded on the basis of merit (good grades, extraordinary talent). Grants are usually awarded on the basis of demonstrated financial need.

Scholarship Application Tips Find out application requirements and deadlines. Refer to the College and Scholarship Bulletin that is printed monthly. Fill out forms completely. Make copies of all completed forms. Comply with all informational requests. Meet deadlines and obtain proof of mailing!

Loans Loans are money students and/or parents borrow to help with educational expenses. Repayment usually begins after the student is no longer enrolled in school. Loans can be viewed as an investment in the future if used correctly.

Work-study Eligible students are able to work on-campus to help earn money for educational expenses. Work-study is typically part-time while enrolled.

Sources of Financial Aid Federal government State government Institutions-college or university Private- civic organizations, churches, corporations

Categories of Financial Aid Merit-based aid is based on your grades, test scores, hobbies and special talents (artistic or athletic) Need-based aid is based on you and your family’s financial situation.

How to Apply for Financial Aid Request a Pin for you and your parent now in order to complete the FAFSA. www.pin.ed.gov Fill out a Free Application for Federal Student Aid (FAFSA) between Jan 1 and March 2 of your senior year if you haven’t already done so. www.fafsa.ed.gov Some private colleges also require a supplemental aid application.

What is the FAFSA? It’s a standard form that collects demographic and financial information about the student and family. Must be used for federal aid program consideration. Available in January of each year for the coming academic year. Must be completed each year student is in school.

What happens after I complete the FAFSA? You will receive a Student Aid Report (SAR) that will show your Expected Family Contribution (EFC). The EFC is the amount of money the government believes your family is capable of contributing to your education. The lower your EFC the more financial aid you will receive.

How is my financial aid determined? Cost of Attendance (COA) Expected Family Contribution (EFC) = Student’s Financial Need For example, John wants to attend CSU, Chico where COA is $17,000 per year. His family’s EFC is $10,000. $17,000-$10,000=$7,000 is John’s Financial Need. The school will then send an award letter showing what they will offer in grants and loans if John attends CSUC.