Types of Financial Aid

TYPES OF FINANCIAL AID

What is Financial Aid?

Financial Aid includes scholarships, grants, loans, and campus employment. Financial Aid funds may come from federal, state, institutional and private sources. There are two basic types of Financial Aid: gift funds (money that does not need to be repaid) and self-help funds (money that is borrowed and must be repaid, or earned while enrolled).

Gift Aid - Money that does not need to be repaid

Federal and State Programs

Federal Pell Grant - This grant is a federal grant awarded to students with significant financial need, as measured by a congressionally established need-analysis formula which measures a family's ability to pay for educational expenses. Students apply for this grant by completing the federal government's Free Application for Federal Student Aid (FAFSA).

Federal Supplemental Educational Opportunity Grant (SEOG) - This federal grant is awarded by the institution to students with exceptional financial need, with Federal Pell Grant recipients given first priority. Students who complete the FAFSA and have exceptional financial need are automatically considered for this grant.
Academic Competitiveness Grant (ACG) - Begun in the 2006-07 school year, this federal grant provides funding for first- and second-year students who demonstrate significant financial need and completed a rigorous program of study in secondary school.
National Science and Mathematics Access to Retain Talent (National SMART Grant) - Federal grant available to third- and fourth-year students with significant financial need who have a cumulative 3.0 GPA in certain eligible majors.
NC Student Incentive Grant - Grants funded partially through federal funds and partially through state funds are provided to students with significant financial need as measured by the FAFSA.
UNC Need-Based Grant - Grants available from the state of NC for students attending one of the 16 public institutions of the UNC system.
NC Education Lottery Scholarship - The North Carolina Education Lottery Scholarship (ELS) was created by the 2005 General Assembly to provide financial assistance to needy North Carolina resident students attending eligible colleges and universities located within the state of North Carolina

Institutional Programs

Park Scholarship Program - NC State offers a prestigious, competitive merit scholarship program for entering freshmen who demonstrate exceptional academic ability, exemplary character, and exceptional potential in leadership and service. Students who meet the criteria defined by this program are endorsed by their high schools and invited to apply for Park Scholarships. Students must submit a complete application for admission by November 1.
Caldwell Scholarship Program - John T. Caldwell Alumni Scholarships are funded by the NC State Alumni Association as a tribute to John Tyler Caldwell, former Chancellor of NC State. Beginning in Fall 2004, The Caldwell Programs will be selecting students exclusively after their first semester at NC State. For any questions or for more information, please click on the link provided to be directed to the Caldwell Programs homepage.

University Wide Scholarships - NC State offers competitive scholarships for entering freshmen in an effort to recognize and encourage exceptional academic ability and talent. Selection is merit-based and not restricted by major. To be considered for University-Wide Scholarships, students must apply for admission by November 1. Students selected to receive scholarships will be notified by March 1.

University Need-Based Academic Scholarships - NC State offers scholarships to students who are deemed academically competitive, exhibit special talents or characteristics, and demonstrate financial need. Selection criteria may be specific to county of residence or major. All students who apply for admission by November 1 and apply for financial aid by submitting the Free Application for Federal Student Aid (FAFSA) by March 1 will automatically be considered for these scholarships.

Chancellor's Leadership Scholarship - Entering freshmen who have financial need and demonstrated leadership experience or potential are encouraged to apply for this award. Applications may be requested from the NC State Office of Scholarships and Financial Aid. The application deadline is March 1.

College Based Scholarships - Scholarships, funded by alumni, friends of the university, college foundations and industry are available to entering freshmen as well as continuing students. Scholarship amounts and criteria vary. Scholarship committees within each College are responsible for scholarship decisions

Loans - Money that must be repaid

Federal Perkins Loans - Students who demonstrate significant financial need as a result of filing a FAFSA are automatically considered for these loans. The interest rate is 5%, with interest and principal repayments deferred until 9 months after the student graduates or ceases at least half-time enrollment. Because of very limited funds, annual award amounts generally do not exceed $1,500 per student, and priority is given to undergraduates.

Federal Family Educational Loan Programs (FFELP)
Federal Subsidized Stafford Loans, Federal Unsubsidized Stafford Loans, Federal Parent (PLUS) Loans.

Federal Subsidized Stafford Loan Program - To qualify for these loans, students must demonstrate financial need as a result of filing a FAFSA. Eligibility for this loan is determined by the institution, but funds are actually provided by and repayments are collected by outside lenders who participate in this program. The annual amount that may be borrowed per year is set by the federal government and ranges from $3,500 to $5,500 for undergraduates depending upon the student's grade level. Graduate students may borrow up to $8,500 per year. The interest on this loan is paid by the government while the student is enrolled on at least a half-time basis. The student becomes responsible for the interest and principal payments six months after graduation or dropping below at least half-time enrollment.

Federal Unsubsidized Stafford Loan Program - The only difference between this loan and a Subsidized Stafford Loan is that the Unsubsidized Stafford Loan is not need-based and students are charged interest on these loans from the date of first receipt of loan funds. Although students must complete a FAFSA to qualify for an Unsubsidized Stafford Loan, eligibility is not determined based on need but based on the student's cost of attendance minus other financial aid the student expects to receive. Annual maximums, interest rates, and repayment provisions are the same as Subsidized Stafford Loans.

Federal PLUS Loan for Parents - Parents of a dependent undergraduate student may apply for a PLUS loan to help meet the student's cost of attendance not covered by other financial aid. Interest rates and repayment provisions on PLUS loans are generally more favorable than other consumer loans available for educational expenses. A FAFSA need not be completed, but parents must submit a PLUS loan application to the Office of Scholarships and Financial Aid for certification of the student's cost of attendance as well as other anticipated financial aid. PLUS applications are available in the Office of Scholarships and Financial Aid, or may be obtained from several participating lenders. Repayment starts as soon as funds are disbursed.

Choosing a Lender: Many lenders participate in the Federal Family Education Loan Programs, and students/parents have the right to choose their lender. Since these are federal loans, the federal government controls the interest rate and eligibility criteria, so the interest rate, amount of eligibility and repayment terms will be the same regardless of which lender you choose. Some lenders, however, offer lower up front borrowing charges and more favorable repayment options. NC State maintains a list of potential lenders whose services have been proven to be among the best in the business.
Federal Student Loan Information: The National Student Loan Data System (NSLDS) is the US Department of Education's centralized resource for information about all federal student loans that you have borrowed. You can find information about all of your current and prior student loans, even those you may have borrowed while you were at a prior college or university.

Private/Alternative Loans - Since the federal loan programs referenced above generally have lower interest rates and better repayment provisions, loans from private lenders are usually recommended as a last resort to families who still need additional financial assistance after all other available funding sources have been exhausted. The Office of Scholarships and Financial Aid maintains applications for several private loans available from participating lenders. Approval for these loans is usually contingent upon the credit-worthiness of the borrower, and amounts usually are limited to the student's cost of attendance for the enrollment period minus other anticipated financial aid.

Work - Money that is earned

Federal Work Study Program - If you indicate on your FAFSA that you are interested in work, and are awarded Federal Work Study as part of your award package, you will be given instructions on how to obtain a work study job assignment. You may review job opportunities on the Website for Work Study Jobs at http://www7.acs.ncsu.edu/workstudy_jobs/workstudy.asp beginning early August each year. Once you have found a job(s) that interests you, call that location and set up an appointment for an interview with the employer. You will need to take a copy of your award letter showing your Federal Work Study award amount to the interview. When you begin work, you are expected to continue that assignment throughout the year. Your employer will keep a record of your hours worked and will deliver paychecks to you every two weeks for hours worked in the previous pay period. These wages are paid directly to you, not to the University Cashier, and therefore cannot be used as a means of deferring your bill to the University.

Student Part-time Employment Opportunities - The Office of Scholarships and Financial Aid posts part-time job opportunities, both on-campus and off-campus, available for students. These jobs may be viewed at http://www7.acs.ncsu.edu/student_jobs/selectjobs.html.

For additional information, please view the US Department of Education web site at http://www.ed.gov/finaid.html

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