Category: Grants/Scholarships

Award Letters

Grants/Scholarships

After colleges finish their verification of financial information, they will begin the process of issuing financial aid award letters to all chosen candidates. This includes many private colleges. Private colleges often provide tuition discounts to reward good students from high-income families.

In order to receive an award letter, the student must apply and be accepted by the deadline that particular college elected. Students should apply to at least 5-10 colleges to ensure their acceptance. Once the student receives an award letter, the family should compare the financial aid package from each college. Do not only look at the total amount, but do a bottom-line analysis of the net out-of-pocket cost of attending each school. Different schools, for example, may have different costs for room and board.

You may also receive an award from a second-choice school that is more generous than the one from your first-choice school.

Once you receive your award letter, you can do several things if you want to try to improve your aid package:

Understand each of the items – A statement shows your cost of college (tuition, fees, room and board, books, personal expenses, etc.). Your family expected financial contribution (EFC), based on information you provided on the FAFSA or CSS PROFILE. Your family’s need (the cost of college minus your EFC). A listing of each aid source and dollar amount. A date by which you must return the award letter. Information on “appealing” any detail in the award letter. Compare Schools’ Packages – Next, compare your student aid packages. They can be different as night and day. Consider not only the amount you have to pay out of your pocket now, but also how much you’ll eventually have to repay (the loan amount) in the future. Respond to the Award Letter – Don’t delay in responding to this award letter just because you’re still waiting to hear from other schools. If you don’t reply on time, the aid package can be revoked. Accepting an award letter does not commit you to attending the school; it just guarantees your award. In responding, you have three choices–you can accept the award in its entirety, you can accept some components and reject others, or you can reject the offer entirely and request a revision package.

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National Science and Mathematics Access to Retain Talent (SMART) Grant

Grants/Scholarships

In addition to the Pell Grant funds, National Science and Mathematics Access to Retain Talent (SMART) Grant provides for up to $4,000 each year.

Eligibility:

If the student is in their 3rd or 4th academic year. The student is pursuing a major in mathematics, science (including physical, life, and computer sciences) technology, engineering, or a critical foreign language, such as Arabic, Chinese, Korean, Japanese and Russian; Student has a GPA of at least 3.0.

Qualification:

Student must apply for financial aid by submitting the Free Application for Federal Student Aid (FAFSA) and have been determined to be eligible for a Federal Pell Grant. Student must be a U.S. Citizen. Student must be full time and enrolled in a two- or four-year degree program.

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What is Academic Competitiveness (AC) Grant?

Grants/Scholarships

The Academic Competitiveness Grant encourage students to take more challenged classes in high school and to pursue college major in high demand (such as STEM: Sciences, Techology, Engineering, Math, and Critical Foreign Languages). In addition to Pell Grant, up to $750 will be awarded to eligible 1st year AC Grant Students; $1,300 to 2nd year AC Grant students.

Eligibilities:
1) Completed 1 of state designed secondary school program
2) Has passed at least 2 AP (Advanced Placement) tests or IB (International Baccalaureate) courses
or
3) Has completed high school courses of 4 year English, 3 year Math, 3 year of Sciences (include 2 years of biology, chemistry or physics), 3 years of social studies, 1 year of foreign language.
4) Student must be in the 1st or 2nd year of a 2 or 4 year degree study.

Qualification:
1) U.S. Citizen
2) Applied for Financial Aid (FAFSA), determined to be eligible for Federal Pell Grant
3) Full – Time student

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What is Federal Pell Grants and Federal Suplemental Educational Opportunity Grant (SEOG)?

Grants/Scholarships

Federal Pell Grant is a need-based educational federal grants sponsored by U.S. Dept of Education. It ranges from $600 to $5,815 (If the EFC is greater than $5,234, the student doesn’t receive a Pell Grant). It’s named after the U.S. Senator Claiborne Pell. It doesn’t require a repayment. They are awarded based on FAFSA’s information and determined by U.S. Congress.

Federal Pell Grant are direct grants awarded through participating schools to students with financial needs who have not received their 1st bachelor’s degree that leads to a teacher’s certificate or license.

The Federal Supplement Educational Opportunity Grant (SEOG) is need-based grant (mostly given to Pell Grant recipients) and ranges up to $4,000. A student with a bachelor degree is also ineligible.

What are MERIT-BASED SCHOLARSHIPS

Grants/Scholarships

Merit-based scholarships are the aids from colleges and universities’ own resources. Every college’s criteria is different. It’s not based on financial need. They are usually offered based on academic achievement (GPA, etc) or other talents (Musical or Athletic talents) or leaderships by serving the community or different organization. Colleges and universities use scholarships to attract students to meet their enrollment criteria (e.g. Geographic location and Gender diversity).

Like lottery: You have to be in to win it. To receive the Merit-based scholarships, you have to apply them. Schools normally publish their Average (50%) Academic Performance of Last Year’s Admitted Applicants (SAT & ACT, Avg GPA, etc). If you are interested in certain schools, make sure you know one of the two things: 1) Make sure you are above their Average Grades and Testing Scores; 2) Make sure your know your current High School standing %. If you are above not only the average, but first quartile (25%), then you are considered top students and you should apply for scholarships. Sometimes, schools will have scholarships application form in the Admission Package, others they have separate scholarships forms with an earlier deadline (than admission) that are listed on the website.

For Athletic scholarships from college, here is the Scholarship Stats, you can find out each specific sport’s scholarships statistics.

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What are Grants?

Grants/Scholarships

Grants is also a source of Financial Aids. However, it doesn’t have to be paid back unless you withdraw from school or do not fulfill service obligation that the Grants require.

There are many Grants from Federal government, state government, the school you are applying or various private/nonprofit organizations. For example: Pell Grants, FSEOG (Federal Supplemental Education Opportunity Grants), TEACH (Teacher Education Assistance for College and Higher Education Grants) and Iraq and Afghanistan Service Grants.

Apply for any and all Grants that you think you may be eligible for and make sure to submit applications before the deadline.

For Federal Grants, FAFSA form is where you start. A lot of Grants are yearly basis. In order to receive them every year of the college, you will need to apply every year when you are in school.

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What are different types of Federal Student Loans?

Grants/Scholarships

There are many types of student loans, but the majority of them are “Federal Student Loans” (FSL). In this case, U.S. Dept of Education is the lender and they offer better terms than private lenders. But just like any lender, a loan comes with interest. In order to apply for federal student loans, FAFSA (Free Application for Federal Student Aid) is needed. Not just one year, but every year.

Mainly, there are 4 types of federal student loans: 1) Direct subsidized loans; 2) Direct unsubsidized loans; 3) Direct PLUS loans; 4) Direct consolidation loans.

1) Direct subsidized loans (DSLs):
DSLs are for eligible undergrads who demonstrate financial need. This need is determined by a formula used in FAFSA. If you are qualified, federal government will cover the interest (hence the “subsidized” part) during a period of time: while you are at school and 6 months after you leave school. Here you can find the latest interest rates for the “Direct Subsidized Loans”.

2) Direct unsubsidized loans (DULs):
Borrowers will be responsible to pay the interest for DULs during all loan periods, including enrollment (Although you don’t have to replay DULs during enrollment, but interest accrues up, and you have a bigger loan payment than DSL when your loans enter repayment period). DULs are available for both undergraduates and graduates. The eligibility is not based on financial needs. Here you can find the latest interest rates for “Direct Unsubsidized Loans”. You will see, the interest rates, origination fee and eligibility for repayment and forgiveness options are the same for undergrads for both DSLs and DULs. However, the DULs’ interest rates are higher for Graduates.

3) Direct PLUS loans (DPUs):
DPUs are for either graduates (They are also called Grad PLUS Loans: GPLs) or parents of undergraduate students (Parents PLUS loans: PPLs). These loans are gap fillers: filling the gap between COA (cost of attendance) and various fundings including after borrowing your maximum allowed limits of DSLs or DULs. Here you can find the latest interest rates for “Direct PLUS loans”. You can see the rates are higher than DSLs or DULs. Besides, the DPUs require a credit check. If your credit isn’t the best, you can apply the loan with a co-signer (endorser). There is also a limit, which is COA. The big difference between GPLs and PPLs is that GPLs borrowers don’t have to make payment during enrollment or 6 months after leaving school, however interest accrues just like DULs. PPU borrower will be expected to pay immediately after the loan is disbursed unless applying for a deferment. GPLs also has advantages: Borrows can apply for income-driven repayment plans and eligible for loan forgiveness programs.

4) Direct Consolidation Loans (DCLs):
DCLs allow borrowers to consolidate all eligible federal student loans into 1 loan after leaving school. Whatever you have left (either paid partially or unpaid) will be combined into 1. The interest rate would be a Weighted Average of current interest rates of student loans and rounded up to nearest one-eighth of 1%. DCLs are also eligible for income-driven repayment plans and loan forgiveness programs.

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