Tag: 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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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 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 is a 529 Plan?

Financial Aids

Families that save early pay less for school, reduce their needs to borrow and have more funds available later in life. How you save, where you save, when and who do you save for are big questions.

529 plans are the best way to save for college. It’s an investment account that has Tax Benefits. You can use it to pay for college, k-12 tuition, even student loans repayment. Your state have tax breaks as well (Besides the federal tax benefits, over 30 states offer a full or patient tax deduction or tax credit for 529 contributions). 529 are low maintenance accounts, yet highly flexible. You can also roll 529 funds into a Roth IRA.

Here are the best plans of 529 in 2023.

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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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How much financial aids can I receive for school?

Financial Aids

Parents often ask, “How much financial aids can my son/daughter receive for school?” 

First thing you will need to do is to: fill out your FAFSA Form (Free Application for Federal Student Aid). Once the Office of U.S. Dept of Education process your application, they will send your info to all of the schools you listed on FAFSA. It’s kind of like a One-Stop Shop, each school will use the FAFSA information to make decision on how much financial aid you are eligible. Each school’s schedule is totally different. You must check with each school to find out when you can expect to receive a financial aid offer.

Different schools have different formulas, but basically, they use these three factors:

1. Status: Your status of school enrollment (FT – full-time, HT – Half-time, LHT – less than half-time, etc.)

Your status of school enrollment will impact the dollar amount you qualify for. For example, certain student loans are available only to students enrolled more than half-time.

2. COA: Cost of Attendance (👍metrics to compare schools)

COA is usually available on the school’s website. COA usually includes: a) Tuition and Fees, b) Room and Board, c) Books, supplies, living expenses, transportation, loan fees, and more. COA varies from school to school and it’s a very realistic metrics when comparing schools in a whole. Some schools may have lower tuition, but living expenses are much more higher.

3. EFC: Expected Family Contribution ()

EFC is the main piece of the puzzle. It’s the main info you wrote on FAFSA. The EFC is not necessarily the amount of money your family will have to pay out of pocket for college. It’s not just income and it’s not the financial aid you will receive. However, it is a main # used by your school to calculate how much financial aid you are eligible for at that school.

If you have questions about your EFC, contact the financial aid office at your selected college.

Schools then use this formula to determine your financial need:

Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need

Once the school determined your needs + accepted you, you will receive financial aid offers from the schools. All your financial aid offers will be different. Different schools have different aids programs and even same school has different aids available in different years. So you have to be in it to win it.

Different offers can come from different sources: school itself, private foundations, state or federal level. Make sure you understand the type of funding and if you will need to pay back or not.

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