Paying for College: Understanding Financial Aid
There are 5 ways that people pay for college:
« Scholarships: Money that does not need to be repaid that is awarded for any number of considerations - merit, need, talent, etc. Typically, you seek scholarships out on your own and complete applications for them.
« Grants: Money from the government that does not need to be repaid, typically awarded based on need. You qualify for grants by completing the FAFSA.
« Loans: Borrowed money that you must repay with interest. You qualify through the FAFSA.
« Work Study: A work program where you work to earn money to help pay for school. You qualify through the FAFSA.
« Expected Family Income (EFC): Your EFC is the amount your family is estimated to be able to contribute to your post-secondary education each year. This number is determined through the FAFSA - make sure to file or your EFC will be the full college pricetag!
Filing the FAFSA is the first step in getting money for college. The FAFSA determines your eligibility for financial aid for college and is a crucial part of the application process. The FAFSA opens October 1st of each year, and we recommend filing the FAFSA as soon as possible. Filing early maximizes the amount of aid for which you are eligible and gives you plenty of time to explore financial aid options. More people qualify for aid than you think, so even if you are not sure if you will get aid, fill it out - it's free and only takes 20-30 minutes to get started financing your college career.
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File the FAFSA with your parent or legal guardian, here's what you'll need:
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Social Security Numbers or Alien Register Numbers
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Prior-prior federal income tax returns, W-2s, and other records of money earned (i.e. 2020 for 2022 college entry)
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Bank statements and records of investments (if applicable)
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Records of untaxed income (if applicable)
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An FSA ID to sign electronically - you and your parents can create your FSA IDs at https://fsaid.ed.gov/
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In addition to the FAFSA, about 200 schools (usually highly selective ones) require the CSS Profile to be completed as well. The CSS Profile asks for similar information to the FAFSA, but goes more in-depth and requires a small fee. The CSS Profile can be submitted at https://cssprofile.collegeboard.org/
Search for Scholarships
Along with the grants, loans, and work-study funds that you can qualify for through the FAFSA, scholarships can help ease the monetary burden of college. Scholarships are monetary awards that do not need to be repaid, but do not come from the government and eligibility can be based on almost anything. Colleges, employers, and many other places offer scholarships than range from a couple hundred dollars to a full ride! Research what scholarships you may qualify for and apply for as many as possible - the OHS Scholarship Database is a great resource to help you find potential scholarships.
The NC Residency Determination Service is an online form that must be completed to qualify for in-state admissions, tuitions, and state grant awards. You must complete this form if you will be attending a North Carolina college or university. This includes 4-year public schools, private schools (in order to be eligible for a NC grant), and community colleges. You only need to complete it one time for all your applications. We recommend you complete RDS while completing the FAFSA with your parents or legal guardian, as it requires similar information.
Information that may be required:
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Student and Parent’s personal identifying information (such as SSN)
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Parent/legal guardian-filed state and federal taxes
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Driver’s license or vehicle information
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Student-filed state taxes
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US citizenship and immigration services documentation
RDS will provide you with an Residency Certification Number (RCN) that is used as part of your applications.