Congratulations! You’re in! By this point in the game, those college admission letters are rolling in. But what’s the next step? Determining that pesky financial aid package. What do all those numbers mean? Pell Grants and work study and loans, oh my! What is this stuff?
(Source: theprospect.net)
Right now you may be feeling a little bit like the picture above: you know that money plus money equals college, but where is that money coming from? Don’t worry! I’ll walk you through it. There are many different types of financial aid, and it’s important to understand them all when you’re comparing financial aid packages and making the big decision of where to spend the next four years!
Merit-Based Aid
- Merit-based aid is funding awarded based on your academic performance, including rigor, GPA, and testing. Of course, your extracurricular activities, leadership, and community service involvement as a high school or transfer student is also important! And the best part? All students are automatically considered for merit scholarships at the time your application for admission is being read! These awards have nothing to do with financial need and do not need to be repaid. They are strictly based on your academic performance. Great! Anything else you need to know? Why yes! Merit scholarships of $15,000 or more have a 3.0 GPA requirement to maintain them; be aware of this if/when you receive your merit award!
Need-Based Aid
Gift Aid: Any funding awarded that you do not have to repay
- Pell Grant: Pell Grants are a federal award given to students with high financial need as determined by the FAFSA.
- Supplemental Educational Opportunity Grant (SEOG): This is a federal award typically given to high-need students who receive Pell.
- Tuition Assistance Program (TAP): This award is for eligible New York State residents who have financial need. If you are a New York State resident, be sure to apply online at hesc.org!
- Rochester National Grant (you may also see an Undergraduate Grant): This is an institutional grant (coming from the University of Rochester) to students with financial need.
Self-Help Aid: Any funding you must either repay later on or earn by working.
- Federal Direct Subsidized Loan: This is a federal loan awarded to students with financial need. There are annual limits depending on the student’s year in school. The current interest rate is 3.86%, and interest does not accrue while the student is in school.
- Federal Direct Unsubsidized Loan: This federal loan is available to students regardless of financial need. The current interest rate is 3.86%, but interest does accrue while the student is in school. We do not currently package students with unsubsidized loan funding; students may request it if desired.
- Federal Direct Perkins Loan: This is a federal loan awarded to students demonstrating high financial need. The current interest rate is 5%.
(Source: rochester.edu)
- Federal Work Study: Work-study may be awarded to students with financial need. Through this program, the government subsidizes a portion of your pay, making you a more attractive hire to on-campus employers! The money you earn through the work-study program will be paid directly to you in the form of bi-weekly paychecks. Keep in mind that even if you don’t receive Federal Work Study, there are plenty of student employment opportunities on campus! Many students find the work they do on campus very fulfilling. Pictured above is Shianne Chatarjee, winner of the Student Employee of the Year for 2011-2012, with President Joel Seligman.
Woo! That’s a lot of information, I know. But be sure to familiarize yourself with the different types of aid available, and to compare the information presented in each financial aid package you receive. How much gift aid are you receiving? How much self-help aid? Consider what your loan repayments might look like after graduation, or how much you will need to work while in school in order to help offset your cost of attendance.
When you log into your FAOnline account for the first time after receiving your financial aid package, be sure to check out the Financial Aid Disclosure form found toward the bottom of the "Meliora!" tab. You can use this form to compare with other schools that use the same layout for their financial aid disclosures! For more information on any of these types of aid, you can also refer to the Financial Aid for Undergraduates e-Sert, found under the Standard Forms tab in your FAOnline account.
Good luck! As always, please feel free to reach out to our office if you have any questions about the financial aid process.