TYPES OF FINANCIAL AID AVAILABLE

Financial aid is designed to supplement the student/family contribution to the cost of education. Understanding the differences in financial aid can help determine the best type to seek. Three types of financial aid are available to students.

GIFT-AID

WORK-AID

LOANS



GIFT-AID

Gift-aid includes grants and scholarships from individuals, groups, organizations, businesses, and foundations. Grants and scholarships do not have to be repaid; therefore, they are considered a "gift." The funds can originate from local, state, regional or national sources. Stipulations apply to qualify, and in all cases, guidelines must be met in order to receive funds. Examples of gift-aid include the following:
 
FEDERAL PELL GRANT
Criteria: Must be a US citizen or permanent resident enrolled in an eligible program, demonstrate financial need, and meet eligibility requirements.
Application: Free Application for Federal Student Aid (FAFSA)
Award Amount: $400 to $4,000
 
FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT (FSEOG)
Criteria: Must be a US citizen or permanent resident enrolled in an eligible program, demonstrate financial need, and meet eligibility requirements.
Application: FAFSA
Award Amount: $500 per year
 
NORTH CAROLINA STUDENT INCENTIVE GRANT (NCSIG)
Criteria: NC resident, enrolled full-time, undergraduate, and meet academic requirements.
Application: FAFSA
Award Amount: Determined by State of North Carolina
 
NORTH CAROLINA LEGISLATIVE TUITION GRANT (NCLTG)
Criteria: NC resident, enrolled full-time in a private college or university in the state.
Application: FAFSA and NCLTG application form
Award Amount: Varies according to institution.

NORTH CAROLINA CONTRACTUAL SCHOLARSHIP FUND (NCCSF)
Criteria: NC resident, enrolled full-time in a private college or university in the state.
Application: FAFSA and NCCSF application form.
Award Amount: Varies according to institution.
 
NORTH CAROLINA COMMUNITY COLLEGE SCHOLARSHIP (NCCCG)
Criteria: NC resident, enrolled at least half-time (six credit hours or more), have an Estimated Family Contribution (EFC) figure that falls within a range determined by the state of North Carolina each academic year.
Application: FAFSA
Award Amount: $200 - $1,900
 
SCHOLARSHIPS
Criteria: Varies depending on the type of scholarship
Application: FAFSA and completion of application for particular scholarship program. In-house scholarship applications may be obtained through the Financial Aid Office of the institute the student is accepted to. Outside scholarship program applications may have to be obtained from the group, business, organization, or foundation offering financial aid.
Award Amount: Varies

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WORK-AID

Work-aid provides for employment of student in a job either on or off campus. The student is compensated with a wage (generally federal minimum) that is restricted to first paying off any indebtedness to the school, then subsequent pay generally goes directly to the student. The number of hours worked, location, and other requirements are designated by the school. Examples of work-aid include the following:

FEDERAL WORK-STUDY (FWS)
Criteria: Must be a US citizen or permanent resident enrolled in an eligible program, demonstrate financial need, and meet eligibility requirements.
Application: FAFSA
Award Amount: Pays $8.00 an hour. Students can earn up to $5,200 per year, based on financial need. Students are paid once a month for work completed.

INSTITUTIONAL WORK-STUDY PROGRAM
Criteria: Must be a full-time student enrolled in an eligible program, demonstrate financial need, and meet eligibility requirements.
Application: FAFSA
Award Amount: Varies according to institution.

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LOANS

Loans received from a funding source must be paid back to the funding source. The amount of the loan and required time period for payback is stipulated at the time of the loan application, along with any other guidelines or restrictions. Examples of loans include the following:

FEDERAL PERKINS STUDENT LOAN
Description: (formerly the National Direct Student Loan Program) A federal loan program through which students may borrow funds to complete education on the undergraduate level. Repayment begins six months after the student graduates or leaves school. Student may be allowed up to ten years to pay back loan at 5% interest per year on unpaid balance. Applications are available through the Financial Aid Office of the college or university of acceptance.

FEDERAL SUBSIDIZED STAFFORD LOAN AND UNSUBSIDIZED STAFFORD LOAN
Description: All Stafford Loans are either subsidized (the government pay the interest while you're in school) or unsubsidized (you pay all the interest, although you can have the payments deferred until after graduation). To receive a subsidized Stafford Loan, you must be able to demonstrate financial need. All students, regardless of need, are eligible for the unsubsidized Stafford Loan. Stafford Loans have variable interest rates (based on 91-day T-bill rate + 1.7% during school with an additional .6% increase upon graduation) capped at 8.25% or less, depending on yearly adjustments. Applications are available through the Financial Aid Office of the college or university of acceptance.
 
FEDERAL PARENTS LOANS FOR UNDER GRADUATE STUDENTS (FEDERAL PLUS)
Description: A federal loan program for parents of dependent students. Parents may borrow up to the total cost of education minus any financial assistance the student is eligible to receive. Interest is variable annually with a 9% cap. Repayment begins immediately after disbursement of funds. Applications are available through the Financial Aid Office of the college or university of acceptance.

NORTH CAROLINA STUDENT LOAN PROGRAM FOR HEALTH, SCIENCE, & MATHEMATICS
Description: A state loan program designed for persons who desire to pursue career opportunities in the health, science, and mathematics disciplines.

The NC General Assembly makes available appropriations for loans for the instructional programs of:

Health:
Allied Health, Health Sciences
Mathematics:
Mathematics (General, Pure, and Applied)
Science:
Computer and Information Science, Engineering and Related Technologies,
Life Sciences, and Physical Science

Maximum loan amount for each full academic year is $3,000; total maximum amount is $6,000 for two years. Apply in writing to the Office of State Budget and Management, 116 West Jones Street, Suite 279, Raleigh, NC 27611.

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