FINANCIAL LITERACY 101

Overview

Financial Aid
Scholarships
Budgeting
Credit
FINANCIAL AID
FAFSA OPENS OCTOBER 1
(ANNUALLY)

www.fafsa.gov
How do we use the FAFSA?
● The FAFSA gives us your Expected Family Contribution (EFC)-the amount of money
your family can reasonably contribute towards a student’s education
● Cost of Attendance (COA) − Expected Family Contribution (EFC) = Financial Need
Types of Financial Aid

Grants-Need Based
● Free money or gift aid
● Grant sources:
○ Federal (Pell)
○ State
○ Institutional
Types of Financial Aid

Work Study
● Provides part-time
work for students;
need based
● Students earn these
funds by working and
are paid with a bi-
weekly paycheck
● If interested, answer
“YES” to question 31
on the FAFSA
Types of Loans
Direct Unsubsidized loans:
● Available to undergraduate,
graduate, and professional
students.
● Students do not need to
demonstrate financial need.
● Interest is charged during all
periods.
Direct Subsidized loans:
● Available to undergraduate
students who demonstrate
financial need.
● No interest is charged when
the student is enrolled at least
half-time, during the grace
period, or during deferment
periods.
 Types of Loans
Private Loans
Direct Plus Loans:
● Available for students who
● Available to graduate or
have exhausted or do not
professional students and
qualify for federal financial
parents of dependent
aid.
undergraduate students
● A credit check will be
● Based on credit, Interest is
required and terms and
charged during all periods.
rates vary by lender and are
● Parent borrowers may
based on the
request deferment
creditworthiness of the
applicant and co-signer.
 Federal Borrowing
Limits:
Undergraduate Dependent
Students
$5,500 for freshmen
$6,500 for sophomores
$7,500 for juniors and seniors.

Aggregate Limit (lifetime limit): $31,000

 Federal Borrowing
Limits:
Undergraduate Independent
Students
$9,500 for freshmen
$10,500 for sophomores
$12,500 for juniors and seniors.

Aggregate Limit (lifetime limit): $57,500

 Federal Borrowing
Limits:
Graduate Students
$20,500 annually in unsubsidized
student loan

Graduate PLUS Loan can be awarded, as approved,

up to the cost of attendance annually.

Aggregate Limit (lifetime limit): $138,500

 6 months grace period after
graduation or dropping below
half time (less than 6 hours)
Repayment Plans:
REPAYMENT –Standard Repayment Plan
OPTIONS –Graduated Repayment Plan
–Extended Repayment Plan
–Income-Driven Repayment Plan (four
types)
***Public Service Loan Forgiveness
$CHOLARSHIPS
 Scholarships

Institutional (WCU) Scholarships Outside Scholarships

● Scholarships awarded by the ● Scholarships awarded by an

University. organization other than the
University
 WCU Scholarships

Academic Donor-Supported Performance-Based

Scholarships Scholarships Scholarships
● Selection is based on ● Established through ● Based on audition,
academic credentials gifts from alumni and portfolio, or play
submitted during the friends of the ● Music & Theatre -
admission process. University check departmental
● Honors College ● Variety of criteria websites for audition
Scholarships ● Must submit general dates
● Chancellor’s Series scholarship ● Art - submit portfolio
Scholarships application with general
● $$ Amounts vary application
● Athletic - contact the
coach for your sport
 WCU Scholarships

• WCU Undergraduate Scholarship Application (hundreds of

scholarships - but only 1 general APPLICATION)
• The 2021-2022 Scholarship Application closed February 1, 2021
• The 2022-2023 Scholarship Application will open October 1,
2021 and will close February 1, 2022
• Application is located in your myWCU
• Reapply every year!
The Application…

Information pulled from your Yes / No Questions (Self-Identify)

student file: ● Pay close attention to what you
● Name / 92# are being asked
● High School ● Answer truthfully
● County of Residence ● Be prepared to provide additional
● Major(s) / Minor(s) information
● GPA
● Grade Level
● Enrollment Status
● Etc
The Application…

Additional Information You Provide: Short Essays

● Prior Honors, Awards, and
Scholarships
● Community Service
● School Clubs, Civic Groups, or
Professional Organizations
● Varsity Sports
● 300 Words
● Your Career Goals and Personal
Ambitions
● Importance of Scholarship to You
 ● Check Scholarship Manager for
additional tasks
I’ve Submitted my ● Based on the information provided
in the application, you will be
Application! matched to various scholarships
● Scholarship Committees will
Now What? review the applicant pools and
determine awardees!
● UG Decisions are typically made
between March and June 30
 Outside Scholarships
• Scholarships awarded by an outside source such as your high school, a
local business, a national company, a church group / religious organization,
a social organization, a charitable foundation, your parent’s employer, etc.

• For information on NC Scholarships, outside scholarship listings, and

scholarship search websites, check out scholarships.wcu.edu and select
non-WCU Scholarships.

**Report your outside scholarships to your Financial Aid Office!

Where to start?

• Your Employer / Your Parent’s Employer

• Any organization you (or a relative) are a
member of (social, religious, professional,
non-profit, businesses, etc)
• Your bank
• Local Community Foundations
• College Foundation of North Carolina
(CFNC.org)
• Scholarship Search Engines
• scholarships.wcu.edu
 TIPS
1) Start Early! Research Scholarship deadlines and mark them on your
calendar!
2) Read each application carefully, make sure you meet the eligibility
requirements.
3) Save and recycle essays! Adjust to fit prompts
4) Be neat, because neatness matters
5) Make your application personal - make your experience come to life!
6) Complete the application in FULL
7) Proofread your applications and essays before submission.
 Beware of Scams!

Signs of Scams:
• Fees to Apply
• Guarantee You’ll Win
• Personal Information Requests such as asking for your SSN, credit card number, bank a
• Missing Sponsor Information - if they are legitimate, you should easily be able to locate t
BUDGETING
 Why do I need a budget?
Ever wonder,

“I wish I had enough dough to get this bread”

“Why do I have no money?”

“Ramen again”
 1. Calculate expenses
How to create a 2. Determine your income

budget: 3. Total up your expenses and

subtract the amount from
your income
4. Record your spending
5. Be realistic
 ● Budget to zero
● Track every expense
● Make adjustments
● Create a “miscellaneous”
category
Budgeting Tips: ● Save for big purchases a
little at a time
● Understand the difference
in need and want
● Be patient and stick with
it!
 ● Apps:
○ Mint
○ You Need a Budget
Budgeting ○ Wally

Resources: ● Broke Millennial (Book and Blog)

● Penny Hoarder (Blog)
● www.daveramsey.com -- free
forms, advice, inspiration stories,
Debt-Free Fridays!
● www.budgetbytes.com -- website
devoted to inexpensive eating
 Your budget may
look different.
What categories
would your budget
include or
eliminate from this
example?
CREDIT
 “Credit is the lifeblood of a modern
economy.
So...what’s the big If you have a credit card and take the
deal with credit? time to learn about credit and how to
manage it, you can come out of school
with a stellar credit score that will
make it possible for you to rent an
apartment without hassle or finance a
car with the most favorable terms.”
 Credit card is a card issued by a
financial company which enables
What is a credit the cardholder to borrow funds.

card? Issuance of credit cards has the

condition that the cardholder will
pay back the original, borrowed
amount plus any additional
agreed-upon charges
Types of Credit
1. Revolving credit
○ You are given a maximum credit limit that you have access to and you can make charges up to that amount
○ Each month you carry a balance based of how much you have charged and are required to make a payment
○ Example: credit cards
2. Charge cards
○ Charge cards look like revolving credit
○ The only difference is the full balance must be paid off each month
3. Service credit
○ Service credit is an agreement made with a service provider that you will pay for the service each month
○ Not reported on credit report
○ Examples: gym memberships, Netflix account, etc.
4. Installment credit
○ Creditor loans you a specific amount of money and you agree to repay the money with interested in regular installments over a
set period of time
○ Examples: student loans, mortgage
 A credit report is a detailed report of your
credit history. It has:

● Your personal information

Credit Report vs. ●
●
Employment history
and a list of both open and closed

Credit Score credit accounts.

A credit score (aka FICO score) is a snapshot

of your credit risk at a point in time.

It is based off of your credit report and was

designed as a time saving measure to avoid
lenders having to review your credit report in
detail.
 Elements of a Credit Score
● Payment History: 35% - Are you
making your credit card payments on
time? Payment history makes up the
largest component of your credit score
so the best way for you to improve your
credit score is by making consistent on
time payments.
● Amount of Debt: 30% -How much debt
you have relative to how much credit
you have makes up 30% of your score.
Keep your debt utilization ratio
(amounts owed / total credit limit) below
30%.
 Elements of a Credit Score
● Length of Credit History: 15% -
Lenders like to see that you have long
relationships with other lenders.
● New Credit: 10% - Anytime you apply
for a line of credit, be it a store credit
card or a consumer loan, your credit
score drops by 2-5 points.
● Credit Mix: 10%- Types of credit in use
or your “credit mix” is not something
you need to worry about as a student.
Lenders like to see a variety of credit
accounts because it tells them that you
are a responsible borrower.
Financial Aid Zoom Meeting ID:
963 9394 0754

Phone: 828-227-7290

Email: finaid@wcu.edu
Social Media

www.facebook.com/WCUFinancialAid

@wcufinancialaid

@WCUFinancialAid