Award Notification
Scholarships
Grants
Employment
Loans
Alternative Student Loans

The NCSA Office of Student Financial Aid will send you a Financial Aid Award Notification.  This letter will include an estimate of Federal, state and any other financial aid for which you may be eligible (e.g., grants, scholarships, student loans) with instructions on how to respond.  READ and follow the instructions carefully.

You may accept any or all of the aid offered to you.  You must return the "award letter" to the Office of Student Financial Aid, indicating your acceptance or rejection of each type of aid offered to you.

It is important to know the various types of financial aid offered at NCSA.  "Financial aid" means assistance provided to students from a variety of Federal, state, university and private sources.  Financial aid recipients may receive their aid in a combination or "package" composed of one or more of the following categories.

NCSA has established a variety of scholarships available for high school and college students.  Scholarships may be awarded based on talent (as determined by audition or jury through the Arts Schools), demonstrated need, or a combination of talent and need.  Scholarships are awarded on an annual basis.  (See the NCSA Bulletin regarding specific scholarships offered by The University of North Carolina such as the James Love Scholarship, the C.M. and M.D. Suther Scholarship, and the A.P. and Frances Dickson Scholarship.)

If you are awarded a scholarship from a source outside of NCSA, you must report the amount and the source to the Office of Student Financial Aid.  If your financial aid package includes need-based aid, it is possible that a reduction in previously-awarded aid may be necessary.

The Federal Pell Grant Program is designed to provide financial assistance to needy undergraduate college students (pursuing their first Bachelor's degree), based on their Expected Family Contribution, as determined by the Free Application for Federal Student Aid (FAFSA).  Pell Grants for 2006-2007 range from $400 to $4,050.  Awards for each academic year depend on Federal funding.

Academic Competitiveness Grant (ACG) is available for the first time for the 2006-2007 school year for first-year students who graduated from high school after January 1, 2006, and for second year students who graduated from high school after January 1, 2005.  The Academic Competitiveness Grant award is in addition to the student's Pell Grant award.  To be eligible, students must be degree-seeking U.S. citizens attending NCSA full time.  The ACG will provide $750 for the first year of undergraduate study and $1,300 for the second year of undergraduate study to students who are eligible for a Federal Pell Grant and who successfully completed a rigorous high school program, as determined by the state or local education agency and recognized by the Secretary of Education. Second year students must maintain a cumulative grade point average of at least 3.0.

Federal Supplemental Educational Opportunity Grant (FSEOG) awards are reserved for undergraduate college students with exceptional financial need.  The award amount varies, depending on the student's financial situation.  Funding is limited.

State Grant Programs are available to college students and are administered by higher education assistance agencies from the student's state of residence.  A student's eligibility is determined by information provided on the FAFSA.  In order in find the application deadlines for your state, refer to the FAFSA on the Web Worksheet at www.fafsa.ed.gov/FOTWWebApp/complete013.jsp or find them listed on the front cover of the paper FAFSA.  Up to 50% of funding for State Grants may be provided by the Federal government and may be contingent upon Congressional appropriations.

Federal Work-Study (FWS) is a Federal program in which college students are provided with jobs so that they can earn money to meet expenses.  Students participating in this program work an average of six hours per week. 

The Federal Work-Study Applicationand other paperwork necessary for FWS will be mailed to you before school starts, if you have been offered and accepted FWS.  Instructions for completion of the paperwork will be included.  Before you will be allowed to begin employment, you will be required to present certain original forms of identification for completion of the Federally-required I-9 Form.

At the beginning of the fall term, there is a mandatory orientation meeting for those students who have been awarded FWS for the first time at NCSA.  At that time, the procedures for obtaining an on-campus job and the Student Employee Handbook will be reviewed.

Other jobs may be available for college and high school students who want to work on campus but do not qualify for the FWS program.  Student employees are interviewed and hired by specific departments.  These positions are not administered by the Office of Student Financial Aid.  Students should contact the specific departments directly regarding possible openings.

Federal Subsidized and Unsubsidized Student Loan Programs provide college students with low-interest loans under Federal regulations.  Students may qualify with at least half-time enrollment.  There are a variety of loans available for the student borrower.  Some of these loans are based on demonstrated need, but some are available to any student regardless of need.  Federal student loan material(s) such as a master promissory note and/or loan application may be required to complete your loan.  In addition, graduate students and parents wishing to borrow under the Federal PLUS Loan Program should contact the Office of Student Financial Aid to obtain the correct paperwork. Grace periods, interest rates, deferments, and repayment terms differ for each loan. 

Federal Direct Loan Program Loan Limits

*  The PLUS Loan borrower needs to be credit worthy.  A credit check will be performed.

Federal Perkins Loan Program is a low-interest (5%) loan awarded to undergraduate college students with a high demonstrated need.  At NCSA, students may be offered Perkins Loans of $1,000 to $4,000 per year.  Students sign a master promissory note, agreeing to repay this loan.  Interest does not accrue and students do not have to start repayment until nine months after they leave school or drop below half time.

An alternative student loan is a private educational loan that can be borrowed from a variety of lending institutions.  This type of loan is generally more expensive than student and parent educational loans through the Federal government and should only be used when all other financial aid options have been exhausted.

Alternative loans can be used to make up the difference between the cost of education and financial aid offered by the school.  Be sure that you have applied for financial aid using the Free Application for Federal Student Aid (FAFSA).  After you receive your financial aid award notification from North Carolina School of the Arts (NCSA), you will have a better idea if you will need to borrow additional funds for school.  You may contact NCSA’s Office of Student Financial Aid at 336-770-3297 if we can assist you in determining the amount you may need to borrow.

There are many alternative loan products available.  The following lists provide samples of those products for both college and high school students.  To receive detailed information about these loan programs, please contact the lenders directly.  To apply, complete an application via the lender’s website.  If the loan is approved, the lender will contact the NCSA Office of Student Financial Aid to request school certification.

COLLEGE ALTERNATIVE LOAN SOURCES

HIGH SCHOOL ALTERNATIVE LOAN SOURCES

What factors should you consider when selecting an alternative loan?

Annual Percentage Rate (APR)
The APR is the annual cost of the loan including the effect of any fees and charges in addition to interest.  APR’s differ based on the terms and loan amounts.  Make sure you are comparing the same loan amounts when comparing APR’s, to receive a true comparison.  NOTE:  If the interest rate is variable, the APR may be increased after the loan has been certified and originated.

Loan Fees
If the alternative loan has origination, disbursement, or repayment fees added to the principal of the loan, these fees can increase the overall cost of the loan.

Repayment Incentives
Does the alternative loan reward borrowers who make payments on time?  For example, after 48 consecutive monthly on-time payments, will you receive an interest rate reduction?

Loan Limits
Does the loan have an annual or aggregate (total) limit on the amount you can borrow?

Credit Decisions
Alternative loans are credit-based and not need-based, therefore, lenders will check with credit agencies to determine your creditworthiness.  The major reporting agencies are Equifax, Experian, and Trans Union.  Interest rates may be determined by your credit rating and the credit rating of the cosigner, if applicable.

Pre-approval
Do you need to know quickly if you qualify?  Does the lender offer loan pre-approval over the telephone or Internet?

Cosigner Requirement
Does the alternative loan program require you to have a cosigner?  Sometimes cosigners reduce the costs of the loan, but if you cannot find a cosigner, you will need to find an alternative loan that allows you to borrow on your own.

Interest Capitalization
If you chose not to pay the interest on your loan while you are in school, the interest may be capitalized (added to your principal balance).  Is the interest on the loan capitalized annually or at the point that the loan goes into repayment?  (If the interest is capitalized annually, the loan is more expensive than if it is capitalized only once at repayment.)

Repayment
Does repayment begin immediately or after you graduate or leave school?  How long is the repayment period in which you repay the loan?  If your educational costs require you to borrow a large amount, you may need a longer time to repay your loan(s).  However, a longer repayment period results in more interest being paid.

NOTE:  It is important that you understand that all financial aid awards are dependent upon institutional, private, state and/or Federal funding.  Although NCSA fully intends to be able to adequately fund offers made to you and provide you with accurate information, there is always a possibility that a program may be discontinued, funds may not be appropriated to NCSA, or a computational error may be made.  If so, you will be notified immediately regarding any change in an award.