|
In general, the types of financial aid available to students—regardless of where they attend college—fall into three categories: grants/scholarships, loans and student work opportunities. This email specifically addresses the opportunities your student may have to finance a University of Denver education.
Grants and Scholarships
All types of grants and scholarships are considered "gift aid," which means they do not have to be repaid. Gift aid comes from four sources:
- the University of Denver
- the State of Colorado
- the U.S. Department of Education
- private organizations
Your student's award letter will likely contain a combination of aid from the first three sources. Let's look at them in more detail.
Aid from the University of Denver:
There are two kinds of institutional aid available at DU: merit-based and need-based. All students are considered for merit-based scholarships when they apply for admission. To be considered for need-based institutional grants and scholarships, a FAFSA and CSS Profile must be submitted. Here's a quick overview of the most common types of aid awarded to DU students:
- Merit scholarships are the most commonly awarded scholarship. Amounts range from $13,000 to $23,000, and students are notified in their admission letter if they've been awarded a merit scholarship (no separate application is required). Eligibility is determined by academic profile.
- Students who are awarded a merit scholarship and live on campus will also receive the Residence Hall Grant. This $3,000 grant pays directly toward the tuition bill, as long as the student continues to live on campus.
- The DU Educational Grant is need-based; eligibility is determined by the information reported on the CSS Profile. Award amounts vary from student-to-student, and that amount may change each year if there are changes to your family's financial situation.
- Some students may be eligible for Talent Scholarships based on achievements in athletics, music, theater, art, etc. Eligibility and award amounts are determined by individual athletic or academic departments.
- Once students have taken a few classes in their major, they may be eligible for Endowed Scholarships in their 2nd, 3rd or 4th year at DU. Generally, however, first-year students are not eligible for this type of aid.
Aid from the State of Colorado:
Colorado residents may be eligible for two need-based awards:
Aid from the U.S. Department of Education:
The two most common types of federal grants are the Pell Grant and the Supplemental Educational Opportunity Grant (SEOG). Both are need-based; a FAFSA must be submitted to be considered.
- The amount students may receive through the Pell Grant will change annually. For the 2018-19 academic year, eligible students were awarded up to $6,095. That amount changes annually and depends on financial need and full- or part-time enrollment.
- Students with exceptional financial need may receive SEOG for between $100 and $4,000 annually. That amount depends on financial need and available funding.
Private Scholarships:
Scholarship opportunities are available through various entities not affiliated with DU, and can come from a variety of sources, including community organizations and women's, ethnic, or religious organizations. Generally, these opportunities are called private scholarships. We'll provide tips for finding these scholarships in a future Financial Aid 101 email.
Student Loans
As you might expect, all student loans must be repaid. These loans are available through either the U.S. Department of Education (which means a FAFSA must be submitted to be eligible), or a private lending institution such as a bank or credit union. Students who apply for aid will have at least one federal loan included in their financial aid package. We'll give you a brief overview now; future 101 emails will provide much more detail about each type of loan.
- Federal Direct loans have a 5.05% fixed interest rate, and first-year students are awarded up to $5,500. Some students will have both Subsidized and Unsubsidized Direct loans on their award letter. Subsidized loans are need-based, and the government pays the interest while the student is in school. Up to $3,500 of the $5,500 can be subsidized. Unsubsidized loans are available to students regardless of financial need.
- The Federal Direct Parent Loan for Undergraduate Students (commonly known as "Parent PLUS" loans), are available to credit-worthy parents of dependent undergraduate students. It has a 7.60% fixed interest rate, and parents can borrow up to the student's full cost of attendance, less all other financial aid. DU does not automatically include this loan in financial aid packages; parents must apply for it separately.
- Private education loans are available from a variety of lending institutions. While no FAFSA is required for these loans, eligibility varies among lenders, and usually a credit check and/or debt-to-income ratio is required. Many have variable interest rates.
Student Work Opportunities
Some students will see work-study listed on their award letter. This is a need-based award that allows students to work on campus to earn money to help pay for college expenses. It's not a grant (because you must work to earn it), and it's not a loan (because you don't have to repay it). Work-study funding is limited, so not all students who would otherwise be eligible will receive it. In the first year at DU, students with this award can earn up to $2,500.
That's it for this week! Want to review past Financial Aid 101 emails? Check out the archives.
Up next week: Understanding Cost of Attendance
|
