Lees-McRae College: Types of Financial Aid

Financial aid is federal, state, institutional and private fund(s) used to assist eligible students in funding their education. Financial aid can be a combination of scholarships, grants, loans and work study. Scholarships and grants are considered “gift aid” and require no repayment; loans and work study are considered “self-help aid”. Most loans require repayment when a student becomes enrolled less than half time or graduates. Work study is need based and includes part-time employment on campus.

The College reserves the right to review, adjust, or cancel financial aid awards at any time due to changes in financial need, new aid received after you have been initially awarded, state residency, dependency, marital or academic status, or failure to comply with state, federal, and institutional regulations. The College may prorate, adjust, or revise your award in accordance with federal, state, or institutional policy.

Federal Grants

Several grants are available from the federal government to defray the costs of college education. Unlike a loan, a grant is aid you do not have to repay.

Federal Pell Grants
provide awards from $555 to $5,550 per year. The actual amount you receive depends on your estimated family contribution (which is determined by completing the FAFSA form at http://www.fafsa.ed.gov), your enrollment status as a student, and the availability of funds allocated by Congress.

To learn more about Pell Grants, visit the federal student aid Web site.

Federal Supplemental Educational Opportunity Grants
are for students showing exceptional financial need. Students receiving Federal Pell Grants are given priority. Awards vary from $200 to a maximum of $2,000 per year, depending upon funds available and the need of students concerned.

North Carolina Grants

North Carolina Need-Based Scholarship Program
The N.C. General Assembly funds the North Carolina Need-based Scholarship Program. The NBS is to assist needy undergraduate North Carolinians, with need based on the Federal Methodology calculation of Expected Family Contribution (EFC). To apply, file the 2012-13 FAFSA and include the LMC school code of 002939. Annual awards vary depending on your EFC and available funding.

For additional information on North Carolina grants and scholarships, please follow this link: http://www.cfnc.org/paying/schol/info_schol.jsp

Lees-McRae College Institutional Scholarships/Grants

Shelton Scholars Program
Named in honor of Ed and Dotti Shelton for their generous and humble leadership, guidance and support of Lees-McRae College, the Shelton Scholars Program will be the highest honor bestowed upon entering freshmen beginning Fall 2013. This prestigious award will provide full tuition, room and board to one student selected during Scholars Day.

Qualified students must have at least a 3.5 GPA and 1150 SAT (or ACT equivalent) at the time of admission to the college and agree to be an active member of the LMC Honors Program. All students who meet these criteria will be invited to participate in Scholars Day on Feb. 23, 2013 and will have the opportunity to compete for this award. The Shelton Scholars recipient will be chosen through an interview and essay competition. The Shelton Scholars Award is valued at over $130,000 over the course of four years.

Academic Merit Scholarships
Each year Lees-McRae College recognizes the scholarly preparation of entering freshmen and transfer students by awarding scholarships and grants based on academic performance. These awards reflect our commitment to helping students set ambitious goals and achieve them. All students are automatically considered for academic scholarships once they are granted admission to the College. Scholarship awards are based only on official transcripts and test scores. No additional scholarship application is required. Academic merit scholarships range from $3000.00 to $10,000.00 annually and are renewable as long as the student maintains the required academic standard.

Athletic Scholarships
As an NCAA Division II college, Lees-McRae awards athletic scholarships. These scholarships are awarded at the coaches' discretion based upon athletic performance and ability.

Performing Arts Scholarships
A limited number of Performing Arts Scholarships are awarded by the Performing Arts Department and require an audition.

Institutional Need Based Grant
Need-based aid is awarded to students based on financial need and varies in amount. In order to be eligible for need-based aid, the student must show demonstrated financial need by filing the FAFSA annually. Depending upon your calculated need in subsequent years, your aid award may vary. Certain federal, state and institutional awards are taken into consideration when determining need-based grant levels.

Phi Theta Kappa Transfer Scholarship

Awarded to any Phi Theta Kappa transfer student in good standing who has an overall 3.25 GPA and enrolls in a program of study on the main campus. Apply by submitting a letter to the Director of Financial Aid. A letter from the PTK chapter advisor verifying that the student is a member in good standing is also required. PTK scholarships are $2500.00 annually and are renewable as long as the student maintains a 3.25 cumulative GPA at Lees-McRae College.

Local Scholarships

In celebration of opportunities for Appalachian students, seniors who graduate from a high school in one of the following counties: Avery, Alleghany, Ashe, Burke, Caldwell, Carter (TN), Mitchell, Watauga, Wilkes and Yancey, apply and are admitted to Lees-McRae and enroll in a program of study on the main campus will receive a $1,000 grant that is stackable with other academic merit, performance or need based scholarships. Scholarships may be renewable for up to four years as long as the student maintains the required academic standard.

Private Outside Scholarships

Foundations, service clubs, churches, and corporations award millions of dollars in scholarships each year to worthy students. Many Lees-McRae students receive this type of scholarship help in addition to other types of aid they may be receiving. Students generally seek these scholarships on their own. A good place to start is by asking your high school guidance office about community and other scholarships with which they may be familiar. Then ask about the availability of scholarships at places where family members are employed, through your church, and through any organizations to which family members belong. Finally, go to the public library for guidebooks to scholarships from foundations, corporations and government agencies, or search the Internet for similar information.

Per federal regulations the receipt of private scholarships may affect a financial aid package. It is the student's responsibility to notify the Lees-McRae Office of Financial Aid of all private scholarships received so that it may be determined if these funds have an effect on other resources awarded.

William D. Ford Direct Loans

Direct Loans are low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education (the Department), though the entity you deal with, your loan servicer, can be a private business. The William D. Ford Direct Loan Program includes the following types of loans:

Subsidized: for students with demonstrated financial need, as determined by federal regulations. No interest is charged while a student is in school at least half-time, during the grace period, and during deferment periods. The interest rate for subsidized loans disbursed after July 1, 2011 will be 3.4%.
Unsubsidized: not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods. The interest rate for unsubsidized loans is 6.8%.
PLUS: unsubsidized loans for the parents of dependent students and for graduate/professional students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods. PLUS loans are based on credit worthiness and require a credit check. The interest rate for PLUS loans is 7.9%.

ALL students borrowing from the Federal Direct Loan Program are required to sign a Master Promissory Note (MPN) and complete Entrance Counseling for their Direct Loan at www.StudentLoans.gov. Loan funds will not be credited to your student account until these items are completed.
ALL parent borrowers must complete the PLUS application and MPN at www.StudentLoans.gov along with an institution PLUS loan application.

Loan Limits

The maximum amount you can borrow each year in Direct Subsidized and Unsubsidized Loans depends on your grade level and on whether you are a dependent student or an independent student. The following table shows the maximum amount of money you may borrow each academic year in Direct Subsidized and Unsubsidized Loans

	Dependent student	Independent student
1st-year undergraduate	$5,500 (maximum $3,500 subsidized)	$9,500 ($3,500)
2nd-year undergraduate	$6,500 ($4,500)	$10,500 ($4,500)
3rd- and 4th-year undergraduate	$7,500 ($5,500)	$12,500 ($5,500)

The actual loan amount you are eligible to receive for an academic year is determined by your school and may be less than the maximum annual amounts shown in the chart above.

Below are the aggregate (total) limits for Direct Subsidized and Unsubsidized Loans:

$31,000 for dependent undergraduate students excluding those whose parents are unable to borrow a PLUS Loan (no more than $23,000 may be subsidized)
$57,500 for independent undergraduate students and dependent undergraduates whose parents are unable to borrow a PLUS loan (no more than $23,000 may be subsidized)

Work-study

The federal work study program provides jobs for undergraduates who have demonstrated financial need as determined from the results of the Federal Application for Federal Student Aid (FAFSA) and availability of funding. Federal work study awards will be listed as a separate item on the financial aid award. The work study program is designed to help eligible students meet the costs of obtaining a higher education.

Types of Scholarships & Financial Aid