Financial Aid:
Calculating Costs and Financial Need
Other Applications for Financial Aid
Features:
Financial Aid:
Sponsors:
Awarding Financial Aid
Once the aid officer has calculated the financial need, the goal is to create a package of financial aid awards that together add up to need amount.
There are three main "types" of financial aid.
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Grants and Scholarships - funds that do not have to be repaid by the student
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Loans - money lent to the student (or student's parents) to pay for college
-
Work study - funds a student earns through a campus sponsored work program
In addition to these main categories of financial aid, specific aid programs can be need based or non-need based.
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Need based financial aid programs require a student to demonstrate financial need
-
Non need based programs can be awarded to students even when their is no calculated need - i.e. the student's EFC (or combination of EFC and awarded financial aid) exceeds the cost of attendance
The amount of each award is based on a myriad of factors including: institutional or regulatory policies for minimum and maximum amounts, amount of funds available to the institution, and eligibility of the applicant.
Sample Situations:
Private College:
Cost |
Amount |
Tuition & Fees |
$22,500 |
Room and Board |
7,500 |
Books |
2,000 |
Transportation |
2,500 |
Miscellaneous |
1,000 |
TOTAL |
$35,500 |
Public College:
Cost |
Amount |
Tuition & Fees |
$ 5,000 |
Room and Board |
2,000 |
Books |
750 |
Transportation |
1,250 |
Miscellaneous |
1,000 |
TOTAL |
$10,000 |
COA (Cost of Attendance) minus EFC = Need
Family 1 has $15,000 EFC
-
$35,500 COA -- Family 1 EFC of $15,000 = $20,500 Need for Financial aid at high priced, private college
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10,000 COA -- Family 1 EFC of $15,000 = NO NEED for financial aid at lower priced, public college
Family 2 has $1,000 EFC
-
$35,500 COA -- Family 2 EFC of $1,000 = $34,500 Need for Financial aid at high priced, private college
-
10,000 COA -- Family 2 EFC of $1,000 = 9,000 Need for financial aid at lower priced, public college
Finally, sample awards will be shown for the sample needs shown above.
Family 1 - Private College Example (assumes student is a first year undergraduate student):
Aid Program |
Amount |
Institutional Scholarship |
$10,000 |
Work Study |
2,000 |
Federal Subsidized Stafford Loan |
2,625 |
Federal PLUS or Alternative Loan |
5,875 |
TOTAL |
$20,500 |
Family 1 Public College (assumes student is a first year student):
Aid Program |
Amount |
Federal Unsubsidized Stafford Loan |
$2,625 |
TOTAL |
$2,625 |
*The unsubsidized loan can replace some of the family contribution even when there is no need. The PLUS loan is also available to families without need to replace some of the EFC you are expected to be able to pay.
Family 2 Private College
Aid Program |
Amount |
Institutional Scholarship |
$15,000 |
State Funded Scholarship |
2,000 |
Private Scholarship |
3,000 |
Federal Pell Grant |
1,500 |
Federal SEOG |
1,000 |
Work Study |
2,000 |
Federal Subsidized Stafford Loan |
2,625 |
Federal Perkins Loan |
2,000 |
TOTAL |
$29,125 |
*A PLUS or alternative loan can be used to make up the difference between the total cost and amount of aid listed above if there are no personal savings available.
Family 2 Public College
Aid Program |
Amount |
State Funded Scholarship |
$1,500 |
Federal Pell Grant |
$1,500 |
Federal SEOG |
$1,000 |
Federal Subsidized Stafford Loan |
$2,625 |
Federal Perkins Loan |
$2,000 |
TOTAL |
$8,625 |
Based on the examples above, you should have a better understanding of how it all comes together. Now, continue on to our Financial Aid Calendar to learn more about when all this takes place...
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Financial Aid Calendar
