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FA 101
Features
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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.
-
Grants
and Scholarships - funds that do not have to be repaid by
the student
-
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.
-
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
-
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...
Click here for the next page>>
Financial Aid Calendar
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