Sources of Financial AidSources of Financial Aid• Federal

– Grants, work-study, loans

• State– Grants, scholarships, tuition waivers

• College/University (institutional aid)– Grants, scholarships, loans– Usually private colleges only

• Outside Scholarships

Types of Financial AidTypes of Financial Aid

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Types of financial aid:• Grants and scholarships• Work-study• Loans

Need-based AidNeed-based Aid

• Based on family’s financial information– Standardized formula

• Includes grants, loans and/or work-study

• All federal aid, most state and college/institutional aid awarded based on need

Merit-based AidMerit-based Aid

• Recognition of student’s achievements– Academics, athletics, special talents

• May be considered automatically

• Applications are often compared against other students who apply

• May or may not renew each year

FinancialFinancial Aid Applications Aid Applications• Free Application for Federal Student Aid (FAFSA)

– Required by all colleges for federal aid– Free form– Must be completed each year– Online application

• CSS/Financial Aid PROFILE®

– Some colleges require for institutional aid– Fee for processing– Online application required

• International PROFILE– Rare, see specific college

• College-specific Financial Aid Application– Required by some colleges– Usually part of the admissions packet

After You Apply?After You Apply?

• Colleges receive data electronically• You will receive (electronically or by mail):

– Student Aid Report (SAR) from FAFSA– CSS/Financial Aid PROFILE® report

• Review both for accuracy and keep for records• Colleges may request verification documents

– Tax returns, other financial or family information

Expected Family Contribution (EFC)Expected Family Contribution (EFC)

• Colleges use same formula for every family

• Colleges may use different formula for institutional money

• Includes parent and student income and assets

• Parent and student information treated differently

Financial Aid FormulaFinancial Aid Formula

Cost of Attendance (COA)

– Expected Family Contribution (EFC)

= Financial Aid Eligibility/Financial Need

How How thethe Formula Works Formula WorksC

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Financial Aid Awarding

Unmet Need $3,000

Federal $1,500Work-Study

Student $5,500Loan

Grant $7,500

Scholarship $7,500

EFC $5,000

COA $30,000

– EFC $5,000

= Financial Need $25,000

– Scholarships/Grants $15,000

– Student Loan $5,500

– Federal Work-Study $1,500

= TOTAL $22,000

Unmet Need $3,000

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This example is an estimate only.

Final ThoughtsFinal Thoughts

• Do not assume anything• Don’t be afraid to ask questions

– “Do you offer aid to international students?”– “Do I need to apply for this aid?”

• Stay in touch with each college– Rules may vary from college to college

• Tell college about special circumstances• Pay attention to deadlines

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