FAQ
Many visitors write in with questions regarding the financial aid process. In order to better serve the community, we have compiled a short list of the more frequently asked questions we receive.
Table of Contents
- How do I apply for Federal Aid ?
- How is my eligibility determined?
- Where can I find Scholarships?
- Why am I dependent?
- What is a Stafford Loan?
- What is a Pell Grant?
- What is SEOG?
How do I apply for Federal aid?All students interested in applying for federal financial assistance must complete the Free Application for Federal Student Aid (FAFSA). You may either complete a paper application (available from your high school’s guidance office) or via the internet.For all the information you need to know about the financial aid application process see: Applying for Financial Aid.Applying over the internet is the fastest way to get your FAFSA processed. To apply online, go to FAFSA on the Web The FAFSA will ask you (and your parents if you are a dependent student) for information such as your household size, number in college and income and asset information. Follow the directions carefully as making corrections is a time consuming process.
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How is my aid determined?There are a few components that determine how much aid you can receive. First, you file the Free Application for Federal Student Aid (FAFSA). The Department of Education puts your data through a formula to derive an Expected Family Contribution (EFC). The EFC is basically what the government is telling us how much you should be able to contribute toward education based on your state of residence, household size, number in college and student and parent income and asset information. Next, the school you attend establishes a Cost of Attendance (COA). The COA is composed of tuition, room and board, fees and estimated expenses (books, supplies, personal).The EFC and COA are used to determine your financial need. Financial need is calculated by subtracting the EFC from the COA and is a guideline in determining how much need based financial aid you may receive. The equation looks like this:COA
-EFC
=Financial NeedThe aid office then uses the “need based” resources they have available to try to “meet” your financial need. Here is an example to demonstrate:
Sally files her FAFSA and a few weeks later receives her Student Aid Report (SAR). She notes that the EFC on the SAR is “01200″. Her school has a COA of $18,000. So, using the formula above we find that Sally’s need is $16,800.
The financial aid office then uses this information to construct a financial aid package. For example, the college offers the following:
$5,000 Institutional Grant
$1,550 Federal Pell Grant
$1,000 Federal SEOG
$3,500 Federal Subsidized Stafford Loan
$1,000 Federal Perkins Loan
$1,600 Federal Work Study
Total aid: $13,650
What this tells us is that if Sally’s need for financial aid is $16,800, the financial aid office was only able to meet $13,650 of that. The difference between the two is called unmet need. In this case, Sally’s unmet financial need is $3,250. What that means to Sally is that she will have to contribute more than her EFC in order to meet her educational costs. Unmet need is a common occurrence in financial aid packages. The school is under no obligation to meet your need for financial aid and, in many cases, is simply unable to do so given the types and amounts of funding at their disposal. What the financial aid office does, to the best of its ability, is to meet as much of your need with the resources it has available. Those resources may include scholarships, grants, loans, and work.
Wow! Really breaks the process down a bit doesn’t it? I hope this serves to explain more fully how the process actually works and lends perspective on the internal mechanisms involved in creating a financial aid award. Sorry for the long winded explanation, but unfortunately, there is no good short one that can do this topic justice.
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Where can I find scholarships?Finding scholarships (grant money other than that provided by your college or university) is a challenging, time consuming, but oh so worthwhile task. My recommendation is to use one of the many free scholarship search services available on the internet. They will compile a profile of your activities, interests, achievements and academics to match you to scholarship sources that you may be eligible for. A definitive list of scholarship search services can be found at:
Scholarships and Search Services
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Why am I dependent?Many students ask me, “Why am I dependent, even when I live on my own, my parents don’t support me and do not claim me as a dependent on their tax returns. The answer to this question is easily answered by using our dependency status calculator at:
Am I Dependent?If you can answer yes to any one of the questions on that form, then it is not necessary to provide your parent(s) information on the Free Application for Federal Student Aid (FAFSA). If you cannot, you must provide parental information on the FAFSA. However, with all good rules, there is an exception. If you have had an involuntary dissolution (i.e., breakup) of your family that can be documented by a third party (ex. guidance counselor, minister, psychologist, or someone other than your parent that is in a position to speak knowledgeably of your situation), then the financial aid office may be able to grant you a dependency override. This means that the financial aid office uses its judgment to grant you independence even though you do not meet the federal definition. Dependency overrides are hard to come by. Your circumstances will have to be pretty severe in nature (ex. your parents are deceased, incapacitated, etc.). Living on your own is not sufficient. If you think your situation is as I’ve described above, you should do the following. First, make an appointment to see a financial aid counselor to discuss you situation. Be prepared to go into detail. Ask them what they think. If they think you have a strong case, you will have to write a letter to the aid office requesting that they reevaluate your dependency status. At the same time, you should also ask that they reexamine your aid eligibility. Be sure to include the third-party documentation, it’s essential. One final note. That you are not claimed as a “dependent” on your parents federal income tax return has no bearing whatsoever on your “dependency” status for financial aid. They are two completely unrelated definitions. Pass this one along to your friends! I’m sure it will help clear up the misconceptions about what makes a student independent!
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What is a Stafford loan?A Stafford loan is a variable interest rate loan made to students based on need. There are two kinds: Subsidized and Unsubsidized. With a Subsidized Stafford loan, the student is not responsible for the interest charged on the loan while the student is in school and taking at least six credit hours. Instead, the government pays the interest for you, hence “subsidized”. Students receiving Unsubsidized Stafford loans are responsible for the interest charged on the loan while in school. A student can choose to either pay the interest or capitalize it. If the student choose to allow the interest to capitalize, interest will be charged and added to the prinicpal. Capitalization occurs on a periodic basis and over time compounds — interest charged on principal then added to principal, then interest charged on principal plus interest and so on. Repayment of either type does not begin until six months after the student graduates or stops attending on at least a half-time basis (six credit hours). See also: Stafford Loans.
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What is a Pell Grant?A Pell Grant is gift aid that you do not have to repay. It is given to the neediest of students. For the 1999/2000 academic year, a student will qualify for a Pell Grant if his/er Expected Family Contribution (EFC) is less than or equal to $2,800. The EFC is the number arrived at by processing the data you provide on the Free Application for Federal Student Aid (FAFSA). You can find yours on your Student Aid Report (SAR) on the first page. The lower your EFC, the greater the Pell Grant (up to a maximum of $3,125.
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What is SEOG?SEOG or Supplemental Educational Opportunity Grant is federal gift aid given to the very neediest of students. Students who receive a Pell Grant may also qualify for SEOG. The government allocates SEOG funding to each school and the school, in conjunction with federal guidelines, determines who will receive this type of aid.