aid step 1: Becoming Eligible
understanding the process
Step 1 Reviews the Eligibility Requirements
for student financial aid. It summarizes the formula for calculating the expected family contribution.
Aid Information:
Eligibility Requirements for Financial Aid
To receive federal financial aid assistance, you must:
- display a need for financial aid
(except for unsubsidized Stafford
and PLUS loans).
- complete high school and have
been awarded a high school diploma
or a General Education Development
(GED) Certificate.
- pass a college entrance exam
approved by the U.S. Department
of Education, and/or meet other
standards your state may establish.
link to view state requirements:
www.ed.gov/Programs
- be enrolled or accepted for enrollment
as a regular student working toward
a degree or certificate in an eligible
program.
- be a U.S. citizen or eligible
non-citizen
- have a valid Social Security number:
link to obtain SSN get your Social Security Number:
www.ssa.gov
- make satisfactory academic progress.
- sign a statement on the Free Application
for Federal Student Aid (FAFSA)
certifying that you will use federal
student aid only for educational
purposes:
see our note on FAFSA form submission:
see Financial Aid Note 2
- sign a statement on the FAFSA
certifying that you are not in default
on a federal student loan and that
you do not owe money back on a federal
student grant.
- register with the Selective Service
(for young men age 18 and over) - you can register online:
www.sss.gov
Note from US Department of Education:
The Higher Education Act of 1965 as amended (HEA) suspends aid eligibility for students who have been convicted under federal or state law of the sale or possession of drugs. If you have a conviction(s) for these offenses, call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243) or go to the FAFSA on the Web site, click on "Before Beginning A FAFSA" in the left column, then click on "Drug Worksheet" to find out how this law applies to you.
Even if you are ineligible for federal aid, you should complete the FAFSA because you may be eligible for nonfederal aid from states and private institutions. If you regain eligibility during the award year, notify your financial aid administrator immediately. If you are convicted of a drug-related offense after you submit the FAFSA, you might lose eligibility for federal student aid, and you might be liable for returning any financial aid you received during a period of ineligibility.
Download the US Department of Education Student Aid Booklet for more detailed information
Amounts Based on Dependency Status
Different eligibility loan amounts will be awarded for dependent and independent students:
see stafford loan limits
students who have access to parental support are classified as dependent students.
the award amounts for dependent students are generally lower than the amounts for independent students.
dependent students and their parents must report respectively their income and assets on the FAFSA form:
see our Note 2 for more information about the FAFSA form
Students who display at least one of the following requirements are classified as independent students:
- you were at least 24 years
of age on January 1 of the academic
year you begin school
- you are married on the day you apply (even if you are separated but not divorced)
- you will be enrolled in a graduate
or professional program (beyond
the bachelor's degree) at the beginning of the academic year
- you have legal dependents
other than a spouse who receive more than half their support from you
- you are an orphan or ward
of the court (or were a ward
of the court until age 18)
- you are veteran of the U.S.
Armed Forces ("veteran"
includes a student who attended
a U.S. military academy who
was released under a condition
other than dishonorable)
if none of the above criteria apply to you, you will be classified as an dependant student
not living with parents or not being claimed by them on tax forms does not determine dependency status for federal student aid
Reporting as Indepedent Students
Independent students must report only income and assets of their own (and those of their spouse, if married).
Expected Family Contribution (EFC)
Needs-based financial aid programs are awarded to students and families who display a financial need.
The government calculates financial need based upon the following formula:
+ (add) Total cost to attend college (tuition, books, housing, etc.) - (minus) The "Expected Family Contribution (EFC) " towards the cost of education for 1 year = (equals) Eligible Financial Need
To be considered for needs based financial aid, both parent and student must submit the FAFSA form
The FAFSA form is completed by both parent and student for dependent status; and by the student and spouse for independent status.
The FAFSA form collects information about your financial position and compares it with your filed IRS forms.
The government uses the submitted FAFSA form to calculate "Expected Family Contribution" (EFC)
The EFC is a measure of the family's financial strength and the amount of resources the family has available to pay for education.
The government looks at 5 areas to calculate EFC:
- Assets
-
Income
- Household Size
-
Number in College
-
Age
Your assets and income are the factors that have the biggest impact in calculating EFC.
The EFC is calculated according to a formula established by Congress.
- About Assets:
- About Income:
The financial aid office of the school you will be attending calculates the total cost of attendance
and then subtracts the EFC that the government calculated based on your FAFSA form.
The remaining cost left over (if any) is the amount of financial need the student qualifies for, adjusted by other financial aid assistance the student expects to receive (such as school scholarships, grants, etc.).
+ (add) Total cost to attend college (tuition, books, housing, etc.) - (minus) The "Expected Family Contribution (EFC) " towards the cost of education for 1 year = (equals) Eligible Financial Need
The financial aid administrator will put together a financial aid award package
That comes as close as possible to meeting your need — since funds are limited, the amount awarded may not cover the full cost of college.
Students often must consider other forms of financial aid assistance (such as loans and work study) to supplement the difference between financial need and financial aid awarded.
Examples: see student financial aid options
Some college institutions (mostly private institutions) may use their own methodology in calculating financial need:
+ (add) Total cost to attend college (tuition, books, housing, etc.) - (minus) The Institution's calculated "Expected Family Contribution" = (equals) Eligibility of Institutional Financial Need
You need to check with your college to determine what methodology that is in use —
link for more information and an application: information on CSS® Profile from www.collegeboard.com
What Makes Up College Costs
Schools must tell all applicants how much it will cost to attend their school for each academic year
schools determine costs based upon average budgets that students spend for the following categories:
(download this spreadsheet to analyze cost among schools)
- School
Tuition and Fees:
cost to attend class instruction and the use of facilities, labs, libraries and all other related services for each enrolled student -
Books
and Supplies:
the estimated amount for books and supplies the student will be required to purchase for classroom instruction — this item may include a computer and other electronic/telecommunication devices -
Computer and Other Electronics:
not necessarily required since colleges offer computer labs and other shared facilities. However, given the electronic push made by colleges, it will be the student's advantage to own their own personal computer along with a printer and other necessary electronics -
Room
and Board:
the estimated cost for housing and food if you live in a residence hall; if you live off campus, food expenses are not estimated -
Transportation:
the estimated cost for 2-3 round trips from your home to school; if you live with your parents, the estimated commuting costs will be calculated -
Personal
Living Expenses:
the estimated cost for clothing, grooming supplies, laundry and limited entertainment -
Other
Personal Costs:
personal expenses that are specific to the student such as disability expenses, dependent care, loan fees, etc. -
Miscellaneous:
any other expenses that you can identify with your school's Financial Aid Office
Aid Charts and Process
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