Financial Aid is a combination of grants, loans, scholarships, and work-study programs offered to students to pay for college. The U.S. Department of Education and colleges work together to provide students a way to pay for their education. The U.S. Department of Education is largely responsible for regulating the financial aid process and colleges are responsible for determining actual amounts of aid to offer a student.
Who can apply for financial aid? High school students planning to attend college after graduation can apply for financial aid. Students currently enrolled in college can also apply for financial aid. Other criteria include being a U.S. citizen or eligible non-citizen and having a valid Social Security Number.
How do I apply for financial aid?
To receive financial aid you must complete the Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov. The FAFSA is published by the U.S. Department of Education. It is the application used by the U.S. Department of Education and colleges/universities to determine a student’s eligibility for financial aid. The FAFSA will request personal and financial information from the student and the student’s parents. This information is used to evaluate the financial need of each applicant. In most cases,a parent’s financial information is still required even when the parent does not pay for their child’s college expenses. It may not seem fair but that is how the system works.
When should I apply for financial aid?
You must complete a new FAFSA for each school year you attend college. The U.S. Department of Education publishes a new FAFSA on January 1st of each year.Certain types of aid have a limited supply of money. Complete the FAFSA as early as possible to maximize your chances for a large award.
The 2015/2016 FAFSA is now available and should be completed by students taking college courses during fall 2015, spring 2015, and summer 2015.
What is the Expected Family Contribution? The federal government believes paying for college is a family effort. The Department of Education will use information from the FAFSA to calculate each applicant’s Expected Family Contribution (EFC). The EFC is the amount of money the government thinks a family should be able to contribute toward the student’s college expenses each year. It is assumed the family or student will pay the EFC through savings, investments or employment earnings. This dollar amount is calculated through a computer-based evaluation of family income, assets, and living expenses. To learn what your EFC is, visit this link to the EFC Calculator provided by the Illinois Student Assistance Commission:
If my parents are not paying for college, do I have to include my parents’ income on the FAFSA?
The answer is "yes" in most cases.
Independent Students are considered by the U.S. Department of Education not financially supported by a parent. These students do not have to include their parents' income on the FAFSA. Most students coming out of high school are not in this category.
DependentStudents are considered by the U.S Department or Education financially supported by a parent. These students must include their parents’ income on the FAFSA. Most students are considered dependent even when their parents do not pay for college. Dependent students with special circumstances can possibly qualify for independent status. Please contact your college’s financial aid administrator to see if you could be granted this exception.
After reviewing your FAFSA, the Department of Education e-mails or mails you a Student Aid Report(SAR). This document l lists your expected family contribution and all your FAFSA information. It is possible to receive a SAR that indicates your FAFSA was rejected due to missing information. This is correctable. Your SAR will contain instructions for any corrections that need to be made. Complete this section and mail it to the U.S. Department of Education or enter the corrections online.
Who determines how much financial aid I am eligible to receive?
The amount of financial aid you are eligible to receive is determined by each college you have been accepted to attend. A representative of the college called a financial aid administrator will review your records to determine which loans, grants, scholarships, and work-study programs to award you.
How do colleges make their decisions?
Step Six of the FAFSA asks for the names of four colleges you are interested in attending. The U.S. Department of Education will send these colleges your FAFSA information and EFC. Colleges will then use your FAFSA information and your EFC to decide how much financial aid you are eligible to receive. There are many steps to this process.
1. Each college determines the estimated Cost of Attendance (COA) for their school. The COA is an estimate of howmuch money it will cost to attend their college for one full year. The COA includes:
·Tuition ·Fees ·Room and board ·Books ·Supplies ·Transportation ·Additional living expenses
2. A college financial aid administrator reviews each applicant’s FAFSA and EFC to determine the Financial Need, the amount of money the applicant needs to attend their college for one full year. This dollar amount is calculated by subtracting the EFC from the COA.
Example: $20,000 - Cost of Attendance (COA) for Edward State University
- $2,000 - Expected Family Contribution (EFC)
$18,000 - Financial need
3. Then the financial aid administrator will try to offer a financial aid package that provides enough money to cover the financial need of the student. In the above example, the goal is to offer the student $18,000 in financial aid. It is assumed the $2,000 expected family contribution portion will be paid by the family or student through savings, investments, or employment earnings.Students will receive a different amount of financial aid from each college based on the cost of attendance.
4. After the financial aid administrator makes the final decision on the amounts and types of financial aid the student is eligible to receive, an award letter is mailed or e-mailed to the student.
What is an Award Letter?
An Award Letter lists the types and amounts of financial aid a college is offering. This is often called a financial aid package. At this point students have no financial responsibilities related to the award letter. Students have the right to accept or decline any of the offers made by the college. The award letter also contains instructions on how to accept or decline the offers being made. After accepting the financial aid awarded, the college will set up a student account and continue to lead the student through the financial aid process