Financial Aid FAQs
Q. What is the FAFSA?
A. The FAFSA form is an application for federal student aid. Students and parents must complete the FAFSA form to apply for federal student aid such as federal grants, work-study funds, and federal student loans.
The FAFSA form is free to submit to colleges. The FAFSA form is typically available Oct 1 for the following academic year. FAFSA uses income from prior prior year and assets as of the filing date. Check each college’s website for the priority deadline for filing FAFSA.
Generally, most colleges will require FAFSA to qualify for institutional financial aid. In addition, many states will use FAFSA information to determine eligibility for state aid. Some private aid and outside scholarship providers may use your FAFSA information to determine whether you qualify for their aid. Filing FAFSA does not require parents to contribute to the cost of college.
For more FAFSA information, and to complete FAFSA visit this site: Federal Student Aid
Q. What is the Student Aid Index?
A. SAI: The SAI is the eligibility index used to determine eligibility for federal, and in some instances, state and institutional need-based student financial aid. The SAI is based upon the information provided by the student and their family on the FAFSA. Generally, students with a higher SAI are eligible for less need-based financial aid. Do not think of the SAI as what your net price/COA at a given college may be.
Get an SAI estimate here: Federal Student Aid
Q. What is the CSS Profile?
A. The CSS Profile is an online application used by colleges and some scholarship programs to award non-federal institutional aid. Over 400 colleges use the CSS Profile.
Unlike the FAFSA, CSS Profile is not free for all students. The CSS Profile is $25 for the initial application to one institution, and $16 for each additional institution.
Undergraduate students living in the U.S. may submit CSS Profile for free if:
- Family adjusted gross income is up to $100,000
- The student qualified for an SAT fee waiver
- The student is an orphan or ward of the court under the age of 24
CSS Profile for noncustodial parents living in the U.S. is free to submit for undergraduate students’ noncustodial parents whose family adjusted gross income is up to $100,000.
Filing the CSS Profile does not require parents to contribute to the cost of college.
Q. What is the Net Price Calculator (NPC)?
A. Each college that participates in Federal Aid programs is required by law to provide a Net Price Calculator for prospective students to use to estimate what the college will cost, including projected financial aid. Net Price equals COA minus all financial aid, e.g., scholarships, grants, loans.
There are significant variations in how the NPCs work and the accuracy of their results. Make sure to include accurate and complete information when completing NPCs. NPCs may not be accurate if parents are divorced, own real estate beyond a primary home, and/or own a business/farm. NPCs that directly ask those questions are more likely to be accurate.
Many NPCs only estimate need-based aid, but some do include merit aid in their estimates.
Make sure to keep a record/screenshot of the NPC results at each school.
Find additional NPC information here: Net Price Calculator Information Center
Q. What is Institutional Methodology (IM)?
A. Institutional Methodology (IM) is a formula developed by financial aid professionals, in consultation with economists, to measure a family’s ability to pay for college. The result of the formula is an expected family contribution (EFC)—the family’s share of college costs. The EFC produced by the IM is not the same as the figure calculated by the federal government to determine eligibility for federal student aid (now called SAI).
A basic principle of IM is the idea that a family’s capacity to pay is a function of income and assets. The first step in calculating the family contribution is to define income in a reasonable way. After subtracting appropriate allowances from income, a portion of the remainder is available to pay college costs. The same process takes place for assets.
Learn more here: https://secure-media.collegeboard.org/digitalServices/pdf/professionals/what-is-institutional-methodology.pdf
Q. How do I find out what I need to submit to the colleges and the deadlines to apply for financial aid?
A. Each college has a financial aid section on their website. It will tell you everything you need to submit, and the priority deadlines for submission. It will also give you the school codes for the FAFSA and the CSS Profile.
Q. What is the effect of external scholarships on my financial aid award?
A. At some schools, outside scholarships reduce your COA, so the college may reduce your financial aid offer by that amount. How colleges do that can vary, but often begins with replacing subsidized loans with unsubsidized loans, elimination of work study, and finally grants. Consult the FA office at each institution for details and get any answers in writing if possible. Some states are enacting laws that prohibit scholarship displacement.
Q. My parents are divorced. Which parent should complete FAFSA?
A. If your parents are divorced, separated, or never married, and don’t live together, the parent who provided more financial support during the last 12 months is the contributor and must provide their information. If both parents provided an exact equal amount of financial support or if they don’t support you financially, the parent with the greater income and assets is the contributor and must provide their information.
Learn more here: Federal Student Aid
Q: What is the cost of attendance (COA)?
A: COA is the total projected amount it will cost to attend a school. COA is comprised of direct and indirect costs. Direct costs are paid directly to the college and include tuition, fees, room and board.
Indirect costs include costs for items such as books, transportation, and personal expenses. The colleges provide estimates and a student’s actual costs may vary.
Additionally, most colleges require all students to have health insurance. Some students may need to purchase the college’s health insurance if they have inadequate health insurance (as determined by the college) or they have no US health insurance, e.g., international students. Health insurance costs can vary and typically range from $1,500 to $4,000 per year.
Q: What is my Financial Need?
A: For Federal Aid, the student’s Financial Need is determined by subtracting the Student Aid Index (SAI) from the college Cost of Attendance (COA). Example: If the COA is $30,000 and the SAI is $5,000, then the Financial Need is $25,000.
Many colleges use the same formula to determine Financial Need, but most colleges do not promise to meet 100% of need. Your financial need as calculated by a particular college can be very different from the Federal financial need.
If a student does not receive aid totaling their level of calculated need, they are “gapped”, and will have to figure out how to finance the gap.