Financial Aid

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With financial aid, nearly everyone can afford higher education. Understanding the costs that make up the bill is the first step in learning how you can afford college.

College cost components and Financial Aid
It is important to considered the costs associated with attending college.

• Tuition and fees.
• Room and board.
• Books and supplies.
• Transportation.
• Personal expenses.

Direct vs. indirect costs
College costs are divided into two categories:

Direct costs: Charges established by the college: tuition, room, and board (on-campus student housing and meals).

Indirect costs: Expenses controlled to some degree by the student; personal expenses, books, and transportation. Your college may be able to provide guidelines on typical indirect expenses at their campus.

Reduce your indirect costs
While colleges use an average indirect cost for annual budget estimates, you can reduce these costs by:

• Reducing the number of meals you eat out.
• Buying used textbooks.
• Living moderately while in school.
• Establishing a weekly budget and sticking to it.
• Limiting the number of trips home or car-pooling to lower transportation expenses.

Do you qualify for need-based financial aid?
Need-based financial aid defined

Need-based financial aid is awarded based on your and your family's financial circumstances.

Need is defined as the difference between your cost of attending the college and your Expected Family Contribution (EFC)—the measured ability of your family to pay. If there is a difference, your family may be eligible for aid.

Many financial aid programs are awarded to students who qualify based on need. Apply for financial aid. You'll never know how much you qualify for unless you do.

Calculating need
Need is generally defined in one of two ways, depending on which methodology the college uses.

If the college uses...

Federal methodology For Financial Aid:
Cost of college - federal EFC = eligibility for federal aid (need)

Institutional methodology for financial aid:
Cost of college - institutional EFC = eligibility for institutional aid (need)

Expected Family Contribution (EFC)

Your EFC impacts your eligibility to receive financial aid. Your EFC is a measure of your family's ability to pay for one year of college based on an evaluation of your family's income, assets, and overall financial circumstances.

The EFC may vary from one institution to another, and is generally calculated using one or both of the nationally accepted methodologies.

Federal EFC Methodology

Based on a formula established by the federal government.

Takes into account family income, assets, size of current household, and the number of family members currently attending college.

Determines eligibility for federally-sponsored financial aid such as Pell Grants, Perkins and Stafford Loans, and Federal Work-Study Programs.

Institutional EFC Methodology

Used by institutions and organizations to determine a student's eligibility for institutionally-based, private financial aid programs.

May vary from college to college.

Additional factors in a family's financial situation are sometimes considered to determine a student's eligibility for institutional need-based aid.

May be used instead of, or in addition to, the federal EFC to determine eligibility to receive financial aid from college or private funds administered by the college.

The EFC is the Expected Family Contribution, not just your parent's contribution. You and your parents share responsibility for meeting the cost of college.

What is the selection criterion for non-need-based aid?

You can receive non-need-based financial aid, regardless of your and your family's financial circumstances.

Non-need-based aid can be awarded based on:

• Academic credentials.
• Test scores.
• Church, civic, or community activities or membership.
• Alumni affiliations of other family members.
• Your parents' employer.
• Ethnic or nationality factors.
• Special talents, such as music, sports, oratory, or leadership skills.

There are many kinds of aid not based on financial need. These include:

• Institution-based scholarship programs.
• Reserve Officer Training Corps (ROTC).
• Service academies.
• Private scholarships, including community-based programs.
• Certain federal loans.
• Parent Loan for Undergraduate Students (PLUS).

For additional information on financial aid there are several excellent web sites on this matter: