2017 guide to college financial aid, the fafsa and css profile - how much does a smart board cost

If you want to know how your income and assets are credited to you when your child applies for a university grant, and if you can do something to maximize your grant eligibility ---wonder no more.
Updated 2017, this comprehensive guide on university financial assistance includes new tips and insights to help you estimate how much your family will contribute to university expenses, and how to maximize your economy.
This guide will help you get a clear idea of how the university funding system works with straight-
Forward interpretation of expected family contributions (EFC), need-
Based on financial assistance, performance assistance, and the impact your income and assets have on you on the FAFSA and CSS archives Academy assistance sheet.
Process required to apply for a university grant application-
University-based financial aid begins with students and parents who complete one or two financial aid forms, FAFSA (
Free Application for Federal Student funding)
And/or CSS profiles.
Any college or university that grants federal student funding must require the student to complete the FAFSA to determine eligibility for federal funding (
It also applies to most state aid).
Most colleges and universities across the country apply for FAFSA as their only requirement
Therefore, students applying for funding at these colleges only need to complete the FAFSA.
In addition to the FAFSA, however, there are about 200 universities that require CSS profiles to be completed.
These colleges use CSS profiles to assess the eligibility of students to receive funding from their own institutions.
Usually, the "introduction" College is a very selective private college, including Ivy League college, but the University of Michigan, Ann Arbor, William and Mary's College, georgia Institute of Technology and the University of North Carolina at Chapel Hill are examples of flagship state universities that also need this profile.
There is also a group of 23 colleges, known as the 568 presidential Group, which is composed of the principals of these institutions, the purpose is to use the "consensus" method to assess the student's ability to pay for the university.
The 568 president Group School also requested the completion of the CSS file, but they treat the assets of the students differently than the housing rights of the parents (
Better for families)
Than the system method.
So there are two, but three, ways to calculate the student's expected family contribution.
The income reported on these two aid forms used to be in the previous year's tax return, but in 2015 this figure changed
Year before (PPY)
The income in the reporting format is 2017 of the 2016 announcement and implementation in October-
Academic year 2018.
Below is an explanation of the new previous university funding filing format.
On September 14, 2015, President Obama changed the submission format of the FAFSA college assistance form from the previous annual income to the previous-
The income of the previous year, which caused a lot of confusion about how the rules worked, how they affected aid eligibility and when they were submitted to whom.
So let me simplify it for you.
Under these changes, the upcoming senior high school students this fall (2017)
Will be able to apply for financial assistance for their new students (academic)
University school year 2018-
2019 by using the income tax information in the parent's 2016 tax return, FAFSA was submitted on October 2017.
This new approach is called "before" because the student's university funding qualification is now based on the income of the first two years of the student's admission, and the rule does not appear for one year until 2016.
FAFSA and CSS brief: Why are two aid forms required?
Karen Cooper is a vice president and director of financial assistance at Stanford University and a trustee of the university's board of directors.
At Stanford, she was responsible for guiding the most generous of all four projects --
And explained that the profile did better than FAFSA in assessing the real economic strength of a family.
"FAFSA does a good job of helping low-income people
Income families apply for federal and state assistance, but this profile is the best indicator of the financial strength of families at all income levels.
At Stanford, we want to really understand the financial situation of each family, whether the profile is more affordable to the family than the FAFSA and whether their story is more than the number alone.
In addition, she said, "families with lower incomes have less fluctuations in income --to-
A family year higher than income.
FAFSA focuses only on one year's income;
2015 of 2017-
Academic year 2018.
This is a snapshot, so there is a problem using this data.
"Universities like Stanford use CSS profiles to collect 2016 of the actual income of the previous year through 2016 of their parents, to better understand the ability of students to pay university fees tax returns and projected income for 2017.
Cooper explained, "if income fluctuations can affect student funding, we would like to know what is causing this volatility so that we can provide a fair reward to students.
Also, we don't like to see a lot of volatility in the assistance we provide to first-year studentsto-
Because it could jeopardize the overall affordability.
"Since you know which year of income will be reported on the aid form, it is important to understand how the information on the aid form is used to determine how much a family should pay for a university.
This amount is called the expected family contribution.
Calculate your expected family contribution (EFC)
Regardless of the form of assistance (s)
As part of the process of applying for financial assistance, the student needs to complete and submit, after all the time and information required to complete the form (s)
It all boils down to three letters, the EFC, representing the expected family contribution.
You provide your financial information on the assistance form (
FAFSA and CSS profiles)
, Submit the form online to the processing center of each corresponding form, and the information in the form will enter the auxiliary calculation (
Federal approach, institutional approach and consensus approach).
The output of these calculations that need to be analyzed is the student's expected family contribution (EFC)
For the cost of the University
The student's EFC is the minimum amount the student expects to contribute to the university's fees.
Therefore, the EFC represents the dollar amount.
It is the "output" of aid forms and calculations ".
Your data goes in, your child's EFC comes out, and then goes to the aid department at the school, and the child asks to send the data on the aid form.
The three EFC formulas mainly focus on the assets and income of parents and students, the size of the family and the number of dependent children attending a university in a certain year, to assess the ability of families to use their own income and assets to pay for university fees.
Because these three formulas calculate EFC in different ways, the student EFC under each formula may also be different, sometimes completely different!
Using the student's EFC to determine the financial needs AidEFC is used to analyze the student's needs for financial assistance using a simple formula that subtracts the student's expected family contribution (EFC)
Total attendance fee from a college (
Attendance fee-EFC = financial need).
If the student's EFC is lower than the attendance cost of the university, then the student is eligible to meet the needs --
Based on financial assistance.
Attendance cost is clearly one of the two variables needed to determine the requirement
Based on eligibility for assistance.
The cost of attendance is the total cost of admission to the university, including tuition, fees, accommodation, books, travel expenses and personal expenses.
So if you know the cost of a particular university, you can subtract your child's EFC from that fee to determine if your child is eligible for the demand --
Financial aid from that university
If you don't know the cost of a specific university, you can use 2014-
National average cost of public universities in 2015 ($20,000)
Public universities for 4 years ($30,000)
Private universities for 4 years ($58,000)
Or elite college for 4 years (
The most selective and expensive universities in the country, $68,000 a year)
, Get a general idea of your child's eligibility for assistance.
2017 EFC quick reference table for university funding Step 1-find your income in the AGI column.
Step 2-find the column at the top of the table corresponding to the number of dependent children you have, and then follow the column down to find the row corresponding to your income (AGI).
The cross number is the federal EFC that you only estimate based on your parents' income.
The estimated EFCs in the table below do not take into account your assets or whether you have contributed for a qualified retirement plan or received any form of tax-free income.
All of this will add EFC.
EFCs in the assumptions and annotations table on the EFC quick reference sheet do not take into account any parent or student assets that may be reported on the financial aid sheet and calculated in the aid formula.
The purpose of this table is to give you a simplified quick reference on the EFC.
In general, the calculated assets are
Retirement assets, aid formulas measure assets more in the name of students (20-25%)
Assets than parents (5-5. 64%)
, Except under the 5% consensus approach to student and parent assets.
Small business assets are not calculated by federal method, but by institutional and consensus method.
Similarly, housing rights are also important under the institutional approach, but only 1 at most.
Twice the total income adjusted by parents (AGI)
Under the consensus, not under the federal approach.
So your actual EFC may be higher when your assets are added to the entire aid calculation.
In addition, the average university fee in your state may differ from the national average fee used in this table to estimate aid eligibility, and the EFCs shown are only based on the federal method of calculating the EFC.
How university-funded income calculates how the university expects parents to spend 47% of their net income each year on university fees.
This formula is basically the case.
If you adjust your total income (AGI)
Starting from line 37 on the homepage of your 1040 tax declaration form, add any retirement plan contributions you pay, human serum protein contributions, child support payments received and other "tax-free" income and then reduce your government's calculated income protection allowance from "enhanced AGI "and the fees you pay in the federal government, state and FICA taxes, you will get your net income.
If you have an AGI of about $90,000 or more per year, the aid formula requires a net available income of 47%.
If your after-tax net income is $50,000, then you will pay about $23,500 a year for college fees based on income, but the aid formula also takes into account your non-
Retirement assets.
How assets affect the aid eligibility of FAFSA and CSS archives, surprisingly, at the most expensive university, now charges $71,000 a year, even if the student's parents earn more than $200,000 a year, and with a lot of assets, they are also eligible for a lot of financial assistance.
If these assets are well structured, they are more of the institution of the college itself (
Not funded by taxpayers)
You may get assistance.
You don't need to list a $2 million family, for example
When applying for university funding on FAFSA, you have small businesses, but you have small businesses on CSS profiles.
Your home equity will depend on the CSS profile, not the FAFSA.
If your child has a 529 college savings account, it will be more popular on FAFSA than the profile.
Assets in retirement plans are not counted, but last year's retirement contributions were counted.
They will be added to your income for the purpose of aid calculation.
With so many questions and puzzles, you can do your best to save for college and retirement and inadvertently hurt your child's eligibility for university fundingof-
Pocket Costs and consumes more hard-
Income and assets.
Calculate in advance how your assets will affect your child's university funding qualifications and your ability to pay for the university.
That's why it's so important to discover your savings, investments in advance, when you complete the FAFSA and CSS Profile university funding forms, the retirement account and the 529 University program may compromise your child's eligibility for funding.
Three things you particularly want to determine as early as possible: 1)
What assistance forms and formulas are used by which colleges? 2)
According to each formula, so how will your family finance be assessed at each university? 3)
Will your income allow your child to quit running because of need?
Whatever type of account your assets are in, or who owns them, are you still your child, based on assistance?
Two university funding forms, but three university funding formulas expect family donations (EFC)
Is the minimum amount the family expects to contribute to university expenses and is calculated using three different methods: the federal method (FM)
System methodology (IM)
And consensus approach (CM).
All three EFC calculations are based on two financial aid forms FAFSA (FM)
And CSS configuration files (IM and CM).
In September, SIMPLE, Keogh, profit sharing, which assets are equivalent to assets such as 401 k, 403b, IRAs, according to any of the three EFC methods, pension and Roth IRAs are not included in the calculation of the EFC.
Assets not in retirement account--
Cheques, savings, CDs, brokerage accounts, money markets, investments in real estate, stocks, bonds, mutual funds, ETFs, commodities, and balances in the 529 University savings and prepaid plans ----
Be sure to include in the EFC formula.
Whether or not you or your child currently has funds, the trust fund must be reported.
On FAFSA, if only interest or principal is available, the present value shall be calculated and reported accordingly by the trust officer.
The total amount of reportable assets of parents will vary depending on the EFC method and reportable asset value a savings (
Emergency Reserve)
Minus an allowance of approximately $15,000 to $25,000 to obtain the value of the assets available.
Parents are expected to use up to 5. 64% (Federal)and 5% (
Institutions and consensus)
Among the assets available to the university every year.
Less than 100 small businesses controlled by the family
Time employees, housing rights and non-
Eligible annuities are not included in FM, but under IM and CM, although the upper limit of CM housing equity is 1.
The total income adjusted by parents is twice.
Some private universities (like Lehigh)use an in-
Between the calculation formula of housing equity, calculate 2.
AGI of parents is 5 times that of others (like Bucknell)
House equity is not calculated at all now, although the CSS Profile requires this.
When answering questions about house equity on the CSS Profile, these questions specifically ask when the house is purchased, how much it is purchased, and what the estimated current market value is.
The reason for these problems is that using the federal housing multiplier index to calculate the estimated housing value requires them, and you can use the MSA/MSAD calculator here to calculate it yourself.
Select the area closest to the house, quarter/year of purchase, valuation quarter (Current quarter)
And purchase the price, then click the calculate button to get the estimate.
This will be the value calculated by the CSS Profile and the academy through FHMI, which is acceptable (low)
List the market value of the house.
Still, I always raise the value to be reported as a market value on CSS so that it doesn't become the exact number FHMI came up with on CSS.
Consumer Attention: non
The qualified year is indeed calculated in the CSS configuration file, but not in FAFSA.
Please note this warning before you decide to put all your current assets into the annuity product for "hidden" purposes of assistance.
Retirement assets are not counted, but your previous year's contributions to eligible retirement accounts are indeed calculated as tax-free income and are added back to the adjusted gross income in the income section of the aid formula.
Life insurance cash value is not counted in any formula, but some highly selective universities ask policy cash value in supplementary questions on CSS profiles.
Personal assets such as cars, clothes and household goods are not counted under any formula, but collections are counted.
You decided it was a well.
A well-stocked cellar is considered a "collectible" or savvy liquid asset with subtle financial assistance?
Renting a property is a popular tax and investment strategy among parents, but they do not qualify for family-controlled small business assets that can be excluded from FAFSA.
To become a business, you must provide services such as laundry or cleaning.
If your rental property is in the LLC business structure, technically you can exclude the value as a small business on FAFSA.
However, if your child's college needs CSS profiles in addition to FAFSA, then small business assets are not excluded from the profiles, so in any case, the rent will be counted in the CSS Profile.
Unless the leased property is in LLC (
It can be said that there are any other forms of business structure besides sole proprietorship)
Under the investment issue, they need to report on the FAFSA because the rent is considered "other real estate ".
"If the rent is actually in a business and the business is controlled by the family, less than 100 of the full amount
Then it doesn't have to be listed as an asset on FAFSA, but it has to be reported on the CSS Profile.
When reporting a lease on CSS, if it is owned by an individual, it will be reported as part of "Other real estate" or as a business, if the business owned by the family actually owns it. Personally-
Private and business rentals
What's the difference in personal rent
Comparison between private rent and commercial value
The own rent is to compare the combined net business value with the business value adjustment table on CSS and FAFSA.
For example, if the net value of a home-owned business is less than $635,000, then the value will be multiplied by 60%.
If the value is lower, it can be multiplied by a factor as low as 40%.
The adjusted value, after multiplying the value by the factor in the table, is added to other reportable assets owned by the series and multiplied by 5.
Therefore, the coefficient of assets that can be reported on FAFSA and CSS is 64 or 5%.
Please keep in mind that families submit tax returns (
Through the IDOC system, like the drop-down box)
As a requirement for CSS.
As a result, the financial aid officer will obtain a tax return to compare it with whether or not the business is reporting in personowned or not.
Why should I mention this?
Because the client wants to deduct all possible rents on their tax return, and then because the business gets the adjusted value on the aid sheet, it wants to claim that the rent is a business. Cue the gong.
No, it doesn't work.
They can see clearly that this is personal.
It is owned and will be treated as an individual reporting asset.
Student assets the student must report the same type of assets as the parent, but the student does not have a savings allowance, so 100% of the student's value
Count all assets. Student-
The proportion of assets owned is calculated at 20% (FM), 25% (IM)and 5% (CM)
But under FM, 529 University savings account and Coverdell Education Savings Account (ESAs)
Assets included in the parent company (5. 64%)
Although they are owned by the students.
Note: more and more CSS colleges treat students
529 yuan in assets of the parent company (5% assessment)
Same as federal aid rules.
However, not all CSS colleges follow the federal aid rules, in which case studentsowned (UTMA)
According to the institutional approach, the 529 account will be treated as a student asset and an assessment rate of 25% (IM).
Parent company assets: do Matrin you have $25,000 in reportable assets, your asset protection allowance is $35,000, and then, since the total amount of reportable assets does not exceed the asset protection limit, assets are not expected to make any contribution.
If you have a reportable asset of $200,000, you are expected to receive $5.
64% contributions of $165,000 of these assets ($200,000 -
$35,000 = $165,000 multiplied by 5.
64% = $9,306 per year).
Children's assets: do matconditioned your child has a savings account of $25,000, and the child is expected to contribute 20% of the assets ($5,000)
University fees under the federal method per year, 25% under IM$6,250)
Only 5% under CM ($1,250).
If your child has a college account of 529 of Coverdell ESA, aid treatment is more advantageous according to federal calculations.
The same $25,000 in the 529 account can only be assessed at a maximum of $5.
64%, there may sometimes be no assessment at all.
Passed a legislation a few years ago that changed the treatment of students
529 and ESA assets for federal financial aid purposes.
Now, only under the federal demand analysis formula (
Not IM or CM)
529 and ESA student-owned assets are treated as parents' assets for federal aid purposes, so they receive more favorable aid treatment than other assets such as savings accounts, mutual funds, stocks and bonds.
So, for the purposes of federal assistance (i. e.
Pell grants, subsidized Stafford loans, etc)
If you save money for the university in 529 plans and save money for ESAs in the name of your child, this has the same financial aid impact as saving money in the name of your parents.
Keep in mind that parents can receive an asset protection allowance.
Therefore, if 529 of the assets of the parent asset student add up to less than the asset protection allowance, then 529 of the assets of the child will not be counted at all.
Saving money in the name of your child is not always bad based on your income alone, and if your child's EFC is high enough to stop him from qualifying for demand --
Based on financial aid, it doesn't matter if your child has a bunch of assets under his name.
In fact, transferring value-added assets to your child may be a tax benefit in some cases, even in this case
It is called the tax rules for children.
The reason is that you can implement various taxes-
During college, save your child's tax return using standard deductions, personal exemptions and a $2,500 US opportunity tax credit to minimize or eliminate the federal tax your child will owe.
In this way, even if you sell value-added assets within your tax scope, you will pay less taxes, even if there is a child tax.
I wrote in a previous article, pay university fees: pay $0 tax on $31,000 in capital gains using Trump's tax plan.
Remember, you have to pay taxes first before you pay for the university, so reducing the tax costs of the university can reduce the overall cost of the university.
This is what I call "tax aid ".
Be careful of grandparents.
With 529 plans, 529 plans owned by grandparents are not considered assets when students complete FAFSA, but some universities do require grandparents --
As a supplement to the CSS configuration file, it has 529 assets (
Table of economic assistance).
However, just like retirement assets --
The 529 assets owned are not considered in the EFC calculation.
This is for the purpose of professional judgment, providing assistance officers with a more complete family financial position when students have circumstances that mitigate the need to consider assistance.
Therefore, under the institutional approach, 529 of the assets of grandparents are generally not directly involved in the calculation of the student EFC.
Unfortunately, the assignment of grandparents
According to all aid formulas, the 529 schemes owned do count in aid eligibility.
More importantly, what is less understood is the distribution from grandparents
The 529 programs owned are considered technically a gift to students and are considered tax-free income for financial aid purposes, which may affect student eligibility for assistance, with a distribution ratio of up to 50%
Therefore, in the student's EFC, assets in the form of a 529 plan account owned by grandparents are not considered assets (
Estimated family contribution to university expenses)
However, if grandparents are allocated from the 529 plan to help grandchildren pay for college, this distribution will be considered as a student's tax-free income when the student completes the aid form in the following year. Ouch!
Why does the CSS Profile raise the issue that is not used in EFC calculations?
The CSS Profile is a secondary form that is more complex than FAFSA and requires more time and information collection.
Many of the questions and data on the file will not actually be used to calculate the EFC of your child, such as asking about the value of retirement assets.
If these questions don't affect your EFC number, why are they asking all the other financial questions?
Additional information for professional judgment (PJ)
The purpose is that if the student's family has special circumstances that legally affect the family's ability to pay, the aid officer has had a lot of good additional information through personal data, A "judgment call" can be sent out through this message to help the student get the additional assistance she deserves.
This information is not intended to compromise the child's eligibility for assistance.
Contribute to the family you expect (EFC)
From a point of view, your child meets the needs
According to the example above, if your income is $70,000, you have two dependent children, one of which is college entrance, and your EFC is $7,253, which is pink, this means that EFC based on this estimate can only use your income (
Your actual EFC could be higher)
Your child should meet the needs.
All three types of universities have financial assistance.
Therefore, your child is eligible for demand-
Scholarship, work-
Study and student loans as part of the children's financial aid program.
Qualifications, however, do not mean certainty.
You have to wait and see what form of help the child is getting and the value of it.
Your child does not meet the needs.
On the other hand, if your income is $275,000 and you have a dependent child, then your EFC is $71,821 and is dark purple, meaning your child is unlikely to meet the needs
Any of the four schools used (Two-
4 years listed
4 years listed
Private and four year
Private schools).
But that doesn't mean that you have to pay $71,821 a year if the "price tag" is lower than that.
You will never pay more than the cost of attendance.
Also keep in mind that the cost used to create tables is the national average cost for these types of colleges, and the cost of attending a particular college will be different from the national average.
Ivy League and most elite private universities are now paying more than $71,000.
The EFC has the same time as the two children in college, and according to these two formulas, if the parents have two children in college, the proportion of parents in the expected family contribution is not twice that of one child.
In fact, in the federal formula, the share of parents in family contributions is evenly distributed (50/50)
In the number of students in the university.
So if parents have a child in college and earn $140,000, their EFC will provide about $31,000 a year for that child.
The parent's EFC has two children in college and will receive a £ 50/50 split and apply to the overall EFC of each child, that is, $15,500 per child.
The CSS Profile applies more than half of the parent contribution (60%)
For each of the two students
The bottom line is: if you have more than one child attending an expensive private university, you may be eligible for demand --
Even at a fairly high level of income.
Eligible for funding at one university but not at another university
Basic assistance is the cost of attendance relative to each university the student is considering.
Students may meet their needs-
Provide assistance at one university instead of at another.
Using the above example, based only on the income of the parents, temporarily forget all the assets, according to the federal formula, the parents with an annual income of $140,000 will have an EFC of about $31,000 per year, one of the children is in college.
At a private university that costs $65,000 a year, students will be eligible for a tuition fee of $34,000 a year.
Based on student funding, because the student's EFC costs $34,000 less than the college's attendance.
Instead, at a state university that costs $30,000 a year, students are not qualified to meet any needs --
Based on student funding because the student's EFC is higher than the cost of attendance.
To a large extent, financial aid awards are predicted, even if students meet the needs --
This does not mean that the college or university will meet the needs of 100% of the students.
In most cases, you will not know what the student's "aid package" will include until the student receives his/her financial aid award letter.
Don't be too addicted to trying to predict the exact composition of student aid programs based on a bunch of statistics related to the college's historical aid awards.
Instead, try to understand how much assistance the student is eligible for and focus on the most useful statistics, the percentage of the need to be met.
The percentage of demand satisfaction is the statistics released annually by most colleges, representing the average percentage of demand that the college meets for students in need
According to the assistance qualification of the freshman class of the previous year.
For example, on average, one university may only meet 70% of the student's needs and the other (
Like many elite private colleges)
100% of the demand may be met.
In terms of assistance, especially in more than four years, this is a big difference.
The percentage of demand satisfaction reflects all assistance packaged by the college assistance office on behalf of students, including federal assistance, state assistance, and private scholarships.
It therefore reflects all forms of assistance, including merit-based assistance, in a forecast statistic.
Once you start receiving funding rewards from the university, you need to be careful to make sure they don't have a loan buried in a small font.
How to avoid disappearing college aid traps this article by Forbes Miriam Kerler highlights the bait in real life and is switched by universities that attract students on campus
The front desk Grant then pulls out the grant in subsequent years, leaving students and families somehow to come up with the funds to cover the shortfall or force them to drop out of school.
What if your family has a special financial situation? There is no place on FAFSA to explain the special circumstances that you would like the university to consider in assessing your child's financial aid needs.
You should contact the financial aid office of each university your child is applying for and be prepared for a written explanation, but each university requires you to send it, usually by email or postal service.
However, the CSS Profile does have a dedicated space on the app to explain your particular situation.
First of all, this is not a place to beg, but a place to explain special circumstances such as family illness, divorce, separation, one-off, etc.
Time has surged in income, unemployment and other legal situations.
Keep it concise and professional in your explanation, and be prepared to provide more detailed information that the college funding office may be most aware of your situation.
Your plan to not pay for the university is not a special case.
The next thing the university chooses how to influence financial aid you can do with the percentage that meets the needs is to apply the rule of thumb, if the student is a good candidate for admission from the point of view of enrollment, or the college wants students for specific reasons (
Whatever it is)
, Students are more likely to receive assistance packages that meet a higher percentage of demand than the published average, and may consider that aid programs contain more grants and scholarships than student loans and jobs --
In private universities in particular, they have more flexibility to reduce tuition fees.
If the student is at the low or low end of the enrollment pool, the college may not be interested in the student, but in order to fill the seat of the college, the student may be admitted, but the student funding award could be a very bad one.
Basically, the college says you can come, but with our help you have to pay to register.
This is a clear example of how university selection and affordability can be integrated, and it is also crucial to understand what EFC formulas and assistance universities need.
For example, it is likely that state universities will only need to complete the FAFSA, which, as described above, enters the federal method formula for calculating student EFC.
Under federal law, an elite private university will require the completion of the FAFSA to determine the eligibility of the student for federal student funding, but it will also require the student to complete the CSS Profile to determine the student's needs (eligibility)
Aid dollars for their own institutions.
Because these two formulas calculate EFC in different ways, there are different provisions for some cases. in the case of CSS configuration files, it may also be necessary
Guardian parents and parents whose children live (
If divorced or separated)
, According to the form and formula of assistance used by a university, the student assistance qualification of a university may be much lower than that of another university.
Also, as you will read below, merit funding is another form of financial funding, but merit funding awards are not based on the student's EFC (Family Finance)
This is based on the merits of the students.
Some universities offer academic achievement funding, while others do not.
There is a smart kid who has grades and he may get help but not at all universities.
Merit AidMerit is another form of student funding that is based on the student's academic, sports, music and other strengths, not the family economy.
Therefore, scholarships are available to any student.
The best thing about merit assistance is 1)
Unlike student loans and 2), performance rewards are usually grants, scholarships, or tuition discounts that do not need to be repaid
Regardless of the total income of the family or how much money the family has saved for the university, students can receive merit-based funding.
Academic achievement assistance is usually based on the average score of students (GPA)
And standardized test scores (SAT and ACT)
Occasionally ranked in the class.
It's black and white.
You will get help if you have a score.
One thing that shocked parents and students is that in the process of university enrollment, almost all elite universities in the country did not provide academic achievement assistance.
You will only get help at these agencies if you prove that you need help, which means that your EFC must be below the list price.
Otherwise, you will write a check for the sticker price.
Scholarship is available to students but not required
Your child is not eligible for demand-based financial assistance based on AidIf, but is granted performance assistance, then your childof-
The pocket fee will be the label price minus the performance assistance award.
For example, if the college costs $35,000 a year and your EFC costs $40,000 a year, you will be expected to pay the "sticker price" of $35,000 a year ", minus your child's $10,000 award for excellent assistanceof-
Pocket money of $25,000 a year.
Why does merit aid reduce demand
However, if your child meets the needs, E. G.
Basic financial assistance of $15,000 ($35,000 -
EFC $20,000 = $15,000 required)
, And receive a scholarship of $10,000, in most cases the financial assistance office of the college will use the scholarship to help "meet the actual needs of the students", so, the demand for students decreased from $15,000 to $5,000.
It is important for you to understand that merit-based funding, state funding, local and private scholarships, etc. will all be used to reduce or "meet" the needs of students in the first place, and do not reduce your spendingof-pocket cost.
In other words, if the college costs $35,000 a year and the student's EFC costs $20,000 a year, then the student has proven to need $15,000.
However, the $10,000 student achievement assistance award will be used to meet the needs of $15,000 displayed by students, rather than helping you pay the expected fee (your EFC).
As a result, the achievement assistance award will reduce the needs of students, not your EFC or out-of-pocket cost.
The college can provide students with a $5,000 Stafford loan and a $10,000 performance assistance award to meet the needs of students at $15,000, and you are expected to still pay $20,000 a year.
This is also the case if your child receives any other form of external assistance such as private scholarships, state grants, etc;
This assistance will also be used first to meet the needs of students before reducing your outingsof-pocket cost. The Out-of-
Pocket money for CollegeA families with $30,000 EFC may allow their children to take $65,000 from their pockets to expensive private universities for $30,000 a year, and the amount the students expect to contribute (EFC).
If the college provides assistance packages covering 100% of the student's needs ($35,000)
, It is mainly composed of grants, and then the family goes outof-
The pocket money for elite private universities has really turned into $30,000 a year, not $65,000 a year ".
"Because students are not qualified to meet their needs --
According to state university funding or merit-based funding of $28,000 a year, the family will have to write a check for the sticker price of $28,000 a year.
In this case, although the student is not qualified to meet the needs --
As a new student, he is still eligible for a non-subsidized Stafford loan of $5,500 (
Up to $7,500 a year in the next few years)
This will help to pay part of the cost of $28,000. of-
But students must repay the principal and interest after graduating from college.
At the end of the college admissions and assistance application process, you will come up with a list of universities where students have been admitted, and these institutions have received an official financial assistance award letter, explains eligibility for all assistance that students are eligible for and/or have received, including external scholarships, state bursaries, student loans, workstudy, etc.
Each college's assistance office "packages" all of these assistance and sends a reward letter to the student explaining each student's assistance package.
The winning letter also includes the total attendance fees registered for the upcoming academic year, including tuition fees, fees, rooms, board of directors, books, travel expenses and personal expenses. Thus, the out-of-
The pocket money for each college will be the attendance fee for each college minus the amount of the assistance package for each college.
If parents and/or students accept student loans in order to fund a university, thenof-
Pocket money, including principal interest borrowed to fund the college, has increased.