General Financial Aid Information
Three components:
1. Grant and Scholarship
2. Loans
3. Work
Note: Loans and work are referred to as “self-help.”
Generally, the basic principles of financial aid are as follows:



Students have the responsibility to contribute to their education to the extent that they
are able.
Parents are responsible for contributing to their children’s education to the extent that
they are able.
Families with similar circumstances will be expected to contribute similar amounts to
higher education; those with different circumstances will be expected to contribute
different amounts.
More than $185 billion in aid is available for use. There are four main sources of financial aid:




Federal government (the largest source)
State governments
Colleges and universities
Private organizations
What is need-based aid vs. merit-based aid?
How is financial aid determined?


COA, EFC, Demonstrated Need
o Note: A student’s EFC is a measure of parent’s capacity over time to absorb
educational costs; It IS NOT a dollar amount expected from current income or
assets; It IS NOT an estimate of “extra” cash available.
o As such, a financial aid award is a determination of past savings (assets), present
income (payment plan), and future earnings (loans)
The Forms:
1. FAFSA- free to all users. Necessary to qualify for any federal aid (loans, grants,
work-study)
2. CSS Profile- $25 a profile. Much more in depth than the FAFSA. Students qualify for
a waiver by filling out the Profile- NOT from a school or counselor. CollegeBoard
will notify students if they qualify for a fee waiver once their data is entered.
3. Taxes
4. Institutional Supplements (if applicable)
Questions to ask regarding financial aid policies (beyond the basics):
1. What determines financial aid eligibility? (Need vs. Merit for instance)
2. What is included in the “student expense budget”?
a. For instance, Amherst includes tuition, fees, room, board, health insurance,
allowances for books, personal expenses, travel costs
3. Do Early Decision candidates receive the same consideration as regular decision
applicants for financial aid?
4. Do you meet 100% of demonstrated need?
5. Do you have preferential packaging?
6. How are outside scholarships handled?
a. Do they deduct from self-help?
b. Can you defer the scholarship (or part of it) until next year?
c. Can some of the funds be used for a new computer?
7. Is financial aid renewable and/or ensured for the future? If so, is the calculation and
award from year to year handled differently?
a. For instance, does the student work component increase each year?
b. Does the loan burden increase each year?
8. Is there financial assistance for parental contributions such as loans or monthly payment
plans?
IMPORTANT: Pay attention to deadlines. Should
your mentee miss a deadline he/she may NOT qualify
for aid. At Amherst, fin aid deadlines are
“suggestions.” This is NOT TRUE for many other
schools.
Am I a dependent or independent student?
Your answers to questions on the FAFSA determine whether you are considered a dependent or
independent student. Here are the 2013–14 questions that determine your dependency status:
Were you born before Jan. 1, 1990?
Yes
As of today, are you married? (Answer “Yes” if you are separated but not
Yes
divorced.)
At the beginning of the 2013–14 school year, will you be working on a
Yes
master’s or doctorate program (such as an M.A., M.B.A., M.D., J.D., Ph.D.,
Ed.D., graduate certificate, etc.)?
Are you currently serving on active duty in the U.S. armed forces for
Yes
purposes other than training? (If you are a National Guard or Reserves
enlistee, are you on active duty for other than state or training purposes?)
Are you a veteran of the U.S. armed forces?*
Yes
Do you have children who will receive more than half of their support from Yes
you between July 1, 2013, and June 30, 2014?
Do you have dependents (other than your children or spouse) who live with Yes
you and who receive more than half of their support from you, now and
through June 30, 2014?
At any time since you turned age 13, were both your parents deceased, were Yes
you in foster care, or were you a dependent or ward of the court?
Has it been determined by a court in your state of legal residence that you are Yes
an emancipated minor or that you are in a legal guardianship?
At any time on or after July 1, 2012, were you determined to be an
Yes
unaccompanied youth who was homeless, as determined by (a) your high
school or district homeless liaison or (b) the director of an emergency shelter
or transitional housing program funded by the U.S. Department of Housing
and Urban Development?**
At any time on or after July 1, 2012, did the director of a runaway or
Yes
homeless youth basic center or transitional living program determine that you
were an unaccompanied youth who was homeless or were self-supporting
and at risk of being homeless?**
No
No
No
No
No
No
No
No
No
No
No
What if I answered Yes to one or more of the questions above?
If so, then for federal student aid purposes, you’re considered to be an independent student and
will not provide information about your parents on the FAFSA.
What if I answered No to every question?
If so, then for federal student aid purposes, you’re considered to be a dependent student, and you
must provide information about your parents on the FAFSA.
Dependency Overrides
Financial aid administrators have the authority, through Section 480(d)(7) of the Higher
Education Act, to change a student's status from dependent to independent in cases involving
unusual circumstances. Nationwide, approximately 2% of undergraduate students become
independent through such dependency overrides. An analysis of the 2007-08 National
Postsecondary Student Aid Study (NPSAS) suggests that only 0.5% of undergraduate students
(0.9% of undergraduate students under age 24 as of December 31 of the award year) are
independent because of a dependency override.
In particular, the following circumstances do not merit a dependency override, either alone or in
combination:




Parents refuse to contribute to the student's education;
Parents are unwilling to provide information on the application or for verification;
Parents do not claim the student as a dependent for income tax purposes;
Student demonstrates total self-sufficiency.
Note that all of these circumstances are largely discretionary in nature. A student cannot become
independent just because the parents are unwilling to help pay for the student's college education.
Although these circumstances are not sufficient for a dependency override, they do not preclude
it. Sometimes there are additional circumstances that occur in conjunction with these
circumstances that do merit a dependency override. These can include the following:








an abusive family environment (e.g., sexual, physical, or mental abuse or other forms of
domestic violence)
abandonment by parents
incarceration or institutionalization of both parents
parents lacking the physical or mental capacity to raise the child
parents whereabouts unknown or parents cannot be located
parents hospitalized for an extended period
an unsuitable household (e.g., child removed from the household and placed in foster
care)
married student's spouse dies or student gets divorced
http://www.finaid.org/educators/pj/dependencyoverrides.phtml
An Overview of the FAFSA &CSS Profile
The FAFSA
By Peterson's Staff updated on Monday, January 28, 2013
http://www.petersons.com/college-search/overview-fafsa-application-process.aspx
There's a lot of federal money available to help you pay for school, but you can't be considered
for any of it until you complete a Free Application for Federal Student Aid (the FAFSA). You
should be able to fill it out on the Web or pick one up at your high school guidance office, public
library, local college, or the U.S. Department of Education. The FAFSA is a first step in
determining what financial aid award you might receive.
The online FAFSA is a great option
The fastest way to apply for federal student aid is over the Internet using the interactive FAFSA
application on the Web at www.fafsa.ed.gov. This site hosts the online financial aid application,
as well as an abundance of information about filling it out. You can look up the codes of the
schools you're interested in, find out what information you need to gather, and sign up for a PIN
number that serves as your electronic signature on the application. (If you're not applying as an
independent student, you and one of your parents must apply for the PIN.)
This financial aid application is not too complicated
As long as none of the schools on your list require the CSS PROFILE, the application process is
pretty simple. All you need to do is complete the FAFSA as soon as possible after January 1 of
the year you plan to enroll and before any school-imposed deadlines, which are often in February
or March. Keep in mind that you can’t submit your application for the year you plan to attend
prior to January of that same year. The process is easier if you have all your financial records
from the previous year available, but if you don’t, it’s entirely OK to use estimated figures.
There are a number of items you should gather before filling out the FAFSA. If you don’t have
all of these things available, use estimates. You’ll need to submit changes later when the
documents become available, but making changes is an easy process, so don’t let that deter you.
Depending on your circumstances, you will need:




Your Social Security number
Your driver's license, if you have one
Your W-2 Forms and other records of money earned in the previous year
Your (and your spouse's, if you are married) previous year's Federal Income Tax Return: IRS
Forms 1040, 1040A, 1040EZ, 1040 Telefile, foreign tax return, or tax return for Puerto Rico,
Guam, American Samoa, the U.S. Virgin Islands, the Marshall Islands, or the Federated States of
Micronesia





Your parents’ previous year’s Federal Income Tax Return, if you're a dependent
Your previous year's records of untaxed income, including Social Security, Temporary Assistance
to Needy Families, welfare, and/or veterans benefits records
Your bank statements from the previous year
Your business and investment mortgage information; business and farm records; and stock,
bond, and other investment records from the previous year
Your alien registration card, if you are not a U.S. citizen
The FAFSA application results in your Student Aid Report
After your FAFSA application is reviewed, you'll receive a Student Aid Report (SAR), the next
step toward receiving financial aid. The SAR includes all of the information you reported on
your FAFSA and shows your Expected Family Contribution, or EFC. The EFC is a result of a
calculation by the federal government that is used to measure your family's financial strength and
its eligibility to receive need-based aid. The formula is often referred to as the "needs analysis"
because of this. The EFC is not the amount you owe the school per se, but a measure of where
you stand relative to the entire nation. It is used to determine the types and amount of aid you are
eligible to receive.
If you provided an e-mail address, the SAR will be sent to you electronically. If not, you’ll
receive a paper copy in the mail. Review it and check to see if the information you reported is
accurately reflected on the SAR. If you used estimated numbers to complete the FAFSA
financial aid application, you may have to resubmit the SAR with corrections. The schools you
designated on the FAFSA will receive the information you reported and use it to determine your
financial aid award. In many instances, one or more school may request copies of your and/or
your parents' federal income tax returns or other documents to verify the information you
reported. Submit any additional documents requested as soon as you can so your financial aid
decision isn't delayed. The longer you wait, the greater the chance that less aid will be available
to assign to you.
The CSS Profile
By Peterson's Staff updated on Sunday, January 27, 2013
http://www.petersons.com/college-search/css-profile-tips.aspx
One of the first things you should do after deciding to apply for financial assistance is to check
the aid section of the college’s admission material. There you will find which aid applications are
required and when they are due. If you apply to one or more PROFILE colleges, you will have to
complete that form in addition to the FAFSA.
Here are some important tips to keep in mind when applying for a financial aid award at a
PROFILE college.
The basics of the CSS Profile


The PROFILE is a fee-based financial aid application. Based on information entered on
the PROFILE, a limited number of fee waivers are automatically granted. These waivers
are granted to eligible first-time college applicants from families with few assets and very
low income.
Submission deadlines for the PROFILE vary by school, so be sure to check with each
institution for its specific deadline. The PROFILE can be due as early as the fall of your
senior year. At the very latest, the PROFILE should be filed no later than 14 days before
the earliest priority filing date your colleges or programs specify.
Completing the PROFILE financial aid application




Your first step is to register for the PROFILE. This is where you list the code numbers of
your colleges, pay the fee, and answer a number of questions. Based on this information,
PROFILE items are personalized to match your characteristics and to provide the
colleges you list with what they need to know. You can do this online or by phone.
Once you are registered, you'll be able to complete the PROFILE application (either the
online version or the paper form). Some schools may require you to complete additional
forms, such as the Business/Farm Supplement or the Noncustodial Parent's Supplement.
Gather all the material you’ll need to answer the questions. For example, you will have to
know the amounts for salary, dividend, and interest income; taxes paid; and the value of
any savings and investments.
After completing the application, you'll receive an acknowledgement summarizing your
PROFILE information and listing your colleges.
Comparing the CSS Profile with the FAFSA



In measuring your family’s ability to pay for college, the PROFILE uses the Institutional
Methodology (IM) instead of the Federal Methodology (FM), which is used on the
FAFSA. Although the two systems are fundamentally the same—in both the IM and FM,
the primary “drivers” that determine how much you will be expected to pay for college
are income, assets, family size, and the number of children in college—the IM takes into
account whether your family owns a home and assumes a minimum student contribution.
The PROFILE contains questions specific to the schools you're applying to, while the
FAFSA is a standardized financial aid application designed to be used in conjunction
with federal aid.
The PROFILE allows financial aid counselors to take special circumstances into greater
consideration.
This financial aid application comes with bad & good news
Having to complete the PROFILE is a good news/bad news story. The bad news is that there’s a
fee and the form is much more complex than the FAFSA application. The good news is that the
colleges that use the CSS PROFILE have billions of dollars of their own scholarship money to
award, beyond what the federal government can offer.
Understanding Financial Aid for Parents
Kate Gentile, Senior Associate Dean of Financial Aid, Amherst College
College costs (including all expenses such as tuition, fees, room and board, personal expenses, books and
supplies and transportation) can range from community college costs, (typically around $8000), to in-state
colleges or universities ($12,000 - $14,000) to private colleges ($25,000 - $42,000). Many colleges have
limited resources when trying to meet the financial needs of their families.
Colleges fall into different categories regarding how your children’s status as financial aid applicants can
affect their admission. These categories can include:
Need Blind – These colleges will admit students without regard to whether or not they apply for financial aid.
Some, but not all colleges in this category can meet the full need of their admitted students.
Need Aware/Need Sensitive – These colleges may admit some or most of their class without regard to their
financial aid status but at some point in their admission process, the fact that a student is an aid applicant can
figure into whether or not they are admitted or how their financial aid award is determined.
Admit/Deny – These colleges admit students who qualify for admission, but do not offer funding.
Deny/Deny – These colleges will not admit a student who they cannot fund.
Colleges are typically open about their admissions policy regarding financial aid. If you are concerned that if
you apply for financial aid, it will affect your child’s chance for admission, you should inquire with individual
admission offices about their policies.
.
DO’S And DON’TS If You Are Considering Applying For Financial Aid
1. If financial aid will make a difference in your child’s choice of colleges, DO make sure you and your
child know what types of aid programs exist at the colleges your child is considering. Every school can be
different. For example: Ivies/ Little Ivies/Seven Sisters are strictly need based, whereas many other colleges
will have a combination of need based aid and merit or athletic or special talent based aid.) Federal aid is
almost entirely need based.
2. If your family might or will need financial aid, DO indicate the need for aid at the start of the application
process! Most admissions applications will ask if the student will apply for financial aid. If you want to be
considered for financial aid, indicate yes. Most colleges will not let you apply for financial aid after the
admission decision is made. Often, by that time, their funds have been committed to other students.
3. DO pay attention to deadlines! They vary from school to school. At some schools, if you miss their
deadlines, you could be ineligible to be considered for the year or for all four years. There are individual
deadlines for each school in addition to state scholarship deadlines.
4. DO take advantage of family contribution calculators that are available. They will give you idea of what
you might be asked to pay. WWW.finaid.org is a great website for financial aid information, including
student loans, financing options, federal and private calculators. While these calculators will not be able to
indicate exactly what a specific school will determine is your family’s ability to pay, it will give you an idea
as to how a calculation is determined. Some colleges offer calculators on their websites. An example of a
helpful calculator can be found at: www.amherst.edu/~finaid/calculator/_START_Amherst_Calculator.html.
Please note this calculator requires Internet Explorer 5.5 or higher. Using a calculator is a worthwhile
exercise for anyone, even if you are not applying to the specific school.
5. If you are divorced or separated from your child’s other parent, DO inquire as to what each school’s
policy is regarding the expectation of information and support from a non-custodial or co-custodial parent.
These policies vary widely. Federal aid at both state and private institutions will be based on whoever is
listed as the custodial parent and his/her current spouse, regardless of prenuptial agreements or how recently a
marriage occurred. Public colleges, which distribute mostly federal and state funds, will typically look only
to custodial parent (including child support received) and current spouse information. Private schools,
however, will differ significantly from each other on what they require in addition to custodial parent
information.
6. DO review college financial aid websites first for information regarding policies, processes and
deadlines. Then, if you still have questions, contact financial aid offices directly to receive clarification.
7. If your family is facing financial constraints or has a personal financial philosophy which will affect your
ability to contribute beyond a certain level for college costs, DO have that conversation with your child at the
beginning of the process. For example, some parents believe they can contribute X amount of dollars ($5,000
or $10,000) per year for college regardless of a college’s cost or the financial aid package. A student should
be aware of constraints at the start of the college admission/financial aid process.
8. If your child is applying for outside scholarships, DO check the outside scholarship policies at the
colleges where your child intends to apply. Typically, outside scholarships will not reduce a parent’s
contribution. Some colleges may allow outside aid to reduce self-help expectations (loan or job requirements)
and others may subtract outside scholarships from their own offers of grant/scholarship assistance.
9. If you complete one of the calculators and the estimated family contribution seems high and/or your cash
flow is tight, DO begin to think about what financing or payment options you might be able/willing to
undertake or can afford. Federal Stafford Ford/Direct subsidized student loans are the least expensive loans
available to students but they are strictly limited ($2,625 for freshmen, $3,500 for sophomores, $5,500 for
juniors and seniors). Federal Perkins Loans are also low interest and are limited based on the amount each
college has been awarded by the government. Private educational student loans (through banks and private
lending organizations) are available but the rates can be high and interest, if deferred, is capitalized (added to
the principal of the loan). Parent financing choices can include home equity loans, federal parent loans and
private parent loans. There is no one option that is best for all families. Each family’s circumstances are
different and must be considered when making a choice about long term financial commitments. Many
college websites provide information about what options are available and/or recommended by that college.
They will vary by institution and state. You may also receive direct solicitations from private lending
programs. You should wait until you know which college your child will be attending and then speak with
the financial aid office at that school if you have questions about information or solicitations you have
received. The college itself may know of better opportunities and/or can advise you of the most frequently
used programs or preferred lenders for their families.
10. DON’T be intimidated by the cost of private colleges. Depending on a family’s calculated ability to
contribute, a family that qualifies for financial aid could pay the same amount whether the student is attending
a public or private college.
11. DON’T assume that your children can complete the financial aid process on their own or that they will be
fully informed about the financial aid processes and how they differ at different schools. Financial aid is too
important an issue to leave entirely in their hands.
12. DON’T be intimidate by the process or pay anyone to help you complete or file your forms for you.
While the FAFSA and Profile (the two most common forms) can seem overwhelming at first, if you have
your tax forms available, the instructions typically take you line by line through the on-line processes. If you
have questions about how to complete the forms, call a financial aid office at a school where your child will
be applying or a local financial aid office.
13. DON’T pay organizations that promise to find outside scholarships for your child. If you have not
already received solicitations from some of these organizations, you will soon. Most of these organizations
are scams. There are some legitimate, free scholarship search engines available which can be located on-line.
Start at the www.finaid.org website.
14. DON’T call a financial aid office and ask “If my income is $X, is it worth applying for financial aid?”
The process for determining aid is multi-faceted and cannot be determined based on income alone. Try to use
the calculators to see if your estimated contribution is higher than the cost of education at the colleges your
child wants to attend. Use that as a guideline to determine if you want to pursue an application for financial
aid (if aid at a particular institution is based on need).
15. DON’T be afraid to contact financial aid staff for any questions you have about the process, college
policies regarding financial aid or how to represent some extenuating circumstance for your family.
Remember in the application process to include any information you believe is relevant to your financial
circumstance.
Frequently Asked Questions about Financial Aid (FAQ)
 Do I have to wait until I get accepted to a college before filing t he FAFSA and/or CSS
Profile?
Absolutely not! Complete both forms as early as possible. Simply list all the colleges you
have applied to on the FAFSA. By the time you get the Profile form, as a part of the Profile
registration process, it already knows which colleges you want it sent to.
 When should I file the financial aid forms?
The earliest you can file the FAFSA is January 1st so you will want to file as soon as possible
after that date. The Profile can be done at anytime so early filing (before) January 1st is
advisable.

If I expect to receive need-based aid, why do I need to file by March 1st?
Many states and most colleges use the March 1st filing deadline to close eligibility for state and
campus-based aid. By missing that date, you may be ineligible for those kinds of aid, your need
notwithstanding. Financial aid deadlines can be very firm so do not risk becoming ineligible for aid.

Is it better to file electronically or by regular mail?
We urge you to file electronically. It is faster and more responsive. If you file "snail mail", be
sure to make a copy of the form and get a Certificate of Mailing at the post office to verify the
mailing date. Don't lose the certificate!

Where do I get the forms?
You can register for the FAFSA by going to: www.fafsa.ed.gov
Registration for the Profile by going to: http://student.collegeboard.org/css-financial-aid-profile
You can get hard copies of the FAFSA at your school but they will be in short supply since most
people file electronically.

Why do some colleges want a Profile if they already have the FAFSA?
Typically, only expensive, private colleges request a Profile. The reason is that the gap between
a typical family's EFC (Expected Family Contribution) and the cost of the college is so large that
there is not enough public money (state and federal) to fill the demonstrated need. Thus, the
college has to use its own money to close the gap. The colleges reason that since it is their
money, the colleges should be the final judge of the family's true ability to pay. The basic
Profile form uses a formula called the Institutional Methodology (IM) that includes questions
about home equity and other discretionary questions each college may select from a databank of
several hundred questions. Each Profile form is therefore individually tailored for every family
depending upon the array of colleges applied to.

If the college asks for financial data on their application for admission do I still have to complete
the Profile?
If the college requires it, YES. Many "Profile" colleges ask for some preliminary financial data
associated with the application but they still require the more comprehensive Profile to support
earlier data and to add new information.

How can I complete a financial aid form if my taxes aren't done?
You can make reasonable estimates in order to get in the financial aid line early and then make
corrections later without losing your place in line.

What if my parents refuse to pay for college. Can I apply as an independent student?
No. Unless you satisfy the one of the conditions of independent status, you must file as a
dependent student .That having been said, it may be possible to negotiate with the financial aid
officer at the college to get a dependency override. Your reasons will have to be very compelling
and will require documentation and probably an outside person to verify the truthfulness of your
claims. A dependency override can be done- but it happens pretty rarely. If the student is
spectacular, the college is more likely to find a way to override dependency.

Do I have to apply for financial aid every year?
Yes. Because of changes in your family’s finances and annual adjustments to the federal
financial aid system, you will have to reapply for financial aid every year. Completing future
FAFSAs will be easier because renewal forms come populated with lots of personal information
you have already filled out. You will be required to simply update filose fields that change
annually such as income and assets.

My parents are divorced. Do I have to enter my both parents’ financial data on the financial
aid forms?
No. Just have your custodial parent provide information. Colleges requesting the
Profile will want your other parent to complete a Non-Custodial Parent Form.

M y p a r e n t s ar e divorced but have since married new spouses. Does my step-parents
financial information have to be entered on financial aid forms?
Yes. Any pre-nuptial agreements will have to be discussed with the college the student ends up
attending. The college has full discretion as to how they react to such arrangements.
 What happens if the FAFSA only has space for 6 colleges when there are 14 on my list?
List the first six on the FAFSA. When you receive your Student Aid Report (SAR), you can
delete the first six, enter 6 new colleges and resubmit. Repeat as needed.

What happens if my parents own a business or farm?
The relevant information will be included on the FAFSA but if you file a CSS Profile, you will
be asked to complete a Business/Farm supplement which is similar to a multi-year Schedule C
on your parents’ 1040 tax form.

I just received something from IDOC. What is it?
A growing number .of colleges use a service called IDOC. Using tax returns, IDOC informs the
college about actual cash flow by looking for "phantom losses" on the tax form. They tend to
discount things like depreciation and carryover losses from stock sales and other transactions.

What if this year's income is different from the one I reported on the financial aid forms?
If your income goes up, wait until next year to report it but if it is less, after the student gets
admitted, contact the college's financial aid office to discuss the EFC given the new income
figures. The financial aid office should guide you through the process.

Do I have to accept student loans and work study in my financial aid award?
You don't have to but we recommend that you do. Loans and work/study are considered to be
self-help aid. If you need financial aid, you should also be willing to help yourself as an integral
part of the process. Students unwilling to help themselves may discover that colleges are less
willing to help too.

Are there financial aid implications if I am admitted from the wait list?
Usually there are since by the time you are accepted, the college may claim that the year's
financial aid money is already committed to others. This is an issue if you qualify for a very
significant amount of aid. If it is a small amount, there may be enough money to cover your
need. You may be able to get a commitment that while this year will see a shortfall in aid, your
future needs will be fully addressed. Ask for a preview of what you can expect a year from now.
That being said, staying on the wait list does not pose any financial risk in and of itself. It may be
worth it for you to stay on the waitlist and understand your financial options as it comes.

If I get a private scholarship, will it affect my financial aid?
In all likelihood, yes. If you already have a financial aid award from the college, you actual
“need” will be reduced by the amount of the outside scholarship. What is reduced is up to the
college and could be in the form of student loans, grant money or “self help.”

Colleges don’t know how expensive it is to live here. If I claim high costs of living, will the colleges
take that into consideration?
Probably not, but it depends on the institution. Where you live is entirely your choice as is a large
mortgage or credit card debt. Colleges understandably do not feel obligated to bail you out
because you chose to live in a certain place and purchase a house beyond your means. The same
can be true if you claim that one of your students attends private K-12 school.
63 Colleges With the Best Financial Aid
By Lynn O'Shaughnessy | Feb 18, 2011 | 8 Comments
What schools provide the best financial aid for college?
It’s an excellent question to ask if you are going to need financial aid for school. Most families,
by the way, fall into that category.
In fact, according to a new U.S. News & World Report survey, only 63 schools out of 1,700
colleges and universities claim that they meet their students’ full financial need.
When evaluating the generosity of schools, you will want to discover if schools include just
grants (free money) and a work/study job in their financial aid packages. Nearly all schools also
include loans in their packages so when researching schools, check the breakdown of loans
versus grants. You can find that kind of information within profiles of individual schools on the
websites of the College Board and COLLEGEdata.
Here are the schools on US News & World Report’s list in alphabetical order:
63 Most Generous Colleges and Universities
1. Amherst College
2. Barnard College
3. Bates College
4. Boston College
5. Bowdoin College
6. Brown University
7. Bryn Mawr College
8. California Institute of Technology
9. Carleton College
10. Claremont McKenna College
11. Colby College
12. Colgate University
13. College of the Holy Cross
14. Columbia University
15. Connecticut College
16. Cornell University
17. Dartmouth College
18. Davidson College
19. Duke University
20. Emory University
21. Franklin W. Olin College of Engineering
22. Georgetown University
23. Gettysburg College
24. Grinnell College
25. Hamilton College
26. Harvard University
27. Harvey Mudd College
28. Haverford College
29. Macalester College
30. MIT
31. Middlebury College
32. Mount Holyoke College
33. Northwestern University
34. Oberlin College
35. Occidental College
36. Pitzer College
37. Pomona College
38. Princeton University
39. Reed College
40. Rice University
41. Scripps College
42. Smith College
43. St. Olaf College
44. Stanford University
45. SUNY College of Environmental Science and Forestry
46. Swarthmore College
47. Thomas Aquinas College
48. Trinity College
49. Tufts University
50. University of Chicago
51. University of Dayton
52. University of North Carolina Chapel Hill
53. University of Northern Colorado
54. University of Pennsylvania
55. University of Richmond
56. University of Virginia
57. Vassar College
58. Washington and Lee University
59. Washington University, St. Louis
60. Wellesley College
61. Wesleyan University
62. Williams College
63. Yale University
http://moneywatch.bnet.com/spending/blog/college-solution/63-colleges-with-the-best-financialaid/4545/
No Loan or Reduced Loan Schools
The following table lists colleges that have taken steps to significantly reduce or eliminate the
self-help level or eliminate loans from the aid package for lower income students.
Accommodation
Eligibility
Year
Initiated
Replaces loans with grants and
work-study in the financial aid
package.
Students with parental
contributions of up to $3,800
(family income roughly
$40,000).
20072008
Replaces loans with grants and
work-study in the financial aid
package.
All students
20082009
Appalachian State
University
(Appalachian
ACCESS)
Replaces loans with grants in
the financial aid package
sufficient to cover institutional
charges such as tuition, fees,
room and board. An on-campus
job is provided to cover
transportation and personal
expenses.
North Carolina residents
entering as a full-time
freshman (no transfer students) 2007with family income below the 2008
Federal Poverty Line for the
family size.
Arizona State
University
(ASU Advantage)
Replaces loans with grants and
work-study in the aid package.
Arizona residents with family
Does not include transportation
income of up to $25,000.
and personal expenses within
the scope of this policy.
Boston University
Replaces loans with grants in
the financial aid package.
Boston residents who graduate 2009from Boston Public Schools
2010
Bowdoin College
Replaces loans with grants in
the financial aid package.
All students
College/Program
Amherst College
Brown University
20072008
20082009
Significantly reduced loans for
low-income students, replacing
them with grants. Caps total
Family earning less than about
loans for four years of college
$30,000
at $7,000. Also applies outside
1999scholarships first toward
2000
reducing self-help.
Significantly reduced loans for
low-income students, replacing Family earning less than about
them with grants. Caps total
$50,000
loans for four years of college
at $11,500. Also applies outside
scholarships first toward
reducing self-help.
Eliminates loans from the
Family earning less than
financial aid package, replacing
$100,000
them with grants.
Limits total four-year debt to
$12,000.
Family earning $100,000 to
$125,000.
Limits total four-year debt to
$16,000.
Family earning $125,000 to
$150,000.
Limits total four-year debt to
$20,000.
Family earning $150,000 or
more.
Eliminates the parental
contribution.
Family earning less than
$60,000
Bryan College
(Tennessee)
William Jennings
Bryan Opportunity
Program
Full tuition and fees
First-time full-time student
with total family income of
$35,000 or less. Students must
maintain a 3.0 GPA for
continued eligibility. A
2007separate application is required 2008
and the FAFSA must be
submitted by the school's
priority deadline of February
15.
California Institute
of Technology
(Caltech)
Replaces loans with grants in
the financial aid package.
Student contribution of $1,500
(from summer earnings) plus
federal work study of $750.
US students with family
income less than $60,000.
$4,000 scholarship (70%
reduction in debt)
Students from families earning
less than $40,000.
$3,000 scholarship (50%
Carleton College
reduction in debt)
(Access Scholarship
$2,000 scholarship (33%
Program)
reduction in debt)
20082009
Students from families earning 2008between $40,000 and $60,000. 2009
Students from families earning
between $60,000 and $75,000.
Ended Access Scholarship
program effective fall 2012.
Replaces loans with grants in
Claremont McKenna the financial aid package.
College
Ended "No Packaged Loan"
20082009
20122013
All students.
20082009
2014-
policy effective for new
students enrolling in fall 2014.
New students will have loans of
up to $4,000 per year in their
financial aid packages.
2015
Colby College
Replaces loans with grants in
the financial aid package.
All students. (Initially it was
restricted to Maine residents,
but was expanded to all
students later the same year.)
College of Holy
Cross (Worcester,
MA)
Free tuition
Worcester residents with
2008family income below $50,000. 2009
College of William
and Mary
(Gateway)
Replaces loans with grants in
the financial aid package.
Virginia residents with family
income below $40,000.
Colorado State
University-Pueblo
(Commitment to
Colorado)
Full-time Colorado resident
undergraduate students who
receive the Pell Grant and who
Covers 100% of the cost of base
2011have family AGI less than
tuition and mandatory fees.
2012
$50,000. Students must be
pursuing a first Bachelor's
degree.
Replaces loans with grants in
the financial aid package.
Undergraduate students from
families with annual incomes
below $50,000.
20082009
20072008
20072008
Eliminates loans from the
All students attending
financial aid package, replacing
Columbia College or SEAS.
them with grants.
Eliminates the parent
contribution. Students will "no
Columbia University longer be expected to borrow or
contribute any of their income
or assets" to tuition, room and
board or other fees.
Connecticut College
Undergraduate students in
Columbia College or the Fu
Foundation School of
Engineering and Applied
Science (SEAS) from families
with annual incomes below
$60,000.
Reduces the parent
contribution.
Undergraduate students in
Columbia College or SEAS
from families with annual
incomes of $60,000 to
$100,000 and typical assets.
Replaces loans with grants in
the financial aid package.
Students with family income
less than or equal to $50,000
20082009
20062007
and EFC less than or equal to
5000.
Cornell University
(January 2008,
November 2008,
July 2012)
Reduces loan burden by 50%
by replacing some loans with
grants.
Students with family income
between $50,000 and $75,000
and EFC between 5000 and
15000.
Replaces loans with grants in
the financial aid package.
Undergraduate students from
families with annual incomes
below $60,000.
Caps need-based loans at
$3,000
Undergraduate students from
families with annual incomes
between $60,000 and
$120,000.
Replaces loans with grants in
the financial aid package.
Undergraduate students from
families with annual incomes
below $75,000.
Eliminate the parental
contribution
Undergraduate students from
families with annual incomes
below $60,000 and assets
below $100,000.
Caps need-based loans at
$3,000 annually
Undergraduate students from
families with annual incomes
between $75,000 and
$120,000.
Caps need-based loans at
$7,500 annually
Undergraduate students from
families with financial need
and annual incomes over
$120,000.
Replaces loans with grants in
the financial aid package.
Undergraduate students from
families with annual incomes
below $60,000 and assets
below $100,000.
Eliminate the parental
contribution
Undergraduate students from
families with annual incomes
below $60,000 and assets
below $100,000.
Caps need-based loans at
$2,500 annually
Undergraduate students from
families with annual incomes
between $60,000 and $75,000.
Caps need-based loans at
$5,000 annually
Undergraduate students from
families with annual incomes
20082009
20082009
20092010
20132014
between $75,000 and
$120,000.
Caps need-based loans at
$7,500 annually
Undergraduate students from
families with annual incomes
of $120,000 and up.
No loans in the financial aid
package.
All students
Free tuition
2008Students from families earning 2009
less than $75,000
Free tuition with no loans in the Students from families earning
financial aid package.
less than $75,000
Dartmouth College
Loans limited to $2,500 to
$5,500 annually
Students from families earning 2011$75,000 to $200,000 entering 2012
fall 2011. Current students will
not be affected.
Free tuition with no loans in the Students from families earning
financial aid package.
less than $100,000
Loans limited to $2,500 to
$5,500 annually
Davidson College
(North Carolina)
Duke University
Students from families earning 2012$100,000 to $200,000 entering 2013
fall 2012. Current students will
not be affected.
No loans in the financial aid
package.
20072008
Replaces loans with grants in
the financial aid package.
Undergraduate students with
2008family income below $40,000. 2009
Eliminates the parental
contribution.
Undergraduate students with
family income between
$40,000 and $60,000.
20082009
Limits loans on a graduated
basis ($1,000 to $4,000 per
year) and freezes loans at the
freshman level.
Undergraduate students with
family income between
$40,000 and $100,000 in four
$15,000 income tiers.
20082009
Caps loans at $5,000/year.
Undergraduate students with
family income of $100,000 or
more.
20082009
Replaces loans with work-study Undergraduate students with
2007and grants.
family income below $50,000. 2008
Emory University
(Emory Advantage) Caps four-year need-based debt Undergraduate students with
family income between
at $15,000
$50,000 and $100,000.
20072008
Fairfield University
Bridgeport Tuition
Plan
Free tuition.
Undergraduate students from
Bridgeport public and diocesan 2008high schools with family
2009
income below $50,000.
Georgia Institute of
Technology
(Tech Promise)
Replaces loans with work-study
and grants in the financial aid
package. Up to $1,250 in work
per semester ($2,500 per year).
Only covers institutional
charges for tuition, fees, room
and board.
Georgia residents pursuing a
first undergraduate degree with
parent income below $33,300 2007and eligible to file a 1040A or 2008
1040EZ. Requires minimum
2.0 GPA. 8 semester limit.
Grinnell College
Caps need-based loans at
$2,000 per year, replacing loans Students with financial need.
with grants.
20082009
Families with annual incomes
below $40,000.
20042005
Families with annual incomes
below $60,000.
20062007
Replaces loans with grants in
the financial aid package. Also
eliminates consideration of
home equity in need analysis.
All undergraduate students.
20082009
Zero to 10 Percent Standard.
Upper middle income families
will be expected to pay at most
10% of their income.
Families with annual incomes
above $120,000 and below
$180,000.
20082009
Zero to 10 Percent Standard.
Middle income families will be Families with annual incomes
expected to pay at most 0% to above $60,000 and below
10% of their income on a
$120,000.
sliding scale.
20082009
Zero to 10 Percent Standard.
Lower income families will be
expected to contribute nothing
to the cost of attendance.
Families with annual incomes
below $60,000.
20082009
Haverford College
Replaces loans with grants in
the financial aid package
All students (phased in for
incoming first-year students,
2008with other relief for continuing 2009
students)
Indiana University
Bloomington
21st Century
Replaces loans with grants in
Indiana residents who
2007the financial aid package.
complete the 21st Century
2008
Covers only the tuition and fees Scholars Application in middle
Eliminates parent contribution.
Harvard University
See also the
December 10, 2007
announcement of
Harvard's "Zero to
10 Percent
Standard".
Scholarship
Covenant (21st
Century Scholars
Program)
Kenyon College
Lafayette College
Lamar University
Lamar Promise
Program
Lehigh University
Oberlin College
at an Indiana public college; it
will be less than the full tuition
and fees at Indiana private
colleges. The tuition
scholarship does not cover the
cost of room and board, books
and personal expenses.
school (a pledge to remain
drug-, alcohol- and crime-free,
maintain a 2.0 gpa, and to
graduate high school) and who
are low income (eligible for the
federal school lunch program)
and enrolled full-time at
eligible Indiana Colleges.
Home-schooled students are
not eligible.
No loans in the financial aid
package.
25 students with greatest
financial need, eventually
more.
No loans in the financial aid
package.
Students from families earning
2008less than $50,000 and with
2009
typical assets.
Students from families earning
Limits loans in the financial aid
2009between $50,000 and $100,000
package to $2,500 per year.
2010
and with typical assets.
Covers tuition and fees.
Undergraduate students who
are Texas residents and eligible
for the Pell Grant with family 2009income of $25,000 or less.
2010
Students must also maintain
satisfactory academic progress.
No loans in the financial aid
package.
Students from families with
income less than $50,000.
Caps loans in the financial aid
package at $3,000 per year.
Students from families with
income between $50,000 and
$75,000.
Replaces loans with grants in
the financial aid package.
Students who are eligible for
the Pell Grant.
Eliminates tuition.
Eliminates loans from the
financial aid package.
20082009
20082009
20062007
Matches Federal Pell Grants
Massachusetts
Institute of
Technology
20082009
Families earning less than
$75,000 a year with typical
assets. (Roughly 30% of
families.)
Families earning less than
$75,000 a year with typical
assets.
20082009
Eliminates consideration of
home equity in need analysis.
This will lead to a reduction in
the parental contribution of
approximately $1,600. Similar
reductions will be applied to
families who rent instead of
own a home.
Families earning less than
$100,000 a year with typical
assets.
Reduces work-study
requirement by 10%
All financial aid recipients
Partially backs away from no
loans financial aid policy by
increasing the self-help
expectation from $2,850 to
$6,000, the same as for all other Families earning less than
undergraduate students.
$75,000 a year with typical
Students may meet the self-help assets.
level with work-study and
outside scholarships. All other
aspects of the financial aid
policy remain unchanged.
Miami University
(Ohio)
Miami Access
Initiative
Covers full tuition and fees
Students with family incomes
of $35,000 or less.
20122013
20072008
Michigan State
Replaces loans with grants and
University
work study.
(Spartan Advantage)
Low income students with
2006family incomes at or below the
2007
federal poverty line.
Caps need-based loans at
North Carolina State
$2,500 per year, replacing the
University
remainder with grants and
(Pack Promise)
work-study.
Undergraduate students with
family income less than 150%
of the poverty line. Requires
the family to have "limited
assets".
Northern Illinois
University
Huskie Advantage
Program
Replaces loans with grants in
the financial aid package.
New freshmen who are Illinois
residents and eligible for the
2009Illinois MPA Grant and the
2010
federal Pell Grant.
Replaces loans with grants in
the financial aid package.
Students with the greatest
financial need. Roughly 80%
will have family incomes
under $55,000. Students must
be Pell-eligible with financial
need greater than 80% of the
Northwestern
University
20072008
20082009
cost of attendance.
Pomona College
Princeton University
Caps total need-based loans
(Perkins and subsidized
Stafford) at $20,000 over four
years.
All students receiving
Northwestern Scholarship
assistance.
20082009
Replaces loans with grants in
the financial aid package.
All students.
20082009
Replaces loans with grants.
Students from low-income
families.
19981999
Eliminates loans, replacing
them with grants.
All students who qualify for
financial aid.
20012002
Eliminates loans from the
financial aid package.
Students with a family income
under $30,000
2005Students with a family income 2006
of $30,000 to $60,000.
Caps total loans for four years
of college at about $11,600.
Rice University
Sacred Heart
University
South Texas
University
Stanford University
Eliminates loans from the
financial aid package.
Students with financial need
and family income less than
$80,000.
Caps total loans for four years
of college at about $10,000.
Students with financial need.
Free tuition
Undergraduate students from
Fairfield County, Connecticut, 2008high schools with family
2009
income below $50,000.
Free tuition and fees
Undergraduate students who
are Texas residents and whose
families earn $25,000 or less a 2007year. The FAFSA must be
2008
submitted by the school's
March 1 priority deadline.
Eliminates parent contribution.
Families with annual incomes
below $45,000.
Eliminates loans from the
financial aid package, replacing
them with grants. Students are
still expected to contribute
$4,500 in earnings from work, All families
with $2,500 from working
during the academic year and
$2,000 from working during the
summer.
20092010
20062007
20082009
Eliminates the parental
contribution and no tuition or
room and board charges.
Families with annual incomes
below $60,000.
No tuition.
Families with annual incomes
below $100,000 and typical
assets (less than $250,000 in
non-retirement assets with
home equity capped at 1.2
times annual income).
Replaces loans with grants in
the financial aid package.
Families with annual incomes
below $60,000.
20062007
Replaces loans with grants in
the financial aid package.
All families.
20082009
Free tuition and fees
New resident undergraduate
freshmen from Texas whose
families earn an AGI of
$30,000 or less a year (System
Promise Program) or $30,000 2009to $60,000 a year (Aggie
2010
Assurance). The FAFSA must
be submitted by April 1. The
recipients must maintain at
least a 2.5 GPA.
Free tuition and fees
New resident undergraduate
freshmen from San Marcos
High School whose families
earn an AGI of $35,000 or less 2009a year. The FAFSA must be
2010
submitted by April 1. The
recipients must maintain at
least a 2.0 GPA.
Free tuition and fees
New resident undergraduate
freshmen from Texas whose
families earn an AGI of
$25,000 or less a year. The
FAFSA must be submitted by
April 1. The recipients must
maintain at least a 2.0 GPA.
20092010
Tufts University
Eliminates loans from the
financial aid package
Students from families with
income below $40,000
20072008
University of
Arizona
Eliminates loans from the
financial aid package. Includes
Arizona residents with family
income less than or equal to
20082009
Swarthmore College
Texas A&M
University
Texas State
University - San
Marcos
Bobcat Promise
Arizona Assurance
University of
California System
Blue and Gold
Opportunity Plan
University of
California at
Berkeley
Berkeley Middle
Class Access Plan
(MCAP)
University of
Chicago
Odyssey
Scholarships
a $2,400 work-study job. Does
not cover transportation and
personal expenses.
$42,400 who are Pell Grant
recipients. Candidates must
have historically low income
with typical assets. Candidates
whose income is low for just
one year are ineligible. Will be
phased in starting with the
freshman class entering in
2008-2009. 2.0 GPA required.
Provides scholarships and
grants to cover the systemwide
fees for University of California
undergraduate students. The
plan is limited to the first four
years (two for transfer
students). Students may still
have to borrow for other college
costs. The system tries to cap
loans at $5,000.
Students with financial need
and family income less than
2009$60,000 (median for California 2010
households).
Caps the parent contribution
part of the expected family
contribution (EFC) at 15% of
earnings.
US families with annual gross
income from $80,000 to
$140,000 and typical assets
(less than $200,000 in assets,
not counting the value of the
family home and savings in
qualified retirement plans).
Eliminates loans from the
financial aid package. Includes
Students with family income
a minimum student contribution
less than $60,000.
of $1,980 and work-study of
$2,200 to $3,000.
Cuts loans in the financial aid
package in half, capping them
at $3,000 per year. Includes a
minimum student contribution
of $1,980 and work-study of
$2,200 to $3,000.
20122013
20082009
Students with family income
between $60,000 and $75,000.
University of
Florida
Eliminates loans from the
Florida Opportunity financial aid package.
Scholarships
Florida residents with family
income less than $40,000
whose parents did not earn a
bachelor's degree.
University of Illinois Replaces loans with grants and
at Urbanawork-study
Illinois residents with zero
2007EFC and family income below 2008
20062007
Champaign
(Illinois Promise)
University of
Louisville
(Cardinal
Convenant)
University of
Maryland, College
Park
(Maryland
Pathways)
University of
Michigan at Ann
Arbor
University of
Minnesota system
Founders
Opportunity
Scholarship
Replaced with
University of
Minnesota Promise
Scholarship in Fall
2009
University of North
Carolina at Chapel
Hill
Carolina Covenant
University of
Pennsylvania
University of
Tennessee
the poverty line.
Replaces loans and work-study Kentucky residents with family
2007with grants in the financial aid income below 150% of the
2008
package.
poverty line.
Replaces loans with work-study
and grants in the financial aid
Zero EFC students
package.
Caps four-year debt at $15,900
Students with need-based
loans.
20072008
Eliminates loans from the
financial aid package, replacing Michigan residents with a zero
2006them with M-PACT scholarship EFC who are pursuing a first
2007
funds. Includes $2,500 in work- bachelor's degree.
study.
Minnesota residents. Phased in
Matches the Pell Grant to cover
with each new incoming class, 2005100% of tuition and required
until fully implemented in
2006
fees.
2008-2009.
Award amounts range from
$500 to $3,500 per year for four
years for freshman
undergraduate students and
$500 to $1,500 per year for two
years for transfer students.
Minnesota residents with
family income up to
$100,000/year enrolled on a
full-time basis (at least 13
credits per semester) in a
Bachelor's degree program.
20092010
Students from families with
incomes up to 200% of the
Eliminates debt in the financial
poverty line. (A 150%
aid package
threshold was in effect in
2003-2004.)
20032004
Eliminates loans from the
financial aid package.
Students from families earning 2006less than $50,000.
2007
Eliminates loans from the
financial aid package.
Students from families earning 2007less than $60,000.
2008
Eliminates loans from the
financial aid package.
Students from families earning 2008less than $100,000.
2009
Eliminates loans from the
financial aid package.
All students
20092010
Replaces loans with grants in
the financial aid package to
Tennesse resident
undergraduate students with
20052006
Tennessee Pledge
cover tuition, fees, room and
board. Work and loans are still
required for books and supplies,
transportation and personal
expenses.
family income less than or
equal to $27,000 (150% of the
poverty line). Minimum 2.0
GPA required.
Students with family income of
$30,000 or less who are Texas
University of Texas
residents and qualify for inFull tuition scholarship for four
2006at El Paso
state tuition. Students must
consecutive years.
2007
UTEP Promise
complete 30 credit hours each
year and earn a 2.0 or higher
GPA.
University of Toledo
Blue and Gold
Full tuition scholarship.
Scholar Award
Students graduating from one
of six public school districts in
Ohio (Akron, Cincinnati,
Cleveland, Columbus, Dayton 2009or Toledo) with a 3.0 GPA,
2010
filing the FAFSA by April 1
and demonstrating eligibility
for the Pell Grant.
Replaces loans with grants in
the financial aid package.
Limited to tuition and fees.
Pell-eligible Vermont
undergraduate students.
20082009
Eliminates loans from the aid
package.
Students from families with
incomes up to 200% of the
poverty line ($37,700 for a
family of four in 2004).
20042005
University of
Washington
Full tuition and fees (but not
room and board).
Students from families earning
less than or equal to 65% of the
state median income (about
2007235% of the federal poverty
2008
level) who qualify for Pell
Grants or State Need Grants.
Vanderbilt
University
(press release)
Replace need-based loans with
grants in the financial aid
package.
All students receiving needbased student aid.
20092010
Vassar College
Eliminates loans from the
Students from families with
financial aid package, replacing annual incomes less than
them with grants.
$60,000.
20082009
Washington
University in St.
Louis
Eliminates loans from the
Students from families with
financial aid package, replacing annual incomes less than
them with grants.
$60,000.
20082009
University of
Vermont
University of
Virginia
AccessUVA
Financial aid package based on
institutionally determined need
does not include loans. "Loan
All students applying for
Washington and Lee
assistance will be offered only financial aid by the deadlines.
to offset any additional
educational expenses."
Wellesley College
Wesleyan University
Williams College
Replaces loans with grants in
the financial aid package.
Students from families earning
$60,000 or less per year
Reduces loans in the financial
aid package by one-third, to a
maximum of $8,600 over four
years.
Students from families earning 2008$60,000 to $100,000 per year 2009
Limits loans to a maximum of
$12,825 over four years.
Students from families earning
more than $100,000 per year
Replaces loans with grants in
the financial aid package.
Students from families earning 2008$40,000 or less per year
2009
Replaces loans with grants in
the financial aid package.
All students
Bill Wagner, Interim President, announced on January 31, 2010
that Williams College will "reintroduce modest loans for some
aided students, beginning with the class that enters in the fall of
2011". Current students will not be affected, nor will students
entering in fall 2010. He added "As before, families below a
certain income, and with typical assets, will not be expected to
borrow at all. Others will be offered loans on a sliding scale up
to a maximum size that will again be among the lowest in the
country."
Eliminates the parent
contribution
Families earning less than
$45,000.
Significantly reduces the parent Families earning between
contribution
$45,000 and $60,000.
Yale University
20082009
Replaces loans with grants in
the financial aid package
All students
Eliminates the parent
contribution
Families earning less than
$60,000
Families earning more than
Limits the parent contribution
$60,000 and less than
to 1% to 10% of family income
$120,000
Limits the parent contribution
to 10% of family income
Families earning more than
$120,000 and less than
$200,000
20082009
20112012
20052006
20082009
Increase grants to families with
more than one child in college,
limit tuition increases to the
Consumer Price Index, reduce All families
student contribution to $2,500
and shelter the first $200,000 of
family assets
Replaces loans with grants in
the financial aid package
All students
Eliminates the parent
contribution
Families earning less than
$65,000
20102011
Families earning more than
Limits the parent contribution
$65,000 and less than
to 1% to 10% of family income
$130,000
About a dozen colleges offer free tuition, including Cooper Union, Deep Springs College,
College of the Ozarks and the Webb Institute. College of the Ozarks does not allow students to
borrow from federal, state or private student loan programs.
http://www.finaid.org/questions/noloansforlowincome.phtml
NASF
A
NTS
DE
IPS FOR ST
U
’A S T
Unique Situations:
Tips for Completing the Free
Application for Federal Student
Aid (FAFSA)
Questions on the 2012-13 FAFSA that may cause difficulty for students in
unique situations, such as wards of the court or foster youth, are listed
below. Question numbers refer to the paper FAFSA. Sections refer to the
FAFSA on the Web (FOTW) Worksheet. Please note that some questions on
the paper FAFSA do not appear on the FOTW Worksheet. Answering yes to
any question in Step Three on the FAFSA and/or checking the
corresponding box in Section Two on the FOTW Worksheet means that you
will be treated as an independent student and will not need to provide
parental information on the FAFSA.
Question #44
Section 4
Free childcare
Q: I am a single mom with one child and will get free day care for my child (from a
grandmother, aunt, or free day care center) while I go to college. Does the value
of this free childcare have to be reported on the FAFSA?
A: No, this service is not income and the information is not collected on the FAFSA.
However, note that you need to let the financial aid administrator at your
college know that you are receiving free dependent care; an allowance for
dependent care may not be added to your cost of attendance.
Question #50
Section 2
“Do you have children who will receive
more than half of their support from
you between July 1, 2012 and June 30,
2013?”
Question #52
Section 2
“At any time since you turned age 13,
were both of your parents deceased,
were you in foster care or were you a
dependent or ward of the court?”
Q: I have a child who will be living with me and I will receive assistance from the
Temporary Assistance for Needy Families (TANF) program. Do I answer “yes” to
Question #50? Are TANF or welfare benefits considered to be like earned
income?
A: TANF benefits count as support that you provide to your child. You should
answer “Yes” to this question, as long as you provide more than half of the
child’s support.
Q: I am a ward of the court who graduated from high school and then went to live
with my mother for two months. Did I lose my independent status?
A: A student is considered independent if he or she is a ward of the court, or was a
ward of the court, at any time when the individual was age 13 or older. If your
ward of the court status changed before you reached age 13, you may be
considered dependent on your parent. You should talk about your situation
with the financial aid administrator at your college who will help you determine
your correct dependency status.
Question #52
Section 2
“At any time since you turned age 13,
were both of your parents deceased,
were you in foster care or were you a
dependent or ward of the court?”
Question #52
Section 2
“At any time since you turned age 13,
were both of your parents deceased,
were you in foster care or were you a
dependent or ward of the court?”
Question #52
Section 2
“At any time since you turned age 13,
were both of your parents deceased,
were you in foster care or were you a
dependent or ward of the court?”
Question #53
Section 2
“As determined by a court in your
state of legal residence, are you or
were you an emancipated minor?”
Question #54
Section 2
“As determined by a court in your
state of legal residence, are you or
were you in legal guardianship?”
Q: I am a dependent child of the court of my county. Is this the same as a “ward” of
the court?
A: The term “ward” is used to mean “dependent” of the court. You are a ward of
the court (regardless of whether this status is determined by the county or state)
if the court has assumed custody of you. You should have court ordered
documents that designate you a ward of the court.
Q: I am no longer under the court because my foster parents took legal
guardianship of me a few years ago. However, my foster parents do not support
me with their own financial resources. They still get a foster care check each
month for me. How do I answer question #52?
A: If you were in foster care at any time when you were 13 or older, answer “Yes”
to Question #52. If you are in a legal guardianship, answer “Yes” to Question
#54.
Note: Neither legal guardians nor foster parents are considered parents when
completing the FAFSA. This means you do not list their income and household
size information on your FAFSA.
Q: I turned 18 and graduated, so my court case was closed. My college is saying I am
no longer an independent student because I am no longer a ward of the court.
Am I considered dependent or independent?
A: You are considered independent if you were a ward of the court at any time,
when you were age 13 or older. This means you should check “Yes” to Question
#52, if you were a ward of the court when you were age 13 or older.
Q: I was emancipated at age 15, but lived with my aunt and uncle during my last
semester of high school. How should I complete the FAFSA?
A: If you have a copy of a court order stating you are an emancipated minor,
answer “Yes” to Question #53 and complete the FAFSA as an independent
student. The court must be located in your state of legal residence. If the court
order is no longer in effect and you have not reached the age of majority for
your state of legal residence, answer “No” to Question #53. Complete the FAFSA
as a dependent student if you answer “No” to the remaining questions on the
paper FAFSA and none of the other boxes in Section Two of the FOTW
Worksheet apply to you.
Q: My grandparents are my court-appointed, legal guardians. They have provided
support for me all my life. How do I complete the FAFSA?
A: If you have a copy of a court order stating you are in a legal guardianship,
answer “Yes” to Question #54 and complete the FAFSA as an independent
student. The court must be located in your state of legal residence . If the court
order is no longer in effect and you have not reached the age of majority for
your state of legal residence, answer “No” to Question #54. Complete the FAFSA
as a dependent student if you answer “No” to the remaining questions on the
paper FAFSA and none of the other boxes in Section Two of the FOTW
Worksheet apply to you.
Question #55
Section 2
“At any time on or after July 1, 2011,
did your high school or school district
homeless liaison determine that you
were an unaccompanied youth who
was homeless?”
Q: I became homeless during my senior year in high school. Am I considered an
independent student?
A: You are considered an independent student if you received a determination any
time on or after July 1, 2011, that you were an unaccompanied youth who was
homeless. The financial aid administrator at your college may require you to
provide a copy of the determination or other documentation.
If you are not sure you have a determination, but you believe you are an
unaccompanied youth who is homeless or are an unaccompanied youth
providing your own living expenses who is at risk of being homeless, contact
your high school’s homeless liaison for assistance. Contact your college's
financial aid office for assistance if your high school’s homeless liaison did not
make a determination.
Youth means that you are 21 years of age or less or are still enrolled in high
school as of the day you sign the FAFSA.
Unaccompanied means you are not living in the physical custody of a parent or
guardian.
Homeless means lacking fixed, regular, and adequate housing, including living
in shelters, motels, cars, and temporarily with other people because you have
nowhere else to go.
Question #56
Section 2
Q: I lived in an emergency shelter last year. How do I complete the FAFSA?
“At any time on or after July 1, 2011,
did the director of an emergency
shelter or transitional housing program
funded by the U.S. Department of
Housing and Urban Development
determine that you were an
unaccompanied youth who was
homeless?”
A: Answer “Yes” to Question #56 if you received a determination any time on or
after July 1, 2011, that you were an unaccompanied youth who was homeless.
The financial aid administrator at your college may require you to provide a
copy of the determination or other documentation.
If you are not sure you have a determination, but you believe you are an
unaccompanied youth who is homeless or are an unaccompanied youth
providing your own living expenses who is at risk of being homeless, contact the
director of the emergency shelter for assistance. Contact your college's financial
aid office for assistance if the shelter director did not make a determination.
Youth means that you are 21 years of age or less or are still enrolled in high
school as of the day you sign the FAFSA.
Unaccompanied means you are not living in the physical custody of a parent or
guardian.
Homeless means lacking fixed, regular, and adequate housing, including living
in shelters, motels, cars, and temporarily with other people because you have
nowhere else to go.
Q: My mom died a few years ago and I have no contact with my dad. I am in a
transitional housing program. Am I an independent student?
Question #57
Section 2
“At any time on or after July 1, 2011,
did the director of a runaway or
homeless youth basic center or
transitional living program determine
that you were an unaccompanied youth
who was homeless or were selfsupporting and at risk of being
homeless?”
Q: I live with my foster parents and their children. Are they my “family members?”
Question #93
“How many people are in your
household?”
Question #103
Signatures
A: Answer “Yes” to Question #57 if you received a determination any time on or
after July 1, 2011, that you were an unaccompanied youth who was homeless or
at risk of being homeless. The financial aid administrator at your college may
require you to provide a copy of the determination or other documentation.
If you are not sure you have a determination but you believe you are an
unaccompanied youth who is homeless or are an unaccompanied youth
providing your own living expenses who is at risk of being homeless, contact the
director of the youth center or transitional housing program for assistance.
Contact your college's financial aid office for assistance if the director of the
youth center or transitional housing program did not make a determination.
Youth means that you are 21 years of age or less or are still enrolled in high
school as of the day you sign the FAFSA.
Unaccompanied means you are not living in the physical custody of a parent or
guardian.
Homeless means lacking fixed, regular, and adequate housing, including living
in shelters, motels, cars, and temporarily with other people because you have
nowhere else to go.
A: No. If you are considered independent (for example, because you are in foster
care), and you have no dependent children of your own, you are a family of one
(yourself).
Q: I have filled out this form as an independent student because I am a ward of the
court. Do I need my father’s or mother’s signature? I do not live with them, but I
see them sometimes.
A: No. Because of your status as a ward of the court, you are considered an
independent student and a parental signature is not required.
Developed in 2012 by NASFAA’s Access, Diversity and Excellence Committee
Financial Aid Terms to Know
Base Income Year: Financial aid eligibility is based upon the calendar year preceding
the academic year for which the student is applying for aid. For instance, financial aid for
the student's freshman year in college is based upon the calendar year that includes the
student's second semester as a junior and the first semester as a high school senior. It
sounds like a strange and somewhat irrational system because it is.
College Scholarship Service (CSS): This is a branch of The College Board that
produces and processes the Profile form, a financial aid form required by many costly,
private colleges and some scholarship foundations.
Cost of Attendance (COA): This the commonly-used term that represents the entire cost of
one year of college. It includes tuition, room and board, fees, sometimes books and
occasionally travel. Every college has a published figure called the Cost of Attendance or the
less-used Student Budget which means the same thing. Colleges often have 4 COA's, one for
a student living on campus, one for a student living off campus, one for a student living with
relatives and one for students living at home.
Demonstrated Need: This is the difference between the Cost of Attendance (COA) and the
calculated Expected Family Contribution (EFC).
Dependency Override: Sometimes under unusual circumstances, a normally dependent
student can be treated as an independent student by the college. To do so, the student will
have to provide a compelling, documented case for such an override. Negotiations of this kind
will be done at the college level with a specific college.
Dependent Student: Any student under applying for financial aid who is still carried as
an exemption by a parent on the tax form and who has not answered "yes" to any of the
dependency determination questions on the FAFSA is a dependent student. This means that
parent financial information will be required on financial aid forms.
Expected Family Contribution (EFC): The FAFSA and the Profile forms will determine
the amount you will be expected to pay for one year of college, or the EFC. Not
unlike taxes, that amount is often the product of how perceptively you complete the
financial aid forms.
FAFSA: The Free Application for Federal Student Aid is the primary document that must
be completed to qualify for need-based aid and for unsubsidized loans for students and
parents.
Ford Direct Loan: These are student loans taken directly from the federal government, not
through private lenders. To the end user, they act and feel like a Stafford Loan. The 2006-7
interest rate on the ten year note is 6.8% created as a part of the federal Deficit Reduction
Act which seems to transfer deficits from the federal government to families across America.
Gap: This refers to the shortfall in need-based aid. For instance, if your demonstrated need
is $20,000 and the financial aid award is $14,000, you have a "gap" of $6,000 in your
financial aid award.
Perkins Loan: This loan program is currently under heavy administration pressure to be
terminated. It is a 5% need-based loan that many colleges use when financial need is
comparatively profound. Payback is deferred until the student graduates from college.
PLUS (Parent Loan for Undergraduate Student): PLUS loans are unsubsidized, non
need-based loans that parents may qualify for every year. The parent may borrow up to the
entire cost (COA) of college every year minus any financial aid given to the student and any
money paid out of pocket by the parent. It is a 10 year note and payment begins 60 days
after the disbursement of the second half of the annual loan or about March or April of the
academic year. The current rate is a somewhat unsavory 8.5%.
Preferential Packaging- Preferential packaging occurs when a college gives a better financial
aid package to a student with a stronger academic background than to another student with the
same financial need but with a weaker academic background.
Priority Filing Period: This refers to the best time to file financial aid forms. Generally
that time period is between January 1 and March 1. If you can file early within this period,
your chances at a better financial aid package are enhanced everything else being equal. If
you miss the March 1 deadline, you may be ineligible for state and campus-based, needbased aid. Be careful. This deadline is absolute and unforgiving.
Special or Unusual Circumstances: This refers to any extraordinary event that affects
the family’s ability to pay for college and which requires an override of the formal
methodology that determines the EFC. Grounds for such consideration include but are not
limited to:
 Loss of employment
 Loss of earnings caused by disability or natural disaster
 Loss of an untaxed income or benefit
 Separation or divorce
 Death of a parent
Stafford Loan: The term given to the most common student loans. They are authorized by
the college and they are taken out through private banks and financial institutions. Stafford
loans can be subsidized (need-based) or unsubsidized (non need-based). The 2013-14 interest
rate is an eyebrow-raising 3.86%.
Subsidized Loan: This means that the loan is a need-based loan which does not have to be
paid back until completion of college. In the meantime, interest will not accrue.
Unsubsidized Stafford Loans: These loans are available to any student in a degree or
certificate program. Payback is not deferred nor is the interest paid by the government
while the student is still in college. The annual amounts are the same as subsidized Stafford
loans.