Understanding the
Financial Aid Process
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What is Financial Aid?
There are two primary types of aid that students may receive for college:
need and merit. Need-based aid is awarded to students who demonstrate
a shortage of financial resources to pay for college. Merit-based aid is
awarded to students who perform exceptionally well in a particular area
(like athletics, academics, service, performing arts, etc.). While some aid
programs keep need-based and merit-based aid separate, some use a
combination of both to determine eligibility. This document will focus on
need-based aid.
**Please see our Finding Scholarship and Merit-Based Aid Opportunities document for more information about merit-based aid.
Who should
Should complete
Completethe
theFAFSA?
FAFSA?
All student/families should complete the FAFSA whether they
believe they will be eligible for need-based aid or not. Because
circumstances can change and the range of college costs is wide
across the country, it is in every student’s best interest to submit
a completed FAFSA by the deadline to maximize all financial
aid (need-based AND merit-based) opportunities. If you do not
apply you may be limiting your options.
When Do I Complete the FAFSA?
The first time that students can complete the FAFSA is during their senior
year in high school. The application becomes available on January 1st (of
the senior year) and the deadline to apply in Indiana is March 10th. In
order to remain eligible for aid, students must complete the FAFSA by
the March 10th deadline each year throughout their college experience.
Students do not have to wait until taxes are filed to submit the FAFSA.
Some schools may have deadlines that are earlier than March 10th. Please
read all information carefully. NOTE: Starting with the 2016-17 academic
year, seniors will be able to begin completing the FAFSA as early as October 1st.
What is Need-Based
Aid?
Need-based aid is determined
by colleges and universities primarily through the federal financial aid application process. Students must complete the Free
Application for Federal Student
Aid (FAFSA) in order to be considered for federal and state
need-based aid, as well as most
institutional need-based aid.
Need-based aid is awarded to
students in the form of grants or
scholarships that do not need to
be paid back, work-study programs that provide students opportunities to work in order to
earn money for college expenses,
and loans that must be paid
back. Some schools require applications or forms in addition to
the FAFSA to determine how
much institutional need-based
aid they will award. One common supplemental application is
the CSS Profile. Students should
always read the application information for each college carefully to determine their process
for awarding aid.
How Do I Complete the FAFSA?
The FAFSA is an online application that can be found at fafsa.gov. It is a free application. You should never
need to pay to complete the FAFSA! There are many for-profit services that try to encourage students/parents
to pay for help with completing the FAFSA. However, there are numerous free resources available at Carmel
High School, in the community, and online to assist with FAFSA completion.
Understanding the Financial Aid Process – Page 2
How Do I Know How Much Need-Based Aid I Can Get?
The financial aid process can be complicated and detailed, but in simple terms
financial aid eligibility is determined in the following way:
1. Based on the information provided in the student’s FAFSA application,
an Estimated Family Contribution (EFC) is determined. This amount is
the same no matter where a student applies to school, it is calculated
using a federal formula.
2. Next the cost of attending a particular college/university is considered.
3. The difference between the cost of attendance and the EFC determines
the student’s “need.”
Cost of Attendance – EFC = Financial Need
Financial Aid offices at colleges then work to provide students with a financial
aid package that meets that need by awarding federal and state grants and
scholarships, institutional grants and scholarships, work study, AND loans.
There are several online tools available to students and families to identify
how much they might be expected to contribute to their college education.
The FAFSA4caster www.fafsa.ed.gov/FAFSA/app/f4cForm allows students to
enter financial information and receive an estimate of their eligibility for federal student aid. All colleges and universities are required to provide access to
a net price calculator to help students determine what their out-of-pocket price
might be after grants and scholarship aid are taken into account. You can find
college/university net price calculators on their websites or by using the Department of Education net price calculator search tool at: www.collegecost.ed.gov/netpricecenter.aspx
How Can I Get Help Completing the FAFSA?
Other Helpful Online
Resources Include:
Fast Web!
www.fastweb.com
FinAid
www.finaid.org
Indiana Commission for Higher
Education
http://www.in.gov/sfa/
Indiana Student Financial Aid
Association
www.isfaa.org
National Association of Student
Financial Aid
Administrators www.nasfaa.org
Indiana College Costs
Estimator
http://www.indianacollegecosts.org
National Center for College
Costs
www.collegecosts.com/nccc
ISM College Planning
http://ismcollegeplanning.org/
College Goal Sunday
http://www.collegegoalsunday.org
Each year, CHS offers a Financial Aid Information Night for parents and students at all grade levels to help
raise awareness of and understanding about the financial aid process. This event is typically held in January.
CHS also offers a FAFSA completion workshop where students and parents can come to the school to start,
work on, and or complete the FAFSA with assistance from financial aid professionals. This event is typically
held in early to mid-February.
College Goal Sunday is an annual event in the State of Indiana that offers families free on-site assistance in
completing the FAFSA. Financial Aid professionals are in attendance to answer questions and help students
complete their FAFSA correctly. College Goal Sunday sites are offered throughout the state. This event is always
held in mid- to late-February. For more information visit the website at www.collegegoalsunday.org .
The FAFSA application itself has a built-in help system that often is sufficient in answering questions about
how to complete the application.
College and university financial aid offices are great resources for getting information about specific financial
aid policies and processes on their campus. It is always appropriate to contact a school’s financial aid office to
get assistance, and their websites often provide a wealth of information about the financial aid procedures.