UNDERSTANDING YOUR FINANCIAL AID AWARD
OUR COMMITMENT TO YOU
Thanks to your unique financial aid program, we are able to make a no-tuition promise to you. The
Berea Tuition Promise Scholarship, in combination with grants and scholarships, guarantees that you
will never pay tuition from personal income. Most of our students only pay a portion of the costs for
housing and meals. Students graduate from Berea with a high-quality education, practical work
experience, and one of the lowest average student debt levels in the United States. Please know that
our staff in Student Financial Aid Services is here to help in any way we can.
DIRECT COSTS
DIRECT COSTS FOR THE 2017-18 ACADEMIC YEAR
Your direct costs include expenses such as tuition, housing, meals, and mandatory fees. These are
the direct costs of attending Berea College
SCHOLARSHIPS & GRANT AID FOR THE DIRECT COSTS FOR 2017-2018
The Berea Tuition Promise Scholarship and Berea Work Scholarship cover the major part of direct
costs. Additional Aid in the form of federal, state, and student achievement scholarships are also
included in this amount. Unlike most schools, Berea does not include loans in initial financial aid
packages. If you are unable to pay your Expected Family Contribution (EFC), or if you choose to
pursue additional special learning opportunities, a loan may be awarded after consulting with student
Financial Aid Services to discuss options to assist with those costs. One out of every three Berea
students graduates debt-free.
YOUR EXPECTED PAYMENT TOWARD DIRECT COSTS
Your payment toward direct costs has been calculated by using your most recent financial
information. Remember, no student pays tuition from personal income. The amount displayed reflects
only what you would be responsible to pay toward housing, meals, mandatory fees, and other
educational expenses. If you are not living in a residence hall, you may be receiving a credit (CR) to
assist with living expenses and books. The amount owed my change until final FAFSA results are
complete and verified.
Last year, more than 45 percent of Berea students were asked to provie additional information to
verify the accuracy of their FAFSA. If you’re selected for verification, Student Financial Aid Services
will contact you to ensure you understand what’s required. It is important you complete this
requirement quickly so that your financial aid will be available at Fall registration.
INDIRECT COSTS
ESTIMATED INDIRECT COSTS THAT ARE YOUR RESPONSIBILITY
Indirect costs are expenses such as books, supplies transportation, and miscellaneous personal
expenses. Please note that these are extimates and based on average expenses reported by
students. Your costs will vary based upon your personal spending habits.
STUDENT ACHIEVEMENT SCHOLARSHIPS AVAILABLE FOR INDIRECT COSTS
Many scholarships exist in the United States to recognize student achievement. You are expected to
apply for local, regional, andor national awards. Student Achievement Scholarships cannot be used to
replace or reduce your Expected Family Contribution (EFC) based on federal regulations.
ESTIMATED WORK-STUDY EARNINGS
Berea doesn’t just admit students; it hires them. In addition to your Berea Work Scholarship, you earn
money from your work during the academic year , and this money should be applied to personal
expesnses, books, and your term bill. You are expected to save money each summer for the next
year’s educational expenses. Your estimated earnings assume you will work a minimum of 10 hours
per week, as required in your Labor Program contract. If you work more hours or work at a different
earning level, your hours will vary.
IMPORTANT INFORMATION FROM STUDENT FINANCIAL AID SERVICES
HOW WILL STUDENT ACHIEVEMENT SCHOLARSHIPS BE USED
The College will determine how scholarships from outside sources will be used, including the
Kentucky Excellence in Education Scholarships (KEES), depending on your financial need an other
sources availble for:
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Tuition
Housing, meals, and fees
Educational costs (e.g., books, art supplies, etc.)
It is very important to undestand that due to federal guidelines, scholarshisp or grants cannot
be used to replace the Expected Family Contribution (EFC) as determined by the FAFSA.
Please notify Student Financial Aid Services of any scholarship you receive directly.
WHAT YOU AND YOUR FAMILY WILL NEED TO PAY
We make sure you will have as much aid as we can offer (based on federal, state, and institutional
guidelines) to cover your costs for housing, meals, and fees. After applying your financial aid to your
account, you will need to pay the remaining balance for housing, meals, fees, and other educational
expenses. If you cannot pay the full amount you owe, you may set up a payroll deduction, have your
family sign a payment plan, or explore loan options.
IRS TUITION TAX CREDIT
Because 100 percent of your tuition is covered through scholarships and grants, you and your
parents are NOT eligible to claim the IRS Tution Tax Credit.
APPLY FOR ADDITIONAL FINANCIAL ASSISTANCE
If your term bill balance and other educational expenses are more than you can pay after payroll
deduction, help from family, work-study earnings, summer savings, and any other resources, you may
apply for additional financial aid, usually in the form of a loan.
Berea beleieves students should pursue loans only as a last resort. Because of our unique approach
to making a high-quality college education affordable, our students graduate with some of the lowest
levels of student debt in the country. In fact, Berea students last year graduated with an averagel loan
debt of $7,298 (the national average is more than $35,000), and about one in three students
graduated debt free.
VERIFICATION
Many Berea College students are selected for FAFSA verification by the federal processing center. If
you are selected for this process, we will send you detailed information regarding what is needed.
Once tax information has been completed, we will nedd to verify your federal income tax information
with information reported on the FAFSA. We will be glad to help you through the Data Retrieval Tool
provided on the FAFSA website at www.fafsa.gov. All Verification must be completed by May 1 to
avoid delays and problems disbursing aid to your account.
APPEAL FOR SPECIAL CIRCUMSTANCES
Families may request an additional review of their FAFSA information if there are exceptional
circumstances that have impacted your family’s ability to pay for your college education. This could
include:
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Recent unemployment
Lower earnings due to a job change
Unusual medical expenses
End of child support or benefits
These circumstances must be conditions over which your family has no control. Special
Circumstances Appeal Forms are available at Student Financial Aid Services and online at
www.berea.edu/financialaid/forms and can be filed after July 1 of each award year. Please contact us
if you believe any of these circumstances have affected your family’s ability to pay for your college
expenses.
KEY TERMS AND DEFINITIONS
SCHOLARSHIPS AND GRANTS - Gift assistance based on financial need that never has to be repaid.
WORK-STUDY EARNINGS - Monthly payments you will receive for the hours you work in the Labor Program. These
earnings are considered scholarships/grants, not taxable wages.
EXPECTED FAMILY CONTRIBTION (EFC) - The federal government’s assessment of a family’s ability to contribute to your
education for a given academic year. This amount is determined from information provided on the FAFSA.
FINANCIAL NEED - Demonstrated eligibility for financial aid is determined by comparing a school’s Cost of Attendance
(COA) with the Expected Family Contribution (EFC). This figure establishes the maximum amount of need-based financial
aid that can be provided to you from all sources. COA – EFC = Financial Need.
FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA) - The aid application all students must file to qualify for federal,
state, and the College’s need-based aid programs.
LOANS - Financial Assistance to help you meet your educational expenses while in school. All of the money you borrow
must be repaid, with interest if applicable, and loan repayments usually begin six months after graduation.
PAYROLL DEDUCTION - Provides you with an option of paying your term bill by having a portion of your monthly workstudy earnings applied to your bill.
SUMMER SAVINGS -Earnings that are saved from summer employment. You are encouraged to save $800 to $1,000 that
you can apply toward educational costs for the upcoming year.
TERM BILL -A bill issued to you that consists of housing, meals, and fees, charged to your Berea College account.
COST OF ATTENDANCE (COA) -The total annual amount it should cost a student to attend school. The cost of attendance
includes tuition, on-campus housing and meals (or a housing and food allowance for off-campus students), and cost for
books and supplies, transportation, and personal expenses. COA = direct costs + indirect costs.
DIRECT COSTS -Includes expenses such as tuition, housing, meals, and fees.
INDIRECT COSTS - Includes expenses such as books and supplies, transportation, and personal expenses.
LABOR PROGRAM
As a student at Berea, you will also participate in Berea's Labor Program and work a minimum of 10 hours a week in an
assigned labor position. After the first year, you will have the opportunity to apply for a position that will support your
academic, career, or personal interests. For your efforts, you will be compensated in the form of the Berea Work
Scholarship, which is applied to your cost of tuition. You will also receive cash compensation (approximately $5.55–
$6.75 per hour) you can use to help pay for books and other expenses. You may use your work-study earnings to pay
your student account charges through a payroll deduction arrangement. We advise setting up an electronic transfer to
your checking or savings account once you are on campus.