College Financial Aid FAQ

 
 
 

What is financial aid? 

For our purposes, Financial Aid is money given to assist in covering the cost of higher education.

Where does the money come from?

The federal government: student loans, work study jobs, tax credits, loan forgiveness programs

Individual institutions: grants, scholarships, work study jobs.

Private organizations: corporations, civic organizations

What is gift aid? Free money!

Grants usually come from the institution that the student attends. These are need based, and will be awarded by the financial aid office as part of the admissions process. The family must file the Free Application For Student Aid (FAFSA) to qualify for need based aid. Some schools also require the CSS Profile.

Scholarships can come from a variety of sources, and can be need based, merit based, or a combination of the two. They may range in value from a few hundred dollars up to the full cost of attendance. They may be one time awards, or renewable for all four years of attendance.

What is self help aid?

Loans - This is money that must be repaid with interest, usually starting after the student is no longer enrolled full time. Loans can come from the federal government or a private lender. The federal government generally provides lower interest rates than private lenders. The loan money will be paid directly to the school, and will be applied to the student’s bill.

Work Study - This federal program provides a partial subsidy for approved part-time student jobs either on or off campus. The student is paid directly for the work, so this money does not go toward paying the university bill.

how much does college cost?

In general, more selective schools are more expensive, for both public and private institutions. Public universities are less expensive for in-state students than for out-of-state students. Public institutions are generally less expensive than private ones, but private institutions may have more flexibility in offering grant aid.

The Cost of Attendance is a school specific figure. An estimated average cost of attendance can be found on the school’s website. This includes both fixed costs (tuition, fees, on campus room & board), and variable costs (books, supplies, transportation, personal living expenses, off campus room & board).

How much will we have to pay?

Every school is required to have a Net Price Calculator (NPC) on its website, usually in the financial aid section somewhere. The NPC gives an estimate of the average Cost of Attendance (COA), then estimates Grant/Gift Aid based on some family financial data that you enter.

COA - Gift Aid = your Net Price

This is the cost to use when comparing different colleges. You should NOT subtract loans and work study aid when comparing Net Price, since those are costs that either the family or the student will need to pay.

Where does the FAFSA fit in?

The FAFSA calculates the actual Expected Family Contribution (EFC), considering income, assets, family size, and number of students in college. The EFC consists of a parent contribution and a student contribution.  This stays the same for that family across all schools, but can change from year to year.

The EFC is the MINIMUM amount that you will be expected to pay.

Some schools adjust this slightly using the CSS Profile, another financial aid form used in addition to the FAFSA.

If that's the minimum, what more is there?

Cost of Attendance - Expected Family Contribution = Financial Need

Schools MAY provide up to 100% of demonstrated financial need, but this will be a combination of gift aid, loans, and work study, and there is often a gap between need and the aid provided.

Schools will provide a letter detailing a financial aid package at the time of acceptance or shortly thereafter. This letter may include grants, scholarships, loans (both student and parent loans), and work study. Just because it is called an “award” letter doesn’t mean it is all free money!

Comparing financial aid packages

There is no standard format for financial aid letters, so these must be carefully compared!

Things to look for:

  • How much is free money?

  • How much is loans or work study?

  • Are the student loans subsidized or unsubsidized?

  • Are there parent PLUS loans included?

  • Does the COA need to be adjusted for this particular student?

Financial aid packages can be appealed!

Scholarships & where to find them

Is it worth the time? If your EFC is low, any scholarship your student wins may simply reduce her/his financial need, and result in less need-based aid.

If your EFC is high, and your student is not receiving need-based aid, searching for scholarships may be more cost effective.

Use a FREE scholarship search site! You should not have to pay to find out about scholarships.

http://www.edsmart.org/best-scholarship-websites/

Things that are “free” are paid for by ads, by selling student data, or both. Read the privacy policies before registering, and decide how much data you are willing to give away. Use the “Opt Out” option whenever possible. Search yourself for STEM scholarships, scholarships for women, scholarships for nursing students, Rotary club scholarships, Daughters of the American Revolution scholarships, Girl Scout/Boy Scout scholarships.

You must report outside scholarships to the financial aid office, and schools are required by law to treat scholarship money as student income. Check with the financial aid office to see how scholarship money is applied

Local Scholarship resources

Hampton Roads Community Foundation

http://www.hamptonroadscf.org/Scholarships/Scholarships-at-Hampton-Roads-Community-Foundation

Virginia Department of Education: Granville P. Meade and Lee-Jackson Scholarships

http://www.doe.virginia.gov/instruction/virginia_scholarships/index.shtml

Employers may provide financial resources for employees and/or their dependents.

Check with school guidance offices and local libraries

Where do I start? 

 Fill out the NPC for all colleges your student is considering.

Use the FAFSA4caster to get an estimate of your EFC.

https://studentaid.ed.gov/sa/fafsa/estimate

Have a frank conversation about family finances and college costs.

Decide on your family policy on scholarships. Make it a partnership. Parents can search for good possibilities, and the student agrees to follow through with the application. It takes a lot of work to win a lot of scholarships.

Summer between 11th & 12th grade, both you and your student should get your FSA (Federal Student Aid) ID numbers.

https://fsaid.ed.gov/npas/index.htm

Be ready to fill out and submit the FAFSA on October 1 of your student’s 12th grade year, or as soon after that as you can. You will need the prior year’s tax information. Here’s a Nerd Wallet article that lists the steps and what you’ll need:

https://www.nerdwallet.com/blog/fafsa-guide/

Some schools will also require the CSS Profile. This is a program through the College Board, and asks for more detailed financial information than the FAFSA.

https://cssprofile.collegeboard.org/


Need more help? Please contact Atalanta Advising!

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