FINANCIAL AID OVERVIEW
MERIT-BASED AID
This type of assistance is NOT based on financial need. Merit-based scholarships are usually awarded to students who excel in academics, leadership, community service, or other talents such as athletics, music, and drama. Sources for finding merit-based financial aid include:
· College financial aid offices
· Parent’s place of employment
· Pius XI Scholarship Bulletin which lists all the scholarships sent to Pius
· Internet sites for free scholarship searches
NEED-BASED AID
The family's financial situation is the most important criteria for receiving need-based aid. Family's seeking need-based financial aid must file the Free Application for Federal Student Aid (FAFSA) form after January 1st of the student's senior year. Both parent and student will need to register and obtain a PIN. Need-based aid is awarded on a first-served basis, so these forms should be filed as soon as possible after January 1st. This service is free, so beware of all website that charges you to fill out this form. The following are four types of need-based aid:
· Scholarships: do not have to be repaid
· Grants: do not have to be repaid
· Loans: have to be repaid. There are several different kinds of loans
· Work Study: student is given a part-time job on or near campus
AN EXAMPLE OF HOW NEED-BASED AID WORKS
The Brown family completes the FAFSA form. The government receives the form and processes the information to come up with an expected family contribution (EFC). This is the amount of money the government thinks the Brown family can afford to pay for college for the upcoming school year. The EFC is a fixed dollar amount and does not vary from one college to the next.
The cost of attendance is the amount of money it will cost to attend a specific college for the upcoming school year (tuition, room & board, fees, books, travel expenses, etc.). This is a variable amount because each college will have different expenses. The difference between the cost of attendance and the expected family contribution equals the financial need. Let's assume the Brown family's EFC is $10,000 (they are expected to pay $10,000 for their child's first year in college). Their child is deciding between "College A" (cost of attendance is $25,000) and "College B" (cost of attendance is $10,000). Thus, the financial need is as follows:
|
College A
|
College B
|
|
|
25,000
- 10,000
15,000
|
10,000
–10,000
0
|
Cost of Attendance
EFC
Financial Need
|
For College B there is no financial need because the family is able to afford the entire cost of attendance for that school year. There is a financial need of $15,000 for College A, which the college will then attempt to meet through any or all of the following:
· Grants - gift aid which never needs to be repaid
· Scholarships - also gift aid which does not require repayment either
· Loans - several different types of loans are available, but all have to by repaid
· Work Study - money earned from part-time jobs on or off campus is put towards the cost of attendance
ADDITIONAL FINANCIAL AID RESOURCES
Free Application for Federal Student Aid (FAFSA)
FAFSA pin number
US Department of Education – Federal Student Aid Guide