Financial Aid
The Financial Aid Package
Each college uses the information it has requested from you and your family to deterime your financial aid package. Virutally all colleges use the SAR (Student Aid Report) generated by filing the FAFSA and most private colleges will use the Need Analysis Report (generated by filing the CSS Profile). Some colleges also use information from their own financial aid application forms and/or copies of your latest Federal Icome Tax Returns. The reports offer colleges a preliminary calculation of the amount of money that your family can contribute to cover the costs of your college education, better know as the EFC (Expected Family Contribution).
The Parental Contribution is determined after all income and assets are calculated to estabilish your family's net worth. Home equity is not considered when applying for Federal aid through the FAFSA; however, it is usually considered by colleges requring the Profile. Allowances are made for the number of family members, the number of children presently in college, the number of years before the next child may be in collge, debts, necessary expenses and/or taxes, amoung other determinations. Consideration may also be given to for special financial circumstances, e.g. recent job loss, pending retirement, special education needs. Please be aware that each college may handle situations differently in which parents are separated, divorced, and/or remarried. Be certain that collged are aware of any special circumstances that may exist in your family.
The Student Contribution is detemined after your earnings and assets are reviewed. Typically, you are expected to contribue a portion of your personal savings and other benefits, such as Social Security benefits. You are also expected to contribute a certain amount based on what you could realistically earn during the summer, whether or not you actually choose to work. Any merit-based awards that you receive from organizations outside the college are considered part of our available resources, e.g. local scholarships.
Financial aid packages come in many shapes and forms. In packaging your financial aid packages, colleges may include a combination of grants, scholarships, work-study, and loans. Take the time to go back and review the basic costs, add up he various components of the aid package, and see if he pakage will work for your family. The most important item to remember is not how much a school costs, but, rather what will the school cost you! It is also important to note that loans that come as part of your aid package are not "free money." You and your family must determine whether or not you wish to undertake the debt that will be required of you. Sometimes there may be wide discrepancies between packges from the various colleges to which you are accepted. Do not be afraid to discuss these wtih the college financial aid offices before making a final decision.
|
