Financial Aid: Frequently Asked Questions (FAQ)
(Continued from 1)

COA (Cost of Attendance)

-EFC (Expected Family Contribution)

= Financial Need

Based on estimated financial need, the financial aid office will prepare a financial aid or "award" package. The FAO applies available resources to try to meet your financial need. However, the school is not obligated to meet your financial need, and may be unable to do so dependent upon the types of aid available. This aid may include federal and state grants, scholarships, loans, and federal work study. Grants (i.e., the Federal Pell Grant and the Supplemental Educational Opportunity Grant) and scholarships do not have to be repaid. Loans, such as Federal Subsidized or Unsubsidized Stafford loans, must be repaid.

Why is the EFC on the SAR Different from the EFC of the School?
Your EFC is generally calculated using one or two methodologies: the Federal Methodology (explained above), and the Institutional Methodology. The Institutional Methodology determines eligibility for institutional grant programs. Universities may use this methodology and/or the federal methodology to determine eligibility for grants or other private funds. One difference between the two formulas is the federal methodology does not consider home equity in assets calculation.

Types of Financial Aid
The majority of financial aid comes from the federal government, in the form of grants, federal work-study, and subsidized and unsubidized student loans.

- Pell Grants do not need to be repaid, and are awarded to undergraduate students on the basis of need. For 2005-2006, awards range from $400 to $4,310 per academic year. This program is designed to assist the
neediest of undergraduate students earning their first baccalaureate or four-year professional degree.

- Federal Supplemental Educational Opportunity Grants (FSEOG) do not need to be repaid, and are awarded to undergraduate students who have exceptional financial need.

- The Federal Work Study Program offers part-time employment in the public and private sector to undergraduate and graduate students with financial need. The federal program pays up to 75 percent of student wages, with the employer paying the balance.
of funds.

- Federal Stafford subsidized or unsubsidized student loans are available to students who have remaining financial need. These loans need to be repaid. For federal stafford subsidized loans, the government subsidizes or pays the interest up to the time of loan repayment. With federal stafford unsubsidized loans, students must pay all the interest incurred.

- The Perkins Loan Program is available to both undergraduate and graduate stud For more information about federal financial aid programs and student eligibility, see the Department of Education Student Guide.

In addition to the federal government, students receive financial aid from state higher education agencies, colleges and universities, and outside scholarship sources.

A scholarship is a free grant awarded based on any number of criteria, including financial need, academic or athletic achievement, talent, community or public service, nationality or religion. Scholarships are often funded by educational institutions, community and professional organizations, and non-profit foundations.

For more information on the many types of aid available, see the Financial Aid section.

Next...