Financial Aid

The term "financial aid" is an umbrella term and is all encompassing for both need-based aid and merit-based aid.

financial aid umbrella. jpeg .jpg

 

Need-based aid
There is no official definition of need; each campus defines financial "need" based on their own criteria and calculation methods.  Need is based primarily on the family's income in light of the Cost of Attendance and need-aid can include:

  • Scholarships

  • Grants

  • Work-study

  • Loans: student and/or parent

 

Merit-based aid
Is also based on individual campus criteria.  It can be based on any number of factors:  grades, test scores, leadership, talent (sports, musical, theatrical, etc.), and merit-aid can include:

  • Scholarships

  • Grants

  • Tuition discounts

 

What every family should know about "financial aid":

  • The process starts with the FAFSA or Free Application for Federal Student Aid, and applying for financial aid is a yearly process.

  • Virtually every student planning to attend a 4-year or 2-year college should submit a FAFSA; unless you can write one check for 4-years of college expenses without blinking, you should be completing financial aid forms.

  • Be aware of financial aid form requirements and deadlines for each individual college as they do vary by college and sometimes by the admission plan being applied under: regular or Early Action or Early Decision.

  • Apply as soon after the October 1st online availability as possible. Those at the beginning of the line tend to receive the best financial aid offers. We recommend applying in the month of October, if possible.

  • The income information provided on your FAFSA will be from the Prior-Prior income year.

  • A small number of campuses, primarily privates, also require an additional form, the CSS Profile, in addition to the FAFSA, to obtain a better understanding of a family's ability to pay. The income provided on the CSS Profile will be from the prior year as well as provide an estimate of current year income.

  • Don't hesitate to contact the college financial aid offices where your student is applying or at local community colleges. Their responsibilities include helping prospective students as well as current students, and they will provide the most accurate answers to your detailed financial aid questions.

 

WHY apply for Financial Aid through the FAFSA?

  1. The information you submit online on the FAFSA (and possibly also CSS Profile) goes through a need-analysis through the respective FAFSA and/or CSS Profile processing centers, and where your Student Aid Index (SAI), is determined. This information is provided to the campuses you specify on aid forms to receive them.

  2. Your SAI is then used by individual colleges to determine your financial aid packages which may consist of any combination of federal, state, and institutional aid from that college and in the form of scholarships, grants, loans, and/or work study (see umbrella at top of page). NOTE: Other than federal financial aid programs, the federal government does not decide who has "need" or who gets what financial aid offer. Colleges do. FAFSA is the starting point.

  3. There is no income "cut-off" to qualify for federal student aid. There are federal “un-subsidized” Student Loans with No income thresholds; everyone is eligible to receive these. Many factors besides income - from the size of your family to the age of your older parent to the "cost of attendance", which varies from campus to campus — are taken into account.  Your eligibility for other federal student aid is determined by a mathematical formula (as approved by congress) AND by individual institutional policies, so family income alone is not the only consideration.

  4. Educational loans offered through the federal government are a relatively less expensive way to finance a college education. DO NOT assume you will not qualify.

  5. Some colleges require a FAFSA when awarding merit-aid.

  6. A few colleges offer one-time $1,000 dollar scholarships as incentives to complete the FAFSA.

  7. And most importantly, the FAFSA serves as an "insurance policy" in the event your family's financial situation changes for the worst. (lay off, divorce, major medical expenses, medical leave, need to leave work to care for a family member, etc.) In these cases, you have the ability to update your financial information with situational documentation directly to the campuses being applied at, and your college financial aid office will utilize "professional judgement" to reassess your need. However, if you neglected to submit the FAFSA by the university's deadline, this option might not be available to you.

 

Understanding your SAI: Steps to take now

No matter where you are in the process, have a senior, junior, sophomore, freshman, or even middle school student, it's best to understand how your family's financial situation will be evaluated -  as soon as possible.  To do so, take these 3 steps:

  1. To estimate your Federal Student Aid, complete the Federal Student Aid Estimator, which can help you understand your options to pay for college or career school by providing an early estimate of your Student Aid Index (SAI) and eligibility for some federal student aid.

  2. There are a few different main methodologies or calculation methods that colleges utilize to calculate your SAI: federal (using only the FAFSA formula) and institutional (using an additional form, the CSS Profile, which can be tailored to include additional financial information each college wants to consider).

  3. Want more info? Utilize TUITIONFIT, a nonprofit application where students and families have uploaded financial aid award letters that they’ve received and provide basic information such as test scores and high school GPAs and financial need as represented by a child’s Student Aid Index (SAI). TUITIONFIT redacts all private information on each letter and organizes them by a student’s academic figures and financial need to create a “Kelley Blue Book” of true college prices.

 

Financial evaluation - most asked questions:

  1. FAFSA FAQ's answered directly from FAFSA.

  2. What is the official definition of "need"? There isn't one. Every campus defines "financial need" based on their own criteria.

 

Helpful links to investigate:

To obtain an FSA ID, which will allow students and parents to submit and electronically sign a FAFSA.  Helpful FAQs on the FSA ID. 

FAFSA on the Web Worksheet - Use this to complete FAFSA questions before entering your information online.  Completing this before going on-line will save you time and energy!  The Worksheet corresponding to your application cycle may not yet be available, so be sure to keep checking for it to be posted. (It’s usually up in the first two weeks of October.)

FAFSA on the Web - Updated application will become available on each October 1st.

FinAid - established in the fall of 1994 as a public service. This award-winning site has grown into the most comprehensive source of student financial aid information, advice and tools.  It's one of our go-to resources for financial aid questions.

Federal Student Aid - An office of the US Department of Education, which has consolidated 16 different financial aid websites into one.

CSS Profile - Some private colleges require this in addition to the FAFSA.  Check individual campus financial aid websites to learn if this is required and if so, know each campus submission deadline.  Available on-line each October 1st.

California Student Aid Commission - Excellent basic financial aid & Cal Grant information

Western Undergraduate Exchange - A program of western states where students can enroll at participating 2-year and 4-year college programs outside of their home state at a reduced tuition rate.  Note that participation can vary by institution and also by majors within institutions.  The purpose of these tuition reciprocity agreements between states is to fill seats. It's definitely worth a quick search to see if the institution(s) and/or major(s) you are considering offer these tuition discounts.  Use this link to search.

Free Financial Aid Presentations in Fall - provided each year at many area high school campuses.  We highly recommend attending presentations by West Valley counselors on any of the multiple dates offered; all families are welcome at any location. Or your school might host its own. Financial aid counselors will take you through the FAFSA, line by line, and answer questions.  Be sure to complete the "FAFSA on the Web Worksheet" (link above) to bring with you. 

 

Helpful resources when completing financial aid forms:

  • Don't be bashful about phoning financial aid offices at colleges where you or your student is applying; financial aid officers are there to help "prospective" students in addition to current students.

  • FAFSA Help Desk: 1-800-4-FED-AID

  • CSS Profile Help Desk: 1-844-202-0524

Helpful resources when making final decisions:

Repayment Calculator - from Federal Student Aid site, US Department of Education.

FAFSA.gov now has a Loan Simulator tool - to help students make decisions.

Undergraduate Student Loan Repayment Calculator - from The Hamilton Project, which is based on majors.

Mapping Your Future - also offers a loan calculator where students can enter a loan amount and find out what the monthly payments will be.