Financial Aid & FAFSA

FAFSA WEBSITE: https://studentaid.gov/h/apply-for-aid/fafsa 

SCHOLARSHIP WEBSITE: https://sites.google.com/view/nac-school-counseling/scholarships

What is financial aid?

• Financial aid is the funds provided to students to assist in paying for post-secondary education.

What is cost of attendance (COA)?

• The COA is the combination of the indirect and direct costs of attendance. 

• This can vary between institutions because tuition rates vary.

What is the Student Aid Index (SAI)?

• The SAI is the amount a family can be reasonably expected to contribute to the student's education. 

• This number stays the same regardless of what college a student attends.

• It is calculated from the information you provide on the FAFSA. (based on IRS tax data)

What is financial need?

• Cost of attendance - student aid index = financial need

Types of Financial Aid

• Needs-based aid ("free money"):  grants, scholarships, work-study

Needs-based aid does not have to be paid back.  This is based on the financial need number.

• Non-needs-based aid:  loans, parent PLUS loans

This type of aid will have to be repaid, usually with interest.

Unsubsidized loans accrue interest immediately

Subsidized loans don't begin accruing interest until after the student graduates or drops out

Loans don't have to be repaid until a student graduates or drops out

FAFSA

• The Free Application for Federal Student Aid (FAFSA) is a form that collects financial information about the student and the family.

• This information is used to calculate the student aid index.  Colleges use the SAI to award financial aid.

• First, at least one parent and the student will need to set up a FSA ID. 

• Most colleges set FAFSA deadlines. 

• Students must apply each year using the FAFSA.

• Corrections can be made to FAFSA data by logging back into the website.

After you've completed FAFSA:

Your college will send you an award letter (usually late spring-time) - you will automatically get scholarships and grants.

You will have to accept, deny, or accept a partial amount for any loans.