Financial Aid Determination and COA

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Questions and Answers

Who determines how much financial aid you are eligible to receive?

  • Your parents or guardians
  • The college admissions office
  • Your high school counselor
  • The financial aid office at your college or career school (correct)

What is the Student Aid Index (SAI) used for?

  • To determine the amount of federal student aid you would receive (correct)
  • To determine your high school GPA
  • To assess your credit score
  • To calculate your eligibility for scholarships

What does the cost of attendance (COA) include?

  • Living expenses and personal expenses (correct)
  • Transportation and extracurricular activities
  • Only the cost of books and supplies
  • Only tuition and fees

How is financial need determined?

<p>By subtracting your SAI from your cost of attendance (B)</p> Signup and view all the answers

Which of the following costs would NOT typically be included in the COA?

<p>Personal expenses like entertainment (A)</p> Signup and view all the answers

What happens to your calculation of non-need-based aid?

<p>It is calculated by subtracting awarded financial aid from COA (A)</p> Signup and view all the answers

What does the financial aid staff start with when calculating aid?

<p>Your cost of attendance (COA) (B)</p> Signup and view all the answers

Which of the following is NOT part of the COA for students attending at least half-time?

<p>Cost of luxury spring break trips (D)</p> Signup and view all the answers

What is the purpose of the Student Aid Index (SAI)?

<p>To assess overall financial need of a student (C)</p> Signup and view all the answers

How is financial need calculated?

<p>Cost of Attendance - Student Aid Index (D)</p> Signup and view all the answers

What does a negative SAI indicate?

<p>The student has higher financial need (B)</p> Signup and view all the answers

Which of the following is a need-based federal student aid program?

<p>Federal Pell Grant (A)</p> Signup and view all the answers

What determines the amount of non-need-based aid a student can receive?

<p>Cost of Attendance minus awarded financial aid (C)</p> Signup and view all the answers

Which aid is not based on the Student Aid Index?

<p>Direct PLUS Loan (B)</p> Signup and view all the answers

If a student has a Cost of Attendance of $20,000 and a Student Aid Index of $15,000, what is the maximum need-based aid they can receive?

<p>$5,000 (D)</p> Signup and view all the answers

Which of the following statements is correct about need-based aid?

<p>Financial need must be established before receiving need-based aid. (C)</p> Signup and view all the answers

Flashcards

FAFSA Submission Summary

A document that confirms the accuracy of data submitted on the FAFSA.

Student Aid Index (SAI)

A number calculated from FAFSA information that shows how much federal aid is possible.

Cost of Attendance (COA)

The estimated total cost of attending a college or career school for a specific period.

Financial Aid Determination

The process of calculating the amount of financial aid a student is eligible for.

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Need-based aid

Financial aid provided based on your financial need.

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Non-need-based aid

Financial aid not related to your financial need.

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Financial Aid Office

The office at a college or career school that determines financial aid eligibility.

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Eligibility Criteria

Basic requirements for receiving federal student aid.

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Student Aid Index (SAI)

A measure used to determine a student's financial need, transferred from IRS to FAFSA. It's not a direct amount of aid, but rather an input used to calculate need.

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Need-Based Aid

Financial aid given to students who have financial need and meet specific criteria. The amount you receive is capped by your calculated need.

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Cost of Attendance (COA)

The total estimated cost of attending a college or university, including tuition, fees, room and board, books, and other expenses.

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Financial Need Calculation

Calculated by subtracting the Student Aid Index (SAI) from the Cost of Attendance (COA).

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Non-Need-Based Aid

Financial aid not based on your financial need, but on your Cost of Attendance (COA) and other aid received.

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Calculating Non-Need-Based Aid Eligibility

Subtracting all aid already received from your Cost of Attendance (COA).

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Federal Pell Grant

A need-based grant program to help students with financial needs.

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Federal Supplemental Educational Opportunity Grant (FSEOG)

A need-based grant program for students with exceptional financial need.

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Direct Subsidized Loan

A need-based loan program for students.

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Federal Work-Study

A need-based program that helps students earn money to pay for education.

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Direct Unsubsidized Loan

A loan program that is not based on need, but on other factors.

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Direct PLUS Loan

A loan program for parents of dependent students, not based on need.

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TEACH Grant

A grant for students who plan to teach in low-income schools after completing their studies.

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Study Notes

Financial Aid Determination

  • Colleges and career schools use information from your FAFSA to determine financial aid eligibility.
  • Aid eligibility depends on the Student Aid Index (SAI), year level, enrollment status, and cost of attendance.
  • Financial aid offices calculate your cost of attendance (COA).
  • The SAI is used to determine likely aid needed for the school.
  • Financial need is calculated by subtracting the SAI from the COA.
  • The maximum need-based aid is equivalent to the financial need.
  • Schools calculate non-need-based aid by subtracting previously awarded financial aid from the COA.
  • Non-need-based aid is not dependent on SAI but on awarded financial aid from a source, including schools.

Cost of Attendance (COA)

  • COA covers the total cost of attending school for a period, typically a year (fall and spring semesters). Timeframes differ depending on program length.
  • COA includes tuition and fees, food and housing (or living expenses), books and supplies, transportation, loan fees, miscellaneous expenses, personal computer costs, dependent care, disability-related costs and study abroad expenses.

Student Aid Index (SAI)

  • The SAI is a number used by schools to estimate federal aid eligibility.
  • The SAI comes from information provided on the FAFSA.
  • Much of the financial information is transferred directly from the IRS.
  • SAI is not an award amount or amount a family is expected to pay. A negative SAI suggests higher financial need.
  • The SAI is estimated by the Federal Student Aid Estimator.

Need-Based Aid

  • Need-based aid is for students with financial need.
  • Maximum need-based aid is equal to calculated financial need, which is COA minus SAI.
  • Federal Pell Grant, Federal Supplemental Educational Opportunity Grant (FSEOG), Direct Subsidized Loan, and Federal Work-Study are examples of need-based aid.

Non-Need-Based Aid

  • Non-need-based aid is not dependent on SAI. It is based on the difference between the COA and aid already awarded.
  • This includes Direct Unsubsidized Loan, Direct PLUS Loan, and TEACH Grant, which are all examples of non-need-based aid.

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