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?

By subtracting your SAI from your cost of attendance Signup and view all the answers

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

Personal expenses like entertainment Signup and view all the answers

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

It is calculated by subtracting awarded financial aid from COA Signup and view all the answers

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

Your cost of attendance (COA) Signup and view all the answers

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

Cost of luxury spring break trips Signup and view all the answers

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

To assess overall financial need of a student Signup and view all the answers

How is financial need calculated?

Cost of Attendance - Student Aid Index Signup and view all the answers

What does a negative SAI indicate?

The student has higher financial need Signup and view all the answers

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

Federal Pell Grant Signup and view all the answers

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

Cost of Attendance minus awarded financial aid Signup and view all the answers

Which aid is not based on the Student Aid Index?

Direct PLUS Loan 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?

$5,000 Signup and view all the answers

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

Financial need must be established before receiving need-based aid. Signup and view all the answers

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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Description

This quiz covers the essentials of financial aid determination, focusing on the Student Aid Index (SAI) and the Cost of Attendance (COA). Understand how financial need is calculated, the differences between need-based and non-need-based aid, and what factors colleges consider in these evaluations. Perfect for students navigating their financial aid options!