What Is Financial Aid ?
There are a variety of financial aid tools available to students today, including scholarships, need-based awards, work-study employment and student loans. Let's discuss some of them:
Need-based Financial Aid
Well over 50 percent of today's college students receive need-based aid. Need-based financial aid eligibility is based on two simple issues -- cost of education and family ability to pay. The cost of education can vary significantly from institution to institution. Generally, these budgets include all reasonable costs (tuition, room, board) of attendance.
To apply for need-based financial aid, complete the Free Application for Financial Aid (FAFSA) and, if appropriate, the College Scholarship Service's PROFILE. These documents are used to determine what amount, if any, a family (and that means the parent and student) can provide toward the annual cost of attendance. Required amounts of family contributions may vary somewhat from institution to institution, but the formulas in place ensure that most expected contributions are similar.
The formulas consider a variety of family circumstances when determining eligibility. (The College Board Web site has some great financial aid calculators you can use!) Consequently, there is no real cut-off point or maximum income a family can have and still qualify for assistance. You may be surprised to learn that an increasing number of families with significant incomes now qualify for assistance. Every student, regardless of financial situation, should consider applying for need-based aid and see what happens.
