Sources
Help build the largest human-edited directory on the web.
Submit a site - Become an editor
Wikipedia. Licensed under the GNU Free Documentation License.
Are you an expert in this subject? Join the discussion and share your knowledge at Wikipedia.org.
Student financial aid
From Wikipedia, the free encyclopedia
Student financial aid refers to funding intended to help students pay educational expenses including tuition and fees, room and board, books and supplies, etc. for education at a college, university, or private school. General governmental funding for public education is not called financial aid, which refers to awards to specific individual students. A scholarship is sometimes used as a synonym for a financial aid award.
Contents |
Financial aid may be classified into two types based on the criteria through which the financial aid is awarded: merit-based or need-based.
Merit-based scholarships include both scholarships awarded by the individual college or university and merit scholarships awarded by outside organizations. Merit-scholarships are typically awarded for outstanding academic achievements, although some merit scholarships can also be awarded for special talents, leadership potential and other personal characteristics. Scholarships may also be given because of group affiliation (such as YMCA, Boys Club, etc.). Merit scholarships are sometimes awarded without regard for the financial need of the applicant. At many colleges, every admitted student is automatically considered for merit scholarships. At other schools, however, a separate application process is required.
Athletic scholarships are a form of merit aid that take athletic talent into account.
Need-based financial aid is awarded on the basis of the financial need of the student. The Free Application for Federal Student Aid (FAFSA) is generally used for determining federal, state and institutional need-based aid eligibility. At private institutions, a supplemental application may be necessary for instituitional need based aid.
In the early 2000s, a number of colleges took steps to eliminate debt altogether from their financial aid packages. Many of these offers are aimed at students whose parents earn less than a certain income -- the exact figures vary by college or university. These new initiatives were designed to attract more students and applicants from lower socioeconomic backgrounds, reduce student debt loads, and provide the offering institutions with an advantage over their rivals in attracting commitments from accepted students. As of November 2, 2007, the list of colleges and universities offering such no-loan financial aid packages includes the following:
| School | No-loan financial aid for families meeting these eligibility requirements: |
|---|---|
| Amherst College | No max of income |
| Arizona State University | Arizona residents with family income of up to $25,000 [1] |
| Colby College | Maine residents [2] |
| Columbia University | Annual income below $50,000 |
| Dartmouth College | Annual income below $30,000 |
| Davidson College | No max of income |
| Emory University | Annual income below $50,000 |
| Harvard University | Annual income below $60,000 |
| Michigan State University | Michigan resident with family incomes at or below the federal poverty line. [3] |
| North Carolina State University | Income less than 150% of the poverty line. Requires the family to have "limited assets," regardless of state residency. [4] |
| University of Chicago | Students who demonstrate financial need and whose annual family income totals $75,000 or less.[5] |
| UNC Chapel Hill | 200% of federal poverty line ($24,000 to $37,000) |
| University of Pennsylvania | Annual income below $50,000 |
| Princeton University | No max of income |
| Rice University | Annual income below $30,000 |
| Stanford University | Annual income below $45,000 |
| University of Virginia | 200% of federal poverty line ($24,000 to $37,000) |
| Wesleyan University | $40,000[6] |
| College of William and Mary | $40,000 (VA residents only) |
| Williams College | No max of income |
| Yale University | Annual income below $45,000 |
The United States, federal government provides need-based federal aid called Federal Student Financial Aid, which is composed of different programs, grants, and scholarships, work and loan programs including Federal Pell grants, Federal SEOG Grants, SMART Grants, Academic Competitiveness Grants (ACG), Federal Work-Study, Federal Stafford loans (in subsidized and unsubsidized forms), Federal Perkins Loans, and Federal PLUS loans. Federal Perkins Loans are made by participating schools per annual appropriations from the U.S. Department of Education, whereas Federal Stafford Loans and Federal PLUS Loans are made by participating lenders under the Federal Family Education Loan Program (FFELP). The U.S. Department of Education serves as a lender and guarantor under the William D. Ford Direct Loan Program.
To qualify for federal student aid, a student must file the Free Application for Federal Student Aid (FAFSA). The FAFSA uses a calculation taking into account income and assets to determine a student's "Expected Family Contribution (EFC)" toward his or her college education for that year. Colleges use the EFC to decide what types of financial aid a student is eligible to receive. Students must complete the FAFSA each year to be considered for financial aid.
The EFC also takes into consideration any participation in college savings or pre-paid tuition plans. In the past, financial aid officers weighed pre-paid tuition plans more heavily than other 529 college savings plans when determining a student’s eligibility. In February 2006, Congress passed legislation to treat both types of plans evenly.
State governments also typically provide some types of need- and non-need-based aid, consisting of grants, loans, work-study programs, tuition waivers, and scholarships. Individual colleges and universities may provide grants and need- and merit-based scholarships. Students requiring financial aid beyond what is offered by their institution may consider a private (alternative) education loan, available from most large lending institutions. Typically, education loans obtained through the federal government have lower interest rates than private education loans. Institutions may also offer their own student financial assistance, in the form of need- or merit-based aid, as well as endowed scholarships (with varying need and/or merit-based criteria). Some schools may only require the FAFSA; some may also require an additional need-based analysis document, such as the CSS/Profile, to apply for such funds, in order to apply a more stringent need analysis for the rationalization of institutional funds.
Many national governments provide student financial assistance subsidies for students attending a university, although proposed policies to change such subsidies have engendered considerable debate in several countries, such as Canada, the United Kingdom, Germany, and Scandinavian countries. The heavy reliance on private subsidies, as in the United States, is not as widespread, although this may be changing.
- Financial aid opportunities for students who can least afford college- News story on The Methods Reporter
- Financial Aid at the Open Directory Project
- ^ http://www.asu.edu/fa/advantage/
- ^ http://www.colby.edu/news_events/press_release/grantsformaine.cfm
- ^ http://finaid.msu.edu/spad.asp
- ^ http://www.ncsu.edu/packpromise/
- ^ http://odyssey.uchicago.edu/scholarships/how.html
- ^ http://www.wesleyan.edu/cgi-bin/cdf_manager/template_renderer.cgi?item=57727