Financial Aid 101

What is Financial Aid?

For eligible students, financial aid may be offered to meet or reduce the cost of education. Sources may be from grants, scholarships and work-study programs from federal, state, institutional and private sources. Financial aid from these programs may be combined in an "award package" to meet or defray from the cost of education.

Financial Aid is not intended to cover all basic living expenses. However, in many cases it is available to help students achieve their college goals without placing a financial burden on their families.

Financial aid may be offered based on merit or need. Merit-based aid is offered based on the recognition of special skills, talents, or academic ability. Need-based aid is offered based on the applicant demonstrating financial need.

Apply for Aid

Financial Aid helps students pay for their education. Learn how to apply for financial aid.

Types of Aid

Many types of financial assistance are available to help pay for the cost of education. Find out more.

How is your Financial Need Determined?

As a student, you (with any financial contributors such as your parents) complete the FAFSA – Free Application for Federal Student Aid.
The Federal Processing System then calculates the Student Aid Index (SAI.)
- The SAI determines how much financial support you may need. This is determined by a formula-based index number ranging from -1500 to 999999.
- Generally, the lower your SAI, the more need you have. For example, a SAI ranging of 0 and below indicates a higher financial need which qualifies for a maximum Pell Grant award assuming that you are otherwise eligible.
  
  The SAI is not
- A certain dollar amount of aid you’ll receive.
- The amount of support your family is expected to provide, or
- Your final financial aid amount.

SAI Formula for a Dependent Student:
Contribution from both you (the student) and your parents are calculated using this formula:
Contributions from parents’ income + contribution from parents’ assets + contribution from student’s income + contribution from student’s assets.

SAI Formula for an Independent Student:
This formula calculates SAI for a student and spouse (if married).
Contribution from student’s income + contributions from student’s assets + contribution from spouse’s income + contribution from spouse’s assets (if married)

Determine your eligibility for Pell Grants and other need-based aid (aid awarded based on income levels) using this formula.

Cost of Attendance (COA) – Student Aid Index (SAI) = Financial Need
Example: $16,728 (COA) – 12,000 SAI = $4,728 in need-based aid.