Financial Aid

How Need-Based Financial Aid Works
Federal financial aid is only available if you demonstrate "financial need" as determined by a federal formula. Need based financial aid in the form of grants (grants do not have to be paid back and are often referred to as “scholarships”), low-interest loans, and student work-study programs is available based upon the information submitted on the Free Application for Federal Student Aid--the FAFSA. The federal government makes a determination about your expected family contribution (EFC), or the amount your family can reasonably be expected to contribute toward a student's education, based on information you have entered on the FAFSA about assets, income, and other data from a parent's (and student's) US income tax form.

The data you submit on the FAFSA goes to a place called CPS (Central Processing System) where it is compiled and then a formula is applied. The formula the Department of Education uses to compute your EFC is called Federal Methodology.

The EFC is basically what the government believes you should be able to contribute toward the cost of attending college, based on your state of residence, household size, number in college and student and parent income and asset information. Next, the school you attend establishes a Cost of Attendance (COA). The COA is composed of tuition, room and board, fees and estimated expenses (books, supplies, personal). Together, the EFC and COA are used to determine your financial need. Financial need is calculated by subtracting the EFC from the COA and is a guideline in determining how much need based financial aid you may receive. The equation looks like this:

COA - EFC = Financial Need

The college's financial aid office then uses the "need based" resources they have available to try to "meet" your financial need.

Merit Based Scholarships
By Ivy League agreement, the most selective schools provide only need, as opposed to merit-based, financial aid. Less selective colleges do, however, sometimes provide merit awards. These awards are used to encourage talented students to consider attending these schools. Colleges realize that talented students will have a number of acceptance offers and use merit awards as an incentive to attract them. Talent grants are given to students who demonstrate a particular talent in sports, the arts, leadership, social service, or academics. These grants are offered regardless of a student’s financial need.
Students can attract merit aid by applying to schools where their class rank and test scores will place them in the top 25% of the applicant pool. The most generous colleges tend to be private liberal-arts colleges that boast large endowments but face stiff competition from more-affordable and academically comparable state schools.

Loans
If your financial aid award package includes an education loan, you are responsible for applying for the loan. Instructions are generally provided with the award letter. Even if an education loan is not a part of your financial aid award, you may get a loan if you cannot meet the Expected Family Contribution (EFC) from your savings or current income.

Loans have made higher education possible for millions of students, but you should consider your options carefully before borrowing and limit borrowing to only the amount necessary. The following sites have more information about student and parent loans:

• Estudentloan
• Sallie Mae
• Nellie Mae

International Student Aid
It is a fact that very few colleges in the world offer financial aid to students who are not citizens of that country. Students who are not US citizens or permanent residents should plan on finding their own sources of money to pay for their college education, and thus the cost of a particular college may become a large factor in your choice. If you plan to study in the US, you will not be granted a visa unless you can prove you have sufficient financial resources to pay for your college, living expenses, and a return trip to your home country.

Only a small percentage of colleges offer financial aid for international students. If you are an international student and you must have aid, don’t waste your time applying to schools that don’t offer it. Because the amount of aid available to international students is limited, colleges will only offer it to the very strongest applicants in their applicant pool. A general rule of thumb is that if you are a non-US citizen who requires financial aid, you will need to be among a college’s top applicants in order to receive an offer of aid. If your scores or grades are marginal for that college, you will most likely be rejected, since money will be allocated among the top students, and the college cannot admit you without proof that your family will be able to pay your bills.

If you are not a US citizen but are looking for financial aid to attend a US university, look into EduPASS which provides a list of colleges and universities that provide aid to international students. The Council of International Schools (CIS) also provides information on financial aid for the US, Canada, and the UK.
You should realize that some colleges and universities are less expensive than others. Cost doesn't always equate to quality, but may be based upon the school's endowment and location. If cost is an issue for your family, please be upfront about that as you're meeting with your CRMS counselor.

To order CRMS Transcripts please contact svalin@crms.org.