Financial Aid by the Numbers (2024)

FAQs

How do I know how much financial aid I will receive? ›

The financial aid staff starts by deciding upon your cost of attendance (COA) at that school. They then consider your Expected Family Contribution (EFC). They subtract your EFC from your COA to determine the amount of your financial need and therefore how much need-based aid you can get.

Grants, work-study, loans, and scholarships help make college or career school affordable.

The single largest provider of financial assistance in the United States is the federal government, via the U.S. Department of Education. State governments, educational institutions, private organizations, and banks also provide students with financial aid by offering scholarships, grants, and loans.

Your Expected Family Contribution (EFC) is an index number used to determine your eligibility for federal student financial aid. This number results from the information you provide in your Free Application for Federal Student Aid (FAFSA^®) form. Your EFC is reported to you on your Student Aid Report (SAR).

You (the student) will get your SAR within three days to three weeks after you submit your FAFSA form.

The most common types of financial aid are grants, scholarships, work-study programs, and loans. Federal student loans provide significant advantages over many private student loans. Specialized aid is available for certain groups like military service members, aspiring teachers, and those planning to study abroad.

Most types of grants, unlike loans, are sources of financial aid that generally do not have to be repaid. Grants can come from the federal government, your state government, your college or career school, or a private or nonprofit organization.

Grants and scholarships are the most desirable forms of financial aid because they come in the form of free money, often with no strings attached.

Financial Aid recipients will be terminated upon reaching 150 percent of the number of credits needed to complete their degree, diploma or certificate program. This regulation applies to all students, including those that have not previously received financial aid.

Why rich students get more financial aid? ›

Affluent students get more school aid compared with students with financial need because colleges are actively pursuing them, experts say. Schools are offering non-need-based merit aid in order to attract students with wealth, especially if they're high-performing.

You're not making satisfactory academic progress at your school. You've defaulted on an existing federal student loan. You owe a refund on any previous federal grants. You're enrolled in an academic program that makes you ineligible for funding.

If your family has accumulated wealth and investments, your EFC can be high, even if your family's income is low. This includes checking and savings accounts, bonds and stocks, and even the student's 529 College Savings Plan. Some kinds of financial assets do not count toward your EFC.

1: An Expected Family Contribution is a dollar figure that represents what financial aid formulas believe a family should be able to pay for one year of a child's college education. No. 2: The EFC for the average American household with an AGI of $50,000 will usually range from $3,000 to $4,000.

Under this new appropriations legislation, the maximum Pell Grant award will increase from $6,495 to $6,895 for the 2022-2023 award year, and the corresponding maximum Pell Grant eligible expected family contribution (EFC) will increase from 5,846 to 6,206.

Log in to your account using your username and password (FSA ID) and then select “View Details” from the My Aid section of your Dashboard.

Once the financial aid office has covered your tuition and fees, it will send any leftover funds to you within 14 days. That said, every school is different, so it's worth contacting your financial aid office to learn about its specific policies.

This can take any time between three days and three weeks after you submit your form. Review the letter and tell the school which financial aid you plan to accept. Depends on the school, but usually with or shortly after your offer of admission. Follow up with the institution if you don't receive your money.

What is the income limit for FAFSA 2022? In 2022, the income limit for an automatic zero expected family contribution is $27,000. But this is based on the previous tax year, which would be 2021. There is no income limit for submitting the FAFSA.

Does FAFSA give you money directly? ›

If your FAFSA qualifies you for federal grants, loans, or work-study programs, that money is disbursed directly to your school. With grants or loans, your school will apply that money toward your tuition, fees, and room and board (if you live on campus).

Scholarships, grants, and work study are the three main financial aid types that don't need to be paid back. Loans are the main type of financial aid that needs to be paid back. Most students use a combination of both types of college financial aid to help cover their expenses.

The maximum amount of money you can get from a Pell Grant is: $6,495 (2021-22).

To search or apply for grants, use the free, official website, Grants.gov. Commercial sites may charge a fee for grant information or application forms. Grants.gov centralizes information from more than 1,000 government grant programs. It's designed to help states and organizations find and apply for grants.

Typically, the school first applies your grant or loan money toward your tuition, fees, and (if you live on campus) room and board. Any money left over is paid to you directly for other education expenses.

The type of aid you receive after filling out the FAFSA determines if you need to pay it back. Grants, scholarships, and work-study money don't need to be repaid but have finite funding limits. You will need to repay subsidized, unsubsidized, and Direct Plus Loans.

Typically, you'll need to keep up a GPA of 2.0 or higher on a 4.0 scale, or at least a C average. Your financial aid office can tell you exactly what GPA qualifies as satisfactory at your school. If your grades dip below this standard, you could lose your financial aid.

Students and families who do not qualify for Federal Pell Grants and Institutional need-based aid have several different options including scholarships, Federal Work Study, Federal loans for students, Federal loans for parents, private educational loans, and family savings and out-of-pocket payments, including payment ...

Does FAFSA stop after 4 years? ›

The 150 financial aid rule prohibits students from going 150% over the normal graduation timeframe, which is six years for a bachelor's degree and three years for an Associate's degree. Once a student goes over this timeframe, they or no longer eligible for federal student aid, and often, institutional aid as well.

If you received (or your school or parent received on your behalf) less assistance than the amount that you earned, you may be able to receive those additional funds. If you received more assistance than you earned, the excess funds must be returned by the school and/or you.

Don't worry, this is a common question for many students. The good news is that the Department of Education doesn't have an official income cutoff to qualify for federal financial aid. So, even if you think your parents' income is too high, it's still worth applying (plus, it's free to apply).

Rich parents or not—fill out the FAFSA

It's a legitimate question and the answer is yes, you should complete the FAFSA even if you think your parents make too much money for financial aid. You might be surprised that you are eligible for aid you didn't think you'd qualify for.

They may have reduced your aid because you didn't meet qualifying credits, due to past performance or if there was a change in your financial circ*mstances that disqualified you from additional aid. As we mentioned above, you'll want to call your school directly and discuss your financial aid decrease.

Here's why some students don't receive the full amount: They are not enrolled in classes full-time. Pell Grants are pro-rated for students taking class part-time. The student didn't begin taking all classes before the financial aid lock date.

You can use student loans for almost any education-related expense — meaning you can potentially live on them. However, keep in mind that some loans come with student loan limits that will determine how much you can borrow.

What is the difference between Pell and FAFSA? ›

A Federal Pell Grant, unlike a loan, does not have to be repaid, except under certain circ*mstances. To qualify for a Pell Grant, a student must demonstrate financial need through the Free Application for Federal Student Financial Aid (FAFSA®) form.

The FAFSA, or Free Application for Federal Student Aid, is used to apply for several types of financial aid, including grants, student employment and federal student loans. Grants are a form of gift aid, which does not need to be repaid. The FAFSA is what determines whether or not you can participate in work-study.

Federal student loans are issued by the federal government and offer benefits such as fixed interest rates and income-driven and flexible payment plans. There are four types of federal student loans: Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans and Direct Consolidation Loans.

Once you graduate, drop below half-time enrollment, or leave school, your federal student loan goes into repayment. However, if you have a Direct Subsidized, Direct Unsubsidized, or Federal Family Education Loan, you have a six-month grace period before you are required to start making regular payments.

When should I apply to the FAFSA? You should fill out the FAFSA as soon as possible after it opens — even if you don't think you qualify for aid — as some aid is first come, first served. There are no set FAFSA income limits or cutoffs that determine eligibility for financial aid.

Assets don't include

retirement plans (401[k] plans, pension funds, annuities, non-education IRAs, Keogh plans, etc.).

The quickest and easiest way to sign your FAFSA form is online with your FSA ID.