Need-Based/Merit-Based AidAll of these types of aid may be classified as either need-based or merit-based or a combination of the two. Need- based aid is awarded on the basis of the family financial situations; the less money available, the greater the need. Merit-based aid is awarded on the basis of the student's qualifications. Examples of those qualifications are given in the -Determination of Merit" section. Some financial aid may be 100% need-based and some may be 100% merit-based. but many types of aid may use a mixture of need and merit criteria. The type of criteria and the percentage of each is determined by the agency or organization awarding the aid. For example. a scholarship may be available for a student in the top 25% of the class who scores a minimum of 1000 on the SAT. These are merit-based minimum criteria. The agency awarding this scholarship may also stipulate that the scholarship would be awarded to a student who has financial need - as determined by that agency. Determination of Need A student's need is determined by a uniform analysis of the student's family financial situation. This analysis is regulated by Congress to insure uniformity and fairness across the country. College financial aid offices use the same formula to determine a student's need: College Costs -Expected Family Contribution (EFC) - Financial Assistance = Need Note that the family contribution is a constant determined by the need analysis. The college costs are variable depending on the college selected and therefore the need is also variable. This means that, depending on the amount or need-based aid a student qualifies for, the actual out-of-pocket expenses for a student may be the same at a high cost college as at a low cost college. Students therefore should not eliminate a college from consideration just because the cost of attendance is extremely high. The student's contribution may be quite low if qualified. The expected family contribution (EFC) is determined by using a process called need analysis. In need analysis, information and data about the family's financial situation is collected using a need analysis form. In order to determine a student's need, parents should complete this form. There are several need analysis forms available and colleges will specify which form they require or prefer. The need analysis forms in use for the 1997-98 school year are the:
FAFSA -Free Application for Federal Student Aid The need analysis form is referenced to the previous year's federal income tax return and will have questions pertaining to income, assets, liabilities and other factors used in determining a student's need when applying for financial aid. These forms are available in the Counseling Center. FAFSA -Free Application for Federal Student Aid This is the primary application used for need analysis. The FAFSA collects demographic information about the student and is referenced to income tax information for the year previous to the January filing time. The FAFSA is used to qualify students for all Federal Title IV financial aid. Title IV Aid includes:
All persons applying for need-based aid MUST complete the FAFSA regardless of which institution the student is planning to attend. Processing of all FAFSAs is free of charge. Under no circumstances should a student complete more than one FAFSA. CSS -Profile Form The CSS Profile Form is a supplemental form which can be used to qualify students for certain state and institutional forms of financial aid. The CSS Profile Form comes packaged separate from the FAFSA and each form should be sent for processing in different envelopes. There is a fee for processing the CSS Profile Form. You need to complete the CSS Profile Form only if required by the college you are applying to. Determination of Merit Merit is generally determined by the agency or organization awarding the scholarship. Depending on the scholarship, the merit criteria may include evaluation in one or more areas such as:
The number of areas and the weight assigned to each are is determined by the awarding agency. The evaluation of a student's scholarship application may be very objective in some areas and very subjective in other areas. There may be minimum criteria stated that are necessary for a student to enter competition, then the applicants are judged on broader criteria. There are probably as many different ways of determine scholarship winners as there are different scholarships. STUDENT FINANCIAL AID
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