Cracking the Code: How Financial Need is Determined

The Piecemeal Approach to Affording Higher Education

Week 6: How Schools Determine Your Financial Aid Eligibility

As we shared last week, the first step in applying for financial aid is to file the FAFSA.

The FAFSA requires you to provide various pieces of demographic and financial information. So where does that information go, and how is it used?

Here’s how schools determine your financial aid eligibility:

When you file the FAFSA, the result is your Student Aid Index or SAI. Your FAFSA data and SAI information are sent to all the schools you listed on your FAFSA.
All schools have a "Cost of Attendance" (COA), which includes the cost of tuition, fees, housing and food, books, supplies, travel, and miscellaneous expenses. Because these expenses differ from school to school, each school’s COA will be different.
Schools that have received your FAFSA data and SAI will calculate your financial need by subtracting your SAI from their COA.

Because each school’s COA is different, your need at each school will be different. Schools will try to give you enough aid to cover your financial need. In a perfect world, all schools would cover 100% of every student’s need, but just like families, some schools have more money than others.

NEXT WEEK: We’ll share tools to help you find schools that offer the programs you’re interested in, are in locations that appeal to you, AND are affordable!

Keep Calm and FAFSA On

If you're feeling daunted by all of these acronyms — FAFSA, SAI, COA — no need to worry! We're here to help (and we can translate acronyms)! Please don't hesitate to reach out to us any time:

Call us Call us: 800-228-3734 (TTY: 207-626-2717); option 4
Email us: Education@FAMEmaine.com
Schedule a FREE financial aid coaching appointment.

Your Guide to Affording Higher Ed: Summer Email Series

Miss the previous weeks' emails? Catch up here:

FAME's College Access and Financial Education Team:

Mila Tappan, College Access and Outreach Manager

Jessica Whittier, College Access Counselor

Maria MacDougal, College Access Counselor

Nikki Vachon, College Access Counselor

Floreka Malual, New Mainer Specialist

Mary Dyer, Financial Education Programs Manager

Steve Kautz, Financial Education Programs Specialist

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