First Things First: Am I Eligible for Financial Aid?

Basic Requirements

To receive aid from the federal student aid programs discussed in this guide, you must meet certain criteria:

Financial Need

Except for some loan programs, you must show you have financial need, according to our requirements.

Educational Requirements

• You must demonstrate by one of the following means that you are qualified to enroll in post secondary education:
  • Have a high school diploma or a General Education Development (GED) Certificate.
  • Pass an approved ability-to-benefit (ATB) test. If you don’t have a diploma or GED, you can take an approved ATB test to determine whether you can benefit from the education offered at that school.
  • Meet other standards your state established and that we have approved.
  • Complete a high school education in a home school setting approved under state law.
• You must be enrolled or accepted for enrollment as a regular student working toward a degree or certificate in an eligible program.
• You must meet satisfactory academic progress standards set by the post secondary school you are or will be attending.

Legal and Other Requirements

• You must be a U.S. citizen or eligible non-citizen.
• You must have a valid Social Security number (SSN) (unless you’re from the Republic of the Marshall Islands, the Federated States of Micronesia or the Republic of Palau). If you need a SSN, you can find out more about applying for one at www.ssa.gov or by calling 1-800-772-1213. TTY users can call 1-800-325-0778.
• You must certify that you will use federal student aid only for educational purposes. You must also certify that you are not in default on a federal student loan and do not owe money on a federal student grant (which could happen if you withdraw from school, for example). You certify these items when you apply for federal student aid and sign a promissory note to obtain these funds.
• You must comply with Selective Service registration. If you’re a male, aged 18 through 25 and you have not registered, you can, at the same time you complete your FAFSA, give the Selective Service System permission to register you by means of the FAFSA. You can also register online at www.sss.gov or call 1-847-688-6888. TTY users can call 1-847-688-2567.
• You may be eligible to receive federal student aid if you have been convicted under federal or state law of selling or possessing illegal drugs. For information or to find out about your status, call 1-800-4-FED-AID (1-800-433-3243) or go to www.fafsa.gov, click on “Worksheets” in the left column, then select even if you’re ineligible for federal student aid because of a drug conviction, you should still complete the FAFSA because most schools and states use FAFSA information to award nonfederal aid.
• You have limited eligibility for federal student aid while you’re incarcerated. Generally, you’re eligible only for a Pell Grant and then only if you’re NOT incarcerated in a federal or state penal institution.

“Match” Requirements

When you apply for student financial aid from federal student aid programs, we verify some of your information with certain federal agencies, including the Social Security Administration (for verification of Social Security numbers and U.S. citizenship status). If the information doesn’t match, the discrepancy must be resolved before you can receive federal student aid. We also check your records against our database, the National Student Loan Data System (NSLDS), to verify that you don’t have a defaulted federal student loan, haven’t received an overpayment on a federal grant or a Federal Perkins Loan and haven’t borrowed more than the total limit allowed.

Financial Need and Expected Family Contribution (EFC)

Aid for most of our programs is awarded based on financial need (except for unsubsidized Stafford Loans and PLUS Loans).

The EFC is a measure of your family’s financial strength and indicates how much of your and your family’s financial resources (for dependent students) should be available to help pay for your education. EFC is calculated from the information you report on the FAFSA.

Your EFC is calculated according to a formula established by law. Your family’s income (taxable and untaxed), assets and benefits (for example, unemployment or Social Security) are all considered in determining your EFC. Your family size and the number of family members who will be attending a college or career school are also considered. Your EFC will appear on the Student Aid Report (SAR) you receive after you file your FAFSA. To be eligible for a Federal Pell Grant, your EFC must be below 4618. To be eligible for a Federal Pell grant for the 2010-2011 award year, your EFC must be below 4617. This number can vary from year to year.

To determine your financial need for our other federal student aid programs (except for an unsubsidized Stafford Loan), your school will subtract from your cost of attendance the following:

• the EFC,
• any Federal Pell Grant amount you’re eligible for, and
• other financial aid you’ll receive.

The balance, after your school subtracts from the cost of attendance your EFC, your Federal Pell Grant and any other financial aid you will be receiving, is your remaining need for other financial aid, including other federal aid. After you get your SAR, contact the financial aid office at the school(s) you’re considering (or the school you’ll be attending) for more information on your student financial aid eligibility.

If you want to see how the EFC formula works, you can get detailed worksheets from our Web site at www.studentaid.ed.gov/pubs. Click on the year under “The EFC Formula.” You can also get these worksheets by contacting the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243). The financial aid administrator at each school that offers you admission puts together a financial aid package that comes as close as possible to meeting your financial aid needs. However, because most federal student aid funds are limited, the total amount awarded to you might fall short of the amount for which you’re eligible. Also, except for Federal Pell Grant aid, the amount of federal student aid you receive is affected by other sources of aid you might get, such as scholarships and state aid. Each school you apply to will send you a notice of the types and amounts of aid you’re eligible for.

If you’re eligible for financial aid, the financial aid office at each school will send you an award letter outlining the amount and type of student financial aid available from all sources. Review the award letters you receive from all schools to compare the amounts and types of aid that will be available at each school.

I think I have some special circumstances in my family. Are these considered in determining my financial needs?

The EFC formula is basically the same for all applicants, but there is some flexibility. Your financial aid administrator can adjust the cost of attendance or the information used to calculate your EFC to take into account your special circumstances. These circumstances could include your family’s unusual medical expenses, tuition expenses or unemployment.

_________________________

This content courtesy of U.S. Department of Education, Federal Student Aid, Students Channel, Funding Education Beyond High School: The Guide to Federal Student Aid, Washington, D.C., 2006.