Flipbook_College_2017 - page 16-17

During the 2015–16 academic year, undergraduate students received more than
$184 billion in student aid, including grants, loans, education tax benefits, and
work-study programs.
Federal grants
Financial Aid
Federal work-study
Federal education tax
credits & deductions
Other grants*
Federal loans
*Grants from states, institutions (including colleges & universities), private parties, and employers.
Source: College Board, 2016 (percentages do not total 100 due to rounding)
Financial Aid
Financial aid is typically awarded based on need. In order to be considered
for aid, you have to complete the Free Application for Federal Student
Aid (FAFSA) for each year that your student attends college. The FAFSA
uses a formula based on family income and other factors to calculate your
Expected Family Contribution (EFC). The EFC is then subtracted from
the cost of attendance for a specific school to determine the amount of aid
for which your student may be eligible. Aid will typically be awarded as a
combination of grants, loans, and (in some cases) work-study programs.
Keep in mind that if you are in a higher income tax bracket, your student
may not be eligible for financial aid.
More than 5 million scholarships — totaling more than $24 billion of
college funding — are available to students each year.
Unlike grants, scholarships are not necessarily need-based and may be
awarded based on a variety of factors ranging from academic or athletic
achievement to religious affiliation or ethnic background. There are even
offbeat scholarships for people with a specific last name or people who
are left-handed.
Most colleges and universities offer scholarships, but many other
organizations do as well — religious organizations, community groups, and
corporations, to name a few. Some organizations offer scholarships as a
means to attract students to a specific field of study or a particular degree.
Source: Sallie Mae, 2016
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