Frequently Asked Questions on Student Aid Awards and Eligibility
If you are struggling with student financial aid eligibility questions, you are not alone. There are about 8,000 aid programs, each with its own set of eligibility requirements. Who can understand them all? Here are answers to some frequently asked eligibility questions.
Why Am I Not Eligible for Some Student Aid Programs?
Here are some common reasons why students may not be eligible or may not receive an award:
- Expected Family Contribution (EFC) – Many student aid programs use your expected family contribution (EFC) to determine eligibility. Your EFC may be too large for a specific program. For example, to be eligible for the Pell Grant, your EFC must not exceed $4,617.
- Limited Funds – Aid awards are a competition for limited funds. While you may meet the minimum eligibility requirements of a program, you may not receive an award if there are other students who demonstrate a greater financial need.
- Enrollment Status – Programs such as Stafford Subsidized Loans and Stafford Unsubsidized Loans require that you be enrolled in college at least half-time to qualify for aid. If you do not maintain the required enrollment status, you will not be eligible for those awards.
- Grade Level – Some aid programs are specific to the student's grade level in college. For example, the Academic Competitiveness Grant (ACG) is only available to students in their first or second years of college.
- Dependency Status – If you are an independent student, as defined by the FAFSA, your parent or guardian will not be eligible for some aid, such as the PLUS Loan.
- State of Residency – Many state aid programs are limited to full-time residents of the state. If you are not a resident, you may not qualify for a state's aid program.
- Merit Requirements – To be eligible for some aid programs, students must score at certain levels on achievement tests, such as the SAT or ACT.
- Type of College – The college(s) you selected must participate in the program. Some programs are specific to public or private colleges.
Competition for aid is fierce. To receive aid from some programs, you must demonstrate financial "need." Your "need" is determined by subtracting your expected family contribution (EFC) from a college's published cost of attendance. Colleges will meet your "need" using various types of student aid.
How Am I Supposed to Pay the Costs That My Student Aid Package Doesn't Cover?
Your college may offer a Stafford Loan or PLUS Loan to cover the remaining costs, and there are a few states that offer loans for education expenses. You may also borrow from private lenders but should only consider this alternative after the federal and state options, which tend to offer better terms and interest rates. Need some help deciding which loan is best? Click here to learn how to choose the best loan for you.