Financial Aid FAQs

Financial aid may appear complex, but it doesn’t have to be, says Laurie Brill, director of marketing for the Lutheran Educational Conference of North America. Here, she sheds light on a few common questions.

Q: We probably earn too much to qualify for financial aid. Should we apply anyway?
A: Absolutely. Don’t make the common mistake of missing out on financial aid by failing to fill out a Free Application for Federal Student Aid (FAFSA). More than 80 percent of full-time undergraduates receive aid. Even if you end up not qualifying, unsubsidized Stafford and PLUS loans are available regardless of need.

Q: How is financial need determined?
A: By a simple formula: Financial need = Cost of attendance (COA) – Expected family contribution (EFC). The EFC depends on the income and assets of the student and his or her parents. Student assets are tapped at 20 percent. If a student’s parents are married to each other, their assets are tapped at 5.6 percent. If they’re divorced, income and assets factor in differently, depending on the student’s primary residence and other variables.

Q: Does my child need to be admitted to a certain school before applying for aid?
A: No, but a financial aid award package is communicated only after a student is accepted.

Q: In addition to Federal Student Aid, individual schools also can offer aid, right?
A: Yes. Colleges and universities can award their aid dollars any way they choose, including need-based awards (determined by a family’s finances) and merit-based awards (determined by a student’s academic, athletic, artistic or service achievements).

Q: Is there an easy way to sift through information on aid, loans and grants?
A: Definitely! Families and individuals can attend financial aid seminars at local universities as well as college fairs. For additional information, go to www.thrivent.com/magazine/links.

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