Student financial aid refers to funding intended to help students pay education expenses including tuition and fees, room and board, books and supplies, etc. Tuition means instruction or teaching. In American English, the term tuition is often used to refer to a fee charged for educational instruction Room and board describes a situation where in exchange for Money, labor or other considerations a person is provided with a place to live as well as meals on a comprehensive for education at a college, university, or private school. College ( Latin collegium) is a term most often used today to denote an Educational Institution. A university is an institution of Higher education and Research, which grants Academic degrees in a variety of subjects For the film of this title see Private School (film. Private schools, or Independent schools are Schools not administered General governmental funding for public education is not called financial aid, which refers to awards to specific individual students. Public education is education mandated for or offered to the children of the general public by the Government, whether national regional or local provided by an institution A scholarship is sometimes used as a synonym for a financial aid award. A scholarship is an award of access to an institution or a financial aid award for an individual student scholar for the purpose of furthering their Education

Contents 1 Types of financial aid 1.1 Merit-based 1.2 Need-based 2 The flaws of financial aid 3 Debt vs. grants 3.1 No loan financial aid 3.2 Loan cap 4 In the United States 5 Outside the United States 6 External links 7 References

Types of financial aid

Financial aid may be classified into two types based on the criteria through which the financial aid is awarded: merit-based or need-based.

Merit-based

Merit-based scholarships include both scholarships awarded by the individual college or university and those awarded by outside organizations. Merit-based scholarships are typically awarded for outstanding academic achievements, although some merit scholarships can be awarded for special talents, leadership potential and other personal characteristics. Scholarships may also be given because of group affiliation (such as YMCA, Boys Club, etc. ). Merit scholarships are sometimes awarded without regard for the financial need of the applicant. At many colleges, every admitted student is automatically considered for merit scholarships. At other schools, however, a separate application process is required.

Athletic scholarships are a form of merit aid that take athletic talent into account.

Need-based

Need-based financial aid is awarded on the basis of the financial need of the student. The Free Application for Federal Student Aid (FAFSA) is generally used for determining federal, state, and institutional need-based aid eligibility. The Free Application for Federal Student Aid (known as the FAFSA) is a form that can be filled out annually by current and anticipating University students (both At private institutions, a supplemental application may be necessary for institutional need-based aid.

The flaws of financial aid

People who save and spend conservatively are often denied financial aid. While the application is intended to evaluate financial need, it often drastically reduces the aid packages of students who really could use the money. Since much of the formula for EFC (expected family contribution) is based on parental assets, students whose parents aren't giving them money for their educations are forced to take out large student loans.

Debt vs. grants

No loan financial aid

In 2001, Princeton University became the first university in the United States to eliminate all loans from its financial aid packages. Princeton University is a private Coeducational research university located in Princeton, New Jersey. Since then, many other schools have followed in eliminating some or all loans from their financial aid programs. Many of these programs are aimed at students whose parents earn less than a certain income — the figures vary by college or university. These new initiatives were designed to attract more students and applicants from lower socioeconomic backgrounds, reduce student debt loads, and provide the offering institutions with an advantage over their rivals in attracting commitments from accepted students. As of March 25, 2008, the list of colleges and universities offering such no-loan financial aid packages includes the following:

School	No-loan financial aid for families meeting these eligibility requirements:
Amherst College	No max of income
Arizona State University	Arizona residents with family income of up to $25,000 [1]
Bowdoin College	No max of income [2]
Brown University	Family income below $100,000 [3]
Cal Tech	Annual income below $60,000 [4]
Claremont McKenna College	No max of income [5]
Colby College	No max of income; all students [6]
Columbia University	All students eligible for financial aid regardless of family income[7]
Cornell University	Annual income below $75,000
Dartmouth College	Annual income below $75,000 [8]
Davidson College	No max of income
Duke University	Annual income below $40,000[9]
Emory University	Annual income below $50,000
Haverford College	First-year students with financial need. Amherst College is a private liberal arts college in Amherst, Massachusetts, USA. Arizona State University ( ASU) is the largest public Research university in the United States under a single administration with total student The State of Arizona ( is a state located in the southwestern region of the United States. Bowdoin College, founded in 1794 is a private liberal arts college located in the coastal New England town of Brunswick, Maine. Brown University is a highly esteemed private University located in Providence, Rhode Island and is a member of the Ivy League. The California Institute of Technology (commonly referred to as Caltech) is a private, Coeducational research university located in Pasadena Claremont McKenna College (CMC is a private Coeducational, liberal arts college and a member of the Claremont Colleges located in Claremont Colby College, founded in 1813, is an American private liberal arts college located on Mayflower Hill in Waterville Maine. Columbia University is a private University in the United States and a member of the Ivy League. Dartmouth College ( is a private, Coeducational University located in Hanover, New Hampshire, U Davidson College is a private liberal arts college for 1700 students in Davidson, North Carolina, in the United States. Duke University is a private Research University located in Durham, North Carolina, United States. Emory University is a Private university located in the metropolitan area of the city of Atlanta and in western unincorporated DeKalb County, Haverford College is a highly selective private, Coeducational liberal arts college located in Haverford, Pennsylvania, a suburb [10]
Harvard University	Annual income below $60,000
MIT	Annual income below $75,000[11]
University of Maryland, College Park	Maryland resident with 0 EFC. The University of Maryland College Park (often referred to as The University of Maryland UMD, UMCP or simply Maryland) is a public research [12]
Michigan State University	Michigan resident with family incomes at or below the federal poverty line. Michigan State University ( MSU) is a co-educational public Research university in East Lansing, Michigan USA. Michigan ( is a Midwestern state of the United States of America. [13]
Northwestern University	Family income lower than approx. $55,000. [14]
North Carolina State University	Income less than 150% of the poverty line. North Carolina State University at Raleigh is a public, Coeducational extensive Research University located in Raleigh North Carolina Requires the family to have "limited assets," regardless of state residency. [15]
University of Chicago	Students who demonstrate financial need and whose annual family income totals $75,000 or less. The University of Chicago is a Private university located principally in the Hyde Park neighborhood of Chicago. [16]
UNC Chapel Hill	200% of federal poverty line ($24,000 to $37,000)
University of Pennsylvania	Annual income below $100,000 [17]
Pomona College	No max of income [18]
Princeton University	No max of income
Rice University	Annual income below $60,000
Stanford University	Annual income below $45,000
Swarthmore College	Anyone with financial need [19]
Tufts University	Annual income below $40,000[20]
Vassar College	Annual income below $60,000. The University of North Carolina at Chapel Hill ( UNC, North Carolina, or simply Carolina) is a public, Coeducational Research The University of Pennsylvania (also known as Penn) is a private University located in Philadelphia, Pennsylvania, USA. Pomona College is a private residential liberal arts college located in Claremont California. Princeton University is a private Coeducational research university located in Princeton, New Jersey. William Marsh Rice University (commonly called Rice University and opened in 1912 as The William Marsh Rice Institute for the Advancement of Letters Science and Art Leland Stanford Junior University, commonly known as Stanford University or simply Stanford, is a private Research university located in Swarthmore College is a private, independent, liberal arts college in the United States with an enrollment of about 1500 students Vassar College is a private Coeducational, liberal arts college situated in the town of Poughkeepsie, New York, USA. [21]
University of Virginia	200% of federal poverty line ($24,000 to $37,000)
Washington and Lee University	No max of income
Washington University in St. Louis	Annual Income below $60,000[22]
Wellesley College	$60,000[23]
Wesleyan University	$40,000[24]
College of William and Mary	$40,000 (VA residents only)
Williams College	No max of income
Yale University	Annual income below $45,000

Loan cap

Some universities have opted to have a "loan cap" program, which is a maximum loan — either per year or for the four years combined — designed to reduce the cost of attendance for low-income and middle-class students. The University of Virginia (also called UVa, UVA, Mr Jefferson's University, or The University) is a highly selective public research Washington and Lee University is a private liberal arts college in Lexington Virginia, USA Wellesley College is a women's liberal arts college, in Wellesley Massachusetts, that opened in 1875 founded by Henry Fowle Durant This article concerns Wesleyan The College of William and Mary (officially The College of William and Mary in Virginia, also known as William & Mary or W&M) is a Public university Williams College is a highly selective private liberal arts college located in Williamstown, Massachusetts. The following schools have a loan cap program:

School	Loan Cap for students meeting these eligibility requirements:
Brown University	Family earning less than about $125,000: Caps total loans to $3,000 per year. Brown University is a highly esteemed private University located in Providence, Rhode Island and is a member of the Ivy League. Family earning up to $150,000: Caps total loans to $4,000 per year. Family earning up to $150,000: Caps total loans to $5,000 per year.
University of Chicago	"Those whose families make between $60,000 and $75,000 will have 50% of their loans replaced. The University of Chicago is a Private university located principally in the Hyde Park neighborhood of Chicago. "[25]
Cornell University	Undergraduates with family incomes less than $120,000 will have loans limited to $3,000 per year.
Duke University	Undergraduate students with family income between $40,000 and $100,000 will have their loans limited on a graduated basis ($1,000 to $4,000 per year) and loans "frozen" at the freshman level. Duke University is a private Research University located in Durham, North Carolina, United States. [26]
Emory University	"Annual assessed incomes of $50,000 to $100,000 who demonstrate need for financial aid. Emory University is a Private university located in the metropolitan area of the city of Atlanta and in western unincorporated DeKalb County, The program caps total need-based loans at $15,000, assuming on-time progression toward graduation with up to eight semesters of study. "[27]
University of Maryland, College Park	Students with need-based financial aid will have their loans capped at $15,900 for their four years of attendance. The University of Maryland College Park (often referred to as The University of Maryland UMD, UMCP or simply Maryland) is a public research [28]
Middlebury College	Family income below $40,000: $1,500 per year; family income $40,000 to $80,000: $2,500 per year; family income above $80,000: $3,500 per year. Middlebury College is a private liberal arts college located in Middlebury, Vermont, United States. [29]
Rice University	Students with a family income below $60,000 will not have loans. William Marsh Rice University (commonly called Rice University and opened in 1912 as The William Marsh Rice Institute for the Advancement of Letters Science and Art Families with incomes over $60,000 will have their loans capped at about $14,500.
University of Virginia	200% of federal poverty line ($24,000 to $37,000). The University of Virginia (also called UVa, UVA, Mr Jefferson's University, or The University) is a highly selective public research Loans are capped at 25% of the in-state cost of attendance, regardless of state residency.

In the United States

The United States, federal government provides need-based federal aid called Federal Student Financial Aid, which is composed of different programs, grants, and scholarships, work and loan programs including Federal Pell grants, Federal SEOG Grants, SMART Grants, Academic Competitiveness Grants (ACG Grant), Federal_Work-Study_Program, Federal Stafford loans (in subsidized and unsubsidized forms), Federal Perkins Loans, and Federal PLUS loans. The Pell Grant program is a type of post-secondary educational Federal grant program sponsored by the U The Federal Supplemental Educational Opportunity Grant, more commonly known by its acronym FSEOG, is a Federal assistance grant reserved for college students with The Academic Competitiveness Grant, more commonly known by its acronym ACG Grant, is a Federal assistance grant reserved for college students with the greatest need The Federal Work Study program, FWS is a United States federally funded program that assists students with the costs of postsecondary education A Stafford Loan is a Student loan offered to eligible students enrolled in accredited American institutions of Higher education to help finance A PLUS Loan is a Student loan offered to parents of students enrolled at least half time in eligible programs at participating and eligible post-secondary institutions Federal Perkins Loans are made by participating schools per annual appropriations from the U. S. Department of Education, whereas Federal Stafford Loans and Federal PLUS Loans are made by participating lenders under the Federal Family Education Loan Program (FFELP). The U. S. Department of Education serves as a lender and guarantor under the William D. Ford Direct Loan Program.

To qualify for federal student aid, a student must file the Free Application for Federal Student Aid (FAFSA). The Free Application for Federal Student Aid (known as the FAFSA) is a form that can be filled out annually by current and anticipating University students (both The FAFSA uses a calculation taking into account income and assets to determine a student's Expected Family Contribution (EFC) toward his or her college education for that year. The Free Application for Federal Student Aid (known as the FAFSA) is a form that can be filled out annually by current and anticipating University students (both Colleges use the EFC to decide what types of financial aid a student is eligible to receive. Students must complete the FAFSA each year to be considered for financial aid.

The EFC also takes into consideration any participation in college savings or pre-paid tuition plans. In the past, financial aid officers weighed pre-paid tuition plans more heavily than other 529 college savings plans when determining a student’s eligibility. In February 2006, Congress passed legislation to treat both types of plans evenly.

State governments also typically provide some types of need- and non-need-based aid, consisting of grants, loans, work-study programs, tuition waivers, and scholarships. Individual colleges and universities may provide grants and need- and merit-based scholarships. Students requiring financial aid beyond what is offered by their institution may consider a private (alternative) education loan, available from most large lending institutions. Typically, education loans obtained through the federal government have lower interest rates than private education loans.

Institutions may also offer their own student financial assistance, in the form of need- or merit-based aid, as well as endowed scholarships (with varying need and/or merit-based criteria). Some schools may only require the FAFSA; some may also require an additional need-based analysis document, such as the CSS/Profile, to apply for such funds to apply a more stringent need analysis for the rationalization of institutional funds.

Outside the United States

Many national governments provide student financial assistance subsidies for students attending a university, although proposed policies to change such subsidies have engendered considerable debate in several countries, such as Canada, the United Kingdom, Germany, and Scandinavian countries. The heavy reliance on private subsidies, as in the United States, is not as widespread, although this may be changing.

In Germany, the main source of financial aid is provided by the Bundesausbildungsförderungsgesetz, colloquially known as BAFöG. The Bundesausbildungsförderungsgesetz (often abbreviated to BAföG) is the Federal Education and Trainings Assistance Act for University students in

External links

• Financial aid opportunities for students who can least afford college- News story on The Methods Reporter
• Financial Aid at the Open Directory Project

References

The Open Directory Project ( ODP) also known as dmoz (from directory

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