| Financial Aid for US Citizens
Confused about financial aid? The following is an overview about financial aid, scholarships and other issues associated with paying for college. While it's true that college costs continue to rise, a family doesn't always have to pay US$50,000 per year for a college education.
Guide to State Residency
U.S. citizens living abroad who seek admission to a public university in a state where their family has existing ties may be eligible for in-state tuition. If you own real property in that state, are registered to vote there, file a resident income tax return, hold a state driver's license or motor vehicle registration, and can demonstrate prior residence of at least 12 months, you may qualify for state residency for tuition purposes. Each state legislature has it's own rules and regulations for determining residency and universities make the determination.
For further information about residency, check the requirements for your state. Be aware that in some states there is inconsistency from one state institution to another. It's possible to get one answer from one university and another from a different university in the same state.
California: SAS counselors frequently get questions about California residency requirements. In California, a student's residence is determined at the campus level. Campus officials can give you the most accurate advice on residence issues. If you have specific questions about your residency status, please read the statements of residency requirements published in the catalog of the public institution you plan to attend or contact the official who has been designated to make residency determinations for that institution. Here is additional information provided by the State of California.
In brief, to be considered a California resident for purposes of fees, an out-of-state student must have lived in California for more than one year preceding the residence determination date, relinquish residence in other states, show an intent to establish residency in California and demonstrate financial independence. Unmarried undergraduates from other states qualify as financially independent if they were not claimed by their parents or others as dependents for tax purposes for two preceding tax years and if their annual income is sufficient to meet their needs. Full details are available on from this University of California residency page.
Texas: Texas is another state for which SAS counselors often get questions. Rules and Regulations for determining residence status are set by the Texas Higher Education Coordinating Board. THECB residency information can be found at CollegeforTexans.com. The University of Texas at Austin also has extensive information about Texas residency.
Local Scholarships
Three community organizations offer scholarships to SAS students: the Singapore American Community Action Council (SACAC), the SAS PTA, and the American Chamber of Commerce. Applications are available in the Counseling Office each March. Each of these scholarships has its own application and eligibility requirements.
Private Scholarship Searches
A number of foundations and other private organizations have developed scholarship programs. The following search engines can help you sort through them. Beware of scholarship scams. If anyone asks you for money to apply for a scholarship, it's probably a scam.
- Wired Scholar - This is a reputable scholarship search program, some say the best online. It takes 15 - 20 minutes to fill out the profile, but for a national scholarship search it does the job.
- FastWeb - a free scholarship search engine.
- GoCollege - information on financial aid and more.
- MeritAid - allows students to complete a profile and a summary of colleges with merit scholarships will be generated based upon the information provided in the profile.
- College specific scholarships - colleges sometimes offer scholarships to all admitted students meeting narrowly defined objective criteria (e.g., 3.0 GPA and 1100 SAT)
Summer Jobs
There are several ways to pay for college other than applying for financial aid. Students can also work! The American Association in Singapore sponsors a Summer Employment Program for SAS students between the ages of 14 and 18. Full details are available on the AAS website.
How Need-Based Financial Aid Works
Federal financial aid is only available if you demonstrate "financial need" as determined by a federal formula. Need based financial aid in the form of grants (grants do not have to be paid back and are often referred to as “scholarships”), low-interest loans, and student work-study programs is available based upon the information submitted on the Free Application for Federal Student Aid--the FAFSA. The federal government makes a determination about your expected family contribution (EFC), or the amount your family can reasonably be expected to contribute toward a student's education, based on information you have entered on the FAFSA about assets, income, and other data from a parent's (and student's) US income tax form.
The data you submit on the FAFSA goes to a place called CPS (Central Processing System) where it is compiled and then a formula is applied. The formula the Department of Education uses to compute your EFC is called Federal Methodology.
The EFC is basically what the government believes you should be able to contribute toward the cost of attending college, based on your state of residence, household size, number in college and student and parent income and asset information. Next, the school you attend establishes a Cost of Attendance (COA). The COA is composed of tuition, room and board, fees and estimated expenses (books, supplies, personal). Together, the EFC and COA are used to determine your financial need. Financial need is calculated by subtracting the EFC from the COA and is a guideline in determining how much need based financial aid you may receive. The equation looks like this:
COA - EFC = Financial Need
The college's financial aid office then uses the "need based" resources they have available to try to "meet" your financial need.
Financial Aid Scenario
Sally files her FAFSA and a few weeks later receives her Student Aid Report (SAR). She notes that the EFC on the SAR is "01200" (or $1,200). Her school has a COA of $18,000. So, using the formula above we find that Sally's need is $16,800.
The financial aid office then uses this information to construct a financial aid package. For example, the college offers the following:
$5,000 Institutional Grant
$1,550 Federal Pell Grant
$1,000 Federal SEOG
$3,500 Federal Subsidized Stafford Loan
$1,000 Federal Perkins Loan
$1,600 Federal Work Study
Total aid: $13,650
What this tells us is that if Sally's need for financial aid is $16,800, the financial aid office was only able to meet $13,650 of that. The difference between the two is called unmet need. In this case, Sally's unmet financial need is $3,250. What that means to Sally is that she will have to contribute more than her EFC in order to meet her educational costs. Unmet need is a common occurrence in financial aid packages. The school is under no obligation to meet your need for financial aid and, in many cases, is simply unable to do so, given the types and amounts of funding at their disposal. What the financial aid office does, to the best of its ability, is to meet as much of your need as it can with the resources it has available. Those resources may include scholarships, grants, loans, and work. Note: If you think you have an "unusual circumstance" which should be considered, you should discuss it directly with the college's financial aid office.
Before you go through the arduous task of completing financial aid forms, take a look at financial aid estimator on sites such FinAid, ACT or Peterson's. You can enter your financial information and these estimators will provide a rough evidence of whether you might qualify for aid.
First, you should understand that while some colleges and universities are more expensive than others, cost doesn't always equate to quality; rather it may be based upon other factors such as the school's endowment and location. Of course state universities offer a lower cost option to state residents. If you are uncertain whether or not you qualify for residency in a particular state, begin by checking the residency guide on the College Board’s web site. If cost is an issue for your family, please let your counselor know that very early in the process.
If after reading all of this you have decided to "go for it" and complete the FAFSA, click here for senior year step-by-step instructions.
You should, of course, realize that some colleges and universities are less expensive than others. Cost doesn't always equate to quality, but may be based upon the schools endowment and location. If cost is an issue for your family, please be up front about that as you're meeting with your SAS counselor. You might also want to look at universities in Canada since they are much more reasonable in cost.
Merit Based Scholarships
By Ivy League agreement, the most selective schools provide only need, as opposed to merit-based, financial aid. Less selective colleges do, however, sometimes provide merit awards. These awards are used to encourage talented students to consider attending these schools. Colleges realize that talented students will have a number of acceptance offers and use merit awards as an incentive to attract them. Talent grants are given to students who demonstrate a particular talent in sports, the arts, leadership, social service, or academics. These grants are offered regardless of a student’s financial need.
Students can attract merit aid by applying to schools where their class rank and test scores will place them in the top 25% of the applicant pool. The most generous colleges tend to be private liberal-arts colleges that boast large endowments but face stiff competition from more-affordable and academically comparable state schools.
Loans
If your financial aid award package includes an education loan, you are responsible for applying for the loan. Instructions are generally provided with the award letter. Even if an education loan is not a part of your financial aid award, you may get a loan if you cannot meet the Expected Family Contribution (EFC) from your savings or current income.
Loans have made higher education possible for millions of students, but you should consider your options carefully before borrowing and limit borrowing to only the amount necessary. The following sites have more information about student and parent loans:
More Information
Still confused about financial aid? The Financial Aid Information page provides more detailed information about financial aid. |
