Tag: COA

What is Academic Competitiveness (AC) Grant?

Grants/Scholarships

The Academic Competitiveness Grant encourage students to take more challenged classes in high school and to pursue college major in high demand (such as STEM: Sciences, Techology, Engineering, Math, and Critical Foreign Languages). In addition to Pell Grant, up to $750 will be awarded to eligible 1st year AC Grant Students; $1,300 to 2nd year AC Grant students.

Eligibilities:
1) Completed 1 of state designed secondary school program
2) Has passed at least 2 AP (Advanced Placement) tests or IB (International Baccalaureate) courses
or
3) Has completed high school courses of 4 year English, 3 year Math, 3 year of Sciences (include 2 years of biology, chemistry or physics), 3 years of social studies, 1 year of foreign language.
4) Student must be in the 1st or 2nd year of a 2 or 4 year degree study.

Qualification:
1) U.S. Citizen
2) Applied for Financial Aid (FAFSA), determined to be eligible for Federal Pell Grant
3) Full – Time student

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WHAT IS EFC (EXPECTED FAMILY CONTRIBUTION) OR SAI (STUDENT AID INDEX)?

Financial Aids

The EFC (Expected Family Contribution) is the amount of money family is expected to contribute towards COA (cost of attendance).

Parents’ AGI (Adjusted Gross Income) + Untaxed Income & Benefits–Income Allowance
Fed Income Taxes
SS (Social Security) Taxes
State Taxes
Employment Exp. Allowance		x 22 – 47% (assessed at a variable rate)=Parents’ Contribution from Income
Parents’ Assets–Asset protection Allowancex 5.64% (assessed at a variable rate, no asset protection allowance as of 2023-2024, FAFSA)=Parents’ Contribution from Assets
Students’ AGI (Adjusted Gross Income) + Untaxed Income & Benefits–Income Allowance
Fed Income Taxes
SS (Social Security) Taxes
State Taxes		x 50% (assessed at a flat rate)=
Students’ Contribution from Assets
Students’ Assets–x 20% (assessed at a flat rate)=
Students’ Contribution from Assets
EFC (Expected Family Contribution)

In the EFC calculation: The family’s home/farm (if family lives in the home/farm) are not assessed. Business assets are not counted if the owner employs 100 or fewer full time employees. Above 100 employees are assess at a special net worth adjustment. Parental asset protection allowance is based on the age of the older parent. The allowance increases with the age of the older parent.

What are the assets included in FAFSA:
Included: 529s (Parent Assets), Bonds, Checking, CDs, Mutual Funds, Other Real Estate, Savings, Stocks, UTMA/UGMA & Trusts.

Excluded: 401K, Annuities, Family owned small business and Farms (2024-2025 + will be included), Home Equity, IRA, Life Insurance Values, Pension, Personal Property.

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What is Cost of Attendance (COA)?

Financial Aids

Admissions office and financial aids office work hand in hand, usually they are run by one umbrella, the department called “Enrollment Management”. There are many types of Admissions: ED (Early Decision), EA (Early Action), EV (Early Evaluation), RA (Regular Admission), Rolling, Open, Deferred Admission.

ED (Early Decision):
ED is when students apply to Early Deadline and if accepted, they are obligated to or committed to attend. Students are typically notified either acceptance or rejection by early December, sometime right before Christmas. This can be one of the best Christmas gifts!

EA (Early Action):
EA is when students apply to Early Deadline and if accepted, they are NOT obligated to or NOT committed to attend. EA application are usually due in Fall, and students receive decisions before the year end.

EV (Early Evaluation):
EV is when student apply in Early (by November) and were sent a decision (not an acceptance letter) by January about their chance of getting in.

RA (Regular Admission):
RA is the common type. Students usually send applications between November and January. Schools have minimum requirements, such as GPA, SAT or ACT, high school diploma, personal statement, essays, letters of recommendations. Schools usually compare students’: academic performance, extracurricular activities (EA), letters of recommendations.

Rolling (Rolling Admission):
Rolling allows students to apply ANYTIME during admission period (between September thru July).

Open (Open Admission):
Open are normally for community college students and online students. They allow students who meet minimum requirements to be admitted.

Deferred (Deferred Admission):
Deferred allows students who have personal, financial and other concerns to postpone their enrollment for up to one year.

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What are considered Parents’ Assets?

Financial Aids
Yes – Count as AssetsNo – Don’t count as Assets
529s401(k)
Bonds403(b)
CDsAnnuities
Checking AccountIndividual retirement account (IRA)
Family-owned small business
and farms (starting 2024)		Life Insurance
Investment in Real Estate other than
your Primary Resident		Pension
Saving AccountPersonal Property (Jewelry, car, etc)
TrustsPrimary Resident Home Equity



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How much financial aids can I receive for school?

Financial Aids

Parents often ask, “How much financial aids can my son/daughter receive for school?” 

First thing you will need to do is to: fill out your FAFSA Form (Free Application for Federal Student Aid). Once the Office of U.S. Dept of Education process your application, they will send your info to all of the schools you listed on FAFSA. It’s kind of like a One-Stop Shop, each school will use the FAFSA information to make decision on how much financial aid you are eligible. Each school’s schedule is totally different. You must check with each school to find out when you can expect to receive a financial aid offer.

Different schools have different formulas, but basically, they use these three factors:

1. Status: Your status of school enrollment (FT – full-time, HT – Half-time, LHT – less than half-time, etc.)

Your status of school enrollment will impact the dollar amount you qualify for. For example, certain student loans are available only to students enrolled more than half-time.

2. COA: Cost of Attendance (👍metrics to compare schools)

COA is usually available on the school’s website. COA usually includes: a) Tuition and Fees, b) Room and Board, c) Books, supplies, living expenses, transportation, loan fees, and more. COA varies from school to school and it’s a very realistic metrics when comparing schools in a whole. Some schools may have lower tuition, but living expenses are much more higher.

3. EFC: Expected Family Contribution ()

EFC is the main piece of the puzzle. It’s the main info you wrote on FAFSA. The EFC is not necessarily the amount of money your family will have to pay out of pocket for college. It’s not just income and it’s not the financial aid you will receive. However, it is a main # used by your school to calculate how much financial aid you are eligible for at that school.

If you have questions about your EFC, contact the financial aid office at your selected college.

Schools then use this formula to determine your financial need:

Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need

Once the school determined your needs + accepted you, you will receive financial aid offers from the schools. All your financial aid offers will be different. Different schools have different aids programs and even same school has different aids available in different years. So you have to be in it to win it.

Different offers can come from different sources: school itself, private foundations, state or federal level. Make sure you understand the type of funding and if you will need to pay back or not.

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