The Office of Student Financial Planning determines two factors based on the information provided. The first factor is financial need - the amount of aid for which you can qualify. The second factor is the type of aid for which you are eligible.
The information you reported on the Free Application for Federal Student Aid (FAFSA) is used to calculate your Expected Family Contribution (EFC) which is a measure of your financial strength. The EFC is used to determine your eligibility for federal student aid. The formula for the EFC calculation is established by law.
This is the maximum amount of financial aid you can receive from any combination of need-based programs. Unsubsidized loans can be used to replace the EFC. The Unsubsidized loan is not need-based. Since available funds are sometimes not sufficient to meet the full financial need of all applicants, awards will be made on a first-come, first-served basis.
How to read award letters
Award letters tell you exactly how much financial support the school is able to provide for the upcoming year. The most common sources are:
Scholarships (Money that does not have to be repaid)
Any scholarhip that you notified the school about, as well as those the school has offered, will be included on an award letter.
Grants (Money that does not have to be repaid)
» Federal Pell Grant (undergraduates only)
» Federal Supplemental Educational Opportunity Grant (FSEOG - undergraduates only)
» Institutional grants
» State-sponsered grants
Federal Work Study (Money earned by working)
» On-Campus (work for the school)
» Off-Campus (private nonprofit organization or a public agency)
Loans (Borrowed money that must be repaid)
» Federal Stafford Loan - subsidized
» Federal Stafford Loan - unsubsidized
» Federal Perkins Loan
» Private Alternative Loan programs
Expenses should include rent and utilities, food, transportation, insurance and personal expenses (clothing, laundry and dry cleaning, haircuts, entertainment, subscriptions, etc.). Expenses can be categorized into two types:
Fixed - these expenses normally include the necessities of life and do not change over time. If you cannot pay for these expenses, you will incur some kind of penalty. Most fixed expenses occur monthly, like rent. Other occur periodically, like insurance, and some are one-time expense, like a fee for a test.
Discretionary - These are items you can afford when you fixed expenses have already been paid. Normally, these things are not necessities. Cable TV, club memberships, and entertainment are all considered discretionary expenses. Determining what is necessary and what is discretionary will be different for you than for someone else. You should know, within $25, how much discretionary money you have to spend per month, so you will always know when you have reached your limit.
Budget Saving Tips
» Find reliable roommates to share the fixed cost of rent and utilities
» Communicate long distance with email or on-line chat services
» Make fewer long distance phone calls, and make them during nights and weekends
» Use alternative forms of transportation — walk, carpool, bus or bike
» Be a smart consumer — avoid convenience and fast foods, shop only for items that you need, and avoid spending money on those items which are considered luxuries
» Work with other students to share resources
The Student Financial Aid Handbook has been prepared to help you understand the financial aid process at the Monterey Institute of International Studies.
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