Receiving Aid
How Financial Aid Is Awarded
How Aid Is Awarded
There are three elements that assist us in determining students' financial aid awards:
Cost of Attendance (COA)
Your Cost of Attendance (COA) is the Office of Student Financial Aid Services estimate of your educational expenses for the aid year.
- Tuition and Fees: Tuition and fees costs are estimated based on your projected or actual enrollment, IU residency status for fee payment purposes, and major.
- Room and Board: Room and Board costs are estimated based on the housing option you reported on the FAFSA.
- Books and Supplies: Books and Supplies are estimated based on an average cost for textbooks and related supplies based on your projected or actual enrollment.
- Transportation: Transportation is estimated based on U.S. Department of Labor Bureau of Labor Statistics data.
- Personal/Miscellaneous: Miscellaneous costs are estimated based on your clothing, recreation, medical and dental costs, and life insurance and health insurance.
Expected Family Contribution (EFC)
Using a need analysis formula set by Congress, the U.S. Department of Education uses the information you reported on the FAFSA to calculate the Expected Family Contribution (EFC). This number appears on your Student Aid Report (SAR) and represents the amount you and your family are expected to contribute toward your Cost of Attendance (COA). Your EFC and COA are key factors to determine your financial aid eligibility.
Financial Need
Your need is calculated based on the following formula:
COA - EFC = Need
Other factors that determine the types and amounts of awards are level of financial need, Federal Pell Grant eligibility, class level, major, enrollment status, prior degree, aggregate loan limits, financial aid program funding levels, residency, state and federal regulations, and institutional philosophy.
Most aid awarded is need-based. It's used to cover a student's need, not the EFC. Some aid, such as a Federal Stafford Unsubsidized Loan, can be used to replace the EFC. A student's total aid cannot exceed his or her COA.
Example: Beth's budget is $15,804, and her EFC is $3,000. Her financial need is $12,804. If she's eligible, Beth could receive up to $12,804 in need-based aid. She could use private loans or other non-need based aid to bring her total to $15,804. However, she cannot receive more than $15,804 in aid.
Federal Campus Based Aid – Federal Supplemental Educational Opportunity Grants, Federal Work-Study and Federal Perkins Loans
For federal campus based aid, awards are made based on financial need with priority consideration based on our receipt of your FAFSA by the FASFA Priority Receipt Date of March 10 for the next aid year.
If you were not awarded Federal Work-Study and are interested in a review of your eligibility, please contact us via Ask an Advisor.
Grants Are Awarded Before Loans
Before awarding Federal Student Loans, eligible students are awarded grants. If a student rejects or reduces a loan, we cannot increase grants to make up the difference.
Additional Options – Federal PLUS Loans and Private/Alternative Loans
Federal PLUS Loans (parent Federal PLUS loan for undergraduates) and Private/Alternative Loans are not initially awarded to students.
A Student's Financial Aid Awards Might Change
If the student's financial circumstances change and he or she is approved for a Professional Judgment Appeal, we will review the student’s eligibility and awards and make appropriate adjustments.
On the other hand, a student can delay or lose aid by missing deadlines or failing to meet other requirements.
A Student's Aid Could Be Delayed, reduced or cancelled if:
- The student's Master Promissory Note is not completed (typically a first-time IUPUI borrower)
Students must complete the master promissory note (MPN) within 60 days if he or she has not previously borrowed from the lender (bank). If the student does not complete the MPN within 60 days, we will cancel the award. A student may contact us to request a determination of eligibility to award a loan that has been cancelled. - The student does not accept Federal Work-Study award before the deadline
A Federal Work-Study (FWS) award is typically made in an offer status and the student must accept the award via OneStart within 60 days. After 60 days, FWS awards still in an offer status are cancelled. A student may contact us to request a determination of eligibility for a FWS award that has been cancelled.
After accepted a FWS award, the student is responsible to search for a job and gain employment. When students do not gain employment within a reasonable period of time, the FWS award will be cancelled. - The student does not complete Quality Improvement (QI) or Quality Assurance (QA)
Based on criteria established by internal and federal guidelines; some students are notified and required to complete the Quality Improvement and/or Quality Assurance process. If selected, the student will receive a letter explaining this process. A delay in completing the QI or QA process will result in cancellation of all awards if the student had previously been awarded financial aid or a delay in determination of financial aid awards until the student completes the QI or QA process. - The student fails to make Satisfactory Academic Progress
Students must maintain Satisfactory Academic Progress (SAP) in an eligible degree or certificate program to be eligible for financial aid.
