Financing your studies in the US

Financing your education in the US - the differences between grants, scholarships and loans.

There are two types of scholarships - Needs-Based and Merit-Based.

Need-based scholarships take your financial need into account when determining whether or not you’ll be a recipient.

A merit scholarship is awarded based entirely on your merits, and not on your need for financial aid. In general, this means that an applicant’s performance within a targeted area is evaluated by the scholarship committee and that the most outstanding applicants in that area will ultimately receive the scholarships, regardless of their financial standing. Some merit scholarships look at overall academic performance, test scores, and teacher recommendations. The merits upon which these scholarships are awarded generally vary depending on the organization that is granting them.

Most universities will automatically consider their applicants for merit-based scholarships. Some require a seperate form to be completed. Students should check individual university websites under their 'financial aid' page for more information. Merit scholarships might require writing an additional essay or submitting your application by an earlier date.

For need-based financial aid, you will likely have to fill in the CSS/Financial Aid PROFILE form or an International Student Financial Aid Form to demonstrate your family's financial background. You should check if the university accepts PROFILE, or if they use their own system. If you are a US Citizen or Permanent Resident - you should complete the FAFSA for federal aid.

Need is calculated based on the estimated cost of attendance (specific to each university) minus the expected family contribution. Your need per school is different based on the fact that each university has its own estimated cost of attendance.

Need-aware (need-sensitive) admissions is when universities will consider your ability to finance your studies when reviewing your application and then meet your financial needs upon admittance. If you have high financial need and are a need-aware university's most desirable applicant, it is possible your full financial need will be met.

Some universities are need-blind and do not base your admissions decision on your financial circumstances. Once admitted, they will meet your financial needs to attend. Very few universities in the USA are need-blind and offer full financial need to international students. These universities do not take your finances into account during the admissions process and will meet your full financial need if you are admitted. They are the most competitive for admission.

Some universities are need-blind and do not meet full demonstrated need - which means that if admitted they may offer partial aid, not full.

If a university is only able to meet a proportion of your financial need, you may be able to source additional funding from merit-based scholarships and external scholarships.

Use the following resources to find universities that offer financial aid and/or scholarships to international students:

• BigFuture College Search (under ‘Paying’)

• BigFuture Scholarship Search

• EducationUSA Financial Aid

• Fastweb (you can register using a US university’s mailing address)

Jennie Kent and Jeff Levy's resources on financial aid: https://www.bigjeducationalconsulting.com/resources

Bentley University's guide to financial scholarships: With $3 billion in private scholarships available nationally and globally each year, helping your students find the money to pay for their dream school is easier than ever — provided you know where to look. We talked to experts on our admission team to get their advice on where your students should start their scholarship search and how to make the most of the financial aid opportunities available to them. Check it out today!

Free application for federal student aid: Students must complete this online form to receive federal student aid. Most colleges require it. The FAFSA is free and it doesn’t take long to complete. Eligible for US citizens/permenant US residents. The FAFSA is available on Oct. 1 every year.

Some states have developed their own financial aid forms that are used in the awarding of state grants. Information about the programs that are funded based on the form, as well as the forms themselves, can be found on your state's higher education website. If your state has a financial aid form, know that it is different from the FAFSA. Students need to complete both. Many states ask that the student file the FAFSA before completing the state form. Students who file the FAFSA online are automatically directed to their state form. Students who file a paper FAFSA need to send away for a copy of the state form. Many states supply both online and paper formats for their applications. Each state has its own deadline.

Many colleges have their own financial aid forms that applicants either must, or should, fill out. The college may use the information gathered from these forms to determine who qualifies for special college scholarships.

Some colleges ask students applying early decision and athletes the college is recruiting to fill out an institutional form. This lets the college make an approximation of the family's estimated family contribution (EFC) and decide what financial aid package to offer.

Students should find out whether a college has its own financial aid form and what the deadline is. The form will be much simpler and shorter than the FAFSA.

Some colleges use this College Board–sponsored form to determine who is awarded their institutional aid. The CSS Profile is available on Oct. 1 every year.

The CSS Profile helps your students provide a complete picture of their family financial situation so they can receive a fair and timely aid award. The comprehensive financial information reported on the CSS Profile application allows colleges to target their private funds to the most economically deserving students. The CSS Profile provides access to a large source of funding that may not be available through the FAFSA alone.

The CSS Profile service is fully online. CSS Profile's unique, customized format tailors the application to each student.

CSS Profile helps students to:

• Report their financial resources to multiple colleges and programs on a single application.

• Tell their story about special circumstances that may affect their family's ability to help pay for college.

• Receive complete and accurate aid awards from colleges and scholarship programs allowing them to enroll in the college of their choice.

Because the CSS Profile application is customized for each student, applicants save time by only responding to questions pertaining to their situation. The format is streamlined, logical and easy to use.

CSS Profile fees cover the cost of customization and sending individual reports to colleges. Remember to finish your application and submit it in time to meet financial aid deadlines. These deadlines are provided once you select your schools.

Fee waivers are available for eligible students and cover the cost of all application and reporting fees.

Student Guide to the CSS Profile

What financial documents will you need?

Before filling out the application, it is important to have your financial documents and your parents’ financial documents readily available. If you or your parents filed federal tax returns, you will need to reference certain line items from these documents to complete your application.

The CSS Profile will ask you to provide family income information from 2 years prior to the year you plan to attend college. You should also expect to answer a few questions about your parents’ income for the most recent year or the year just before you attend college. A few questions will also be asked about the anticipated year to come. The purpose of this is to give financial aid officers a better idea of your family's financial circumstances over time.

W-2 forms and other records of income earned in the current year; records of untaxed income and benefits for the current and previous tax years; current bank statements and mortgage information; and records of savings, stocks, bonds, trusts, and other investments are also good reference materials.