Scholarships -- Determining Financial Need

AudraClodfelterAudraClodfelter Posts: 17 ✭✭✭
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edited February 29 in Grants & Scholarships

Hey everyone!

I am building our application with Foundant and using this as an opportunity to re-think some of the questions on our application. Several of our scholarships are based on financial need. Currently, I ask students to list their estimated college expenses, scholarships they have for the upcoming year, and estimated PELL grant. I also ask for the EFC. I have used the calculation of Cost - (Scholarships + Pell +EFC) = Need

So... 25,000 - (1000 + 5000 + 250) = remaining need

When I worked for the Illinois Student Assistance Commission, we explained that financial aid covered the gap between the cost of attendance and what the student could pay (EFC). But I also know, the EFC isn't always reflective of a family's situation.

With all of that in mind, I don't know if I am taking the right perspective on determining financial need and I would appreciate any feedback/discussion regarding this process.

Thanks,

Audra Clodfelter, Communication/Scholarship Administrator

Southeastern Illinois Community Foundation, Effingham, Illinois

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  • TomWickershamTomWickersham Posts: 82 ✭✭✭
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    I wish I could help, but I'm afraid our approach is too simple. We ask for EFC and also ask for extenuating circumstances. We have found that the list of scholarships earned to date is random/incomplete information. Like, Laurie, I would certainly be interested in learning about other methods.

    Best of luck to you!

  • DeirdreMcLoughlinDeirdreMcLoughlin Posts: 62 ✭✭✭
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    We ask for FAFSA (EFC), extenuating circumstances and the parent's AGI - then we rank this information and we get a number #1-5 which becomes their ranking number. we do keep an eye out on any thing that might be relevant to the extenuating circumstances which sometimes come up in an essay.

  • BethNuttallBethNuttall Posts: 49 ✭✭✭
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    We ask for the EFC score and provide an optional question to provide any extenuating circumstances.

    I was reading about the bill that just passed where they have simplified the FAFSA, which is wonderful news, but I saw that they are also transitioning from the "Expected Family Contribution" (EFC) to "Student Aid Index" (SAI) to better communicate to students the role of the FAFSA calculation on their aid eligibility. I am wondering the impact this could/should have on scholarship applications for 2021 and if we should now be asking for the SAI instead of the EFC? I know this is very new information, but wondered if anyone here may have any insight?

    https://www.ncan.org/news/543813/Bipartisan-Support-for-FAFSA-Simplification-Eases-Path-to-Accessing-Financial-Aid.htm

  • JennyCampbellJennyCampbell Posts: 19 ✭✭
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    Following. We use wildly variable methods to assess, depending on the scholarship, so I am very interested in this discussion. Thank you in advance to everyone's insight and sharing your methodologies.

  • DeirdreMcLoughlinDeirdreMcLoughlin Posts: 62 ✭✭✭
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    To determine financial need - we take into account four different factors and we rank then, total and come up with a number between 1 and 5 - 5 has great financial need and 1 has little or no financial need. The financial need is ranked by staff and the committee reviewers will only see a single number as the financial ranking.

    We use: AGI, EFC, Family Members attending College, and Special Circumstances. We are confident generally in our rating.

    Deirdre McLoughlin

  • TomWickershamTomWickersham Posts: 82 ✭✭✭
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    edited January 2021

    @AudraClodfelter I think you're on to something!

    Unfortunately for us, and others I suspect, we have to rely on EFC because we are making decisions so early in the year (March/April) and because students have submitted applications long before they've decided what school to attend. So, we don't have COA or financial aid package information to consider.

    Please be sure to rest that brain of yours. It's a Friday!

  • AudraClodfelterAudraClodfelter Posts: 17 ✭✭✭
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    @TomWickersham This is a very good point. This part of the process is why my brain hurts!

  • DeirdreMcLoughlinDeirdreMcLoughlin Posts: 62 ✭✭✭
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    We also have a formula for those scholarship unique to each student's circumstance. For those, we do wait until we get their financial aid award letter.

    Cost of attendance minus (EFC + Grants + Scholarships + Loans) = Actual need.

    Good luck

    Deirdre McLoughlin

  • SeleneLopezSeleneLopez Posts: 3
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    Hi everyone. This is an area where we have always struggled, specially now with COVID and everyone has financial need.

    I'd love to open up a conversation about what the elimination of EFC would mean to the financial need evaluation process. Ultimately, we want to know how much money is coming in to the household and how much money goes out. Because we know that a lot of adult students continue to struggle to stay afloat even before the pandemic.

    Hope to keep the conversation going as we find solutions to fairly serve students.

  • AudraClodfelterAudraClodfelter Posts: 17 ✭✭✭
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    @SeleneLopez I'm anxious to learn more about the new need indicator (I think it's called the student aid index), and it's impact on financial aid and scholarships. Hopefully we'll see some training on it in the next few months.

    I have two financial aid short answer questions in which I ask how students and their parents have financially prepared for college, and if there are any special circumstances the committee should consider when evaluating their financial need. This gives the student the opportunity to explain any situation that has arisen that isn't reflected on the FAFSA or income information.

  • SeleneLopezSeleneLopez Posts: 3
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    @AudraClodfelter I found this informative article https://www.kiplinger.com/personal-finance/credit-debt/loans/student-loans/602186/fafsa-application-changes-are-coming

    I think the short answer questions can be very informative. Keep me in the loop if you hear about any trainings!

  • AudraClodfelterAudraClodfelter Posts: 17 ✭✭✭
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    @SeleneLopez Thanks! That really breaks down the changes!!

  • LizMcClureLizMcClure Posts: 9 ✭✭
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    I appreciate that I am not the only one that struggles with this! While I do feel that with the cost of attendance so high, most of the students in our region would qualify as having a financial need, it does always feel like we're struggling to find the right students while keeping the burden of the application as low as possible. Have the folks that use AGI run into problems with students not understanding what information is being requested? For some students even explaining the EFC is hard so I worry that adding in the AGI might be a deterrent to some students. We have a fairly substantial number of DACA students and children of immigrants who often don't have much help from their families in navigating the college/scholarship application process.

  • MichelleFredericksonMichelleFrederickson Posts: 12
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    edited March 2021

    Our Foundation's deadline is July 15th so we are able to have students upload their financial aid award letter and they enter the EFC. Which is usually verified by the college/university's award letter. We also allow applicants, who wish not to do the FAFSA to enter 99999 in the EFC question. That way they can still qualify for academic scholarships but not financial need scholarships.

    I believe the new FAFSA guidelines are starting in 2023-2024 academic year. Read an article on it and should be less questions but also taking away the sibling discount. Also, a lot can change between now and then. Should be interesting!

  • BettieStammerjohnBettieStammerjohn Posts: 98 ✭✭✭
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    @DeirdreMcLoughlin

    that is an interesting formula - that you add loans into the equation to determine actual need.

    I look at our scholarships a a means to reduce what a student/family may need to take out in loans (which is often the case for how the EFC gets paid. I don't know too many families (at least in our area) that pay the difference in cash or payments. Most are taking out a combination of student and parent loans.

    I know that our scholarships are small (typically about $1,000) but we hope that every little bit helps in reducing loans which take years to pay off.

    My daughter graduated in 2006 and she and I are both still paying off loans from her schooling - and she went tuition free as part of a tuition exchange program so she only had to pay for fees, room and board etc. My son who graduated in 2007 was not as lucky on the tuition part so we are both still paying on those loans, too. Kind of scary.

    I find the whole figuring out financial need thing very difficult.

    I like @JoannFarnham 's rubric.

    Bettie Stammerjohn

    Executive Director

    Community Foundation of Greene County, Pennsylvania

  • DeirdreMcLoughlinDeirdreMcLoughlin Posts: 62 ✭✭✭
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    edited May 2021

    Michelle your idea of such a late deadline is wonderful. Any one else doing the processing so late?

  • DavetteSwineyDavetteSwiney Posts: 17 ✭✭✭
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    All of these responses have been so helpful as our scholarship reviewers struggle with assessing financial need each year. We have the applicant enter their AGI and EFC along with a short answer question around their financial situation and how they are contributing to their higher education costs. We also ask them to attach the Student Aid Report (SAR) so we can verify numbers in the chance there is an issue. Over the last two years, more of those reports have said "transferred from the IRS" instead of having the numbers on the report. When there is an issue or question, it is a lot harder for us to resolve. Does anyone else require this report or have other solutions?

  • TracyLarimerTracyLarimer Posts: 45 ✭✭✭
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    An update of this discussion for the 2021-2022 scholarship year!

    There is a great article on changes to #FAFSA found at the link below.  It requires a (free) login, but once you subscribe you might find it an an interesting newsletter to follow if you are working with #scholarships.  https://www.chronicle.com/article/u-s-education-department-will-relax-aid-verification-rules-in-2021-22

    Tracy Larimer | Foundant| Bozeman, MT | she / her / hers |

  • AudraClodfelterAudraClodfelter Posts: 17 ✭✭✭
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    #financial need

  • DeirdreMcLoughlinDeirdreMcLoughlin Posts: 62 ✭✭✭
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    So the new improved FAFSA opens on 12/31/23 as the ball drops!


    As discussed in theis forum, it would appear the majority of us do use the EFC now SAI number as one of the metrics to rank financial need. We used a scale of 1-5 with EFC 0 of zero ranked as 5 and any EFC over $12500 and above achieved a rank of 1 point (see below). The scalability for SAI with negative numbers seems to be more complicated - has anyone come up with a system for ranking the SAI numbers? Thanks for your assistance

    EFC

    5 points = $0       - $2,000

    4 points = $2,001   - $4,300

    3 points = $4,301   - $7,900

    2 points = $7,901   - $12,500

    1 point = $12,501 +

  • RandyMaconRandyMacon Posts: 3 ✭✭
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    Our board has tasked us with recommending a new process for deterring financial need now that EFC is turning into SAI. Thanks, @DeirdreMcLoughlin, for sharing your 1-5 scale above. I'd love to hear from others as you re-work your processes for your needs-based awards.

    Best,

    Randy

  • MandyMundyMandyMundy Posts: 2
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    edited November 2023

    @RandyMacon and all

    Like all of us, being doing a lot of research and thinking.

    Our former need ranking was

    Using this SAI Chart:


    created the following ranking:


    I'd love to hear feedback on how I analyzed this and broke down the categories.


    You'll see on the linked website the SAI is color coded:

    I tried to create my categories capturing the color coding which categorizes need based aid.

    Of course, my 1-4 scales can be separated further to create a 1-5 or 1-7 scale for instance.


    #financial need #SAI #EFC

  • DeirdreMcLoughlinDeirdreMcLoughlin Posts: 62 ✭✭✭
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    This is the ranking system we will use for EFC/SAI, we also have a special circumstance of 1-3, and for more than one sibling in college at the same time 1-2 and we total all

    SAI SCALE DECEMBER 2023

    5            -1,500 to           3,750

    4            3751    to           11250

    3            11251  to           18750

    2            18751  to           26250

    1            26251  upwards

  • MeganDeHoogMeganDeHoog Posts: 2 ✭✭
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    Hi everyone,

    I'm revisiting this thread and wondering if others have developed SAI scales since we all first started following this subject. Our scholarship deadline is March 1st and we've done a lot to accommodate the FASFA delays and timelines. We've made most of the financial need information optional, but it's still a scoring component for some review. I would appreciate any information anyone is willing to share.

    Thanks!

  • MollyCerroniMollyCerroni Posts: 31 ✭✭✭
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    I don't think you're going to be able to count on the SAI if you want the information for all students. For our two college girls, we received one SAI and never received the other, and now the report rescinded the number we had and we have none. I don't anticipate seeing either of them before Friday.

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