What is the need analysis equation?
COA - SAI = Financial Need
What is the method for assessing ability to pay (two elements that create the SAI)?
1) Measuring the family’s financial strength or wealth, and 2) assessing a portion of the family’s financial resources as being available to contribute toward the costs of the student’s education
What are the 3 dependency statuses that determine the formula used to calculate a student’s SAI?
1) dependent (A), 2) independent with no dependents other than a spouse (B), and 3) independent with dependents other than a spouse (C)
For a dependent student, what 3 data elements add up to determine the SAI?
The parent contribution, the student contribution from income, and the student contribution from assets
What is the IPA?
The Income Protection Allowance accounts for a family’s basic living expenses based on the family size
What is the purpose of the asset protection allowance?
The asset protection allowance protects a portion of the parents’ assets for retirement and emergencies
What are the assessment rates for dependent students? (percentage of resources the SAI formula uses)
20% of the students’ assets and 50% of the students’ income (after IPA)
In what two situations does a student automatically qualify for the maximum Pell grant award?
An independent student who is not required to file a federal income tax return or a dependent student whose parents are not required to file a federal income tax return
What information is necessary to calculate maximum Pell eligibility (4)?
Poverty guidelines for prior-prior year (via HHS), state of residence, family size, adn tax filing status
What is CESA?
The Cumulative Education Savings Allowance is a protection built into the IM formula that recognizes a family’s need to save towards postsecondary education costs for each child
What is IM?
Institutional Methodology is an alternative need analysis formula developed by College Board (with help from FAAs)
