Determining Eligibility for Need-Based Aid
Financial aid is based on the principle that students and families are primarily responsible for college costs. Need-based aid is available to families who demonstrate financial need using the following formula:
Student Aid Index (SAI)− Other Financial Resources = Eligibility for Need-Based Aid
Cost of Attendance (COA)
The Cost of Attendance is an estimate of expenses for a full academic year (Fall/Winter/Spring) and includes:
- Tuition and fees
- Books and supplies
- Housing and food
- Miscellaneous expenses & additional food
- Transportation
Housing & food costs are the same for on-campus and off-campus students, unless the student lives with parents, in which case the allowance is lower.
Student Aid Index (SAI)
The Student Aid Index is calculated using information provided on the Free Application for Federal Student Aid (FAFSA) and is used to determine eligibility for federal aid.
The SAI consists of:
- Parent Contribution: Based on parents’ income and assets (such as savings, investments, real estate, and business equity), with allowances for family size, taxes paid, number of siblings in college, and retirement protection.
- Student Contribution: Based on the student’s income and a percentage of savings and other assets.
The SAI is calculated early in the financial aid process and typically remains the same unless financial circumstances change significantly. Financial aid is used to help cover the difference between the Cost of Attendance and the SAI.
Scholarships and Other Financial Resources
Other financial resources may include:
- Private or community scholarships
- Merit-based scholarships
- State grants and scholarships
These resources are considered when determining eligibility for need-based aid.
How Need-Based Aid Is Awarded
Need-based aid is awarded in the following order:
- Federal and state grants and scholarships (such as Pell Grants and Frank O’Bannon)
- Federal Direct Loans
- Federal Work Study (awarded to students with the greatest financial need)
Aid is distributed as equitably as possible among eligible applicants. Award amounts depend on demonstrated financial need, federal limits, and available funding.
If a gap remains after federal and state aid is applied, Rose-Hulman will determine whether institutional need-based aid is available.
Because Federal Supplemental Educational Opportunity Grant (FSEOG) funds are limited, they are awarded only to students with the highest financial need.
How Outside Scholarships Affect Your Aid
Students are encouraged to seek outside scholarships. These funds:
- First reduce any remaining gap between the Cost of Attendance and your financial aid package
- Then reduce loan or Work Study amounts
- Only reduce grant aid if all loans and Work Study have already been replaced
Outside scholarships generally improve your overall aid package by reducing the amount you need to borrow or earn.