How Eligibility for need-based aid is determined
Financial aid programs were created with the idea that the primary responsibility for paying for college rests with the student and his or her family. Need-based financial aid is available to families that demonstrate a need for additional resources. The formula used to determine whether you are eligible for need-based aid is:
Cost of Attendance
- Expected Family Contribution (EFC)
- Other Financial Resources (private scholarships, etc.)
= Eligibility for Need-Based Financial Aid
COST OF ATTENDANCE is the estimated cost of attending RHIT for a full academic year (Fall/Winter/Spring terms), including estimated amounts for tuition and fees, books and supplies, and room and board, plus a modest allowance for miscellaneous (such as the required laptop computer purchased during the freshman year). The budget allows the same amount for room and board whether you live on or off campus, UNLESS you are living with your parents (in which case the budgeted amount will be less).
EXPECTED FAMILY CONTRIBUTION (EFC) is derived from an assessment formula that is applied uniformly to all aid applicants and considers the financial information provided on the Free Application for Federal Student Aid (FAFSA). The FAFSA determines federal aid.
The EFC is made up of two parts:
- The Parent Contribution – based on your parents’ income and assets (including cash, checking, savings, and money market accounts; investments and real estate holdings and business equity), that your parents are expected to pay toward your college costs for the year. Allowances from living expenses (based on family size), taxes paid, the number of siblings in college, and assets protection for retirement are built into the formula.
- The Student Contribution – based on your income and a percentage of your savings and other assets.
Note that your EFC is determined early in the process of assessing your financial need, and unless your financial circumstances change significantly, your EFC remains constant. Sources of financial aid are not applied against student and parent contributions but are used to meet the difference between Expected Family Contribution and your costs.
SCHOLARSHIP AND OTHER FINANCIAL RESOURCES are funds you may have received from sources outside your family, including private scholarships offered provided by your school, church or community; merit scholarships; ROTC scholarships; benefits you or your parent has earned through military service or other employee benefits; awards and scholarships from your state; and prepaid tuition plans.
How need-based aid is awarded
Your eligibility for need-based aid is the total Cost of Attendance minus your Expected Family Contribution and other financial resources. In order to meet your need, we first award any federal and state grants and scholarships for which you are eligible (e.g., Pell Grants and Frank O’Bannon). Federal Direct Loans are then added to your aid package. Applicants with financial need beyond federal and state grants and loans are offered assistance through the Work Study program which must be awarded to students with the greatest need. We award to students with the greatest need. We attempt to distribute grant, loan and Work Study funds equitably among the population of all eligible applicants. Award amounts are determined by the combination of demonstrated financial need, federal award maximums, and available funding, among other factors.
If a gap remains between the Cost of Attendance and the student’s resources after federal and state grants, then Rose-Hulman will see if funding is available through any need-based aid.
Because Federal Supplemental Educational Opportunity Grant (FSEOG) funds are limited; they are awarded only to applicants with the most need.
A note about scholarships and other resources
Students may seek scholarships from private sources, such as ROTC. According to federal regulations and RHIT policies, these must be considered among the student’s financial resources when eligibility for need-based aid is determined. They will improve your overall aid package.
In general, if you receive outside aid, it will be applied first against any cost not accounted for in your financial aid package (i.e., the gap, if one exists, between the cost of attendance and EFC, plus the financial aid offered).
Next, it will reduce your loan or work study awards, reducing the funds you must borrow or earn by working. Only if all loan and work study awards have been replaced by scholarships or other resources will your grant aid be reduced.
PLUS loans are an option for parent & graduate students
Direct PLUS Loans are part of the federal Direct Loan Program, which makes loans directly from the U.S. Dept. of Education. Interested graduate students and parents of undergraduates must apply for PLUS Loans separately if they need additional funds to cover their educational costs. Eligibility for these unsubsidized loans is not based on financial need and borrowers may obtain up to the amount of cost of attendance minus any other financial assistance the student is receiving.
The Direct PLUS Loan may be of interest to students and parents who:
- Are not eligible for other types of financial aid,
- Have unusual costs above the standard student expense budgets,
- Have remaining financial need after other forms of financial aid have been awarded, or
- Wish to borrow all or part of their Expected Family Contribution.
Because credit reports are valid for a limited time and we process PLUS Loan applications in June/July. The amount of the PLUS Loans you are eligible to receive will be determined when your application is processed.