Calculating Eligibility

By understanding key factors, you’ll have a clearer picture of how your financial aid is calculated and what you might be eligible to receive.

1. Cost of Attendance (COA): Each school calculates a COA for your program every year. Your COA sets the maximum amount of aid you can receive. This includes:
   • Direct Costs: Charges such as tuition, fees, and—if you are living in the residence halls—on-campus housing and meal plan.
   • Indirect Costs: Estimated expenses for books, supplies, transportation, and personal needs.
2. Student Aid Index (SAI): Based on the financial information provided in your FAFSA, your SAI helps determine your eligibility for need-based aid, such as:
   • Federal Grants ( money that doesn't need to be repaid)
   • Subsidized Loans - (loan money that is guaranteed and interest-free while in school)
3. Enrollment Status: The number of credits you enroll in each semester impacts your aid. Schools use your enrollment to determine your eligibility for different aid programs.
   • Federal Pell Grant amounts adjust based on enrollment, per every .5 credits from full-time to part-time. Could be eligible for a small portion at .5 credits enrollment.
   • Federal SEOG Grants amounts adjust based on full-time and half-time.
   • PA State Grants amounts adjust based on full-time and half-time. Not eligible at least than half-time. Not eligible at least than half-time.
   • Federal Student Loans require at least half-time enrollment but do not increase with additional credits. Not eligible at least than half-time.
4. Dependency Status: Your FAFSA dependency status (dependent or independent) influences the amount aid you qualify for in federal student loans each year.
5. Degree Type and Grade Level:
   • Undergraduate Students: Eligible for grants and loans, with loan amounts increasing as you progress through credit levels:
     • 0-29 credits: $5,500 (dependent), $9,500 (independent).
     • 30-59 credits: $6,500 (dependent), $10,500 (independent).
     • 60+ credits: $7,500 (dependent), $12,500 (independent).
   • Post-Baccalaureate Students: Eligible for limited undergraduate loan funding based on remaining eligibility.
   • Masters and Doctoral Students: Eligible for up to $20,500 annually in unsubsidized loans only.

When planning for college, it’s important to understand the Cost of Attendance (COA). This includes all the expenses you might face during an academic year, both direct and indirect:

• Direct costs: Expenses billed directly by the university, like tuition, fees, and housing if you live on campus.
• Indirect costs: Other costs you might have, like books, supplies, transportation, and personal expenses—not billed by the university but still part of your budget.

Your COA depends on:

• State of Residency: Costs vary depending on whether you are an in-state Pennsylvania resident or an out-of-state non-PA resident.
• Living Situation: Costs depend on whether you live on-campus in residence halls, off-campus in an apartment or house, or commute from home with your parents.
• Degree Type: Costs differ for undergraduate, graduate, and online programs.
• Enrollment Status: Full-time and part-time students have different cost structures.

Your COS is NOT:

• Your COA is not the amount you owe the university.

Your COA is:

Just an estimate—it includes all possible expenses for the year, both direct and indirect.

• Direct Charges: To see estimated direct charges specific to your enrollment, you can refer to your electronic Financial Aid Offer once you receive it. In the meantime, you can view estimated direct costs like tuition and fees, on the Office of Student Accounts website now listed under your program and residency status.
• Indirect Costs: For estimated indirect expenses like books and supplies, refer to the COA chart listed under your program and residency status.
• Actual Charges: To see what you will actually owe the university, you will need to wait for your bill from the Office of Student Accounts each semester.

What COA includes:

• Tuition and Fees: Estimated based on your program level and enrollment.
• Housing and Meals: Estimated based on whether you’ll live on-campus, off-campus, or at home with parents.
• Books and Supplies: Estimated using an average, surveyed amount.
• Transportation Costs: Estimated based on an average, surveyed amount for your housing type.
• Personal Expenses: Estimated for items like a computer and other school-related needs, based on an average, surveyed amount.

Why COA Matters:

The Cost of Attendance (COA) is essential to students because it provides a comprehensive estimate of the total cost of attending college for a specific academic year. Here's why it matters:

• Financial Planning: The COA helps students and families understand the full financial commitment of attending a school, beyond just tuition. It includes tuition, fees, room and board, books, supplies, transportation, and personal expenses. Knowing this helps students plan their budgets effectively.
• Determines Financial Aid Eligibility: The COA is a critical factor in calculating financial aid eligibility. Schools subtract the Expected Family Contribution (EFC) from the COA to determine a student’s financial need, which influences the amount of grants, loans, and work-study opportunities available.
• Comparing Colleges: Students can use COA to compare the affordability of different schools. Even if one school’s tuition is lower, its COA may be higher due to additional fees or living expenses.
• Avoiding Over-Borrowing: Understanding COA helps students avoid borrowing more than they need. If they know the costs (direct charges), they can decide how much financial aid or loans to accept.

In short, the COA gives students a realistic picture of the financial impact of attending college, guiding them in making informed financial decisions and planning for their future.

Your Student Aid Index (SAI) is a formula-based index number ranging from –1500 to 999999 that gets calculated when you complete the FAFSA. Where your SAI falls within the SAI range helps your school determine how much financial support you may need.

A negative SAI indicates you have a higher financial need. For example, if you have an SAI of –1500, you’ll qualify for a maximum Pell Grant award assuming you have not exhausted your lifetime amounts and meet all student eligibility requirements.  Learn how the SAI is calculated.

Your SAI is not:

• a dollar amount of aid you’ll receive,
• what your family is expected to provide, or
• your final financial aid offer.

Your SAI is:

• an index number used by financial aid offices when creating an aid offer.

Your SAI is calculated using information that you (and other contributors, if required) provide on the Free Application for Federal Student Aid (FAFSA®) form.

During the financial aid process, you will see the following:

• an estimated SAI on the FAFSA confirmation page
• an official SAI within your FAFSA Submission Summary (after your FAFSA form is processed)

Keep in mind—sometimes your school may be asked to verify elements from your FAFSA, which could affect your SAI and eligibility if there are significant changes after they collect and verify your information.

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Follow these steps to find your SAI:

• Log in to https://studentaid/gov using your account username and password.
• Select your processed FAFSA submission.
• Select “View FAFSA Submission Summary.”
• Select the “Eligibility Overview” tab.

Need-based aid is financial assistance you can get if the FAFSA application determines that you demonstrate financial need and meet other eligibility requirements.

Need-Based Federal Aid Programs:

• Federal Pell Grant
• Federal Supplemental Educational Opportunity Grant (FSEOG)
• Direct Subsidized Loan
• Federal Work-Study

Other Need-Based Aid Programs:

• PA State Grant
• Scholarships 

When it comes to grants and scholarships, there’s no limit to how much you can receive! These types of gift aid—which you don’t have to pay back—are awarded first and reduce your financial need.

After grants and scholarships are considered, any leftover financial need determines if you qualify for need-based student loans, like a Direct Subsidized Loan (where the government pays the interest while you’re in school).

Essentially, your overall financial need is the starting point in determining how much you can get in federal and state grants—and in some instances institutional funding. From there, your eligibility for need-based loans is determined in conjunction with your COA.

The Formula:

To figure out your financial need, your Student Aid Index (SAI) is subtracted from the Cost of Attendance (COA). The formula is: 

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Basic Example:

If your Cost of Attendance (COA) is $20,000 and your Student Aid Index (SAI) is $18,000, your financial need is $2,000.

• If you don't have grants or scholarships, the maximum amount of need-based aid you could qualify for in the Direct Subsidized Loan is $2,000—even if the maximum annual subsidized loan amount is $3,500.

Don't worry—you’ll still be eligible for the overall annual loan limit (combined between subsidized and unsubsidized loans). The portion of your loan that doesn’t qualify as subsidized will be offered as an unsubsidized loan instead.

Non-need-based aid is financial aid that is not based on your SAI. What matters is your COA and how much other financial aid you’ve been awarded so far. For instance, if your COA is $16,000 and you’ve been awarded a total of $4,000 in need-based aid and private scholarships, you can get up to $12,000 in non-need-based aid.

The following are the non-need-based federal student aid programs:

• Direct Unsubsidized Loan (automatically awarded after need-based aid and no separate application is required—just the FAFSA)
• Federal PLUS Loan (FAFSA and application required)

Other types of non-need-based aid programs

• Private/Alternative Student Loans (application required)
• Private/Alternative Parent Loans (application required)

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To determine how much non-need-based aid you can receive, use the following formula: 

Basic Example:

If your Cost of Attendance (COA) is $20,000 and your total financial aid awarded is $12,000, you have room in your COA or budget to finance additional funding to help cover your charges. The amount you apply for cannot exceed $8,000.

Background info:

• Joe Student is a Pennsylvania resident starting his first year at Millersville University. He plans to live on campus in a residence hall.
• Joe is under the age of 24 so he is considered a dependent student and needs to include his parents’ financial information on the FAFSA.
• Joe's parents are married and their total family size is 3. His parents' AGI is approximately $65,000 combined.

FAFSA Determination:

After submitting the FAFSA, Joe received his Federal Student Summary (FSS), which showed his SAI = $5,342  and other indicators for the type of financial aid he could be eligible to receive.

• Based on Joe's family size and his parents' AGI, Joe did NOT qualify for the Maximum Pell, Award of $7,395 (est. AGI $50,400 or Minimum Pell Grant of $740 (est. AGI $79,000).
• Since he did not meet the minimum or maximum criteria, he is then considered for a calculated Pell Grant (Maximum Pell Award minus SAID = Calculated Pell)
• Joe's SAI is under the annual Pell Grant Award for the year and is estimated to receive a Pell Grant of $2,053 for the year. ($7395 Maximum Pell Grant - SAI = Calculated Pell)

School Dertermination:

Joe's college has received his FAFSA, allowing them to begin determining his eligibility for awards. First, they assign the student a Cost of Attendance (COA) based on his information, followed by a calculation of his financial need.

Having $23,525 in financial need doesn’t mean Joe will receive that full amount in financial aid. Instead:

1. Federal Pell Grant: Joe's eligibility is determined based on the Pell Grant Formula. Since Joe does not have a Maximum or Minimum Pell Grant indicator on his FAFSA, the school will use the Calculated Pell formula and award the amount.
2. Federal SEOG Grant: The SEOG grant is reserved for students with exceptional financial need and availability of funds. While Joe's SAI does qualify him for a Pell Grant, SEOG funds will first be used on students with an SAI of 0 or lower. Joe requests to be put on a waitlist if funding is not exhausted.
3. Federal Work-Study: Joe may be offered the opportunity for work-study. This is also subtracted from his financial need, but the amount offered does not apply to his charges and he is responsible for finding a work-study job.
4. State Grants: Since Joe is a Pennsylvania resident and he completed his FAFSA before May 1, created a GrantUs account with PHEAA and completed his High School and State Grant Form listed under his Action Items. He has been offered a PA State Grant from PHEAA.
5. Other Gift Aid and Scholarships: Any grants, scholarships, or other free money Joe receives are added to his account and subtracted from the total financial need.

All of these resources and gift aid are subtracted from Joe's overall Financial Need and then his eligibility for interest-free loans is determined. 

1. Subsidized Loans: After subtracting the grants and gift aid, the remaining financial need determines Joe’s eligibility for the Federal Direct Subsidized Loan (a loan where the government pays the interest while Joe is in school).
2. Unsubsidized Loans: After determining how much Joe can receive in a Subsidized loan, the remaining amount is then awarded in a Federal Direct Unsubsidized Loan up to his annual eligibility.

Since Joe has financial need after his grants and scholarships, this means he qualifies for the Subsidized Loan that is interest-free while he is in school!

• He will be offered up to the maximum amount in the subsidized loan for his grade level and then the remaining amount he will be offered in guaranteed student loans will be an unsubsidized loan for his grade level.

Cost of Attendance & Budget versus Gap After Aid & Balance Due

The COA allows students to borrow or finance different types of financial aid to help cover educational expenses if they need them (indirect costs).

• Joe has room in his COA, also known as his budget.  
• But students can't borrow more than their budget. The COA is the maximum budget put in place to prevent the overborrowing of student loans.

Remember this is ONLY the remaining room in Joe's budget based on his COA and already offered financial aid.

• This is NOT the amount he has to pay or the amount that he needs to borrow in additional funding to pay his bill.

To determine what he needs to cover his bill, he should look at his direct charges for tuition, fees, housing, and meals:

Then subtract his total financial aid to see if he needs to find additional options to cover his charges or if he has enough in financial aid already.

After Joe's financial aid, he will owe an estimated $6,511 for the year and can look into additional financial aid options by applying for more scholarships, looking into student loan financing options, payment plans, and more.

Key Take Aways:

• Joe’s financial need of $23,525 is a starting point for determining how much aid he can receive, but he will not receive that full amount as free money.
  • Instead, his aid package will be a combination of grants and loans. He also has the potential to be offered scholarships or work-study opportunities, but these are not just based on his financial need, but the availability of funds.
• After Joe's gift aid is added, his account is reviewed to see if he qualifies for the interest-free subsidized loan.
  • Then he is offered either a combination of subsidized and unsubsidized loans, or if he had no financial need—just the unsubsidized student loan.
  • An unsubsidized loan has low, fixed interest rates and flexible repayment options and is typically a better option before exploring alternative loan options.
• Joe's remaining room in his budget after grants and loans is NOT the amount he will be charged.
  • While Joe's remaining room in his budget is $11,420—he only has a balance of approximately $6,511 for the year. 

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Phone: 717-871-5100                           
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Email: fa.mail@millersville.edu

USPS Mailing Address:
Office of Financial Aid
Millersville University
P.O. Box 1002
Millersville, PA 17551-0302

Address for UPS/FedEx:
Office of Financial Aid
Lyle Hall, 2nd Floor
40 Dilworth Rd
Millersville, PA 17551-0302