filing-the-fafsa-2015-2016-edition

Filing the FAFSA 171
Need-Aware Admissions
A college has a need-aware or need-sensitive admissions policy if it considers the student’s ability to pay
alongside other criteria while deciding whether to admit the student.
Need-Based Aid
Need-based aid is awarded to students based on demonstrated financial need, to help them pay for the
cost of college. Need-based aid usually comes in the form of grants, student employment opportunities
and student loans. Most need-based aid comes from the federal and state governments, as well as from
colleges and universities.
Need-Blind Admissions
A college has a need-blind admissions policy if the college admits students without regard to their
demonstrated financial need. Some colleges that are need-blind become need-sensitive when admitting
international students, transfer students and wait-listed students. Not all need-blind colleges meet the full
demonstrated financial need of admitted students. This leads to an “admit-deny” situation in which the
student is admitted but the college does not provide the student with the financial aid the student needs
to be able to afford to attend the college.
Need-Sensitive Admissions
See Need-Aware Admissions.
Net Cost
Net cost is the difference between the college’s full cost of attendance and the full financial aid package,
including loans. The actual cost to the family will be higher, since loans have to be repaid.
Net Price
Net price is the difference between the college’s full cost of attendance and only the gift aid a student
receives. This is the true amount of money a student will pay to attend a college. It is the equivalent of a
discounted sticker price.
Net Price Calculator
A net price calculator is an online tool that provides a personalized estimate of what it will cost to attend
a specific college. Most colleges are required by law to provide a net price calculator on their web sites.
Net Value
See Net Worth.
Net Worth
The net worth of an asset is the difference between the market value of the asset and any debts secured by
the asset.
Noncustodial Parent
If a student’s parents are divorced, one parent is the custodial parent and the other parent is the
noncustodial parent.