Financial aid from most of the major federal programs is based on financial need (except for unsubsidized Federal Direct Stafford and PLUS loans). When you apply for federal student aid, using the Free Application for Federal Student Aid (FAFSA), the information you provide is used in a formula established and approved by the Department of Education called Federal Methodology (FM). The formula calculates your Student Aid Index (SAI). This is the amount that you and your family will be expected to have available to contribute to your education. If your SAI is below an amount set by the federal government, you should be eligible for a Federal Pell Grant, assuming you meet all other eligibility requirements. Your SAI is also used in an equation to determine how much funding you may need to attend school. The financial Aid Office subtracts your SAI from your cost of attendance. Cost of Attendance - SAI = Estimated Financial Need to Attend School. If a student has financial need, this need can be filled with grants, federal work study, scholarships and subsidized Federal Direct Loans, depending on the student's eligibility.
Students who have little or no financial need can receive grants and scholarships for which they are eligible. However, they may have limited or no eligibility for subsidized Federal Direct Loans. These students, in most cases, would qualify for unsubsidized Federal Direct Loan funds. You can get further information on the SAI formula by contacting the U.S. Department of Education at 1-800-4FEDAID or from their website at www.studentaid.gov