For schools like the Ivies that require the CSS Profile, why do they also need the FAFSA? Doesn’t the CSS Profile cover more information?
FAFSA has to be completed for the student to get federal aid (same also for some state aid). Profile alone will not get a Pell grant or federal direct loans.
These schools that meet full need do this largely with institutional funds. BUT if a student qualifies for a federally funded Pell Grant, this is included in their award. Some schools also give SEOG, another grant that is federally funded.
Some schools also include subsidized Direct Loans in the need based aid package, and the FAFSA is needed to get those loans.
If the schools can use some federally funded aid to help some students, this is a help to the schools.
So…to get those federal funds, the FAFSA must be completed.
Really, once you have completed the Profile, the FAFSA will not take you a long time to do as you will have all the data (and more).
Most schools will require the FAFSA from US citizens and eligible non-citizens in order to get institutional aid . OP must file both the FAFSA, the Profile and the non-custodial profile (if this is his/her situation)
Schools use the FAFSA (Federal Methodology) to determine your eligibility for Federal Aid.
Schools use the CSS profile, Non-custodial Profile or their own institutional forms and the institutional methodology to determine your demonstrated need when it comes to disbursing their own institutional funds.
Two distinct formulas assess information reported in the aid application process. The traditional institutional methodology (IM), developed by the College Board and refined annually by economists and aid administrators, determines the expected family share of costs. IM is the dominant standard among selective national colleges. Most schools that use an institutional methodology to disburse their own funds use either the CSS profile or their own FA form.
The federal methodology (FM) through the filing of determines eligibility for federal aid. All schools require students who are U.S. citizens or permanent residents to at minimum file the FAFSA if they are requesting FA. The only thing the FAFSA does is determine one’s ability for federal aid, (pell grants, seog, stafford and perkins loans).
Since most federal and state aid are entitlements for those who qualify, many “deep pocket” schools use a comprehensive approach that combines the 2 meaning that the will use your FAFSA EFC to distribute any federal aid that you are eligible for and their formula to give you their money.
Federal VS Institutional Methodologies:
The FAFSA provides all the student information necessary to receive federal Pell Grants, federal student loans, and federal campus-based aid. However, some schools collect additional information before awarding their own funds, i.e., institutional student aid. In many cases, colleges and universities use a commercially available supplemental form. This and similar systems are known as institutional methodology (IM), to distinguish them from federal methodology.
In general, institutional methodology is more comprehensive than federal methodology and assumes that more assets can be used for college expenses. For example, in most cases, institutional methodology considers home equity as an asset that can be used to help finance a college education; federal methodology does not.
Institutional Methodology (IM) formula used by some colleges to determine your eligibility for institutional aid; may count home equity and other assets the FAFSA does not.
Parents have an obligation to finance the education of their children, to the extent they are able.
A family’s income and assets produce a comprehensive measure of the family’s financial strength and ability to contribute toward educational costs.
Factors such as family size, extraordinary expenses, age of parents, and other considerations are weighed in relation to income and asset information in order to measure a family’s realistic ability to pay for an education.
Institutional Methodology (IM) is the College Board’s need-analysis system. Developed by financial aid practitioners and economists, IM provides a comprehensive evaluation of a family’s ability to pay for the costs of higher education.
Over 600 institutions use IM in conjunction with the CSS/Financial Aid PROFILE to target their need-based funds equitably to the most deserving students.
Choose “Federal Methodology” to calculate your expected family contribution (EFC) and financial need using the Federal Need Analysis Methodology used by the Federal processor and school financial aid administrators. Choose “Institutional Methodology” to get an estimate of your financial need using a formula similar to the one used by many private colleges and universities. IM is instrumental in figuring how the institution will use its own monies (not Federal funds) regarding financial aid for said family.
Not all schools use institutional methodology (IM) to determine eligibility for financial aid. The majority of colleges and universities in this country use only federal methodology (FM). Even within those schools that use IM, there are differences in how institutions use information gathered on the CSS PROFILE. There are also variances in the financial resources that institutions can draw upon when awarding gift aid.
A family’s contribution is not something most families can realistically take out of one year’s income, and most families finance their share of college costs through a combination of saving, paying out of current income, and borrowing.
The logic is simple, it’s our money (the schools) and we will hand it out in a manner we seem to befit the individual family’s financial aspects. The Federal methodology system (FM) apparently isn’t enough for private schools: They wish to extract even more money from the family using the Institutional Methodology system. In reality it is double assessment from two systems that are miles apart in many similar aspects: Essentially it is having your income taxed twice; once by the state, and then by the federal government.
Institutional Methodology (IM) provides:
An economically sound approach to determining the Expected Family Contribution (EFC) that is based on current financial indicators and up-to-date consumer research and tax policy.
A realistic assessment of both parent and student income. Paper losses and income adjustments—perfectly legal in the federal tax system—are not considered in the IM definition of income. Although Adjusted Gross Income (AGI) is important, it is not the sole determinant of genuine income strength.
A comprehensive evaluation of all family assets—including investments, real estate and equity in the home, farm, and business.
@kchen096 The FAFSA needs to be filled out to be considered for Federal and State aid, which include grants (if you’re eligible), Federal Work study, Direct Student loans and parent PLUS loans. The CSS Profile is for institutional aid in the form of scholarships. The good news is, the FAFSA isn’t quite as tedious to complete as the CSS is.