Non-need-based aid is assistance that can be awarded without regard to demonstrated financial need, up to the student’s cost of attendance.
How it works
After need-based aid is packaged, the aid office calculates remaining room under the cost of attendance. Unsubsidized loans or PLUS loans are offered up to that room and up to any applicable annual or aggregate limits. Merit aid that is not restricted to need is added similarly. The student accepts or declines the non-need-based awards. Total aid is monitored so it does not exceed COA.
Example: a student has zero need after the SAI and a large merit scholarship. The student may still borrow a Direct Unsubsidized Loan up to the annual limit or the remaining COA, whichever is smaller, because the loan is non-need-based.
How it differs
Need-based aid (Pell, subsidized loans, FSEOG, work-study) is limited by the need calculation. Non-need-based aid is limited only by COA and program-specific caps. An over-award can still occur if total aid from all sources exceeds COA.
Common errors
Refusing unsubsidized loans to a student who has no remaining need. Allowing total aid to exceed cost of attendance with non-need-based funds. Treating all institutional scholarships as non-need-based when some are restricted to need.
References
- 1. Federal Student Aid non-need-based programsUnsubsidized loans and PLUS
- 2. Packaging above needCOA as the ceiling
Non-need-based aid is assistance that can be awarded without regard to demonstrated financial need, up to the student’s cost of attendance.