Navigating Financial Aid at American University: A Comprehensive Guide

Pursuing higher education is a significant investment, and understanding the financial aid options available is crucial for making college accessible. American University (AU) and National American University (NAU) are committed to assisting students in funding their education through various financial aid programs. This guide provides detailed information about the financial aid process, available resources, and important considerations for students and their families.

The Purpose of Financial Aid

The primary goal of financial aid is to provide assistance to students who might otherwise be unable to attend AU or NAU. While the primary responsibility for covering educational costs lies with students and their families, financial aid serves as a supplement to bridge the gap between available resources and the cost of attendance.

Application Process and Eligibility

Students seeking financial aid should complete the financial aid application upon enrollment. The information provided in the application determines eligibility for various forms of aid, including student loans and grants. Students are typically notified of funding decisions by a financial aid administrator.

It's important to note that eligibility and disbursement of financial aid can change based on a student's enrollment status each quarter or semester. Federal financial aid regulations often stipulate that students enrolled less than half-time may have limited or no financial aid eligibility (excluding Pell Grants). Maintaining full-time enrollment status is crucial for preserving financial aid eligibility. Changes in enrollment status could lead to a loss of aid and a requirement to pay out-of-pocket for educational expenses.

Cost of Attendance and Indirect Costs

Colleges in the United States are required to determine a standard cost of attendance for students. This cost encompasses tuition, fees, and other estimated expenses. In addition to direct costs like tuition and fees, students should also consider indirect costs, such as books, supplies, transportation, and personal expenses. These indirect costs can be factored into the overall cost of attendance and may be considered when determining financial aid eligibility.

Financial Assistance Programs

American University and National American University participate in a variety of financial assistance programs, including:

Grants: Grants are financial aid awards that do not require repayment. Federal Pell Grants and Federal Supplemental Educational Opportunity Grants (FSEOG) are examples of need-based grants available to eligible undergraduate students. Pell Grants are typically awarded to students who have not yet earned a bachelor's or professional degree and demonstrate exceptional financial need. FSEOG is designed to assist undergraduate students with exceptional financial need, with priority given to Pell Grant recipients with the lowest Expected Family Contribution (EFC) or Student Aid Index (SAI).
Loans: Student loans are borrowed funds that must be repaid with interest. Federal Direct Stafford Loans are available to eligible students, offering various flexible repayment plans. Parents of dependent students may also be eligible for Direct Parent PLUS Loans to help cover the cost of attendance. Private student loans are also an option, but they generally have stricter eligibility requirements and should be considered as a last resort.
Scholarships: Scholarships are awarded based on merit, financial need, or specific demographics. The National American University Foundation offers scholarship opportunities to recognize and reward academic achievement and support new or returning students. American University of Rome (AUR) also offers scholarships based on merit, financial need, and/or demographics.

Types of Federal Loans

Federal Direct Subsidized Loan: Available to undergraduate students who demonstrate financial need, as determined by the FAFSA. The government pays the interest on these loans while the student is enrolled at least half-time. There are time limits on how long a student can receive a subsidized loan.
Federal Direct Unsubsidized Loan: Available to all undergraduate students who have filed a FAFSA, regardless of financial need. Interest accrues on these loans while the student is in school.
Federal Direct PLUS Loans: Available to graduate/professional students and parents of dependent undergraduate students. Borrowers can use PLUS loans to help meet the cost of attendance.

Important Financial Aid Dates and Deadlines

Application Due Date: January 15 is the general deadline to apply for financial aid or submit related paperwork.
Priority Application Due Date: November 15 is the priority deadline for financial aid applications. Applications received by this date receive the strongest consideration.
Loan Request Deadlines: Requests for Federal Direct Subsidized Loans, Unsubsidized Loans, and Parent PLUS Loans are processed throughout the semester. To guarantee loan disbursement, all requests, including entrance counseling and master promissory notes (MPN) for first-time borrowers, must be received by the final deadlines. It is recommended to allow a minimum of 2 weeks from the date of loan acceptance for disbursement to occur.
Pell Grant Recalculation Date (PRD): NAU uses the semester Census Date as the Pell Grant recalculation date. Pell Grant eligibility is evaluated based on the student's current enrollment status on this date.

Additional Financial Aid Resources

Net Price Calculator: American University offers a Net Price Calculator on its website to provide an estimated amount that students might pay after grant aid and scholarships.
Stallion Calculator: NAU has a Stallion Calculator to help students estimate the direct costs of attending, including tuition, fees, food, and housing.
Student Training Program (AUR): The American University of Rome offers a Student Training Program for returning resident students who have completed at least one semester with AUR.
Veteran Benefits: Veteran benefits may be utilized at The American University of Rome. The Edith Nourse Rogers S.T.E.M. Veterans Affairs scholarship program helps students in high-demand STEM programs who may have exhausted their entitlement benefits.
Federal Work-Study (FWS): This federally subsidized program provides part-time jobs for eligible students with demonstrated financial need, allowing them to earn money for educational expenses.

Loan Counseling

Entrance Counseling: Ensures students understand the terms and conditions of their loan and their rights and responsibilities.
Exit Counseling: Required for Federal Direct Loan borrowers when a student leaves or graduates or is no longer enrolled at least half-time.

Private Student Loans

A private student loan is a non-federal education loan borrowed from a private lender and should be a student's last option for educational assistance. Eligibility requirements are stricter, and loans are subject to credit approval. A Private Loan Self-Certification Form must be completed before disbursement.

Key Considerations

Financial Need: Most colleges determine financial need based on the Free Application for Federal Student Aid (FAFSA).
Enrollment Status: Maintaining full-time enrollment is crucial for preserving financial aid eligibility.
Loan Deadlines: Be mindful of all loan deadlines to ensure timely disbursement of funds.
Repayment Options: Explore the various repayment plans available for federal student loans.
Private Loans as a Last Resort: Consider private student loans only after exhausting all other federal aid options.

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