Need-based scholarships require students to provide evidence of financial need and are awarded based on the student's financial situation. This evidence includes filling out the FAFSA, CSS Profile, and providing tax returns, W-2 forms, etc., to demonstrate that the family's income is insufficient to cover the full costs.
The need-based funding is significantly greater than non-need-based funding, because most schools prioritize need-based aid while supplementing with merit-based scholarships to ensure that students do not miss out on education due to their family’s financial situation. Different schools have different income thresholds. For example: Yale University considers families with an annual income below $75,000 eligible for need-based aid. University of Virginia (UVA) sets this threshold at $150,000 annual income.
Many schools offer 100% of demonstrated need-based aid but provide very few non-need-based scholarships. Therefore, if your family income exceeds a certain threshold, you may not qualify for need-based aid, but you also might not receive much merit-based aid either. In this case, you can consider private scholarships. These are non-repayable scholarships funded by third-party organizations, such as private foundations or NGOs. However, they often have strict eligibility criteria. You can also consider federal or bank student loans. These must be repaid and often come with interest.
Colleges can be categorized as need-blind or need-aware when considering applicants’ financial situations during the admissions process.
1. Need-Blind Colleges
Need-blind schools do not consider a student’s financial situation when making admissions decisions. This means that an applicant’s ability to pay tuition will not negatively impact their chances of being accepted. At first glance, this seems like a great option. But there are drawbacks. Many need-blind schools cannot meet 100% of students’ demonstrated financial needs. For example, a student might require $50,000 in aid but, due to limited funds and a large number of aid recipients, they might only receive $5,000.
2. Need-Aware Colleges
Need-aware schools do take a student’s ability to pay into account during the admissions process. While this may seem like a disadvantage, many need-aware colleges commit to fully meeting the demonstrated need of admitted students.
In short: Need-blind schools aim to be fair to all applicants but may not fully meet the financial needs of admitted students. Need-aware schools carefully assess financial need but ensure that admitted students receive adequate financial aid.
3. Need Policies for U.S. vs. International Students
Some colleges apply different financial aid policies based on citizenship. For example, many schools are 100% need-blind and fully meet need-based aid for U.S. citizens and Green Card holders. However, for international students, these same schools may be need-aware, meaning financial need could influence admission decisions.
Now that we’ve covered financial aid categories, let's dive into the application process, starting with the FAFSA
1. What is FAFSA?
FAFSA stands for Free Application for Federal Student Aid, which is a financial aid program funded by the U.S. federal government. The name itself indicates that it provides government-backed financial assistance to eligible students.
2. Who Can Apply for FAFSA?
The following students are eligible to apply:
U.S. citizens
Green Card holders (permanent residents)
Certain eligible non-citizens, including specific categories of I-94 card holders
International students generally do not qualify, except in limited cases (such as refugees or asylees).
3. What Does FAFSA Cover?
FAFSA funding consists of four main components: Federal Grants. This portion is need-based and does not require repayment, such as Pell Grant, Federal Supplemental Educational Opportunity Grant (FSEOG)
Scholarships: Some FAFSA aid comes in the form of scholarships, which may have specific eligibility requirements, such as academic performance, major, or extracurricular achievements. Work-Study Programs: this allows students to earn money by working part-time at approved institutions, either on-campus or off-campus, to help cover educational expenses. Low-Interest Student Loans: these loans are provided by the federal government with lower interest rates compared to private loans.
Register an account and fill out the form (studentaid.gov). Each school has a different deadline, and my suggestion is to submit it as early as possible. This way, you can receive the results early and compare the financial aid packages once college admission results are released to make a comprehensive decision.
The full name is College Scholarship Service, a financial aid program provided by College Board, which is a non-federal aid program. The CSS Profile is much smaller in scale compared to FAFSA, with about 400 colleges participating. Since CSS Profile uses non-federal funds, international students can also apply, but specific eligibility depends on each school (some schools allow international students to apply, while others do not). Families with high financial aid needs should consider choosing schools that accept both FAFSA and CSS Profile.
The application opens on October 1st each year. The deadline is no later than the college application deadline (varies by school), Required documents include parents’ tax returns, tax documents from two years prior (e.g., students applying for Fall 2026 need to submit 2024 tax returns).
After submitting the FAFSA and CSS Profile, the next step is waiting for the results. The school will send an award letter, which details the financial aid package you have received, including the types of aid and the amount of money awarded. Once you receive the award letter, you should carefully review the financial aid package and compare offers from different schools.
Understand Your Actual Costs
The school provides an estimate, but you should calculate your realistic expenses based on personal circumstances, including food, housing, transportation, etc.
Follow this order: Prioritize funds that don't need to be repaid (scholarships, grants). Next, consider earnings (job). Finally, consider borrowed funds (loans).
What if you're not satisfied with the result? You can choose to appeal. The letter you receive will tell you how to accept the offer. Typically, you can log into your student account and select to accept the offer. When the semester starts, your aid will be disbursed. First, the school will use the funds to pay for tuition, housing, and other required fees. If there’s any leftover, it will be credited to your student account. Lastly, FAFSA needs to be renewed every year, so it’s important to ensure you meet the conditions, including filing your taxes properly and keep your tax records, and maintaining your grades to meet the school’s requirements and stay in good standing.