FINANCIAL AID PACKAGES: 3 EXAMPLES

The following examples contain three hypothetical financial aid scenarios intended to illustrate our financial aid packaging policy for incoming first-year students.  All assume 2007/08 costs for a first-year medical student at UVA, and that the student has applied for school-funded aid and been assessed a parent contribution based on Federal Need Analysis Methodology.

The methodology considers family income and assets, taxes paid, size, # in college, age of older parent, state of residence, etc.  Contribution estimates for your individual family circumstances can be calculated on the web.  (http://www.finaid.org/calculators/finaidestimate.phtml)

Example A Example B Example C
Adam Beverly Charles
Virginian Non-Virginian Virginian
Low-Modest Family Income Moderate Family Income Moderate-High Family Income
Each of the examples shows the determination of a student's eligibility in three steps:

(1) Eligibility for need-based subsidized* Federal Stafford Loan
(2) Eligibility for school-funded scholarship and loan
(3) Eligibility for non-need based unsubsidized** Federal Stafford Loan

*Subsidized: No interest charged the borrower during school, grace and eligible deferment periods.
**Unsubsidized: Interest is charged the borrower from disbursement throughout the life of the loan.

Step 1 shows the calculation of eligibility for the subsidized Federal Stafford Loan.  Note that for Stafford Loan purposes, there is no parent contribution imputed in the eligibility calculation, and it also is possible for there to be a zero student contribution if a student truly has no resources.

Step 2 shows the next evaluation phase for school-funded aid applicants.  This phase determines the types and amounts of school-funded aid for which the applicant is eligible.  Note that the financial aid package assumes the subsidized Stafford Loan will meet the first $8,500 of demonstrated need.  (Unlike many other medical schools, UVA does not package unsubsidized loans before calculating school-funded aid eligibility.)  Note also that there is now a parent contribution calculated using Federal Methodology inserted in the calculation and the student contribution has been recalculated using Institutional Methodology.  If there is a positive remainder after subtracting the combined family contributions, the $8,500 loan, and other expected aid from outside sources from the student budget, this is the student's dollar eligibility for school-funded aid.  To the extent of funding availability, it is our current policy to meet this need as follows:

Virginia Resident: Up to $13,000 need-based scholarship.
Non-Virginian: Up to $16,500 need-based scholarship.

If need for institutional aid remains after the student has been awarded the maximum University scholarship, up to $10,000 of the remaining need can be met with Institutional Loans.

Step 3 shows the calculation of any remaining non-need based unsubsidized Federal Stafford Loan eligibility.  Although unsubsidized loans can be used to replace all or a portion of the parent and student contribution or any remaining unfunded need, they are more costly than other forms of aid and should be considered only as a last resort.  Therefore, UVA's preliminary eligibility letters indicate unsubsidized loan eligibility but do not include it as part of the initial aid package.

EXAMPLE A
Adam, MED 1, VIRGINIA RESIDENT
PARENT CONTRIBUTION : $13,000 (FOR SCHOOL AID ELIGIBILITY ONLY)

STEP 1: DETERMINATION OF FEDERAL NEED-BASED STAFFORD LOAN ELIGIBILITY
NO PARENT INFO REQUIRED / NO PARENT CONTRIBUTION ASSESSED
STUDENT CONTRIBUTION PER FEDERAL METHODOLOGY / FAFSA

In-State Financial Aid Budget
$52,021
Minus Federal Student Contribution
- 0
Minus Other Expected Aid
- 0
Equals Total Potential Demonstrated Need
$52,021
Eligible for the Maximum $8,500 Subsidized Federal Stafford Loan


STEP 2: DETERMINATION OF NEED-BASED SCHOOL AID ELIGIBILITY
PARENT INFO REQUIRED / PARENT CONTRIBUTION PER FAFSA
STUDENT CONTRIBUTION PER SCHOOL METHODOLOGY

Initial In-State Financial Aid Budget
$52,021
Minus Subsidized Federal Loan
- 8,500
Minus Student Contribution Per Institutional Methodology
-   200
Minus Parent Contribution**
-13,000
Minus Other Outside Aid**
0
Equals Demonstrated Need for School Aid
$30,321
School-Funded Scholarship
$13,000
School-Funded Loan
$10,000
Unfunded
$ 7,321.00
**Outside scholarship may reduce parent contribution, but will be considered a resource available to meet the cost of attendance.
PROPOSED NEED-BASED PACKAGE
Subsidized Federal Stafford Loan
$ 8,500
School-Funded Scholarship
$13,000
School-Funded Loan
$10,000
Total Need-Based Aid Package
$31,500

STEP 3: DETERMINATION OF NON-NEED UNSUBSIDIZED LOAN ELIGIBILITY
NO PARENT INFORMATION REQUIRED
CAN REPLACE PARENT/STUDENT CONTRIBUTION AND UNMET NEED
LOAN OF LAST RESORT / COUNSELING RECOMMENDED

In-State Financial Aid Budget
$52,021
Minus Need-Based Aid Expected (see step 2)
- $31,500
Maximum Remaining Unsubsidized Federal Stafford Loan Eligibility
$20,521

NOTE: The total aid you can receive from combined sources can never exceed the cost of attendance. Changes in federal regulations and/or school awarding policies may result in calculations different from those above.

EXAMPLE B
Beverly, MED 1, OUT-OF-STATE RESIDENT
PARENT CONTRIBUTION : $18,000 (FOR SCHOOL AID ELIGIBILITY ONLY)

STEP 1: DETERMINATION OF FEDERAL NEED-BASED STAFFORD LOAN ELIGIBILITY
NO PARENT INFO REQUIRED / NO PARENT CONTRIBUTION ASSESSED
STUDENT CONTRIBUTION PER FEDERAL METHODOLOGY / FAFSA

Out-of-State Financial Aid Budget
$62,021
Minus Federal Student Contribution
- 2,000
Minus Other Expected Aid
- 0
Equals Total Potential Demonstrated Need
$60,021
Eligible for the Maximum $8,500 Subsidized Federal Stafford Loan

STEP 2: DETERMINATION OF NEED-BASED SCHOOL AID ELIGIBILITY
PARENT INFO REQUIRED / PARENT CONTRIBUTION PER FED. METHODOLOGY
STUDENT CONTRIBUTION PER SCHOOL METHODOLOGY: $1,500 MINIMUM

Initial Out-of-State Financial Aid Budget
$62,021
Minus Subsidized Federal Loan
- 8,500
Minus Student Contribution
- 2,000
Minus Parent Contribution**
- 18,000
Minus Other Outside Aid**
0
Equals Demonstrated Need for School Aid
$33,521
School-Funded Scholarship
$16,500
School-Funded Loan
$10,000
Unfunded
$   7,021
**Outside Scholarship may reduce parent contribution but will be considered a resource available to meet the cost of attendance.
TOTAL PROPOSED NEED-BASED PACKAGE  
Subsidized Federal Stafford Loan
$ 8,500
School-Funded Scholarship
$16,500
School-Funded Loan
$10,000
Total Need-Based Aid Package
$35,000

STEP 3: DETERMINATION OF NON-NEED UNSUBSIDIZED LOAN ELIGIBILITY
NO PARENT INFORMATION REQUIRED
CAN REPLACE PARENT / STUDENT CONTRIBUTION AND UNMET NEED
LOAN OF LAST RESORT / COUNSELING RECOMMENDED

Out-of-State Fin. Aid Budget
$62,021
Minus Need-Based Aid Expected (see step 2)
- $35,000
Maximum Remaining Unsubsidized Federal Stafford Loan Eligibility
$27,021

NOTE: The total aid you can receive from combined sources can never exceed the approved cost of attendance. Changes in federal regulations and/or school awarding policies may result in calculations different from those above.

EXAMPLE C
Charles, MED 1, VIRGINIA RESIDENT
PARENT CONTRIBUTION : $41,535(FOR SCHOOL AID ELIGIBILITY ONLY)

STEP 1: DETERMINATION OF FEDERAL NEED-BASED STAFFORD LOAN ELIGIBILITY
NO PARENT INFO REQUIRED / NO PARENT CONTRIBUTION ASSESSED
STUDENT CONTRIBUTION PER FEDERAL METHODOLOGY

In-State Financial Aid Budget
$52,021
Minus Federal Student Contribution
- 0
Minus Other Expected Aid
- 0
Equals Total Potential Demonstrated Need
$52,021
Eligible for the Maximum $8,500 Subsidized Federal Stafford Loan

STEP 2: DETERMINATION OF NEED-BASED SCHOOL AID ELIGIBILITY
PARENT INFO REQUIRED / PARENT CONTRIBUTION PER FED. METHODOLOGY STUDENT CONTRIBUTION PER SCHOOL METHODOLOGY

Initial In-State Financial Aid Budget
$52,021
Minus Subsidized Federal Loan
- 8,500
Minus Student Contribution Per Institutional Methodology
0
Minus Parent Contribution**
- 43,521
Minus Other Outside Aid**
0
Equals Demonstrated Need for School Aid
$ 0
**Outside Scholarship may reduce parent contribution but will be considered a resource available to meet the cost of attendance.
TOTAL NEED-BASED PACKAGE  
Subsidized Federal Stafford Loan
$ 8,500

STEP 3: DETERMINATION OF NON-NEED UNSUBSIDIZED LOAN ELIGIBILITY
NO PARENT INFORMATION REQUIRED
CAN REPLACE PARENT / STUDENT CONTRIBUTION AND UNMET NEED
LOAN OF LAST RESORT / COUNSELING RECOMMENDED

In-State Financial Aid Budget

$52,021
Minus Total Aid Expected
- 8,500

Maximum Remaining Unsubsidized Eligibility

Remaining Unfunded Need (can be met with the nonsubsidized
Graduate PLUS loan if necessary)                     

$34,222
$  9,299

NOTE: The total aid you can receive from combined sources can never exceed the approved cost of attendance. Changes in federal regulations and/or school awarding policies may result in calculations different from those above.