Problem Set #3 Calculating Financial Aid
Scenario One
Jordan Johnson is an 18-year-old freshman attending Central Michigan University. She is working with her parents, who continue to claim her as a dependent, to figure out total cost of attendance as well as potential financial aid award for her first year in college. Jordan is attending a residential university, and planning to live on campus.
For her first year, Jordan is expecting to take 30 credits (15 in Fall semester and 15 in Spring semester) at a tuition rate of $415/credit hour. Room and board (including meals) will cost approximately $11,425. There is a $250 student service fee each semester Jordan takes classes. Supplies and books will cost approximately $1,500 for the year. Estimated travel and miscellaneous expenses (based on university information) is $1,450.
Jordan has an Expected Family Contribution of $0. Jordan earned a CMU Merit Scholarship awarding $7,790.00. CMU has also offered $4,750.00 in additional institutional grants.
1. What is the total tuition cost for Jordans first year?
2. What is Jordan Johnsons total Cost of Attendance for the first year?
3. What is Jordans Financial Need (Cost of Attendance EFC = Financial Need)?
4. What is Jordans Pell-Grant Eligibility?
5. What is the price after scholarships, pell, and institutional grants (Net Price):
6. Is Jordan considered a dependent or an independent student?
7. What is Jordans first-year loan eligibility?
8. If Jordan takes out the max loan, what is the remaining cost to Jordan and family after loans are applied: