How Aid Works

The parent contribution from income at Pitzer takes into account the total income, including taxable income reported on the IRS 1040 tax return, as well as untaxed income such as disability benefits and voluntary retirement contributions.

From this total income, we subtract the parent's tax obligations (federal, state, and FICA taxes) and other allowances, such as a cost of living allowance. This calculation provides the net available income, which is used to determine the contribution from parent income.

Additionally, Pitzer’s Office of Financial Aid considers other income protections. These include high medical/dental expenses not covered by insurance, costs of private elementary/secondary tuition for younger siblings, elder care support/expenses, and parent educational loan repayments. These protections are treated as special circumstances and may require additional documentation for review. If your family has these types of expenses, please include them on the CSS Profile application.

At Pitzer, we use the information provided in the CSS Profile to determine eligibility for need-based financial aid. The CSS Profile evaluates various types of assets, including:

• Cash, checking, and savings accounts

• Investments such as stocks, bonds, and CDs

• The value of the family home

• The value of any other properties and land owned

• Business assets

All these assets, whether they are readily available (liquid) or not easily accessible (non-liquid), are treated equally when determining the parent contribution. Qualified retirement funds held in plans like 401(k)s, 403(b)s, IRAs, SEP, SIMPLE, and Keogh plans are not factored into this calculation.

It's important to note that when completing the FAFSA, the value of the primary residence where the family lives is excluded from the aid calculation and does not need to be reported on the FAFSA.

The student contribution from income is calculated in a similar manner as the parent contribution from income. However, because most students have limited earned income, their calculated contribution is usually minimal.

At Pitzer, all students are encouraged to contribute to their college costs through summer earnings. This expectation entails working during the summer and saving to help cover expenses. Each student is assessed a summer earnings contribution. For most students, this amounts to $1,700. Students with higher financial need and less parental support may have a lower summer earnings contribution of $500.

The student contribution from assets at Pitzer College is determined by assessing 20% of the student's total assets. These assets encompass various holdings such as cash, checking and savings accounts, investments, trusts, and properties, among others. This calculation helps determine the portion of assets that contribute to the student's financial responsibility.

Financial aid eligibility is determined annually. To maintain eligibility, you must re-apply each year by March 2, as need-based scholarships do not renew automatically.

Various factors impact your aid from year to year, including changes in your family's financial situation:

• Changes to parent income from tax year to tax year

• Changes to parent assets

• Parental marital status changes, such as marrying or remarrying

• Adjustments in family size

• Changes in sibling's college enrollment status, such as graduating or enrolling less than full-time

• Increases in student income or assets

For questions or concerns with these types of changes, please reach out to our office.

Financial aid eligibility is based on income from the parent and students taxes from two years prior. It is important to note that changes in the parent's yearly income or modifications in tax laws can impact eligibility. Here are the tax years we review for each academic year:

Had a one type and non-repeating source of income? Reach out to us! Staying informed about these annual changes ensures that you stay informed and plan accordingly.

U.S. Citizens and Eligible Non-Citizens are eligible for increasing loan amounts each year as they progress through their degree program. This means that loan eligibility will gradually increase annually. Below are the subsidized loan limits for the 2024-25 academic year:

Additionally, first-year students experience a slight increase in the work-study allowance, from $2,500 to $3,000, as they transition into their second year. This progression enables students to better manage educational expenses as they advance in studies.

The FAFSA Simplification Act passed by Congress in 2020 represents a significant overhaul of federal student aid. As a result of the various updates, families will see changes to both the student and parent experience, included but not limited to:

• Changes to the aid formula

• Less questions

• More automated and synced systems

• New terminology

• Increased Pell Grant eligibility

Contributor

Anyone who is required to provide information on a student’s FAFSA, including the student, their spouse (if applicable), a biological or adopted parent and their spouse (if applicable). Watch Who is a Contributor on the 2024-25 FAFSA Form for more details.

Consent

A signed acknowledgement by contributors (student/parent) that allows the FAFSA to access the contributors’ Federal Tax Information (FTI). Consent to use FTI is mandatory for all contributors. While a FAFSA can be submitted without contributor consent, the FAFSA will be rejected and considered invalid until all required contributors provide consent. Students with invalid FAFSA’s are not eligible for federal student aid. Students who are unable to obtain parental consent should schedule an appointment to meet with a financial aid counselor as soon as possible.

Direct Data Exchange (DDX)

A process that automatically imports U.S. income tax return data to the FAFSA, eliminating the need for the applicant to self-report most income. Unlike the former IRS Data Retrieval Tool (DRT), DDX is required for U.S. tax filers and is not optional. Families will not be able to view or edit data imported through DDX. See FAQs for more information about DDX.

FAFSA Submission Summary

This is a summary document you receive after completing the FAFSA, formerly known as the Student Aid Report (SAR). The FAFSA Submission Summary may be requested by other organizations such as outside scholarships organizations.

Federal Tax Information (FTI)

Information that is retrieved directly from the Internal Revenue Service (IRS). There are strict limitations on the access and use of FTI under the Internal Revenue Code (IRC) and an individual’s approval/consent is required for the exchange of FTI.

Student Aid Index (SAI)

The calculation used to determine financial aid has been updated and the Student Aid Index (SAI) has replaced the Expected Family Contribution (EFC). Unlike the EFC, the SAI can now be as low as $-1,500 vs. $0. See FAQs for more information.

The new FAFSA made changes to the formula used to determine financial aid eligibility. Below are the main components of the formula that have changed.

Business Assets

Old: Families only had to report the value of large businesses (those with more than 100 employees). The value of small businesses was excluded.

New: The value of all businesses (including but not limited to, Schedule C, 1065, 1120, 1120S, K-1) must now be reported as assets on the FAFSA . When asked to report business assets, report the net value (market value of a business minus debt against the business).

Children in College

Old: Families would report the total number of children in their household who were enrolled in college at least half-time. This typically reduced the individual student’s Expected Family Contribution (EFC).

New: The number of family members enrolled in college will still be asked on the FAFSA, but it will no longer be used to determine aid eligibility.

Child Support Received

Old: Child support received during the tax year (January – December) would be reported as untaxed income.

New: Child support received during the tax year will be reported as an asset and not as income.

Custodial Parent Definition

Old: The custodial parent was the parent the student lived with the most in the 12 months prior to completing the FAFSA.

New: The contributing parent is the parent who provided the greater portion of the student’s financial in the 12 months prior to completing the FAFSA. Watch Who is a Contributor on the 2024-25 FAFSA for more guidance.

Family Size

Old: The Household Size was the total number of people living in the parent(s) household if the parent(s) provided more than 50% of that person’s support.

New: The Family Size definition has changed to align with the IRS definition of dependents. A dependent student’s family size will include themselves, their parent(s), and any dependents/people supported by the parent(s) only if the parent(s) can claim them as a dependent on a U.S. tax return.

Farm Assets

Old: Family farms were excluded from the aid calculation and only large farms were reported.

New: The value of all farms (including family farms) is now considered an asset on the FAFSA. When asked to report farm assets, report the net value (market value of the farm minus the debt against the farm). For family farms, exclude the value of the primary residence.

Pell Grant Eligibility

Old: The Pell Grant was based on the Expected Family Contribution (EFC). A student with an EFC of $0 would receive the maximum Pell Grant ($7,395 in 2023-24).

New: Pell Grant eligibility will be based on a student’s dependency status, parent marital status for dependent students, adjusted gross income (AGI), poverty level, state of residence, and enrollment status.

While the updates to the FAFSA may also result is changes to federal and state eligibility for some students, we anticipate that population to be small and for the impact to be minimal, Pitzer will make every effort to minimize the impact to students as a result of Simplification.

However, please note that for many families aid eligibility (federal, state and Pitzer), is subject to change every year. Each year, students must re-apply for aid by our established deadlines; need-based scholarships are not automatically renewed.

Changes to your family’s circumstances may affect your eligibility from year-to-year. The following factors can cause changes to your aid:

• Parent income increasing from 2021 taxes to 2022 taxes

• Parent assets increasing

• Parent marrying/remarrying

• Changes to your household Size

• Changes to your sibling’s college enrollment (i.e. graduating from undergrad being half-time)

• Student income increasing

• Student assets increasing

The Office of Financial Aid is here to provide transparent and clear information. If you have any questions or concerns about general changes to financial aid eligibility as well as changes due to Simplification, we encourage you to request an appointment to meet with a financial aid counselor.

• What’s Changed for the 2024-25 FAFSA Form?
• Who is a Contributor on the 2024-25 FAFSA Form?
• Understand and Prepare FAFSA Form Contributors
• Create and Access your StudentAid.gov Account (FSA ID)
• Apply for Financial aid with the FAFSA Form Video
• Start your 2024-25 FAFSA Form
• What Happens After Submitting Your FAFSA Form?
• Why do my Contributors and I Need our own StudentAid.gov account?