The Need-based Financial Aid System

Financial Need

To determine a student’s financial need, the student must complete the Free Application For Federal Student Aid (FAFSA). Need for financial aid is determined by the following calculation:

Cost of Attendance (COA) Less Expected Family Contribution (EFC) Equals Financial Need

To determine the EFC, the calculation formula used is the Federal Need Analysis set by the U.S. Department of Education. Factors that are taken into consideration include: family size, number of students in college, income and assets of both the student and parents and the age of the oldest parent.

Typically available by October 1 for the following academic year, students must complete the FAFSA fully and carefully to avoid delays in processing. FAFSA forms should be submitted online no later than March 1 to receive full consideration for all types of need-based aid. For Hood College to receive FAFSA results, list Hood’s school code, 002076, on the application.

Financial Award Package

After financial need is determined, the Office of Financial Aid can begin to put together a financial award “package.” Each student’s financial situation is different, so each package is unique. An award package will include one or more types of financial aid. The most common types include: scholarships, grants, loans and work-study.

All need-based awards are made in accordance with three criteria: enrollment in a degree-granting program at Hood College, demonstrated financial need and the student’s ability to maintain satisfactory academic progress. For many of the need-based financial aid programs, students must be enrolled for at least 6 credits per semester. In addition, for a student to be eligible for any federal financial aid, the student must be a U.S. citizen or permanent resident of the United States; have a high school diploma or equivalent; not be in default on a Federal Perkins Loan or Federal Stafford Loan; and be registered with Selective Service (if required).

Students who qualify for financial aid are notified in the form of a financial award letter.

Typically, this award letter is sent to accepted students in their admission packet. Continuing students will receive their award letters beginning in April prior to the fall semester upon receipt of their renewal application for financial aid and any other required documents.

All financial aid forms are located on the Financial Aid page of the Hood website.

Financial Aid Programs

Federal Pell Grants

Awarded to undergraduate students with demonstrated financial need. Prorated awards may be made to eligible part-time students. Students must be pursuing their first baccalaureate degree.

Federal Supplemental Educational Opportunity Grant (FSEOG)

Awarded to undergraduate students with the greatest demonstrated financial need. Students must be pursuing their first baccalaureate degree.

Hood Grants

Awarded to full-time undergraduates who demonstrate financial need. Funding is limited. Students must be pursuing their first baccalaureate degree.

Federal Work Study Program

This federally-funded need-based employment program enables eligible undergraduate students to earn money for miscellaneous expenses while gaining practical experience in on- and off-campus jobs.

Campus Employment

Awarded to students who are not eligible for federal work-study. Funded and administered by Hood College. Limited number of positions are available.

Federal Direct Subsidized Loan

A need-based student loan program offered to undergraduate and graduate students. The interest rate is fixed. No interest accrues and generally no payments are due while a student is enrolled on at least a half-time basis. Repayment generally begins six months after the student’s enrollment status drops below half-time.

Federal Direct Unsubsidized Direct Loan

A non-need-based student loan program offered to undergraduate students. The interest rate is fixed. The six-month deferment applies only to repayment on the principal. Interest accrues when the loan is disbursed. Students are mailed quarterly interest statements at which time they may elect to pay the interest.

Federal Direct PLUS Loan

Parents may borrow up to the cost of education, minus any financial aid received, for each dependent undergraduate student. The interest rate is fixed. Repayment on principle and interest begins when the loan is disbursed, however deferment options are available.

Maryland State Scholarship Program

The Maryland Higher Education Commission offers several need-based scholarships and grants for Maryland residents. The scholarships and grants most frequently awarded to Hood students include, but are not limited to, the Educational Assistance Grant, the Guaranteed Access Grant, Senatorial Scholarship and Delegate Scholarship. In order to be considered for a Maryland State Scholarship, a student must file the Free Application for Federal Student Aid (FAFSA) by March 1. Some state scholarships may have additional application requirements. Please check with the Maryland Higher Education Commission-Student Financial Assistance at 800-974-0203 or www.mhec.state.md.us.

Veterans’ Educational Benefits

Hood College serves as a liaison/informational resource to veterans by providing Veterans Administration forms and certifying military students for benefits. To initiate or continue benefits, veterans must contact the Office of Financial Aid, 301-696-3411, at the beginning of each semester to complete the required paperwork, in compliance with the policies and procedures established by the Office of Financial Aid and the Department of Veterans Affairs. Information and application forms may be obtained from the Office of Financial Aid.

Satisfactory Academic Progress Requirements for Financial Aid (SAP)

Process Overview and Responsibilities 

In accordance with the U.S. Department of Education, the Office of Financial Aid at Hood College monitors undergraduate and graduate students after the spring semester each academic year for successful completion of satisfactory academic progress (SAP) standards. For financial aid eligibility, terms are defined as fall, spring and summer. All students are measured on qualitative (grade-based) and quantitative (time-based) standards. Students who fail to meet SAP standards are not eligible for any financial aid unless an appeal is granted. Students who fail to meet SAP standards can only appeal one time and change their major one time. 

Programs affected by the SAP standards include: Federal Pell Grant, Federal Direct Loans (Subsidized and Unsubsidized), Federal Plus Loans, Federal SEOG, Federal Work Study, state grants and scholarships, and institutional scholarships.

Qualitative Standards (Grade-based)

Qualitative standards measure a student’s quality of performance in terms of GPA, including basic skills courses (reading, writing, mathematics). 

Each semester a student must meet the following cumulative GPA standard:

In order to graduate, a student must have a minimum GPA of 2.0. If a student fails to meet the above GPA requirements, he/she will be suspended from financial aid but will have the opportunity to submit an appeal. 

Quantitative Standards (time-based also referred to as PACE)

In order to maintain financial aid eligibility, the U.S. Department of Education requires a student to successfully complete 67% of the credits for which he/she attempted as shown in the example below:

Hood College Office of Financial Aid calculates the pace at which you are progressing in your SAP academic plan by dividing the cumulative number of credits you have successfully completed by the cumulative number of credits you have attempted. All periods of enrollment count when assessing quantitative standards, even periods in which the student did not receive financial aid. 

Pace=Cumulative number of credits that you have successfully completed

  Cumulative number of credits that you have attempted

Unsatisfactory grades of F, INC, AU, F, S and U do not count as completed courses but will count as attempted credits. In addition, repeated coursework is counted as attempted hours for financial aid eligibility. Students can only receive financial aid for a passed course one additional time. If the student registers for a previously passed course the third time, the course is ineligible for financial aid. Students are eligible up to 30 attempted hours for basic skills courses (reading, writing, mathematics) which are not counted in the quantitative standards. If a student exceeds 30 attempted hours without successful completion, the student becomes ineligible for financial aid and must pay for those courses prior to continuing at Hood College. 

Transfer credits that count toward the student’s current program count as attempted and completed for financial aid eligibility. 

Quantitative Standards (maximum timeframe)

Students must be making progress toward a degree. To quantify academic progress, Hood College must set a maximum timeframe in which you are expected to finish a program. A student must complete his/her program of study within 150% of the length of the program. If a student needs additional time to complete the degree, the student may submit an appeal for financial aid. Students at Hood College are expected to complete 124 credit hours to earn an undergraduate degree. Students are eligible to receive financial aid up to 186 attempted hours at Hood College (not including 30 credit hours for basic skills courses). If additional time is needed, students can submit an appeal to the Director of Financial Aid.

Financial Aid Suspension

Students are placed on financial aid suspension if they do not meet one or both of the SAP standards.  Hood College monitors SAP annually at the end of spring semester and students are notified accordingly.  Students are not given a warning period since the process is monitored once per academic year.  Students have the option to appeal for financial aid once they are on suspension.  

Appeals Process

Students on financial aid suspension may appeal in writing to the Director of Financial Aid.  Appeals must be submitted by July 1 in order to review for the upcoming fall semester.  Students must provide in writing the extenuating circumstance(s) why SAP was not made and submit any supporting documentation.  The student must state how the situation has changed and what action will be taken in order to meet SAP standards at the next evaluation period (end of spring semester).  If the appeal is for maximum timeframe, the Director of Financial Aid may request the student to submit an academic plan signed by his/her advisor.  The Director of Financial Aid will notify the student if such documentation is needed for the appeal. 

The Director of Financial Aid will review the appeal and notify the student in writing within ten business days of the decision.  All decisions made by the Director of Financial Aid are final. 

If the appeal is granted, students will be placed on financial aid probation for one semester and are expected to improve their SAP status by the end of the semester probation is granted.  If, at that time, the student does not meet SAP standards, the student will be suspended from financial aid with no opportunity to appeal.  If the student is successful, the student will be removed from probation and placed in good standing for financial aid eligibility.  In order to be successful, the student must meet cumulative GPA standards and maintain a 67% cumulative passing rate.  If the student is placed on academic plan and is following the plan, the student shall remain on probation until program completion and will be eligible for financial aid.