Determining Financial Need
At Luther your need-based financial aid is based on information gathered from the Free Application for Federal Student Aid (FAFSA). A standard formula mandated by the federal government is used to calculate your Expected Family Contribution (EFC), or the amount of money your family is expected to be able to pay towards your education in a given year. This number will be the same for every school to which you apply.
Financial Aid then takes the total cost for attending Luther for a year (including an estimate for the cost of books, transportation and personal expenses) and subtracts your Expected Family Contribution. The result is your demonstrated need. In other words:
| Total Cost of Luther Education |
| - Your Expected Family Contribution |
| = Your Demonstrated Need at Luther |
Once your demonstrated need has been determined, the Luther Financial Aid Office puts together an offer of scholarships, grants, work-study and loans that will make a Luther education affordable for you and your family. It is important to note that while the FAFSA is a tool that simply plugs numbers into a formula, Luther's financial aid staff is made up of caring people who recognize that your family is about more than numbers on a page. Our staff looks at each student and family individually; if your family has a unique circumstance—the impending loss of a job, medical expenses, a parent in college, etc.—please contact the Financial Aid Office for instructions.
The following chart outlines the average assistance awarded to the first-year class of 2008 based on a comprehensive fee of $36,110. Do keep in mind this is simply an average. Variables such as family size, number of children in college, and family strength in assets—especially those saved in the student's name—mean that some families in a given income range receive more aid and others less.
| Parent Total Income Range | Percentage of Applicants Receiving Aid | Average Scholarships & Grants | Average Work & Loan | Average Total Assistance |
| under $30,000 | 100% | $24,471 | $7,700 | $32,171 |
| $30,001-$40,000 | 100% | $23,500 | $7,700 | $31,200 |
| $40,001-$50,000 | 100% | $21,950 | $7,467 | $29,417 |
| $50,001-$60,000 | 100% | $20,708 | $7,348 | $28,056 |
| $60,001-$70,000 | 97% | $20,294 | $7,035 | $27,330 |
| $70,001-$80,000 | 95% | $19,294 | $6,874 | $26,168 |
| $80,001-$90,000 | 94% | $18,370 | $6,442 | $24,812 |
| $90,001-$100,000 | 88% | $14,991 | $6,117 | $21,108 |
| $100,001-$110,000 | 80% | $14,875 | $5,747 | $20,622 |
| $110,001-$125,000 | 55% | $14,676 | $5,487 | $20,163 |
| $125,001-$150,000 | 48% | $12,955 | $4,746 | $17,701 |
| Over $150,000 | 15% | $12,619 | $3,980 | $16,599 |
Again, every family situation is unique. Our financial aid staff works carefully with individual students and their families to accommodate special circumstances and to provide support and guidance throughout the financial aid process.
Below are several examples of unique family scenarios and the specific aid awards offered in each case.
Example #1:
Cheryl has an older brother who is a junior in college. Her father is a pastor and makes $50,000 in salary and has another $12,000 in housing allowance. Her mother is a housewife. They have cash and investments worth approximately $30,000. Cheryl earned $3,000 last summer and has saved $1000. She received an outside agency scholarship for $1000 and is the recipient of a $8,000 Presidential Scholarship. Cheryl receives the following financial aid award from Luther:
| Luther College Presidential Scholarship | $8,000 |
| Luther College Grant | $7,000 |
| Iowa Tuition Grant | $4,000 |
| Outside Agency Award | $1,000 |
| Federal College Work-Study | $2,000 |
| Federal Perkins Loan | $2,000 |
| Federal Subsidized Stafford Loan | $3,500 |
| Total Aid | $27,500 |
Example #2
Rebecca's parents own their own business. Last year they earned approximately $80,000. In addition, they have approximately $45,000 in investments. Rebecca earned $3,200 over the past year and has $2,100 in savings. Rebecca has two brothers. One is still in high school and the other is also enrolled at Luther. Rebecca was awarded an outside scholarship from her high school and is the recipient of an Academic Achievement Award. She is eligible for the following financial aid award from Luther:
| Academic Achievement Scholarship | $6,000 |
| Luther College Grant | $10,660 |
| Outside Scholarship | $1,000 |
| Federal College Work-Study | $2,000 |
| Federal Perkins Loan | $2,000 |
| Federal Subsidized Stafford Loan | $3,500 |
| Total Aid | $25,160 |
Example #3
Troy's parents are divorced. He lived with his mother during his senior year. She works as a bank teller and earns $32,000. Child support for Troy ended in May when he graduated from high school. Troy also worked and earned approximately $3,000. He is the receipient of both a Regent Scholarship and a Weston Noble Music Scholarship from Luther. He has also won $2,000 in local scholarships. Troy receives the following financial aid award from Luther:
| Luther College Regent Scholarship | $14,000 |
| Weston Noble Music Scholarship | $1,500 |
| Music Lesson Scholarship | $500 |
| Iowa Tuition Grant | $4,000 |
| Federal Pell Grant | $2,060 |
| Federal Supplemental Opportunity Grant | $1,000 |
| Outside Scholarship | $2,000 |
| Federal College Work-Study | $2,000 |
| Federal Perkins Loan | $2,000 |
| Federal Subsidized Stafford Loan | $3,500 |
| Total Aid | $32,520 |
Example #4
Anna's father is a farmer. Her mother works as a small business owner. Together they made $45,000 last year. Anna is the oldest of 5 children. She also worked last year and earned approximately $5,200. She is the recipient of a Luther Achievement Award and is also receiving a $750 EPIC award from her church. Anna receives the following aid award from Luther:
| Academic Achievement Award | $6,000 |
| Luther College Grant | $9,000 |
| EPIC Scholarship from Church | $750 |
| Luther College EPIC Match | $750 |
| Federal Pell Grant | $3,360 |
| Federal Supplemental Opportunity Grant | $1,500 |
| Federal College Work-Study | $2,000 |
| Federal Perkins Loan | $2,000 |
| Federal Subsidized Stafford Loan | $3,500 |
| Total Aid | $28,860 |
Example #5
David's father is an engineer and makes approximately $110,000 per year. His mother does not work outside the home. David is a recipient of a $12,000 Regent Scholarship. David's church participates in our EPIC matching scholarship program and awarded David a $1,000 scholarship for his first year at Luther. David also won $2,000 in local scholarships. David's need-based eligibility has been completely met with scholarships he has received. His father is a Luther College alum. He receives the following financial aid award from Luther:
| Luther College Regent Scholarship | $12,000 |
| Luther Legacy Award | $1,000 |
| EPIC Scholarship from Church | $1,000 |
| Luther College EPIC Match | $ 750 |
| Outside Scholaships | $2,000 |
| Luther College Work-Study | $2,000 |
| Federal Unsubsidized Stafford Loan | $3,500 |
| Total Aid | $22,250 |