which takes into account the family's adjusted gross income (AGI), as reported on the most recent tax return and the TRB of the school.
NOTE: A copy of the family’s most recent IRS 1040 Tax Form showing “Adjusted Gross Income” (AGI) must accompany this application for it to be processed for consideration.
We use what is known as a 40/300 rule to calculate the percentage of the TRB to be provided by the family. If the adjusted gross income (AGI) is between $40,000 and $300,000, we divide the AGI by 300,000 to determine the percent of the TRB to be borne by the family. This gives us a starting point; we are frequently more generous than the formula calls for.
Example:
Family adjusted gross income (AGI): $100,000
School's tuition, room and board cost: $30,000
$100,000 divided by $3000 = 1/3
Family share: $10,000
(1/3 x $30,000 = $10,000)
In this example, the scholarship grant is $20,000 ($30,000-$10,000) which, normally, is split between the Foundation and the school in question. The total scholarship grant is therefore negotiated through the Foundation, not the school.
If the AGI is over $300,000, we normally ask the family to pay the full fare, unless the school desired offers a “merit scholarship.” In the current academic year, for instance, only about 10% of the families paid the full TRB while the Foundation (and schools themselves) provided the rest (about $1.3 Million) in scholarship support.
If the AGI is less than $40,000 special financial arrangements will have to be negotiated between the Foundation and the family.
Note: Most schools offer an automatic scholarship for USNA Foundation-sponsored students, regardless of family need. The amounts vary from school to school.
We consider this to be a reasonable approach for arriving at a fair share of the costs to be assumed by the family. This method is substantially more favorable for the family than the FAFSA formula for Stafford Loans/Pell Grants. We also try to consider unique family circumstances; loss of employment, divorce, etc.