Aid Step 1: Qualify for Student Financial Aid

— Determining Financial Aid Need Formula —

Needs-based financial aid programs are awarded to students and families who display a financial need.

the government calculates financial need based upon the following formula:

+ (add) Total cost to attend college (tuition, books, housing, etc.) - (minus) The "Expected Family Contribution (EFC) " towards the cost of education     = (equals) Eligible Financial Need

The government uses the submitted FAFSA form to calculate "Expected Family Contribution" (EFC)

the EFC is a measure of the family's financial strength and the amount of resources the family has available to pay for education

basically, your family income (both taxed and non-taxed), assets and benefits (including unemployment and social security payments) are all considered in determining EFC

likewise, the size of your family, the number of family members attending college are also considered. The EFC is calculated according to a formula established by Congress

download the EFC booklet: information on EFC (PDF file)

The financial aid office of the school you will be attending calculates the total cost of attendance

and then subtracts the amount you and your family are expected to contribute toward that cost.

the remaining cost left over (if any) is the amount of financial need you qualify for, adjusted by other financial aid assistance you expect to receive (such as school scholarships, grants, etc.).

The financial aid administrator will put together a financial aid award package

that comes as close as possible to meeting your need — since funds are limited, the amount awarded may not cover the full cost of college.

students often must consider other forms of financial aid assistance (such as loans and work study) to supplement the difference between financial need and financial aid awarded.

examples: see student financial aid options

Some college institutions (mostly private institutions) may use their own methodology in calculating financial need:

+ (add) Total cost to attend college (tuition, books, housing, etc.) - (minus) The Institution's calculated "Expected Family Contribution"     = (equals) Eligibility of Institutional Financial Need

you need to check with your college to determine what methodology that is in use —

link for more information and an application: information on CSS® Profile from www.collegeboard.com