Understanding the Method Behind Financial Aid Calculation
Learn how colleges determine financial aid eligibility by evaluating costs, family contribution, and both need-based and non-need-based assistance. Understanding this process aids students in planning and maximizing available resources throughout their college journey.
After submitting your FAFSA and reviewing your student aid report, you'll see the amount of financial support you're eligible for, provided you meet the basic requirements. Each academic year requires a new application, and your aid amount may fluctuate annually based on various factors. Recognizing how aid is computed helps you anticipate potential increases or decreases and plan accordingly for your financial needs during college. Staying informed ensures you can manage changes effectively and make the most of available resources.
The financial aid office reviews multiple elements to determine your award. First, they assess the total cost of attendance, which includes tuition, housing, textbooks, supplies, and any additional expenses such as disability costs, for students attending at least half-time. Next, they evaluate your family's Expected Family Contribution (EFC), which reflects the family's financial capacity based on income and assets. The difference between the cost of attendance and the EFC represents your financial need, guiding the allocation of need-based aid.
For non-need based assistance, the college subtracts any other aid you've received—like scholarships or external grants—from the total cost. The remaining balance can be covered through non-need-based programs. For example, if your total expenses are $20,000, with $8,000 covered by scholarships and grants, the leftover $12,000 might be provided through other non-need based aid options. Understanding these calculations helps you better plan your financial strategy for college.
