Understanding How College Financial Aid Is Determined
Learn how college financial aid is calculated, including factors like cost of attendance, Expected Family Contribution, and types of aid. Understand how aid amounts fluctuate annually, and how to optimize your financial aid package by comparing need-based and non-need-based options. This guide helps students navigate financial planning for college.
After submitting the FAFSA and reviewing your student aid report, a specific financial assistance amount will be assigned to you if you meet the basic eligibility requirements. It's essential to apply for financial aid annually, as the amount may fluctuate yearly based on changing circumstances. Knowing how aid is calculated helps you anticipate potential increases or decreases and plan accordingly. Every unit counts, so understanding the calculation process is key to managing your financial resources effectively throughout college.
College financial aid decisions are based on various factors. Initially, the college assesses the total cost of attendance, which includes tuition, housing, books, supplies, and additional expenses, especially for students with disabilities. The Expected Family Contribution (EFC), which reflects your family’s ability to contribute financially, is also considered. The difference between the total cost and the EFC determines your financial need. Need-based aid is then awarded based on this gap. Non-need-based aid is calculated by subtracting the aid received from other sources from the total cost, with remaining funds potentially covered by scholarships or grants. Comparing different aid packages and exploring free grant options can help maximize your financial resources.
