How is expected family contribution calculated?
A standard formula is used to calculate a student’s expected family contribution. You and your parents, if you are a dependent student, provide the information used in the formula by completing a Free Application for Federal Student Aid (FAFSA). The standard formula looks at family size, number of people, excluding your parents, who are attending college at least half time, family income and assets. Assets include cash, checking and savings accounts, equities in a business, investments and real estate, and in some cases, farm equity. Equity in the family home is not included. From this information an expected family contribution is calculated. If the family contribution is not enough to cover your educational expenses, as determined by the school, you may be eligible for need-based financial aid.
