How is financial need determined?
Financial need is determined by subtracting your EFC (Expected Family Contribution as determined by the FAFSA) from the total cost of education for the year. Since cost varies among colleges and universities, your need will also vary from one institution to another. Your EFC, however, may stay approximately the same at all colleges and universities. Therefore, it is likely that a student will receive more assistance at a higher cost private institution compared to a less expensive public college because the student’s financial need will be higher at a private institution. The EFC is influenced by many factors, including parents’ and student’s income and assets, the household size, and the number enrolled in college. You may get an estimate of your EFC on the internet at: www.finaid.org/finaid/calculators/finaidestimate.
Financial need is the difference between the estimated cost of attendance in a school year and the expected family contribution (EFC) from the family. The Financial Aid Office reviews the EFC, determines the applicant’s financial need and notifies the student of available sources of funding via a financial aid award letter.
When you file your FAFSA the government calculates a number called the “Expected Family Contribution.” This is the amount you (and sometimes your parents if you are younger) are expected to be able to spend for a year of college. The amount the family is expected to contribute is based upon a federal formula used for all aid applicants. The college determines how much it will cost you to attend for one year. This is called the “Cost of Attendance.” Costs vary widely among colleges! Be sure to read about college costs. The college subtracts the Expected Family Contribution from the Cost of Attendance. The difference is your need or eligibility. For example, if the cost of attendance is $12,500 and the family contribution is $3,000 the student will be eligible for up to $9,500 in financial aid. ($12,500 – $3,000 = $9,500.
The expected parental contribution is based on parent’s income and assets (including home equity), family size, number of siblings enrolled in college, as well as other factors such as extended unemployment or unusual medical expenses. The student contribution is derived from expected summer earnings, savings and other assets. The parental contribution and the student contribution equal the family contribution. If you would like an estimate of your family contribution, please visit the Williams College Calculator. When parents are divorced or separated, the financial ability of the noncustodial parent to contribute is taken into consideration. If your family contribution is less than the total cost, you are considered to have financial need. This is met by some combination of student loan, campus job, Williams Scholarship, and other state, federal and private grants.
