How is financial need determined?
Eligibility for most financial aid is contingent on your financial need. Financial need is the difference between the cost of attendance and your expected family contribution (EFC). The EFC is calculated from the information you supplied on the Free Application for Federal Student Aid (FAFSA) using a federally legislated formula used by post-secondary educational institutions across the nation.
Your Financial Need is defined as the difference between your Cost of Attendance as determined by the College and your Expected Family Contribution (EFC). Your Cost of Attendance includes tuition, fees, books, supplies, transportation and living expense estimates determined by the Financial Aid Office. Your Expected Family Contribution (EFC) is based on the financial information from your FAFSA. The U.S. Department of Education calculates your EFC by comparing your income and assets against the standard cost of living allowances for the number of people in your household. Cost of Attendance – Expected Family Contribution (EFC) = Financial Need Your financial aid award will show the cost of tuition, minus any grants and loans you will receive. The difference between these grants and tuition costs is what you will owe. Once the documented need is determined, awards are made based upon: • the student’s request for certain types of financial aid, • the amount of funds available for awardin
The process of analyzing a student’s financial need, known as need analysis, focuses on determining how much the family reasonably can be expected to contribute towards the student’s education. Traditionally, determination of an applicant’s need is achieved by collecting information about the family’s income, assets, and living expenses. For the federal student aid programs, the law specifies a need analysis formula that produces the Expected Family Contribution (EFC). The EFC and the college’s cost of attendance are used by the postsecondary school to establish the student’s need as well as to award grants, campus-based aid, and subsidized loans. The college might ask you to complete other paperwork to determine your need for non-federal aid.
Need Analysis The process of analyzing a student’s financial need, known as need analysis, focuses on determining how much the family reasonably can be expected to contribute towards the student’s education. Traditionally, determination of an applicant’s need is achieved by collecting information about the family’s income, assets, and living expenses. For the federal student aid programs, the law specifies a need analysis formula that produces the Expected Family Contribution (EFC). The EFC and the college’s cost of attendance are used by the postsecondary school to establish the student’s need as well as to award grants, campus-based aid, and subsidized loans. The college might ask you to complete other paperwork to determine your need for non-federal aid.
