What is the need gap for college aid?
Colleges and the federal government have a formula for determining how much you are expected to contribute toward your teenager s college education. There s also a formula to determine how much that education will cost. The difference between those two figures is your need gap. Unfortunately, the school probably won t have the cash to fill that gap and you will be responsible to bridge it on your own. According to FinAid, the Financial Aid Information page, “Schools have limited funds available for financial aid, and they must determine how to best allocate the funds to their neediest students. Very few schools can afford to meet the demonstrated need of all their students, so most assume that all students and/or parents must pay a certain minimum amount, regardless of their need. Others give financial aid only to the neediest students.” The college will expect the student to obtain some of the funds to fill the need gap by working, while parents may be expected to borrow money through
