Understanding How College Financial Assistance Is Determined

After submitting your FAFSA and reviewing your Student Aid Report, a specific financial aid amount is assigned to you if you meet all eligibility requirements. You must apply for financial aid each academic year, and the amount may vary annually based on changing circumstances. Knowing how aid amounts are calculated helps students understand potential increases or decreases and how to adapt to these changes throughout their college journey.

Financial aid offices determine your aid based on several factors. First, they assess the total attendance cost, including tuition, housing, books, supplies, and disability-related expenses if applicable. The Expected Family Contribution (EFC), reflecting your family's ability to pay via income and assets, is then considered. The difference between the total cost and EFC indicates your financial need, which forms the basis for need-based aid. Non-need aid is calculated by subtracting any scholarships or aid received from the total cost, covering remaining expenses accordingly. For example, with an $18,000 cost and $6,000 covered by scholarships, the remaining $12,000 could be awarded as non-need-based aid.