Understanding How Financial Assistance Is Determined

Learn how colleges determine financial aid amounts based on costs, family contribution, and available scholarships. This guide explains need-based and non-need-based aid calculation methods, helping students plan their educational financing effectively. Understand the factors involved to better manage potential changes in aid and maximize your opportunities for support.

Understanding How Financial Assistance Is Determined

After submitting your FAFSA and receiving your student aid report, a specific amount labeled as financial assistance will be assigned to you if you meet the eligibility requirements. It is necessary to apply annually for financial aid, as the amount can fluctuate each year based on changing circumstances. Knowing how your aid is calculated helps you understand potential increases or decreases and assists in planning for these changes throughout your educational journey.

The financial aid office reviews several factors to determine your award. The first step involves assessing your college's total cost of attendance, which includes tuition, housing, textbooks, and other expenses like disability-related costs if applicable. Your Expected Family Contribution (EFC), reflecting your family's ability to contribute based on income and assets, is then considered. The difference between the total cost and EFC represents your financial need, which influences need-based aid eligibility. Non-need aid is calculated by subtracting any scholarships or aid received from your total costs, covering the remaining expenses. For example, if your total cost is $18,000 and you have $6,000 covered through scholarships and aid, the leftover $12,000 can be addressed through non-need-based assistance.

Comparing various financial aid options and exploring free grant applications can provide additional financial planning benefits.