FINANCIAL AID

Determining Financial Need

Definition of Need
Need is defined as the difference between the cost of attendance at a particular institution and the family's ability to pay for those costs. The amount the family is expected to pay is commonly referred to as Expected Family Contribution, or EFC. The difference between the cost and the EFC is called "financial need".
Principles of Need Analysis
A family’s ability to pay (that is, the EFC) is calculated using a process known as “need analysis.”

Need analysis is based upon the principles that:

To the extent they are able, parents have the primary responsibility to pay for the education of their dependent children;

Students, also, have a responsibility to help pay for their educational costs;

Families should be evaluated in their present financial condition; andA family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner, while recognizing that special circumstances can and do alter a family’s ability to pay.

Cost of Attendance
Cost of attendance is not a constant figure. It varies by type of school and the costs associated with attending that school. For example, independent (or private) colleges and universities do not receive government operational subsidies and, therefore, must charge students higher tuition and fees than a state-supported community college or other public institution of higher learning. Consequently, the cost of attendance at a private college or university is usually higher than that of a public college or university.
The cost of attendance at a particular school may be estimated by consulting its catalog. In your estimate you should include the cost of tuition and fees, room and board, books and supplied, transportation, and any other miscellaneous personal expenses for the academic year. While the above categories cover most of the costs the student will encounter, expenses related to borrowing educational loans, study abroad, dependent care, disability, and cooperative education programs may also be included with adequate documentation.
Federal Methodology
Based on data provided by the student and parent on the Free Application for Federal Student Aid (commonly called by its initials, the FAFSA), the need analysis uses a formula known as "Federal Methodology." Federal Methodology was created by Congress to determine the EFC