Determining Financial Need
Financial need is the difference between what your family is expected to pay (expected family contribution or EFC) and what it costs to go to your college of choice (cost of attendance). Most colleges will try to meet 100 percent of your financial need, but your need may vary from school to school.Cost of Attendance - Expected Family Contribution = Determined Financial Need
Regardless of the school you choose to attend, your expected family contribution, or the amount of money your family is expected to pay, won’t change very much. Each college will use the same information to decide how much your family should contribute. Just because a school costs more doesn’t mean you and your family will have to pay more. Here’s how it works.
| Expected Family Contribution | ||
|---|---|---|
|
|
Example 1 | Example 2 |
| College Cost | $10,000 |
$18,000 |
| Expected Family Contribution | $2,000 |
$2,000 |
| Your Financial Need | $8,000 |
$16,000 |
| This college’s financial aid offer could include: | Student loans $2,625
$2,500 |
Student loans $4,625
$2,500 |
In either example, you could meet your expected family contribution in many ways. You or your parents could use savings, apply for a loan or make monthly payments to the university. You could even get a summer job and save the money before school starts. And, if your family’s financial situation changes after you complete the FAFSA, you can contact the college to explain your situation. The college may be able to reduce your family contribution and increase your financial aid award.