How is Need for Financial Aid Determined?
Students' financial needs are determined according to statutory formulas from the federal government. It is a systematic way of measuring a family's ability to pay for educational costs and determining how much students and their families can contribute. The formula takes into account income, some assets, family size, number of family members in college and other factors.
The end result of the need analysis is the expected family contribution. The expected family contribution (EFC) is the amount students can be reasonably expected to pay toward the cost of education. It measures the ability, not the willingness, of the families to finance students' education.
The amount of financial need is determined by subtracting the expected family contribution from the cost of attendance.