Learn how college financial aid amounts are determined by examining key factors like total costs, family contribution, and scholarships. Understand the process to better plan your college finances and anticipate aid changes each year.

How College Financial Aid Amounts Are Calculated

After completing the FAFSA and reviewing your Student Aid Report, an aid amount is assigned if you meet the eligibility criteria. You need to reapply for financial aid each academic year, as the aid amount may fluctuate based on your circumstances. Understanding how these amounts are determined helps students anticipate potential changes and plan their finances accordingly throughout their college years.

Financial aid offices evaluate your aid based on multiple factors. They consider the total college costs, including tuition, housing, textbooks, supplies, and any disability-related expenses. The Expected Family Contribution (EFC), reflecting your family's financial capacity, is then subtracted from the total cost. The difference represents your financial need, which determines need-based aid. Non-need aid is calculated by deducting scholarships or other aid from the total expenses. For instance, if total costs are $18,000 and $6,000 is covered by scholarships, the remaining $12,000 might be awarded as non-need-based assistance.

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