Learn how financial aid is calculated based on tuition, family contribution, and scholarships, helping students better prepare for their educational expenses. This guide explains the factors involved in determining federal and non-need-based aid, providing useful tips for financial planning and aid maximization.

How Financial Aid Is Calculated and Determined

Once you complete the FAFSA and receive your Student Aid Report, a specified financial support amount will be assigned if you qualify. It's important to reapply annually, as your aid amount may vary due to changing financial circumstances. Understanding how your aid is calculated allows you to anticipate potential adjustments and plan accordingly for your educational expenses throughout your studies.

The financial aid office considers multiple factors to determine your award. First, they evaluate the total cost of attendance, including tuition, housing, textbooks, and other relevant expenses such as disability accommodations if needed. The Expected Family Contribution (EFC), which reflects your family's ability to support your education based on income and assets, is then factored in. The difference between the total cost and EFC indicates your financial need, influencing eligibility for need-based aid. Non-need-based aid is calculated by subtracting scholarships and aid received from the total costs, with the remaining amount potentially covered by other assistance. For instance, if your total costs are $18,000 and you receive $6,000 in scholarships, the remaining $12,000 could be covered by non-need aid.

Exploring different financial aid options and applying for grants can improve your financial strategy and reduce educational costs.