College Student Loan News and Info

Financial aid for college

A student’s financial aid for college is determined based on the information provided to the government via the Free Application for Federal Student Aid (FAFSA). From the FAFSA, the U.S. Department of Education calculates the student’s Expected Family Contribution (EFC). The EFC is a number that reflects how much money the student (and parents when applicable) are expected to contribute toward expenses for the school year. If the EFC is under a predetermined number, the student qualifies for certain types of financial aid for college such as Federal Pell Grant.

The amount of the Pell Grant award again depends on the EFC. To determine the award, the school’s financial aid administrator calculates the cost of attendance minus the EFC. The student’s enrollment status (full time, part time, etc.) is also taken into consideration.

All other federal financial aid for college awards are calculated based on the student’s remaining need. Remaining need is the cost of attendance minus the EFC and Federal Pell Grant award. Other student aid sources (scholarships, private school loans, etc.) are also subtracted from the cost of attendance. The final number in this equation is the remaining financial need.

Cost of attendance varies by student and school. As previously mentioned, the school’s financial aid administrator calculates the cost of attendance, which includes:
Tuition and associated fees
Room and board
Cost of textbooks
Dependent care (if applicable)
Costs related to a disability (if applicable)
Costs for eligible study-abroad programs (if applicable)

Other expenses may also be added to this list as approved by the financial aid administrator. The financial aid administrator also has the ability to change a student’s status from dependent to independent. This, however, can only occur under special circumstances.