Aid from most of the programs discussed is awarded on the basis of financial need (except for unsubsidized Stafford and PLUS loans). When you apply for federal student aid, the information you report on the FAFSA is used to calculate your Expected Family Contribution (EFC). The formula used is established by law and is used to measure your family’s financial strength on the basis of your family’s income and assets. The EFC is used to determine your eligibility for federal student aid.
If your EFC is below a certain amount, you will be eligible for a Federal Pell Grant, assuming you meet all other eligibility requirements.
There is not a maximum EFC that defines eligibility for the other financial aid programs. Instead, your EFC is used in the following equation to determine your financial need:
Your financial aid administrator calculates the cost of attendance and subtracts the amount you and your family are expected to contribute toward that cost. If there’s anything left over, you are considered to have financial need. In determining your need for aid from the SFA programs, your financial aid administrator must first consider other aid you are expected to receive.
NOTE: The financial aid administrator puts together a financial aid package that comes as close as possible to meeting your needs. However, because funds are limited, the amount awarded to you may fall short of the amount for which you are eligible.
Your financial aid administrator can adjust data used to calculate your EFC or adjust your cost of attendance if he or she believes your family’s financial circumstances warrant it based on the documentation you provide. However, the financial aid administrator does not have to make such an adjustment. You can get worksheets that show how a student’s EFC is calculated by downloading them from the Internet at ifap.ed.gov. You can also get the worksheets by contacting the Federal Student Aid Information Center at P.O. Box 84, Washington, DC 20044 or by calling 1-800-4-FED-AID/1-800-433-3243.