Financial Need General Information

Aid from most of the programs discussed in this publication 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 to calculate your EFC 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'll be eligible for a Federal Pell Grant, assuming you meet all other eligibility requirements (see pages 7 and 8). There isn't a maximum EFC that defines eligibility for the other financial aid programs (see pages 13 through 21 for information on these programs). Instead, your EFC is used in the following equation to determine your financial need:

* Cost of Attendance
* Expected Family Contribution
* Financial Need

Your financial aid administrator calculates your cost of attendance* and subtracts the EFC. If there's anything left over, you're considered to have financial need. In attempting to meet your need for aid from SFA programs, your financial aid administrator must first consider other aid you're expected to receive.

NOTE: The financial aid administrator puts together a financial aid package* that comes as close as possible to meeting your need. However, because funds are limited, the amount awarded to you might 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 the EFC is calculated by downloading them from our Web site at ifap.ed.gov/efcinformation
You can also get the worksheets by contacting the Federal Student Aid Information Center at the address or phone number.

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