Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 347 Determining financial need Financial need is the difference between the amount a student’s family can afford to pay and the cost of attending a college. To determine if a family has need, their Expected Family Contribution (EFC) is compared to the Cost of Attendance (COA). If their Expected Family Contribu- tion is more than the Cost of Attendance, the family has no financial need. If their Expected Family Contribution is less than the Cost of Attendance, the family has a financial need. In this example, Mike and his family are expected to contribute $14,000. Whether Mike goes to a college that costs $39,000 or $13,000, the amount his familyisexpectedtocontributedoesn’tchange. Theonlythingthatchangesis Mike’s financial need. In this case, Mike will obviously have a greater financial need if he goes to Private U. College financial aid applications Most colleges have their own financial aid forms that students and parents must complete. Financial aid and scholarship applications can usually be found on a college’s website. Colleges use the information provided on these forms to help them determine a student’s eligibility for financial aid. Families with special circum- stances (e.g., the family has large medical expenses, parents got divorced, father lost his job) should contact the college’s financial aid office. Mike’s college cost comparison Mike is a senior who’s considering three very different colleges: Private University (Private U), State University (State U), and City Community College (City CC). Mike’s Student Aid Report (SAR) shows that his Expected Family Contribution (EFC) is $14,000. To figure out how much financial need he will have at each college, his family put the following table together. Private U State U City CC Cost of Attendance $39,000 $19,000 $13,000 Minus EFC – $14,000 – $14,000 – $14,000 Financial Need $25,000 $5,000 - 0 -