The basis of selection for most financial aids is eligibility and/or financial need. The financial need determines an applicant’s eligibility for many types of aid.
Financial need is the difference between the Cost of Attendance at a university or college and the Expected Family Contribution (EFC) as calculated according to the federal Need Analysis Formula. The Cost of Attendance includes estimates for tuition, fees, room, board (meals), transportation, books, and personal expenses.
After filing FAFSA applicants will receive an Electronic Student Aid Report (E-SAR) from the Federal Department of Education that will include their Expected Family Contribution (EFC). Applicants can determine their financial need by subtracting their EFC from the total cost of the college they wish to attend.
The Financial Need formula is: Cost of Attendance – EFC = Financial Need
Students with family incomes ranging between $0-30,000 receive a federal aid amount of $36,668 due to a higher need of financial assistance. A slight change is observed with the range starting from $30,001-48,000; the aid provided for it is $35,995. For incomes within $48,001-75,000, the aid provided is $32,229. When the income range increases to $75,001 - $110,000, the aid amount decreases to $29,055. When the range increases beyond $110,000, the aid amount gets reduced to $27,132.