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Need is defined as the difference between the cost of attendance at a particular institution and the family's ability to pay for those costs. The amount your family is expected to pay is commonly referred to as Expected Family Contribution, or EFC. The difference between the cost and the EFC is called "financial need."
Need Varies Based on Cost
Cost of attendance is not a constant figure. It varies by type of school and the costs associated with attending that school. For example, the cost of attendance at a private college or university is usually higher than that of a public college or university.
While the cost of attendance varies from school to school, in theory, your Expected Family Contribution will remain constant. So your need for assistance will vary depending on the cost of attendance. If your EFC is less than the amount it costs to attend a particular school, then you will be eligible for need-based financial aid programs. But if your EFC is greater than or equal to the cost of attendance, you will not be eligible for assistance from need-based financial aid programs. However, you may be eligible for non-need-based loans.
To estimate the cost of attendance at a particular school, consult the catalog of that school. In your estimate, be sure to include:
- tuition and fees
- room and board
- books and supplies, transportation, and miscellaneous personal expenses
- loan fees
- study abroad costs
- dependent or elder care expenses
- expenses associated with a disability
- expenses for cooperative education program
Adapted with permission from "Financing Education Beyond
High School,"
a presentation by the National Association of
Student Financial Aid Administrators.