Determining Financial Aid Packages

An offer of financial aid is known as a financial aid “package.” Financial aid packages usually consist of a combination of grants, loans and work-study. The first step in determining a student’s financial aid package is measuring a family’s ability to pay, known as the Expected Family Contribution (EFC). A family’s ability to pay is determined by completing a financial aid application form such as the Free Application for Federal Student Aid (FAFSA). This form is used to determine eligibility for all federal financial aid. Some colleges or universities may use another application form such as the College Board Profile Application to determine eligibility for their own funds.

The amount of financial aid an undergraduate qualifies for is determined by subtracting expected family contribution (EFC) from the total cost of attending the institution. Total cost of attendance includes tuition, fees, room and board/living expenses, an allowance for books and supplies and other miscellaneous expenses. The difference between total cost of attendance minus the expected family contribution is your financial aid need or financial aid eligibility.