<p>I don't really understand what this is for...
do schools need it to figure out loans for
people who need aid or grants? what?
I am sooo confused. </p>
<p>Also, what is the difference between FAFSA and PROFILE?
WHat should I do??</p>
<p>Both FAFSA and Profile are general applications for financial aid. Nearly all colleges require that you fill out the FAFSA, at a minimum, if you want to be considered for need-based aid. Some also require the Profile. Check the website of colleges you're interested in to see what their requirements are.</p>
<p>Based on the these applications, a formula is used to calculate what the government thinks your family can afford to contribute next year to your education. That's the Expected Family Contribution (EFC).</p>
<p>That number goes to the colleges, and they will put together an aid package that covers much of the difference between the EFC and the Cost of Attendance (tuition, books, room, board, and misc). The aid package will typically include grants that you don't have to repay, and loans that you do. They will also sometimes include work study-- where you work during school to subsidize your education.</p>
<p>Note that the FAFSA and the Profile are two different applications. All colleges require FAFSA, some require Profile in addition to FAFSA. Both calculate EFC using different methodologies. Check, double check, and triple check what your colleges require and the deadlines.</p>