FINANCIAL NEED

Paying for College
1

<p>Can someone please explain to me how financial need works in detail? What it covers etc.
Thank You</p>

2

<p>“Financial need” is the difference between what you are able to pay and what the school’s cost of attendance is.</p>

3

<p>Financial need is the difference in what the SCHOOL calculates you can pay, and the cost of attendance.</p>

<p>The school calculates what they believe you can pay based on a formula using your income and assets.</p>

4

<p>As explained above financial need doesn’t cover anything. Your financial need is what you hope is covered by financial aid. Here’s a detailed FAQ thread explaining financial aid.</p>

<p><a href=“Financial aid FAQs - Financial Aid and Scholarships - College Confidential Forums”>Financial aid FAQs - Financial Aid and Scholarships - College Confidential Forums;

5

<p>Need = COA - EFC</p>

<p>See <a href=“http://www.finaid.org/”>Your Guide for College Financial Aid - Finaid; and <a href=“Student financial aid in the United States - Wikipedia”>http://en.wikipedia.org/wiki/Student_financial_aid_in_the_United_States&lt;/a&gt;&lt;/p&gt;

6

<p>You can have a LOT of need, but that does NOT mean you’ll get it. Most schools do not have the money to give. </p>

7

<p>Are you really asking how financial AID works?</p>

<p>Schools that you apply to look at your financial need through various tools, including the the FAFSA (application for federal grants and loans) and/or the CSS Profile (often used by private colleges), and perhaps their own financial aid applications. Using the income and assets information provided on those, an Estimated Family Contribution (EFC) is determined, as well as the schools’s estimate of need. </p>

<p>Through FAFSA, every citizen qualifies for federal loans and low income students can qualify for grants and federal work study (meaning the government pays the school to pay the student to work at the school while a student). In addition, some schools (more privates than publics) have the resources to offer other need-based financial aid: grants or their own form of work study if the student does not qualify for federal work study.</p>

<p>In addition to need-based financial aid, many schools offer merit scholarships. Those are scholarships that are provided to students who have grades and SAT/ACT scores that meet the school’s qualifications. </p>

<p>After the school determines how much need you have and offer you financial aid, it can cover many things: tuition, room and board, even a book allowance in some cases. You can use the federal student loans to cover any school expenses. But the school may not provide as much as you think that you need.</p>

<p>Any financial aid (including merit scholarships) that are in excess of the amount of tuition and IRS approved expenses (books and fees, but not room and board) are considered taxable income and must be reported to the IRS.</p>

<p>There are threads on this board that give a list of school with generous merit scholarships. Check them out.</p>

8

<p>

Many schools consider the student loans as a part of financial aid. For your tax consideration, any grants & scholarships (not loans) that exceed the qualified educational expenses are taxable income and may need to report on your tax returns. See <a href=“http://www.irs.gov/publications/p970/ch01.html”>http://www.irs.gov/publications/p970/ch01.html&lt;/a&gt;&lt;/p&gt;

9

<p>@Freakfisher3‌
In another thread, you mention that you live with your sister. Is that because your sister has been awarded custody of you OFFICIALLY thru the courts? Or has she been taking care of you my default?</p>

<p>This makes a difference when you apply for aid.</p>