<p>I know this may sound stupid, but what is considered "financial need"? Amount of income?</p>
<p>Basically they use your parents and your (the student) income and assets to calculate an amount they think you should be able to pay annually. The difference between what the school costs and what they think you should be able to contribute is your financial need (this does not necessarily mean they will meet all that need - some schools promise to meet full need, many do not).</p>
<p>For most schools you complete a form called the FAFSA. The FAFSA uses your financial information to produce a number called the EFC (Estimated Family Contribution). The EFC is sent to the schools you choose and they use it and their COA (Cost Of Attendance) to determine your financial need. If your EFC is 12,000 and the school costs $20,000 then you have $8,000 need (which may be met with loans, grants, work study, or not met). If your EFC is 23,000 and the school COA is $20,000 then you have no financial need.</p>
<p>Some schools also require a form called the CSS profile which asks for much more detailed financial information. Others may have their own financial aid forms.</p>
<p>Will colleges prefer richer families?</p>
<p>Also, how do you determine whether to apply for certain scholarships based on financial need? or should you try applying despite financial need?</p>