<p>Part II</p>
<p>There is a big difference between the federal methodology and the institutional methodology for calculating financial aid. (This is the answer to the $64,000 question why does the Fafsa say I have a $2 efc and my college gave me a $20,000 efc?). Schools that use the FAFSA only use the federal methodology for calculating financial aid. Keep in mind that most of these schools do not meet 100% of demonstrated need. they gap.</p>
<p>The basic formula for FA is as follows:</p>
<p>Cost of attendance (tuition, room, board, books,misc. expenses) - EFC (parents and student's contribution) = Demonstrated need.</p>
<p>For example</p>
<p>School A</p>
<p>COA= 45,000- 15,000 (efc) = 30,000 demonstrated need.</p>
<p>If your school only meets 63% of demonstrated need </p>
<p>$30,000 *.63 = $18,900</p>
<p>30000-189000 =11,000 GAP (the amount of money the school is not going to meet and you will have to come up with this $$ the best way you can.</p>
<p>At minimum this school is going to cost your family $26,000 out of pocket (the EFC + the GAP).</p>
<p>School B
45,000 -15,000 =30,000 </p>
<p>school meet 100% of demonstrated need. School meets need with 78% grants and 22% work study and loans</p>
<p>30000*.78 =23,400 grant aid
6600 (in work study and loans)</p>
<p>$2625 max stafford loan
$2000 in work study
$1995 Perkins loan (depending on your financial situation ) or school loan.</p>
<p>Not every school packages FA the same way (some schools meet 100% demonstrated need but are heavy on loan aid). This is where the college board is a dream becasue they do provide the FA packaing for many schools to give you an idea of what you are in for.</p>
<p>The FAFSA and the CSS profile measure 2 different things.</p>
<p>The FAFSA (federal methodology) really only looks at your eligibility for federal aid (loans and pell/seog grants ). All schools require the FAFSA.</p>
<p>If you are attending a school that gives need based FA, they most likely use an institutional/concensus methodology to determing aid will most likely ask for the Profile or their own institutional aid form in addition to the FAFSA. </p>
<p>A school that use the FAFSA long with the CSS profile / their own institutional forms does look at the income assets of both parents: custodial/non-custodial and even step parents. </p>
<p>Your EFC from a school that only uses the FAFSA will look very different from a school that uses the FAFSA and the CSS profile or their own instiutional aid form.</p>
<p>The information from the profile will account for your increase in EFC because your EFC may show that you have considerable income/assets/equity which shows up on the profile that you don't have to indicate on the FAFSA.</p>
<p>The FAFSA is requested by all schools and is mainly used by schools that calculate FA using the federal methodology. </p>
<p>The schools that require the CSS profile often distribute their own institutional funds and use an institutional/ concensus methodolody. The Profile is used to get a more complete picture of your financial situation.</p>
<p>Differences between the IM and FM models include:</p>
<p>IM collects information on estimated academic year family income, medical expenses, elementary and secondary school tuition and unusual circumstances. FM omits these questions.</p>
<p>IM considers a fuller range of family asset information, while FM ignores assets of siblings, all assets of certain families with less than $50,000 of income, and both home and family farm equity.</p>
<p>FM defines income as the adjusted gross income on federal tax returns, plus various categories of untaxed income. IM includes in total income any paper depreciation, business, rental or capital losses which artificially reduce adjusted gross income.</p>
<p>FM does not assume a minimum student contribution to education; IM expects the student, as primary beneficiary of the education, to devote some time each year to earning money to pay for education.</p>
<p>FM ignores the noncustodial parent in cases of divorce or separation; IM expects parents to help pay for education, regardless of current marital status.</p>
<p>FM and IM apply different percentages to adjust the parental contribution when multiple siblings are simultaneously enrolled in college, and IM considers only siblings enrolled in undergraduate programs.</p>
<p>The IM expected family share represents a best estimate of a familys capacity (relative to other families) to absorb, over time, the costs of education. It is not an assessment of cash on hand, a value judgment about how much a family should be able to use current income, or a measure of liquidity. The final determinations of demonstrated need and awards rest with the University and are based upon a uniform and consistent treatment of family circumstances.</p>
<p>Except in the most extraordinary circumstances, Colleges classifies incoming students as dependent upon parents for institutional aid purposes, even though some students may meet the federal definition of independence.</p>
<p>Students enrolling as dependent students are considered dependent throughout their undergraduate years when need for institutional scholarships is determined.</p>
<p>For institutional aid purposes a student may not declare independence due to attainment of legal age, internal family arrangements, marriage or family disagreements.</p>
<p>Your COA (cost of attendance) is tuition, room board, books travel expenses and some misc. expenses associated with attending college.</p>
<p>As a student, there are cumulative limit of $23,000 which you can borrow for an undergraduate education using stafford or perkins loans.</p>
<p>there are a number of FA calculators (college board) including some at the sites of the schools that you are interested in attending. I would suggest running your numbers through their calculators to see what the numbers look like.</p>
<p>Hope this helps.</p>