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Federal student aid is designed to cover the ‘remaining cost.’ It doesn’t always achieve this goal, but that is its intent. Sounds simple, right? Well, it is and it isn't. Financial Aid officers prefer using other terminology to express the same meaning. Here is exactly the same equation written using financial aid jargon:
| COST OF ATTENDANCE |
- |
ESTIMATED FAMILY CONTRIBUTION |
= |
YOUR NEED |
| The cost of attendance refers to the total cost of tuition, room & board, insurance, books, transportation, and other fees. Be cautious not to confuse tuition with cost of attendance - one will be higher than the other! |
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Your estimated family contribution (EFC) is the amount of money the federal government has determined you and your family can afford to contribute toward your education. Uncle Sam determines your EFC from your answers on the Free Application for Federal Student Aid (FAFSA). |
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Your NEED is the amount that remains to be paid. If you are lucky, the schools to which you apply will "meet" all of your need with grants, loans and work-study. Any left-over amount is called unmet need. |
If the minutiae of federal student aid start to makes you dizzy, remember the big picture and you’ll be able to recover your footing.
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