1 / 25

Financial Aid 101

2. Federal Methodology (FM). System used to calculate expected family contribution (EFC)Assesses ability to pay Consists of two steps:Measures a family's financial strengthAssesses a part of family's financial resources as being available to contribute toward educational costs. 3. How is EFC Det

more
Télécharger la présentation

Financial Aid 101

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    1. Financial Aid 101 Need Analysis June 2009

    2. 2 Federal Methodology (FM) System used to calculate expected family contribution (EFC) Assesses ability to pay Consists of two steps: Measures a familys financial strength Assesses a part of familys financial resources as being available to contribute toward educational costs

    3. 3 How is EFC Determined? Three FM models Dependent student Independent student without dependents other than a spouse Independent student with dependents other than a spouse Three distinct FM formulas Regular Simplified Automatic zero

    4. 4 Factors that affect EFC Number in Household Number in College Taxed and Untaxed Income Taxes paid Assets and Investments Age of the Older Parent Number of Wage Earners

    5. 5 EFC Components Parents Contribution (PC) consisting of: Contribution from parents available income (AI) Contribution from parents assets Students Contribution (SC) consisting of: Contribution from students available income (AI) Contribution from students assets

    6. 6 Treatment of Income in FM Total Income: Base year income from all taxable and untaxable sources - Excludable income (i.e., education credits, child support paid, taxable earnings from FWS or other need-based work programs, as listed on FAFSA Worksheet C) = Total Income

More Related