Each college uses the information that it has requested from you and your family to analyze your need. Virtually all colleges use the SAR (Student Aid Report generated by filing the FAFSA) and most private colleges require the CSS Financial Aid PROFILE - the Need Analysis Report prepared by the College Scholarship Service. Many also use information from their own financial aid application forms and copies of your latest Federal Income Tax Returns. The reports offer colleges a preliminary calculation of the amount of money that your family can contribute to cover the costs of your college education.
The PARENTAL CONTRIBUTION is determined after all income and assets are calculated to determine your family's net worth. Home equity is not considered when applying for federal aid; however it is considered by colleges requiring the PROFILE when they consider distributing the college's own funds. Then, allowances are made for the number of family members, the number of children in college, debts, necessary expenses, or taxes. Consideration is also given to special financial circumstances (illness, older parents approaching retirement, or special educational needs). Be certain that colleges are aware of any such circumstances that may exist in your family. The final result of this analysis is the expected parental contribution.
Please be aware that each college can handle situations differently in which parents are separated, divorced and/or remarried. For example, some colleges take into consideration the income and assets of the step-parent with whom the student lives. Others do not. Federal fund eligibility (determined by the FAFSA) is based on "household" income only - which can include a step-parent and exclude a biological parent.
The STUDENT CONTRIBUTION is determined after your earnings and assets are reviewed. Typically, you are asked to contribute a portion of your personal savings and other benefits, such as Veteran's Benefits or Social Security Benefits (normally 35% the first year). You are also expected to contribute a certain amount based on what you could realistically earn during the summer whether or not you actually choose to work. Should you receive merit-based awards from organizations outside of the college, these are considered as part of your available resources, or are applied against the self-help portion of your aid package.
In packaging your financial aid package, most colleges first award a SELF-HELP package based on the FAFSA and Federal Funds. This will include an opportunity to work on campus through a work-study program, and federal (Perkins or Stafford) or school loans. In most cases the first $4,000 to $6,000 of an aid package is made up of these awards. In most cases, schools will fill the remaining amount of need if they meet 100% of your need with GRANTS, made up of a combination of Federal Grants such as Pell or SEOG Grants, or grants from the actual funds of the college. A MERIT AWARD may also be part of an award and is often a grant that goes beyond the actual need of a student, or even awarded to a student not applying for aid in the hope of attracting a top scholar to that school.
In these days and times we have seen wide discrepancies between packages at various colleges. Do not be afraid to discuss these with both our office and the college financial aid office before making a final decision.