Handbook: Preparing Your Child for College

Need-Based Financial Aid

CHART
The amount of need-based financial aid a student qualifies for depends on his or her financial need. Financial need is equal to the cost of education (estimated costs for college attendance and basic living expenses) minus the expected family contribution (the amount a student's family is expected to pay, which varies according to the family's financial resources).

Cost of Education

Expected Family Contribution

Financial Need

Includes costs of
Tuition
Fees
Room
Board
Books
Supplies
Transportation
- Based on the financial resources of a student and his or her family = Students can receive up to this amount of needbased financial aid, such as Pell Grants and Stafford Loans.

To give you a better idea of how you can finance your child's college education, examples of two college students' financial aid packages are shown below.

Note that these financial aid packages are just examples of the kinds of packages that students with these profiles might receive if they attended the schools described below.

PROFILE 1-FIRST STUDENT

Family income: $20,000
Household size: 4
Number in college: 1
  2-year public 4-year public 4-year private
College Cost $6,400 $10,500 $22,500
Expected Family Contribution $0 $0 $0
   Parent $0 $0 $0
   Student $0 $0 $0
Pell Grant $3,000 $3,000 $3,000
SEOG $500 $800 $1,000
Federal Work Study $1,300 $1,300 $1,300
Perkins Loan $0 $0 $1,500
Stafford Loan $0 $2,625 $1,500
State Grant $1,100 $1,600 $1,600
Institutional Grant $500 $1,175 $11,475
Parent Loan $0 $0 $0

 

 

PROFILE 2-SECOND STUDENT

Family income: $40,000
Household size: 4
Number in college: 2
Student savings: $715
  2-year public 4-year public 4-year private
College Cost $6,400 $10,500 $22,500
Expected Family Contribution $1,727 $1,727 $1,727
   Parent $1,477 $1,477 $1,477
   Student $250 $250 $250
Pell Grant $1,273 $1,273 $1,273
SEOG $0 $0 $1,000
Federal Work Study $0 $1,300 $1,300
Perkins Loan $0 $1,500 $1,500
Stafford Loan $1,300 $2,625 $2,625
State Grant $1,100 $1,200 $1,600
Institutional Grant $1,000 $875 $6,475
Parent Loan $0 $0 $5,000

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