Calculating EFC
What does EFC stand for when filling out the FAFSA form?
Estimated Family contribution
Define financial aid in the context of college education
Financial aid is money to help pay for college or career school. Grants, work-study, loans, and scholarships help make college or career school affordable.
What is the purpose of the FAFSA application?
You need to complete the FAFSA form to apply for federal student aid such as federal grants, work-study funds, and loans. Completing and submitting the FAFSA form is free and easier than ever, and it gives you access to federal student aid—the largest source of aid— to help you pay for college or career/trade school.
Name one important document that students need to have on hand when filling out the FAFSA form.
Social security number
True or False: A lower EFC means you are likely to qualify for more financial aid
False
What are the different types of financial aid available to students?
Types of Financial Aid: Loans, Grants, and Work-Study Programs.
Who is eligible to submit a FAFSA form?
Eligibility Requirements. Our general eligibility requirements include that you have financial need for need-based aid, are a U.S. citizen or eligible noncitizen, and are enrolled in an eligible degree or certificate program at an eligible college or career/trade school.
How can students obtain their parents' tax information for the FAFSA?
Make sure to obtain their filed taxes information
How is the Expected Family Contribution (EFC) calculated?
using the FAFSA data for the student and his parents. The CPS calculates the parents' contribution (which includes their assets)
How does financial need influence the amount of aid a student receives?
Colleges subtract your EFC from their cost of attendance to determine your financial need. The financial aid you actually receive from a college could be higher or lower than your EFC, depending on the college's financial aid policies.
How often should students submit a FAFSA form?
Each year you are in college
Besides tax information, what other financial documents may be required for the FAFSA?
Records of Your Assets The FAFSA form will ask you and your contributors questions about your assets, so make sure you have records of your savings and checking account balances, as well as the value of any investments, such as stocks, bonds, and real estate (excluding your primary residence).
Why is the EFC important in the financial aid process?
Give you the amount of money you are expected to pay
Explain the difference between grants and loans in financial aid packages.
Federal Student Aid offers three types of financial aid. Grants: Financial aid that generally doesn't have to be repaid. Loans: Borrowed money for college or career school; your loans must be repaid with interest
What information does the FAFSA require from students and their families?
Your Social Security number (it's important that you enter it correctly on the FAFSA form!) Federal tax information, tax documents, or tax returns, including IRS W-2 information, for you (and your spouse, if you are married), and for your parents if you are a dependent student: IRS Form1040.
Why must all the necessary documents be ready before starting the FAFSA application?
Gather Your Documents Before you begin the FAFSA, gather the necessary paperwork. Having the right information on hand makes completing the FAFSA easier.
Explain how family size and income influence the EFC calculation.
Your family's taxed and untaxed income, assets, and benefits (such as unemployment or Social Security) all could be considered in the formula.
Describe how scholarships differ from other forms of financial aid.
Financial aid is typically awarded based on financial need and offered by the government, colleges, and universities. Scholarships are more commonly awarded based on academic merit, athletic ability, or other achievements and can be provided by various organizations.
How does filing a FAFSA benefit students even if they believe they won't qualify for aid?
Filing a FAFSA can provide access to non-federal aid opportunities, including state and institutional grants, scholarships, and work-study programs, regardless of whether a student thinks they'll qualify for federal aid. It also helps students and their families gain a clearer understanding of their financial situation and potential options for covering college expenses
Explain the significance of providing accurate information and documentation on the FAFSA form.
If you can't or don't provide this information to the school when asked, the student may not receive federal student aid. If the student receives federal student aid based on incorrect or fraudulent information, they'll have to pay it back. You may also have to pay fines and fees.