FAFSA, CSS Profile and EFC

There are two types of financial aid a student may receive: merit-based scholarships (based on GPA, test scores, or involvement in an activity) or need-based aid.

FAFSA

The Free Application for Federal Student Aid (FAFSA) is an on-line form that can be filled out every year by high school seniors and college students (all the way through graduate school) to determine their eligibility for student financial aid (including the Pell Grant , Federal student loans and Federal Work-Study ).

The application is not for a single federal program, it is the gateway for:

• 9 federal student-aid programs
• 605 state aid programs
• most of the institutional aid available

The PROFILE form is administered by the College Scholarship Service (CSS), the financial aid division of the College Board. The CSS PROFILE is required by many private colleges and universities to determine your eligibility for non-government financial aid, such as the institution's own grants, loans and scholarships.

The CSS Profile asks questions about the financial status of the student and the student's parents. The information the student gives in the CSS Profile is then sent to colleges or universities that the student specifies.

Along with the FAFSA , the CSS Profile is the most common financial aid application that students in the United States fill out.

Expected Family Contribution (EFC) Calculator

Expected Family Contribution (or EFC ) is a term used in the college financial aid process to determine an applicant's eligibility for federal student aid.

Generally speaking, the lower the EFC the higher the financial aid award from the college may be. Dependent students qualify for an automatic zero EFC if their family’s income is below a certain amount and they either received funding from any of the Federal Benefits programs (SSI, Food Stamp program), WIC, or Free and Reduced Lunch) or filed 1040A, 1040EZ11, or were not required to fill out a tax return, or parent is a dislocated worker.

The EFC is calculated based on a student's responses to questions in the FAFSA . Some colleges and universities may use the CSS Profile to calculate EFC. A major difference between the FAFSA and the CSS Profile is that the CSS Profile takes the value of your house into account when determining ability to pay, while the FAFSA does not.

The EFC is usually subtracted from the cost of attendance (COA) of the college or university to determine a student's financial need. If COA > EFC , then a student has financial need.

Eligibility for a number of federal, state, local, and institutional aid programs is based on a student's EFC.

Items that will lower a student's EFC:

• Additional family members supported by the head of the household (e.g., siblings or grandparents who are living at home)
• Additional siblings in college
• Lower income (especially student income)
• Fewer assets (especially student assets)

Sample Financial Aid Package