By now you might have heard that the financial aid program at Stanford University is need-based. But what exactly does “need-based” mean? “Need-based” means that the financial aid office uses your family’s financial circumstances to determine aid eligibility. Financial aid attempts to bridge the gap between the total cost of attending Stanford and what you and your family can contribute.

The financial aid office’s aid packages achieve this goal in three main components. First is the component that they determine your parent(s) (family or guardian(s)) can afford to contribute to your education. This occurs for each year of your time as an undergraduate at Stanford University. This allows for the contribution to change as your family’s financial situation changes. Additionally, you can go to the office and talk to a financial aid officer about how the amount is determined and if a change is necessary.

The second component is the student contribution. This is the contribution that is expected to be earned via working over the Summer or outside scholarships. It also includes the amount of money that financial aid believes that you should be able to contribute during the year. This number also changes each year you are at Stanford and usually increases as you get older. This contribution is part of the financial aid office’s idea that each student should share the responsibility of paying for his or her education.

The final component is made up of scholarships and grants. These are the funds that are provided based off what the financial aid office has determined that parents and students are able to contribute. These are funds that do not need to be paid back but are provided to make Stanford University affordable for students and parents. A handy formula to remember is that Cost of Attendance - (Parent Contribution + Student Contribution) = Scholarships + Grants.

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