A student's eligibility to receive aid is determined by a very specific formula, which is called a need analysis. This formula takes into consideration the student's and the parents' taxable income, the family assets and college costs (we will explain what makes up college costs later). What results is the student's need and the family contribution. The concept of need does not mean the same thing as "needy." Financial need is a number determined by a complex set of mathematical formulas and figuring, specified by the United States Congress and written into federal law.

You can write to:

Consumer Information Center Dept.
Federal Need Analysis Methodology
Pueblo, CO 81009

or call (888) 878-3256 to order a booklet. (Although need is determined by formula, under certain circumstances the financial aid administrator can adjust -- up or, down-your family contribution or your cost of education if he/she believes your family's financial circumstances warrant it.)

The family contribution is the amount the parents and student are expected to contribute towards the total costs. Any remaining costs are paid through financial aid, i.e., a combination of grants, scholarships, or work/study programs. If these fail to add up to the total costs, the "remaining need" will have to be made up in the form of war-interest loans. Once the family contribution has been determined, always remains the same in the need analysis. What varies greatly re the individual costs of the colleges the student has chosen in his election of where he wants to go. Since the amount and mix of funds available to individual students varies from school to school, more than one college should be considered.