What are financial needs?

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By Nick

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Want to finance your education? Understanding financial need is key. Financial need is the difference between the cost of attendance (COA) and the expected family contribution (EFC). COA varies from school to school, but your EFC remains the same. To calculate financial need, subtract your EFC from the COA. This is the amount of aid you may be eligible for. Get savvy and get educated on financial need.

Understanding Financial Needs for Education

As a student, financing your education can be a daunting task. With tuition fees, textbooks, and other expenses, the cost of attendance (COA) at a school can be quite high. However, financial need is the difference between the COA and your Expected Family Contribution (EFC). Understanding how financial need works can help you determine the amount of aid you may be eligible for.

What is Expected Family Contribution (EFC)?

Your EFC is the amount of money that your family is expected to contribute towards your education. This is calculated based on your family’s income, assets, and other factors. Your EFC is determined by filling out the Free Application for Federal Student Aid (FAFSA).

It is important to note that your EFC does not change based on the school you attend. This means that your eligibility for financial aid may vary depending on the COA of the school.

What is Cost of Attendance (COA)?

The COA is the total cost of attending a school for a year. This includes tuition fees, room and board, textbooks, transportation, and other expenses. The COA varies from school to school, and it is important to research and understand the COA of the schools you are interested in attending.

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How is Financial Need Calculated?

Financial need is calculated by subtracting your EFC from the COA of the school you plan to attend. The resulting amount is your financial need. This is the amount of aid you may be eligible for, including grants, scholarships, and loans.

It is important to note that financial need may vary depending on the school you plan to attend. This is because the COA of each school is different, and your EFC remains the same.

Conclusion

In conclusion, understanding financial need is crucial when financing your education. Your EFC is the amount of money your family is expected to contribute towards your education, while the COA is the total cost of attending a school for a year. Financial need is calculated by subtracting your EFC from the COA, and this is the amount of aid you may be eligible for. It is important to research and understand the COA of the schools you are interested in attending, and to fill out the FAFSA to determine your EFC. By understanding financial need, you can make informed decisions about financing your education.

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