Back to Financial Aid           FINANCIAL AID FORMULA and TYPES OF FINANCIAL AID          APPLYING FOR FINANCIAL AID 

All families, regardless of income level and assets, are urged to apply for financial aid, as it provides a "safety net" in emergencies, and opens up opportunities available only to those who apply.  Apply ON-LINE if possible. It usually quickens FAFSA and CSS Profile processing times by 3-4 weeks.  When completing the FAFSA form, use estimated figures because timing is vital. Then update when your "base tax year" taxes are completed (tax year prior to the student’s graduation year). When estimating, use your tax returns from 2 years prior to the student’s graduation year, and add a 3%-5% "fudge factor".  Report the value of your family assets as of the date you submit the FAFSA and CSS Profile (if required) form.  Before submitting your form(s), consult with your financial/tax advisor to avoid planning conflicts.

"EXPECTED FAMILY CONTRIBUTION"
Calculated by FAFSA clearinghouse.

Allowances = Taxes paid (Federal income taxes and social security),
Income Protection Allowance (IPA), Employment Expense Allowance (EEA).

Family Assets Excludes: retirement funds, annuities, home, family farm, cars, boats, etc.
Parent(s) - 6% of assets, after Asset Protection Allowance (APA).
Student - 35% of assets. No allowances.
Business - 2% of net equity. 12/05/2001