In the FAFSA calculations they expect you to allot 20-30% of your income to pay for college.
Could you live off of 70% of your income? Here are some things to think about!
Need-Based Aid Versus Merit Aid
Need Based Aid: Income & Assets of Parents and Student | Merit Aid: Academics, Talents, Geography & more
Three Types of Families
Type 1: Those families who will qualify for large amounts of need-based aid. | Type 2: Those families who qualify for some need-based aid. Good planning may increase the amount of aid received. | Type 3: Those families who will not qualify. These families need to focus their planning on other areas. (i.e. tax, merit-aid, athletics, cash flow or investments)
How Need-Based Aid is Calculated
COA – EFC = FN (Cost of Attendance – Expected Family Contribution = Financial Need)
Two Need-Based Aid Systems
Federal Aid System: FAFSA (Free Application for Federal Student Aid) | Institutional System: CSS Profile (Approximately 300 colleges)
Top 5 Need-Based Aid Factors
Student Income | Student Assets | Parent Income | Parent Assets | Numbers of Students in College