Determining Financial Need
A financial aid application is a systematic method of gathering information about the student and their family's financial situation. The information is analyzed according to federal, state, and institutional guidelines. This insures that all applicants are treated fairly and equitably. Information requested includes all taxable and non-taxable income, assets, household size, marital status, and number of family members in college. A married student must include his/her spouse's income and assets.
The results of this need analysis indicate the difference between what can be expected from the family and cost of education (the need). It shows the ability, not the willingness, of the student and their family to pay for their education.
In other words, the financial aid administrator takes the cost of education at the student's school and subtracts the amount the student and their family are expected to pay toward the cost (called the Expected Family Contribution [EFC]). If there is anything left over, the student is considered to have financial need.
COST OF ATTENDANCE
- EXPECTED FAMILY CONTRIBUTION (EFC)
= FINANCIAL NEED
Cost of Attendance - The student's educational expenses such as tuition, fees, room, board, books, supplies, and other related expenses.
Expected Family Contribution (EFC) - The amount the student and their family are expected to pay toward their education. This amount is determined by a standard formula called Federal Methodology that has been passed into law by congress. Factors such as taxable and non-taxable income, and benefits (for example, AFDC or Social Security) are all considered in this calculation which determines that student and family's financial strength. Under certain conditions, assets may also be part of the calculation. A booklet describing the EFC formula in detail may be obtained by writing to:
Federal Student Aid Information Center
P.O. Box 84
Washington, DC 20044
Eligibility for the Federal Pell Grant Program is determined by the Federal Methodology Formula.
Eligibility for all financial aid programs administered by and awarded by Morehead State University is determined by a financial aid application and a MSU Personal Data Sheet. NOTE: Some scholarships, especially private funds, may require additional information/standards.
