Need Analysis is the formula used to calculate student Financial Aid eligibility. Every accredited college in the United States evaluates Financial Aid “Need” using this formula: COST – E.F.C. = NEED. Congress enacted this formula in 1965 and passed new regulations yearly.
The following is an example of college costs and need:
| College | Total College Costs | E.F.C. | Need |
| University Of Michigan | $74,896 | $10,000 | $64,896 |
| Texas Christian University | $71,828 | $10,000 | $61,828 |
| Penn State University | $49,018 | $10,000 | $39,018 |
| University of Denver | $69,493 | $10,000 | $59,493 |
Total College Costs: includes tuition, transportation, books, room & board, etc. The college sets these costs and varies from one university to the next.
Family Contribution: is the amount you are expected to pay toward total college costs. Your Federal EFC (Expected Family Contribution) is the same at every college regardless of cost. The EFC value of $10,000 stated above is for illustration purposes only. FYI, colleges like TCU, University of Denver, and the University of Michigan require the CSS Profile form that will calculate an institutional EFC (Estimated Family Contribution) based on one of two formulas.
Need: is your financial aid eligibility for need-based aid. It is the difference between Costs and your EFC or institutional EFC. “Need” is dependent on college cost as the above example illustrates.
Types of Financial Aid:
- Scholarships (Gift-aid)
- Grants and Awards (Gift-aid)
- College Work Study (Self-help)
- Loans (Self-help)
Our Service Provides Guidance By:
- Lowering Expected Family Contribution (EFC) and Family Contribution (FC)
- Completion of all required financial aid forms
- Negotiation Advice and Strategies
- College Selection Strategies
See our Services page for complete details. See our Services page for complete details.
