This report describes the need analysis formulas used to calculate the Expected Family Contribution (EFC) for federal student aid applicants. The formulas are codified in Title IV of the Higher Education Act (HEA), as amended. The Free Application for Federal Student Aid (FAFSA) is the data collection instrument through which students submit the…

This report discusses the ability of specific policy options in strengthening the Pell Grant program to meet the significant financial needs of low-income students. These policy options include: (1) raising the appropriated maximum Pell Grant award; (2) raising both the minimum and appropriated maximum Pell Grant awards; and (3) adjusting federal…

Under current law, students pursuing an undergraduate degree in the United States are considered financially independent (from their parents) for the purposes of financial aid if, among other conditions, they are 24 years of age or older. When students' parents are able to pay, considering them financially independent may result in more generous…

Five years ago, the National Institute of Certified College Planners, an organization that licenses college-planning professionals, did not exist. This year the organization has 1,200 registered members. Professionals in college financial planning say business is booming, and the bulk of demand for their services is coming from families with…

Four general "fairness criteria" are presented for evaluating student financial aid award rules. Application to current Pell Grant rules indicated violation of two of the criteria. Recommendations include replacing the "percent-of-cost" rule with a "percent-of-need" standard, developing a broader class of rules, and…

Describes how 28 private colleges have endorsed a set of policies designed to preserve need-blind admissions. The group agreed on guidelines for the formula used to calculate a family's ability to pay for college, resulting in more aid for more needy students. (EV)

The latitude (professional judgment) aid administrators might exercise in departing from the need analysis formula for campus-based financial award purposes is discussed. Three areas are discussed: politics, practice, and principles. (MLW)

Generally, the need analysis system accurately reflects a family's ability to contribute toward funding a college or university education. However, in recent years the system has shown inequities to families in certain regions where home values have increased disproportionately fast. It is concluded that equal assets on paper do not accurately…

There is widespread agreement that the complexity of the current Free Application for Federal Student Aid (FAFSA) is a barrier to college access and success. One indication is the large and growing number of lower income college students who do not apply for aid, even though they are likely eligible for a Pell grant: an estimated 1.5 million in…

This book provides information to the student financial aid community about the calculation of a student's expected family contribution (EFC). An introduction which uses a question-and-answer format gives background information and guidance for using the proper formula to calculate a student's EFC. The following section provides narrative…

This article develops a model of household decision-making on educational participation. The model distinguishes between students and parents as decision-makers and assumes the capital market is inaccessible for financing an education. The implications of the model, problems of calculating compensating variation, and an illustrative case are…

This document answers questions about the EFC (expected family contribution) formula used to determine eligibility for financial aid at institutions of higher education. Questions address the following topics: an explanation of EFC, data sources used in EFC calculations, application processing and student notification, selection of the appropriate…

This brief booklet is an aid to college-bound students and their parents in determining possible eligibility for financial aid from various sources. The step-by-step process includes estimating college expenses, family contributions, and financial needs. Questions and answers and a checklist for applying for funds are presented, covering such…

This report, concerned with an equitable procedure to determine student financial aid eligibility, argues for adoption of an annuity income measure of parents' ability to pay, and against continuation of the consensus measure developed by the Keppel Task Force--National Task Force on Student Aid Problems (the UM measure). The new Uniform…

Congress made significant revisions in the methods used to evaluate families' income and college expenses to decide how much aid students should receive. Administrators say that needy students will receive less aid next year, although some students who do not need more aid will be eligible for it. (MLW)