1. What is Financial Aid Calculation?

Financial aid calculation determines how much assistance a student may receive for college based on their family's financial situation. It considers income, assets, family size, and other factors to assess financial need.

2. How Does the Calculator Work?

The calculator uses a simplified formula to estimate financial aid:

Where:

• \( Income \) — Annual family income in dollars
• \( Assets \) — Family's total assets in dollars
• \( Family Size \) — Number of people in the household

Explanation: The formula calculates an expected family contribution (EFC) based on income and assets, then determines aid based on remaining need and family size.

3. Importance of Financial Aid Estimation

Details: Accurate financial aid estimation helps families plan for college costs, compare aid packages from different schools, and understand their expected contribution.

4. Using the Calculator

Tips: Enter gross annual income before taxes, total family assets (excluding primary residence), and current family size. All values must be valid (positive numbers, family size ≥1).

5. Frequently Asked Questions (FAQ)

Q1: What income is counted for financial aid?
A: Most sources of income are counted including wages, business income, and untaxed income. Some exceptions may apply.

Q2: What assets are included in the calculation?
A: Savings, investments, and business assets are typically included. Retirement accounts and primary home equity are often excluded.

Q3: How does family size affect aid?
A: Larger families typically qualify for more aid as costs are spread across more people.

Q4: Are there other factors that affect aid?
A: Yes, factors like number of children in college, special circumstances, and school costs also affect final aid packages.

Q5: How accurate is this estimate?
A: This provides a rough estimate. Actual aid depends on specific school policies and complete financial information.