"Finding money for college usually always feels like a stretch, and uncertain economic times can make it particularly difficult, especially with income changes that can affect your ability to pay for college. As a college student, your income also directly affects your student aid as it is used to work out how much federal financial aid you receive. But how exactly does that work? Here’s what you need to know," A2Z Business reports.
..."When filing the FAFSA (Free Application for Federal Student Aid), provide financial information including your own earned income.
'The student’s income is part of the calculation used to determine a family’s ability to pay,' Dana Kelly, vice president of professional development at the National Association of Student Financial Aid Administrators, told The Balance via email. Your FAFSA-reported income, savings and assets are used to calculate your Expected Family Contribution, or EFC.
It’s not just your income that can affect your student grant. If you are married, the EFC also includes your spouse’s income. And if you’re a dependent student, your parents’ income is used to calculate the EFC.
This EFC will be deducted from your attendance cost for the year and the difference is your financial need. This amount determines how much need-based assistance you qualify for, such as: B. Pell Grants, Work-Study or subsidized loans."
NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.
Publication Date: 2/17/2022