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Financial Aid for School

The purpose of financial aid for school is to make up the difference between the affordability of your family and the costs of the college. About 50 percent of the students that are enrolled in college today get some sort of financial assistance. 


The basis for the financial aid for school is to provide equal access to continuing education. The theme is that anyone should have the ability to attend the college regardless of what his or her financial circumstances are.

 

 

There are a couple of things to consider when applying for aid.

·        It is expected by the students and their families that they should pay the costs of college as much as they can.

 

·        If there is a family that is unable to bear the entire cost of the college than in this case the gap is bridged up with the help of the financial aid.

 

Expected Family contribution (EFC)— Expected family contribution is the amount that is often said to be the amount that your family can contribute to the college costs. This amount is often determined by the one who is going to provide the grant. Usually it is some federal government body or the individual universities or the colleges that determine the expected family contribution. 

 

Need Formulas—Need formulas are used by the federal government offices and the financial aid offices in order to analyze the financial circumstances of your family. In financial circumstances, they consider the things like the family size, income and the assets, and they often compare these proportionally with the financial circumstances of other families.

 

Importance of EFC figures—One thing is for sure that most of the families just can’t pay out the EFC from their income only. However, they don’t need to worry about as the formulas often have the assumption that the families will meet the contribution that they have to make with the help of the pure combination of their savings, the borrowing and the current income of theirs.

 

While there are millions of dollars given out each year, financial aid for school is sometimes hard to obtain. There are two main types of aid you should be looking at.

 

Scholarships and Grants—Scholarships and grants are often known as the gift aids as well. These grants are not required to be repaid, and it is not required that you work to earn these grants.

Loans—Most educational aid will come in the form of loans. Loans are the form of aid that needs to be repaid.