Cash reserves and bank balances are included in EFC calculations.
You have good grades and your family is not wealthy; you're sure to get plenty of financial aid to attend college, right? Not necessarily. Whether you are an adult going back to school or a traditional college student, you have probably heard that most financial aid is need and merit based. While this is true, there are a number of ways the government, the school you plan to attend and private scholarship granting organizations assess both your need and your merit. Understanding the factors that can affect your financial aid award can help you prepare to get as much aid as you need to attend college.
Your Income
Before granting financial aid, most colleges, federal and state governments and most scholarship granters all look at your or your family's income to determine whether you "need" aid. When you fill out the Free Application for Student Financial Aid (FASFA), you will be guided through the steps of determining an "Expected Family Contribution" (EFC), or how much of your tuition your family should be able to pay. While the government uses the FASFA's EFC, some schools also require that you fill out the College Board's CSS/ Financial Aid Profile, which gets more in-depth information as to your family's ability to pay. Private scholarships will also often state that their awards are based, at least in part, on need. They will ask for your EFC, annual income, a description of your need situation and any other scholarships you have received.
Your Academic Success
Both in-house scholarships awarded by the school you plan to attend and private scholarships awarded by companies and non-profit organizations will look at your academic success to determine if you are a good "investment." In other words, they want to see if it is likely that you will graduate from college. While there are scholarships out there for students who put in great effort to maintain average grades, if you have an "A" or "B" average or high standardized test scores, you are more likely to get a larger financial aid package, including academic scholarships, from the university you plan to attend.
Your Home Situation
If your parents are divorced, you are a returning student, you are married or you have endured a financial hardship, your financial aid may be affected. According to U.S. News and World Report, different colleges consider divorced parents and guardianship differently. In some cases, the incomes of all your parents and stepparents will be considered, while other colleges only look at your biological parents' earnings to determine your EFC. If you are considered "independent," your parents' income will not be used at all -- yours will. Independents must be at least 24, married, a military veteran or have a dependent of their own. In some cases, your school may have special grants available for students who have endured a financial hardship within the last year. For example, if one of your parents was laid off in the last year, you may be eligible for more aid.
Your Activities and Interests
While private scholarship granters often award money based on a student's field of study or extracurricular achievements, some schools also have bigger financial aid awards for students with passionate interests or distinct abilities. Many schools offer some forms of athletic and performing arts scholarships, while some departments also have their own scholarships for incoming or already-attending students who have shown promise in that field of study. Students who have completed community outreach programs or summer programs at the university may also be eligible for awards.
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