Admissions
Financial Aid > Need-Based Financial Aid
The federal government believes that each family should contribute what they can toward college costs. This amount is often referred to as the "expected family contribution" (EFC) and is determined by completing the Free Application for Federal Student Aid (FAFSA) and the Lake Forest Application for Financial Aid (LFAFA). Important: Your EFC is not a literal figure, so it does not reflect the amount you will actually need to pay.
If your expected family contribution is less than the cost of one year of college, you have "financial need" and may qualify for "need-based" financial aid. Here is a simple equation to demonstrate:
Cost of School - Family Contribution = Financial Need
Need-based financial aid is available in three categories, described below. More information about a specific category is found within the menu on the left.
- Grants: "free money" that does not have to be repaid
- Loans: money borrowed by the student or his/her parent, repaid over several years
- Work-Study: money earned by working part-time during the school year, usually on campus
Scholarships are usually based on merit not on "need." Nevertheless they must be applied toward any financial need that you have.
Since each college/university costs a different amount, the financial need will vary from one school to another. Using this equation, the top part of this table shows how one student will have different financial need at three different schools.
|
Private College |
State University |
Community College | |
|
Cost (1) |
$41,500 |
$23,000 |
$10,500 |
|
- Family Contribution |
- $5,000 |
- $5,000 |
- $5,000 |
|
= Financial Need |
= $36,500 |
= $18,000 |
= $5,500 |
| . | . | . | . |
|
Grants |
$25,000 |
$6,700 |
$800 |
|
+ Loans |
$5,500 |
$5,500 |
$1,250 |
|
+ Work-Study |
$2,000 |
$3,000 |
$3,500 |
|
= Total |
$32,500 |
$15,200 |
$5,500 |
(1) In this table, "Cost" is the total of tuition and fees, room and board, as well as the estimated cost of books and personal expenses.
You see then, that if the cost of one college is higher, the amount of "financial need" you have -- and the amount of financial aid you qualify to receive -- will be greater. The lower part of the table shows how the aid will be different from one school to another.
If you are offered a $10,000 academic scholarship from the private college, that award will apply toward your "financial need" of $36,500 leaving you with $26,500 of "financial need" to be met by other financial aid. A similar scholarship at the state university will fully replace the grant, and reduce the loan or work-study award.
New students who plan to apply for need-based financial aid should review our FAFSA Process web page.
