Need is the difference between a student’s cost of attendance and the sum of the Student Aid Index plus other estimated financial assistance.
How it works
The aid office enters the COA, the SAI from the FAFSA, and all known EFA. The packaging system computes need. Need-based awards are limited to that figure. If a new scholarship arrives, need is reduced and other aid may be adjusted. A professional-judgment change to COA or SAI produces a new need figure and may allow repackaging.
Example: COA $20,000, SAI $2,000, EFA $5,000. Need = $13,000. The student may receive up to $13,000 in need-based aid. An additional $4,000 unsubsidized loan can still be awarded because it is not need-based, provided the total does not exceed COA.
How it differs
Cost of attendance is the full price estimate. Student Aid Index is the family’s calculated strength. Net price is what aided students historically paid after grants. Need is the residual eligibility amount used for packaging.
Common errors
Subtracting only the SAI from COA and ignoring EFA. Awarding need-based aid above calculated need. Treating a zero or negative SAI as creating infinite need (need is still capped by COA).
References
- 1. Federal Student Aid need calculationCOA minus SAI minus EFA
- 2. Packaging need-based aidInstitutional practices
Need is the difference between a student’s cost of attendance and the sum of the Student Aid Index plus other estimated financial assistance.