Let's begin our calculations: Mary, living on campus, will have an estimated cost of $6,500 for the academic year. The $6,500 breaks down into these categories:
1. Tuition and fees = $1,700.00
2. Dormitory Room = $1,200.00
3. Meal Plan = $1,800.00
4. Books & Supplies = $450.00
5. Transportation = $450.00
6. Personal Expenses = $900.00
All of which totals into the estimated total of $6,500.00 per year, or $26,000.00 total for four years.
To determine Mary's financial need we have to analyze her income and assets, along with her parents' income and assets. According to this formula, Mary's expected family contribution is $1,800. Jane's share of this contribution is $500, consisting of $300 from her income, and $200 from her savings account. Now, for the need equation: For this Jane's expected family contribution is subtracted from the cost of attendance ($6,500 - $1,800 = $4,700). So, the need equation shows us that Mary's family needs $4,700 of financial assistance to help cover Mary's college expenses.
With the need calculated, financial aid administrators, or whoever is assisting you or your child in the application process, should attempt to combine aid into packages. For example, Mary received $780 from the Federal Pell Grant. She was also awarded $500 from her state program, and Mary also received a scholarship for $1,200. So, $780 + $500 + $1,200 = $2,480. Now, Mary has most of her aid covered, but remember the original need was $4,700, so she is still short $2,220.
To help Mary receive the $2,220 she needs, she could be offered a Federal Perkins Loan for $1,330 and be involved in a work study program. In the work-study program Mary can earn $950, so none of her need goes unmet.
Let's retrace Mary's cost:
Cost of Attendance $6,500 - Expected Family Contribution $1,800 = Need $4,700 - Federal Pell Grant $780 - State Aid $500 - Scholarship $1,200 = Remaining need $2,220 - Federal Perkins Loan $1330 - Work-Study Program $950 = Unmet Need 0.
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