Most Title IV aid is need-based. Need analysis is the process of estimating the amount of assistance a student will require to supplement the resources theoretically availa...
Most Title IV aid is need-based. Need analysis is the process of estimating the amount of assistance a student will require to supplement the resources theoretically available from that student and their family. Need analysis has two basic components: first, the estimation of what it will reasonably cost the student to attend a given institution for a given period of time (the "cost of attendance" or COA), and second, an estimation of the ability of the student and the student’s immediate family to contribute to that educational cost (the "student aid index" or SAI). Once COA and SAI have been determined, the financial aid administrator may commence packaging financial aid for the student.
The law prohibits ED from regulating any aspect of need analysis. See Subtopics for other related regulations.
Related terms: Cost of Attendance; Student Aid Index; Packaging; Professional Judgment; Verification
Most Title IV aid is need-based. Need analysis is the process of estimating the amount of assistance a student will require to supplement the resources theoretically available from that student and their family. Need analysis has two basic components: first, the estimation of what it will reasonably cost the student to attend a given institution for a given period of time (the "cost of attendance" or COA), and second, an estimation of the ability of the student and the student’s immediate family to contribute to that educational cost (the "student aid index" or SAI). Once COA and SAI have been determined, the financial aid administrator may commence packaging financial aid for the student.
The law prohibits ED from regulating any aspect of need analysis. See Subtopics for other related regulations.
Related terms: Cost of Attendance; Student Aid Index; Packaging; Professional Judgment; Verification
Effective for the 2024-25 award year, expected family contribution (EFC) becomes student aid index (SAI). The Student Aid Report (SAR) also becomes the FAFSA Submission Summary (FSS). While the structure of the need analysis formulas did not change with the 2024-25 award year, the data elements used have changed. More information can be found in the 2024-25 SAI and Pell Grant Eligibility Guide.
See also Subtopics for more specific references.
(National Association of Student Financial Aid Administrators)
See also:
See top list entry for Cost of Attendance
See top list entry for Professional Judgment
See top list entry for Student Aid Index
See top list entry for Verification