Impact plays a significant role in determining college financial aid for students. Impact refers to the influence and effect that a student’s personal or family circumstances have on their ability to pay for college. These circumstances can include income, assets, family size, number of family members in college, and any special financial or personal situations.
When students apply for financial aid, they are required to submit information about their family’s financial situation through the Free Application for Federal Student Aid (FAFSA) or the College Scholarship Service (CSS) Profile. This information is used to determine the Expected Family Contribution (EFC), which is the amount of money the family is expected to contribute to the student’s college expenses. The EFC is calculated based on various factors, including income, assets, and family size, and it can have a significant impact on the amount of financial aid a student is eligible to receive.
One of the key ways impact affects college financial aid is through need-based aid. Need-based financial aid is awarded to students who demonstrate financial need, which is determined based on the difference between the cost of attendance at a particular college and the family’s EFC. The greater the impact of a student’s financial circumstances, the greater their financial need, and the more likely they are to qualify for need-based aid.
In addition to need-based aid, impact also affects merit-based aid. Merit-based aid is awarded to students based on their academic, artistic, athletic, or other achievements, and it is not tied to financial need. However, some colleges consider a student’s financial circumstances when awarding merit-based aid. For example, a student who has overcome significant challenges or has demonstrated exceptional achievement in the face of financial hardship may be more likely to receive merit-based aid.
Furthermore, the impact of special circumstances can also play a role in college financial aid. If a family experiences unexpected financial hardship, such as job loss, medical expenses, or other significant changes in their financial situation, it is important for students to communicate these circumstances to the college financial aid office. Colleges may be able to make adjustments to a student’s financial aid package based on these special circumstances.
Overall, impact has a profound effect on college financial aid, as it shapes a student’s eligibility for need-based and merit-based aid. It is important for students and their families to provide accurate and complete information about their financial circumstances when applying for financial aid, and to communicate any special circumstances that may affect their ability to pay for college. By understanding the impact of their financial circumstances on college financial aid, students can better navigate the financial aid process and access the resources they need to pursue their higher education goals.
