It is important to understand how to get the most money from the colleges a student is applying to, as aid can be need-based or merit-based.

Need-Based Aid is based on the family’s financial need. A family can figure this amount to be the Cost of Attendance (COA) form the Expected Family Contribution (EFC).

Points to understand about Need-Based Aid:

Information from the Free Application for Federal School Aid (FAFSA) is needed. Other colleges may require completion of the CSS Financial Profile; Grants do not need to be repaid; Loans will need to be paid with interest; Other types of Need-Based Aid include Work-Study Programs, Perkins Loan and Subsidize Stafford Loan, and the Federal Supplemental Educational Opportunity Grants (FSEOG).

Expected Family Contribution (EFC)
This is the amount that the federal government estimates that a family should be able to pay toward the cost of a child’s education. This information is compiled from the FAFSA by the federal government. In many instances, the EFC is calculated without taking into consideration any unexpected changes in income (not shown by the results from taxes) or other emergencies.

Cost of Attendance (COA)
This is the total amount it will cost a student to attend a particular college. It includes tuition, housing and meals, fees, books, supplies, transportation costs, and personal expenses.

Besides Need-based aid there is also Merit-Based Aid.

Merit-Based Aid is usually awarded for a student’s academic achievements in high school. Other common examples of Merit-Based Aid include:

Awards for special talents  such as musical or athletic skills

May be awarded by states, colleges, universities, private groups or individuals

Tuition waivers