Determining Financial Need

• Need is determined by the following formula:
  

   COA (Cost of Attendance)
 - EFC (Expected Family Contribution)

   =  Need Eligibility

• When a student FAFSA is received at Washington State University a cost of attendance, or budget, is developed for that student. A Cost of Attendance (COA) or budget is set for the student for the academic year.
  
  • See COA General Information for detail of budgets.  

  • See Estimated Costs for more information about your budget/COA.  
    

• The EFC is used to determine what types of state and federal programs a student can be awarded to a student. The EFC - Expected Family Contribution - is calculated by the federal processor from the information provided on the Free Application for Federal Student Aid (FAFSA) filed each year by financial aid applicants. (The complete formula may be seen in this publication.)

  • Major components used to calculate the EFC include: 
  • Student (and spouse, if married) income (taxable & untaxed), 
  • taxes paid, 
  • and assets equity
    • If classified as a dependent student, parental income (taxable & untaxed), taxes paid, and asset equity (excluding home and farm value) are also included

  • Number of family members

  • Number of family members in college (excluding parents)

• As the final part of the process, a calculation is performed that determines what types of need-based aid programs a student may be awarded. Financial Need Eligibility is the difference between the Cost of Attendance (COA) and the Expected Family Contribution (EFC) from the FAFSA.