Facts of the Month

Changes to the Federal Formula

The federal formula governing student financial aid (also known as the "federal methodology") has undergone some changes in recent months that will impact students' financial aid eligibility for the upcoming 2007-2008 academic year. As students complete their FAFSAs this spring, only 20% of the assets in a student's name will be assessed in figuring the Expected Family Contribution (EFC), down from 35% in previous years. Additionally, the basic dependent student income protection allowance has increased to $3,000 (up from $2,550). (To this amount, necessary tax allowances are added, yielding a slightly higher "gross income threshhold" before there is a contribution from student income.)

Publication Date: February 2007