What Money Are Mentioned On the FAFSA Formula? Beginner and you will moms and dad income is large activities whenever colleges share school funding. But only a few money matters. Some tips about what you must know about how exactly your and your family's earnings can affect your financial assistance eligibility. Trying to get financial aid begins with completing the fresh Totally free Software getting Government Beginner Aid (FAFSA) . The latest FAFSA means contains questions regarding their as well as your family members' income and you may possessions. Exactly how is this recommendations used to determine how much financial aid you will discover? The newest FAFSA doesn't actually assess extent (otherwise dictate the type ) away from educational funding you can acquire from people university. Instead, the fresh FAFSA collects facts about the along with your family's earnings and you can assets, along with other studies about yourself, and, as a result of a formula discussed by-law, computes the Requested Household members Contribution otherwise EFC . Since identity “Requested Family relations Sum” feels like the total amount all your family members might be “expected” to pay for school, the EFC is really a variety universities used to guess exactly how far school funding you would need to sit in the college or university for annually. Colleges subtract the EFC from their cost of attendance to determine your financial you would like. [...]