What is need-based aid determined by?

Need-based aid is determined by evaluating a student's financial situation, which typically includes factors such as family income, assets, household size, and the number of family members attending college. This assessment often utilizes the Free Application for Federal Student Aid (FAFSA) in the United States, which calculates the Expected Family Contribution (EFC). The difference between the cost of attendance and the EFC helps institutions determine the amount of need-based aid a student qualifies for. Ultimately, the goal is to make education more accessible to those who demonstrate financial need.