What is Remaining Need?

Remaining need is what you as a parent have to pay, for your child's education, after all other financial benefits have been accounted for in your plan. As parents go through the financial aid process, they must fill out forms and submit information to various agencies. They finally end up with a financial package from each college financial aid office.

As they review the financial package many parents are surprised to find that there is a "Remaining Need". They think they have covered all of the costs involved, but now there is a "Remaining Need". What is this?

Shown below is an example of a financial package:

Total Cost of School: $18,000

Less: Expected Family Contribution(EFC): $9,000

Net Cost of School before financial aid: $9,000
( $18,000 - $9,000 = $9,000 )

Less: Financial aid package:

-Pell Grant $1,400
-Scholarship $500
-Work/Study Program $1,500
Total: $3,400

"Remaining Need" = $5,600
( $9,000 - $3,400 = $5,600 )

In many cases the "Remaining Need" is the determining factor in whether your student will be able to afford to attend the college of their choice.

Make sure you understand that while financial aid can provide financial benefits and ease the cost of paying for college it is not going to meet all of your needs. We recommend that parents shop around for the best college buy.

Write or call several colleges and have them send you a catalog of their cost. This will give you information about the cost of tuition, room and board, possible work-study programs, costs for lab fees, etc.

What you are trying to do is to find a college program that will meet the needs of your child while giving you the possibility of reducing your "remaining need".

To get ideas, information, and the latest news concerning how you are going to save, plan and pay for that college education make sure you subscribe to The College Planner Digest. This monthly publication is a must for all parents who need more knowledge and want to keep up to date information about on this important subject.

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