Which Family Funds Are Considered for College Scholarship Calculations?

I'm confused about what family resources are included when calculating eligibility for college scholarships. Do they look at all my family's savings and income, or just specific things? I want to make sure I accurately fill out the forms.

In calculating eligibility for need-based college scholarships, many different types of family resources are taken into consideration. The most significant are parental income and assets, which include savings, checking and taxable investment accounts, but do not typically include retirement accounts. Real estate investments (excluding the family's primary home), business equity, and gifts to the student (like a 529 plan) can all be considered as well.

Assets are typically assessed at a lower rate than income. In the federal methodology used to determine eligibility for federal aid, parents' income is counted up to 47%, while parents' non-retirement assets are counted up to 5.64%.

It's also worth noting that the FAFSA no longer uses the Expected Family Contribution (EFC), but now uses the Student Aid Index (SAI). The SAI can go as low as negative $1,500, indicating very high need. Unlike the old EFC, the SAI is not divided based upon the number of students in college within a family. The SAI is designed to give a more nuanced picture of a family's financial situation to colleges.

Remember to accurately report all requested information when completing financial aid forms. Colleges and universities use these documents to determine your family's financial need and your eligibility for need-based scholarships.