Why do colleges ask about parents' income?

Hi everyone! When I was going through college applications, I noticed that schools often ask for my parents' income. I'm genuinely curious, why would colleges want that information? Thanks in advance!

Hello! It's a great question. Colleges typically ask for your parents' income for two primary reasons: financial aid and institutional research. Let me explain each of these in more detail.

1. Financial aid:

The primary and most important reason colleges collect information on your parents' income is to determine your financial need. Your family's financial situation plays a significant role in the financial aid you may receive. In the US, colleges use the FAFSA (Free Application for Federal Student Aid) or CSS Profile to gather financial information and calculate your Student Aid Index (SAI).

Your SAI is essentially a calculation of the amount of need-based financial aid you're eligible to receive, and it helps colleges create a financial aid package tailored to your needs. By understanding your family's income, colleges can better allocate their financial resources and offer you an appropriate combination of grants, scholarships, loans, and work-study opportunities.

2. Institutional research:

Sometimes, colleges ask for information about parental income to conduct internal research and analyses. They may use this information to better understand the socioeconomic background of their applicant pool and student body. These insights can help colleges develop programs and support services to meet the needs of various student populations, as well as set goals for diversity and inclusivity initiatives.

Overall, collecting information about your parents' income allows colleges to make more informed decisions when it comes to financial aid and develop a more inclusive, supportive campus environment.