Student financial aid from most of the major programs is awarded on the basis of financial need. When a student applies for federal student aid the information reported on the Free Application for Federal Student Aid (FAFSA) is used to calculate a student's Expected Family Contribution (EFC) which is the amount that a student and their family are expected to contribute toward educational expenses. If the students EFC is below a certain amount, they can be eligible for a Federal Pell Grant, assuming they meet all other eligibility requirements. Your EFC is used in an equation to determine your financial need:

Your cost of attendance (COA) minus the amount you and your family are expected to contribute toward that cost (EFC) will determine what your financial need will be for that year.

A Free Application for Federal Student Aid must be submitted for each academic year that the student wishes to be considered for financial assistance.