Which of the following is the difference between a student's educational costs and the amount of money the student and the student's family are expected to contribute toward meeting those costs?

• A. Packaging
• B. Financial Need
• C. Cost of Attendance
• D. Expected Contribution

Answer: (B)

Financial need is the shortfall between what a student would need to cover all educational costs and what the student and family are expected to contribute. The total price tag, called the cost of attendance, includes tuition, fees, room and board, books, and other expenses. The amount the family is expected to contribute is the expected contribution (often abbreviated as EFC). Subtracting the expected contribution from the cost of attendance gives the financial need. This is the amount schools look to meet with need-based aid. Packaging refers to how aid is assembled to cover that need, and cost of attendance is the total cost, not the difference.