Peterson's FAABteachersmanual (Page 10)

NEED-BASED AID

LESSON PLAN #3

Lesson Objective: The students will understand the eligibility criteria and
formula for determining need-based aid. Students will be exposed to various
types of need-based federal aid. Students will gain hands-on experience using
the formula for need-based aid.

Procedure:

1. Ask students if they have any questions or comments regarding their

reading assignment (chapter 3 in The Financial Aid Answer Book).
Stress that there is over 65 billion dollars of financial aid available and
that the rule of receiving aid can be summed up in three words...apply,
apply, apply. Review the eligibility criteria (Overhead 5) for financial
aid.

2. Explain that a student's need is based on the formula of Cost of

Attendance (COA) minus Expected Family Contribution (EFC) or
COA EFC = Financial Need. Discuss the components of COA and
EFC (Overhead 6) with the students.

3. Split the class into pairs and pass out Handout 3. Write two or three

scenarios for the student to calculate financial aid need and then share
the answers as a class. Financial need examples could include the
following:

a) Private college

COA

Tuition -

$10,395

Fees -

$320

Books & Supplies - $385
Room & Board -

$6,200

Transportation -

$1,200

Personal -

$440

Medical/Dental $150
Other

$300

Minus EFC

- $8,900

Financial

Need?

Peterson's - FAABteachersmanual (Page 10)