How is Aid Calculated?
The Government's Role
The U.S. Congress has established the basic parameters under which eligibility
for financial aid programs is calculated. FAFSA data is analyzed and a calculation
yields the student’s EFC, or Expected Family Contribution. School(s) the student
listed on their FAFSA then use this EFC in the awarding process. To find out more
about how the EFC is determined, and to see the actual worksheets used in the
federal methodology, please see the EFC
Formula Guide.
We understand you may not agree that this number accurately reflects your family’s
ability to contribute to your education, but please understand that we are required
by federal and state law to use it. Also, please understand that your EFC is not
a bill. Your EFC is only a number used by the school to determine your eligibility
for certain types of financial aid programs.
The University's Role
UT takes your Cost of Attendance
and subtracts your EFC to determine your financial need. Our office makes every
attempt to award you in need based financial aid programs (grants, subsidized loans,
work-study) up to your need and your Cost of Attendance (in non-need based loans).
In general, students whose FAFSA data shows them to have the greatest financial
need, have the most eligibility for grant, work-study, and subsidized loan programs.
The awards a student is eligible for also depend on the rules for each award program,
and on whether there is any money left in UT’s allocation for that program by the
time we receive the student’s FAFSA data. For example, the Federal Pell Grant is only available to
undergraduates seeking their first degree, and the Federal Direct Loan program
limits borrowing to a certain amount in an academic year.
Taking into account a student’s financial need and the limitations on the aid
programs available, UT Austin awards eligible students with grants first, then
work-study, then loans. Some students may qualify for all three, and other students
may only qualify for loans.
If a student receives outside scholarships or funding from another source, their
financial need will decrease, and their other awards may have to be adjusted (we
try to adjust loans first, then work-study, so as to preserve grant funding for our
students). You are required by federal law to report scholarships and other sources
of funding, so please notify our office as soon as you know you’ll be receiving an
outside scholarship.

