The first step in calculating your amount of need-based financial aid is determining your eligibility. HMC is committed to providing 100 percent of your demonstrated financial need. But how does HMC do that?

We use a standard equation used by colleges and universities all across the country. It looks like this:

Family Contribution (FC)
How do we figure out how much you and your family can spend on college? Simple: we use the information you provide to calculate how much your family should be able to contribute. This equation includes:

Parents' Contribution
Using your Free Application for Federal Student Aid (FAFSA), CSS/Financial Aid PROFILE, and the other supplemental documents you provide, we calculate how much your parents will be able to pay for college costs. Most HMC students are considered dependent, so it is rare for parental income or assets to be excluded from this equation. HMC expects both parents to contribute to your educational expenses, regardless of marital status. The custodial parent completes the CSS/Financial Aid PROFILE and the non-custodial parent must complete a CSS Non-Custodial Parent's PROFILE.

Student Contribution from Income
Based on your grade level, HMC requires a minimum expected contribution from summer earnings:

First-Year: $1,500
Second-Year: $1,750
Third-Year: $1,900
Fourth-Year: $2,000

If you typically earn more than this minimum expectation, your contribution from income will be higher. You are expected to contribute either 50 percent of after-tax income or the minimum expected contribution (listed above), whichever is greater.



Student Contribution from Assets
We also figure in your assets (cash, savings and checking accounts, trust funds, UGMA and UTMA accounts, money market funds, mutual funds, certificates of deposit, stocks, stock options, bonds, other securities, installment and land sale contracts (including mortgages held), commodities, qualified educational benefits, Coverdell savings accounts, 529 college savings plans, the refund value of 529 pre-paid tuition plans, and real estate equity).

When the federal government determines your aid, they assume you can contribute 20 percent of your assets per year. By contrast, HMC treats student assets, except trust funds, as parent assets. HMC assumes you can contribute 25 percent of trust fund assets each year.

Family Contribution (FC) vs. Expected Family Contribution (EFC)
The FC is not the same thing as your EFC, which you will find on your Student Aid Report (SAR). The EFC is a figure the federal government calculates using your FAFSA information. It is used to determine how much federal assistance you'll receive. The EFC and the FC differ because they are derived using two different methods. Both methods use the information you supply when you apply for need-based financial aid. The two methods are:

Federal Methodology
To determine your eligibility for federal aid (such as Federal Pell Grant, Supplemental Educational Opportunity Grant, Work-Study, Direct Loans, Perkins Loans, and PLUS Loans, HMC uses a national standard called the Federal Methodology. The Federal Methodology considers the information provided on the FAFSA, including your family's income, assets, number of family members, and number of family members attending college at least half-time (excluding parents).

Institutional Methodology
To get a more complete picture of your family's financial strength, HMC considers more than just your FAFSA. We also use information from the CSS/Financial Aid PROFILE to determine non-federal aid, such as need-based scholarship awards from HMC. About 60 percent of the funds HMC administers in financial aid come from our own resources (grants, scholarships, loans, HMC work, and merit awards), rather than from the government. Therefore, the institutional methodology is very important to the evaluation of your need.

This institutional methodology starts with the FAFSA, but also includes the information you provide on your CSS/Financial Aid PROFILE and other forms. Since we use this additional information, we are able to consider your family's home equity, business and other losses, as well as other indicators of financial strength. HMC also considers federal and state taxes paid, allowances associated with a reasonable cost of living and a reasonable protection of any parents' assets (using a standard allowance) for both emergency reserves and an assumed savings for younger siblings' college expenses.

Last Updated: November 2011