Applying for Financial Aid at Earlham

A Word About "Need"

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Often we have families ask if we "meet financial need." This is a difficult question to answer because "need" means different things to different people. A student's financial need, according to financial aid officers, is the difference between the school's cost of attendance and the student's "expected family contribution." We know the cost of attendance. The "expected family contribution" is where the issue can become confusing.

This "expected family contribution" or "EFC" is determined by a federal calculation, using the information reported on the FAFSA. If a family has determined that they can afford $7,000 a year, but the FAFSA data shows that they can afford $10,000 per year, then the family could feel a $3,000 "gap" in their financial aid award. This is because the financial aid office is basing their aid award on a family contribution, or "EFC" of $10,000 (and not the $7,000 for which the family planned). In more common terms, the family thinks they "need" $3,000 more, but the school has met their "financial need."

The other side of this issue is that just about every school could "meet financial need" through loans. If a school is not able to "meet financial need" through grants, scholarships, work and student loans, a parent loan can be offered to cover the rest. The institution can then say that they "meet financial need" for every family. However, if it is met through a large parent loan, it often does not feel like "financial aid" to a student or their family.

For these reasons, we prefer the term "eligibility." At Earlham, we will award the maximum available aid for which you are eligible, according to federal, state and Earlham guidelines. Parent loans and other payment options (described in the Planning section of this guide) are available to students and families whose "financial need" could not be met through other resources.

You must reapply for need-based financial aid each year!!

Please see the Financial Aid Calendar for important information about reapplying for Financial Aid.