ERIC Number: ED040680
Record Type: RIE
Publication Date: 1970-Mar
Reference Count: N/A
Can Financial Need Analysis be Simplified?
Orwig, M. D.; Jones, Paul K.
This paper examines the problem of collecting financial data on aid applicants. A 10% sample (12,383) of student records was taken from the 1968-69 alphabetic history file for the ACT Student Need Analysis Service. Random sub-samples were taken in certain phases of the study. A relatively small number of financial variables were found to predict parents' expected contribution to college expenses effectively. Best predictors were the Federal Income Tax paid by the parents and their non-taxable income; the best asset variables were investments, the net value of a farm , business, or real estate, home equity and savings. The computation of parents' expected contribution using combined variables was compared to the computation of financial need in the current ACT system. The relation between base year and estimated year income was also analyzed. It was found that students from low income families tended to report higher estimated year incomes than base year incomes, while the reverse was true for students from high income families. (Author/AF)
Descriptors: College Students, Family Income, Financial Needs, Financial Support, Higher Education, Low Income, Prediction, Student Loan Programs, Student Needs
The American College Testing Program, the Research and Development Division, P.O. Box 168, Iowa City, Iowa 52240
Publication Type: N/A
Education Level: N/A
Authoring Institution: American Coll. Testing Program, Iowa City, IA. Research and Development Div.