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ERIC Number: ED456901
Record Type: RIE
Publication Date: 2001-Jul
Pages: 60
Abstractor: N/A
Reference Count: N/A
ISBN: N/A
ISSN: N/A
A Financial Aid Need Analysis Methodology for Early Care and Education. Technical Report.
Vast, Teresa; Baum, Sandy
Based on the view that early care and education programs must have substantial non-tuition revenue from the public and private sectors to reduce the proportion of costs for high quality programs passed on to families as tuition costs, this report presents a methodology for identifying an "expected family contribution," a representation of what a family is able to pay for care based on an analysis of its income and assets. Also considered in this methodology is a calculation to determine the price of high quality care and education, based on the cost of reaching and maintaining standards of excellence minus the public and private sector support obtained to subsidize those costs. The Early Care and Education Need Analysis Methodology (ECE Methodology) is designed for use in conjunction with a community-based financial aid office within the context of a coordinated finance system. The report describes the basis of the ECE Methodology and describes how the formula is used, including measuring income, identifying allowances against income, and identifying assets and allowances against assets. Assessment rates are discussed as well as the issue of expected family contributions families have with multiple children in early care and education programs. The report discusses the importance of conducting annual need analyses to have current eligibility information and the use of professional judgment. Also discussed are development of a financial aid application form and the importance of periodic revision and updating of the methodology. The report concludes by noting that the ECE Methodology draws on both the federal and higher education institutional models currently used in higher education, relying on the strengths of each. The report's five appendices include computation tables, data sources and calculations for 2000-2001, a methodology worksheet, and a draft financial aid application form. (KB)
Lumina Foundation for Education, P.O. Box 7039, Indianapolis, IN 46207-7039. Tel: 800-834-5756 (Toll Free). For full text: http://www.luminafoundation.org./Publications/research.shtm.
Publication Type: Reports - Descriptive
Education Level: N/A
Audience: N/A
Language: English
Sponsor: David and Lucile Packard Foundation, Los Altos, CA.
Authoring Institution: Lumina Foundation for Education, Indianapolis, IN.
Note: For supplementary technical reports, see PS 029 719-721.