ERIC Number: ED494197
Record Type: Non-Journal
Publication Date: 2006-May
Fixing the Formula: A New A New Approach to Determining Independent Students' Ability to Pay for College
Lumina Foundation for Education
This report proposes a more reliable method of determining the subsidies required by independent students. The current Federal methodology for need analysis provides a crude index for determining eligibility. This report takes an innovative approach to determining independent students' ability to pay for education. It challenges many of the fundamental tenets of traditional need analysis and proposes new ways of thinking about the resources available to independent students in varying circumstances. The independent student methodology proposed here attempts to correct various shortcomings of existing approaches. It proposes four separate income components, which are described in detail in this report. The first component, based on past income, also includes a contribution from assets. The second component is based on in-school income and obligations, and the third depends on anticipated earnings. The final component of the expected contribution is based on parental income and assets. The following are appended: (1) Components of the proposed need-analysis formula for independent students; (2) A Microsoft Excel worksheet that provides examples of individual cases, which is available upon request from the author; and (3) Need analysis for dependent students. An About the Author section is included. (Contains 3 endnotes.)
Descriptors: Paying for College, Self Supporting Students, Public Policy, Student Financial Aid, Need Analysis (Student Financial Aid)
Lumina Foundation for Education. P.O. Box 1806, Indianapolis, IN 46206-1806. Tel: 800-834-5756; Fax: 317-951-5063; Web site: http://www.luminafoundation.org/publications/index.html
Publication Type: Reports - Research
Education Level: N/A
Sponsor: National Association of Student Financial Aid Administrators, Washington, DC.
Authoring Institution: Lumina Foundation for Education, Indianapolis, IN.