If you have "financial need" that means your available financial resources are less than your total cost of attendance budget.

Financial need is determined through a standardized federal formula. The information needed to calculate financial need is collected on the Free Application for Federal Student Aid (FAFSA). The FAFSA collects a variety of information, such as student and spouse income (if applicable) and assets, number of dependents and the number of dependents enrolled at least half-time in post-secondary education. This information is used to determine an "Expected Family Contribution" (EFC). The EFC represents the financial resources we expect that you have available to contribute to your own educational expenses after deducting standard allowances for certain living expenses and taxes.

Once the EFC is determined, the student's financial need can be calculated, taking into account any scholarships or awards you have already been offered. The EFC and other financial aid are subtracted from the total cost of attendance budget (COA) which includes tuition, books, supplies, allowances for living expenses and other educationally-related costs.

        COA
      - EFC
      - Other Financial Aid
    ------------------------------------
      = Financial Need

A positive remainder is your financial need. If the remainder is 0 or negative, then you are not considered to have financial need.

If you have financial need, you then qualify for the in-school, grace and deferment period interest subsidy on a portion of your Federal Direct Loan. (The federal government will pay the interest that accrues on this portion of your loan while you are in school, in your grace period or in deferment.) The amount of your Federal Direct Loan that may be subsidized is your financial need, up to a maximum of $8,500 per academic year.

If you do not have financial need, you may still borrow a Federal Direct Unsubsidized Loan and receive other types of financial assistance.