What is the correct formula to determine non-need-based aid eligibility?

To determine non-need-based aid eligibility, the correct approach involves assessing the overall financial assistance a student is receiving, not just their financial need. The formula to effectively calculate this is to subtract the other financial assistance from the cost of attendance. This allows institutions and students to see the amount of aid that could potentially be awarded that does not depend on the student's financial need.

The cost of attendance encompasses all costs a student incurs while attending school—like tuition, fees, room and board, and other necessary expenses—while other financial assistance includes grants, scholarships, and loans awarded to the student. By using this formula, institutions can discern what additional financial support is available to the student after accounting for the aid already received.

Understanding this framework is crucial, as it highlights how non-need-based aid operates separately from need-based aid, enabling institutions to provide appropriate funding to students based on their unique financial profiles.