There are two methods of determining a family's expected contribution toward educational costs. The Federal Methodology is used to determine a student's eligibility for federal aid, including Pell Grants, Direct Stafford Loans, and most forms of state grant assistance. The federal family contribution is determined using the data provided on the Free Application for Federal Student Aid (FAFSA). Because the Federal Methodology ignores some forms of income and eliminates some types of assets from consideration, Loyola uses an Institutional Methodology to determine a student's need for institutionally-controlled and funded forms of financial aid. The institutional family contribution is determined using the data provided on the CSS Profile Application.
Federal financial aid regulations stipulate that a student's total financial aid package may not exceed the federally-determined need analysis result when federal forms of financial aid are included in the aid package. Therefore, Loyola will use the Federal Methodology need analysis results in cases where the Institutional Methodology yields a lower expected family contribution than the Federal Methodology.
We believe the institutional need analysis formula more accurately and more equitably measures a family's financial strength by using sound economic principles, practices and assumptions. The treatment of the main institutional need analysis variables is explained below:
This is the number of family members living in the same household. Relatives living outside the home, even when supported by the family, are not included. Siblings attending graduate school or siblings who are 27 or older are considered independent and will not be included in family size.
Family Members Enrolled in College
For families with two or more children attending four-year private or public colleges, the parent contribution is assessed at 60 percent for each child if two children are enrolled and 45 percent for each child if three children are enrolled. If a sibling attends a two-year community college, the parent contribution is increased proportionally. There is no adjustment in the parental contribution when parents are enrolled in an undergraduate or graduate program, for children enrolled in graduate school, or for children enrolled part-time in an undergraduate program.
Parents should expect a significant increase in their expected contribution when a dependent child graduates or is no longer enrolled on a full-time basis in an undergraduate program.
Divorced, Separated, Single Parents
In cases of divorce or separation, the parent with whom the student resides (and if applicable, a stepparent) is responsible for completing the FAFSA and CSS Profile. Loyola supports the policy, however, that both biological parents are responsible for the financial support of their children to the extent they are able even in cases of divorce, separation, and unmarried parents. While marital status may complicate the extent to which one or both parents can contribute, it does not absolve either parent from their obligation. For this reason, Loyola reserves the right to request the non-custodial parent to complete the CSS Profile. You will be notified by the Office of Financial Aid if your non-custodial parent is required to complete the CSS Profile.
Income is the most weighted factor in determining the expected parental contribution toward educational expenses. The formulas use the most recent complete year of financial information to determine the expected contribution for the upcoming academic year. Therefore, annual fluctuations in income (and assets) are considered annually using the most complete tax year information.
- Taxable Income. This category includes wages, salaries, interest and dividends. It can also include business/farm profit, pensions, annuities, rents, royalties, trust income and other forms of miscellaneous taxable income. For parents who own businesses, depreciation on real property or automobiles, and part or all of other forms of depreciation, wages paid to dependent children, and noncash benefits such as automobile use and insurance coverage are typically added back to income. Losses, including those from business and rental ventures, capital losses and losses carried forward from prior years will not affect other forms of income. One-time additions to income, such as capital gains or the liquidation of an annuity or pension are considered an exchange of assets and are not included in income.
- Untaxed Income. This income category includes social security benefits, veterans benefits, welfare or child support. It also includes voluntary annual contributions to tax deferred savings/retirement plans, housing/living allowances, untaxed portions of pensions/annuities, workers compensation and any other form of untaxed income or benefits.
Because assets contribute to a family's financial strength, they also are considered in determining the parents' contribution. Assets included in the formula are: equity in real estate, including the family home, savings, investments of all kinds, a portion of business/farm net value, trusts and annuities. Real estate will not be accepted at a lower value than the purchase price and national real estate appreciation multipliers are often used to project market value. For family-owned businesses, accumulated depreciation, loans from shareholders, capital stock and retained earnings are not considered liabilities in calculating net value of these assets. Automobiles and consumer goods are not included as assets, nor is the value of the parents' primary retirement fund.
As primary beneficiaries of a college education, students are expected to assist their parents in meeting their educational expenses. Students are asked to contribute to their cost of education through summer earnings and a portion of savings or trust.