A standard formula is used to figure out your family's ability to contribute to the cost of your higher education. This formula takes into consideration family income, number of dependents, assets, and the number of other family members in college. This formula remains the same, no matter what the cost of the college. Once the forms are analyzed and the family's contribution is determined, that contribution is subtracted from the total cost of your education. An amount up to this need may be met by various types of financial aid.
Most families use savings, income or loans in order to meet their contribution to college costs.