Federal and state aid is awarded based on the information on a student's Free Application for Federal Student Aid.
Public colleges adhere closely to the form, and private schools also factor it into their offers.
A second form, the College Scholarship Service Profile, is also used by about 450 schools and many organizations that offer scholarships. Both forms need to be completed every year that you apply for aid. Like filing your taxes or applying for a mortgage, the process isn't complicated, but it will be a good deal smoother if you are organized. Make things easier by saving your key financial information including tax forms, pay stubs, brokerage and bank account statements beginning in the student's junior year of high school. The EFC is based largely on income, but is also affected by your assets, the number of children you have attending college at the same time, and the number of years you have until retirement.