Question

Why is it necessary to include your family's income and tax information on a fafsa application?

1) To analyze your honors class eligibility (HCE) and determine the classes that would most fit your profile.
2) To calculate your expected family contribution (EFC) which determines your need-based aid.
3) To determine your eligibility for scholarships and grants.
4) To verify your financial need and ensure fair distribution of financial aid.

Answer 1

The FAFSA application requires income and tax information to calculate expected family contribution, determine eligibility for scholarships and grants, and verify financial need for fair distribution of financial aid.

Step-by-step explanation:

The FAFSA application requires you to include your family's income and tax information for several reasons:

1. To calculate your expected family contribution (EFC): This helps determine your need-based aid eligibility. The EFC is the amount of money that your family is expected to contribute towards your education expenses.
2. To determine your eligibility for scholarships and grants: Many scholarships and grants have specific income requirements, and including your family's income information helps assess your eligibility for these programs.
3. To verify your financial need and ensure fair distribution of financial aid: By analyzing your family's income and tax information, the FAFSA application enables the government and educational institutions to evaluate your financial need accurately and allocate financial aid resources fairly among students.