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The need formula is a mathematical equation used to determine the financial requirements for students applying for financial aid, considering factors like family income, expenses, and the cost of education.
Students applying for financial aid, particularly need-based grants and loans, are required to file the need formula to calculate.
To fill out the need formula, students must provide detailed financial information including income, assets, and family size on the FAFSA or similar forms required by educational institutions.
The purpose of the need formula is to assess a student's financial need in order to allocate financial aid appropriately, ensuring that assistance is given to those who need it most.
Information that must be reported includes income, family size, number of family members in college, assets, and any other financial resources that may affect aid eligibility.
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