Undergraduate Financial Aid

Factors Considered in Brown's Need Analysis Formula

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Factors Considered in Brown's Need Analysis Formula

Learn more about how Brown calculates a family's financial contribution to the student’s education.

A Brown education represents a major investment to students and their families. Cost is one of several factors that a student will have to weigh when choosing a college. At Brown, we believe that, to the extent possible, the primary responsibility for paying for college lies with a student and their family. Families typically pay for college using a combination of three sources: savings, current income, and future income (including loans).

Determining a family's contribution to educational expenses is a complicated process. Below are the general categories we use to establish the Parent Responsibility. If you have concerns or require clarification, feel free to contact us.

Brown University utilizes an Institutional Methodology (IM) when calculating the Family Responsibility.

Major Factors Comprising the EFC

Brown assumes that an applicant’s natural parents have the primary responsibility of supporting their children throughout their undergraduate years.

Applicants whose parents are divorced, separated or were never married are required to provide financial data for both parents. If this is not possible, the student may submit a waiver petition for the non-custodial parent. Such waivers will be considered on a case-by-case basis.

If parents discontinue or deny support of the student for reasons other than ability to pay, Brown will not bear the parents' responsibility for supporting the student. Similarly, it is not possible for Brown to aid students who declare themselves independent when the income and assets of the student’s family indicate they are able to contribute.

Both taxable and untaxed income are considered when determining a family’s overall total income level.

	Parent Income
Taxable Income	Wages Interest Dividends Business income Farm income Pension and annuity distributions Rental income Royalties Trust income Business and/or rental property losses Capital losses Depreciation on real and/or rental property
Untaxed Income	Untaxed interest Untaxed dividends Welfare benefits Annual contributions to tax-deferred savings/retirement plans, such as a 401(k) IRA deductions and payments to SEP, SIMPLE and Keogh plans Housing/living allowances Untaxed portions of pension/annuity distributions Workers' compensation Foreign Income Exclusion Business distributions or payments not captured in personal income Social Security benefits Child Support Received VA Non-Education Benefits

The total parent income is established using standard allowances for certain non-discretionary expenses. Additional institutional allowances may be factored into the analysis with documentation.

Allowances

Federal income tax
Payroll Tax
Employment expense
Living allowance* based on the number of household
Education Credits
Taxable college grant and scholarship aid reported as income
Federal Work Study

*The living allowance is a provision for the basic living expenses of a family such as food, housing, transportation, clothing and personal care, and some medical expenses.

Additional allowances we may consider on a case by case basis for institutional eligibility

All, or a portion of, a sibling's private school education costs
Exceptional medical/dental expenses
Currently in repayment on loans in parents' name for parents' education and/or education of siblings

Parent assets are considered in order to fully measure a family's ability to contribute toward educational expenses.

* The value of retirement plans (pension funds, annuities, non-education IRAs, Keogh plans) or the value of life insurance plans are not included.

** Home Equity in the primary residence is not included in the analysis.

*** For updated information regarding assets considered in the Federal analysis, please visit our FAFSA Simplification FAQs.

	Assets Included In Analysis
	Cash (savings and checking) Real estate (not including primary residence) Trust funds Educational Savings Plans Prepaid Tuition Plans Installment and land sale contracts Investments Business/farm net worth

In general, this is the number of family members living in the same household, including the student’s parents, siblings attending college, or siblings living at home their first year after college.
Grandparents who are living and are declared dependent may be included, but their income and assets may also be considered.
“Adult children" who have finished their education, and are capable of working, are not included.
Relatives living outside the home, even when supported by the family, are not included.

When a family has more than one child enrolled in college at the undergraduate level at the same time, the Parent Responsibility is adjusted accordingly. The extent of the adjustment depends on several factors, such as net cost, age of the sibling(s), and enrollment level.
Siblings enrolled in graduate, medical or law schools are not included in the number in college for the determination of eligibility for University Scholarship.

When we determine a family’s responsibility, a contribution from a non-custodial parent may be included.
Our policy for determining the financial need of a student whose parents are single, never married, separated or divorced is based on the principle that we use to determine eligibility for all of our students. To the extent they are financially able, the primary responsibility for financing a student's education lies with the student and the family.

Brown requires the submission of non-custodial income information detailing the non-custodial parent's ability, not willingness, to contribute. Should parents discontinue their financial support for reasons other than ability to pay, Brown will not assume the parental responsibility for financial support of the student. For details on the collection of non-custodial parent information, refer to the Non-custodial webpage.

Students are expected to contribute towards educational expenses from summer and academic-year earnings, and from their assets.
The factors considered for student income and assets are the same as those indicated above for parent income and assets. All assets held in a student’s name, such as savings, investments, trusts and real estate, must be reported.
Unlike parent assets, students must report retirement investments on the CSS PROFILE for purposes of Institutional Methodology. The expected contribution from a student's assets is 25% annually.