Family Contribution
Caltech's estimate of a family's ability to contribute is determined on a yearly basis from the information provided on the Free Application for Federal Student Aid (FAFSA) and the College Scholarship Service (CSS) PROFILE Financial Aid. The information is analyzed using a nationally-approved Federal Methodology need analysis formula and a nationally-accepted Institutional Methodology formula. The Federal and Institutional Methodologies view families as the primary source of financial support for undergraduate education and are designed to evaluate families' resources in a consistent and equitable manner. The determination of the family contribution takes into account such factors as family size, number of family members in college, income, assets, taxes, and medical expenses. Caltech also subscribes to the principle that families at the higher end of the financial scale should contribute proportionately more than those at the lower end.The general principles of Federal and Institutional Methodologies can be summarized as follows:
- Parents have an obligation to finance the education of their children, to the extent they are able.
- A family's income and assets produce a comprehensive measure of the family's financial strength and ability to contribute toward educational costs.
- Factors such as family size, extraordinary expenses, age of parents, and other considerations are weighed in relation to income and asset information in order to measure a family's realistic ability to pay for an education.
Caltech's methodology differs in parts from this standard and may generally be expected to yield a lower family contribution. Better estimates will be available at the time the student's official financial aid eligibility is determined.
Students have a responsibility to help pay for their own education and, as primary beneficiaries of that education, should contribute a proportionately greater share of their income and assets than should their parents.
The student portion of the family contribution comes from an assessment of student resources. Each student is expected to contribute toward his or her educational costs from employment earnings.
Each year, students are also expected to contribute a percentage of their cash, savings, investments, trust funds, and other assets.
Because personal financial circumstances are subject to change, revisions to an award may be warranted and are always possible. Further, financial aid may be increased for documented legitimate educational expenses not covered in the standard financial aid budget.
Changes in a family's financial situation subsequent to the application for aid being filed can also affect the award. Students should contact the Caltech Financial Aid Office if they think they might, for any reason, qualify for additional aid. They must also report to the Financial Aid Office any additional resources, such as outside scholarships. If these additional resources reduce or offset a student's financial need, the award will be adjusted accordingly.