FAFSA Results

[Joules]

Just to make sure:

The number after the letters EFC is the expected family contribution and need-based aid only kicks in after costs go above that, right?

 

Having only one kid and a decent income and emergency fund, I wasn't expecting aid, but I will say I am surprised at how high the number is (about 30% of gross, well over 40% of take-home).  

 

I'm very thankful that the public colleges aren't allowed to raise their rates to what they think I can afford  :laugh:

[Azalea]

Yes, it's truly sickening what they think we can afford.

[clementine]

Yup - ours was about 30% too.  I about fell over when I saw that.  Do they really think a family can realistically afford to spend that for one child?  Insane.

[MerryAtHope]

Wow, I've not heard of it being that high. 

[hopskipjump]

Just to make sure:

The number after the letters EFC is the expected family contribution and need-based aid only kicks in after costs go above that, right?

 

Having only one kid and a decent income and emergency fund, I wasn't expecting aid, but I will say I am surprised at how high the number is (about 30% of gross, well over 40% of take-home).  

 

I'm very thankful that the public colleges aren't allowed to raise their rates to what they think I can afford  :laugh:

 

Boy, we had a kind of crazy-giggle of shock when we saw the official EFC numbers! :mellow:  Because... ummmm... wow. 

[Joules]

Wow, I've not heard of it being that high. 

 

It's a weird donut hole of people who make too much to qualify for aid, but not enough to pay sticker price for college.  It particularly hits people in high cost of living areas and those with just one child.  

 

I was expecting it, so it's OK, but even I was surprised at the number. (Though I do regret not discouraging ds from visiting a particularly awesome LAC.)

[creekland]

Your EFC matches your income (%) essentially the same way ours does.

 

It helps us to have two kids in college at once, but in reality, we pay about 60% of our EFC for each boy, not 50% (not an even split, but not that far off).

 

I expect next year to be better by that 10% since middle son's tuition will be free and he's remaining an RA to get his room free (plus he loves the job).

 

Time will tell, of course.

 

The bottom line is a significant portion of our income has gone to colleges since 2010.  It's reined in the rest of our budget considerably and we don't spend time thinking about what we could have done with that money because to us, [the right] college experiences are worth what we need to spend.  Oldest has graduated and is doing well.  Middle is on a good track to do well.  Youngest already has a job offer for when he graduates.  Not sure if he'll take that one or not, but it's a nice bar to have.  They're all enjoying life and their experiences.

 

NOTE:  We did NOT pick the most expensive option they had... for my older two, it was their cheapest option among acceptances.  Youngest only applied to Eckerd, so it's difficult to compare.

[Joules]

I found one reason that some people may getting more sticker shock this year.  The asset allowance is much lower than last year.

For example a 45yo couple could have $28,200  last year but only $17,400 for next school year.  May make a difference, if say, you are a cash-only family and saving for a new car.

 

 

See Table A-5, p.19 in each (I can't paste a screen shot.)

2016-2017:

http://ifap.ed.gov/efcformulaguide/attachments/100615EFCFormulaGuide1617Attach.pdf

 

2015-2016:

http://ifap.ed.gov/efcformulaguide/attachments/090214EFCFormulaGuide1516.pdf

 

 

I'll never understand why a single parent has a smaller allowance.  There are two of us, so if one is disabled or sick, the other can make up some slack.  A single person needs more of an emergency fund, because if he/she is disabled, there is no one to make up the difference!

[8filltheheart]

Have you run NPC for more than 1 child?  Typically, unless more than 1 child is in college simultaneously, the net price does not alter much, if at all, just because there more children.  I just ran Case Western's to see if they had changed at all, and with the exact same numbers claiming 3 exemptions vs. claiming 6 exemptions resulted in the exact same estimated net price.  

[Pegasus]

Keep in mind a few points:

 

1. FAFSA is primarily a form to determine if a student is eligible for federal aid, like a Pell Grant.  The cut off in family income/assets is quite low so really only helps the very low income.

 

2. Most FAFSA-only colleges do not have the funding available to make up the difference between a family's EFC and the cost of attendance. This means that family would have to pay their EFC plus make up this "gap" in funding to attend. So, do NOT envy very low income families. Very few are getting a full ride somewhere and many students simply can not afford to attend a 4 year university, even with the Pell grant and federal direct loans.  CCs tend to be affordable with these benefits.

 

3. Schools with more funding to provide financial assistance usually require a CSS Profile which asks for even more detailed financial information than the FAFSA.  The individual school gets to define what the financial need is.  It may very well NOT be what your family would define their need as.

 

4. Finally, families are not expected to pay all of their college costs out of current income.  A family is expected to need to use past income (savings), current income (by cutting back budget items in other areas), and future income (via loans).  

 

Overall, yes, I agree. The cost of higher education is shocking.

[Pawz4me]

4. Finally, families are not expected to pay all of their college costs out of current income.  A family is expected to need to use past income (savings), current income (by cutting back budget items in other areas), and future income (via loans).  

 

Yes.  ^^This.^^

Edited February 2, 2016 by Pawz4me

[regentrude]

I found one reason that some people may getting more sticker shock this year.  The asset allowance is much lower than last year.

For example a 45yo couple could have $28,200  last year but only $17,400 for next school year.  May make a difference, if say, you are a cash-only family and saving for a new car.

 

 

See Table A-5, p.19 in each (I can't paste a screen shot.)

2016-2017:

http://ifap.ed.gov/efcformulaguide/attachments/100615EFCFormulaGuide1617Attach.pdf

 

2015-2016:

http://ifap.ed.gov/efcformulaguide/attachments/090214EFCFormulaGuide1516.pdf

 

 

This is annoying - but since assets are "taxed" at a rate of just below 6%, the 10k extra assets that are considered this coming year would increase the cost by $ 600. So that's not responsible for the sticker shock.

[FaithManor]

The problem with the system is that A.tuition/room/board has outpaced wages by 415% since the early nineties so it is not possible for most families to even begin to save for such craziness, B. it assumes the wage earner's income has steadily increased which since the passing of NAFTA is simply not true for many workers, and C. it does not take into account other financial woes such as periods of unemployment, large medical bills, mortgage losses, etc....things that smart financially and prevent one from saving.

 

It is unrealistic for most middle class families.

 

We laugh when we see our number each year. It is better than crying. We simply don't have it. We have some, not all. The 529 had to be cashed out for dd - her freshman year was 2008, the mortgage scandal, the market tanked, investments weren't worth anything. We toom a real bath. It was worth less than what we had invested. Years of savings right down the tubes.

 

So we do the best we can which is that we can pay about half of our EFC for each boy. They have to get scholarships and campus jobs, and also take out the Federal loans at the low interest rates and since they don't qualify for subsidized, we will try to pay the interest on it so the balance doesn't creep up. They know the dangers of private loans, and know we aren't willing to take out parent plus loans. We have to be careful because we need to keep contributing to retirement funds so we will be financially viable in our elder years alleviating future burden on them.

 

It is a juggling game, and definitely once the acceptances are in, the financial package from each school weighs pretty heavily in the decision of where to attend.

[goldberry]

Does your EFC affect merit aid?  

 

And how does it affect the kind of loans available?

[Pegasus]

Does your EFC affect merit aid?  

 

And how does it affect the kind of loans available?

 

True merit aid isn't affected but many scholarships combine financial need with accomplishment criteria.

 

The Federal direct loan would have a portion of it be subsidized (meaning the interest doesn't accrue) when there is outstanding financial need; 2) Perkins loans go only to students with financial need but typically funds run out before all eligible students receive it.

 

American citizens who fill out the FAFSA can get the Federal direct loans. They don't have to have need but the total of loans and financial aid and merit funds can't exceed their COA.  For dependent students, amounts are limited to $5,500 for freshmen, $6,500 for sophomores, and $7,500 for juniors and seniors.  If a parent applies and is denied a parent plus loan, the student is eligible for another $4,000 in direct loans.

[Gwen in VA]

I am SO incredibly thankful for merit aid!

 

:hurray:

 

 

[Nan in Mass]

The EFC is a misleading label.

 

I agree that the price of college is shocking.

 

But I think part of the problem is the word "expected". "Expected Family Contribution" is a very misleading label. It makes it sound like the government thinks you actually can afford that much. That is not the case. The EFC is the amount that the GOVERNMENT can NOT afford to give you in low interest loans. The EFC should really be called the We Can,t Afford To Help You With This Part. Or rather, they could but they have decided to spend the tax money on other things.

 

Generally speaking, the price of private colleges was equally shocking when we were young. Private colleges have their own way of dividing up the aid they have available. The college takes the extra money from alumni gifts, private industry gifts, and full pay students and divides it up to give out as aid. They have families fill out a CSS form to determine which students need the money the most. Some colleges decide to give everyone a little of the money. Some decide to give a few students lots of money. Some colleges decide to use the money to lure in good students.

 

Generally speaking, the change from when we were young is in the price of state colleges. The government (which we as a country voted in) thinks other things are more important than the state universities. That means not only are the universities having to ask the students for more money, but there is less public money available as aid. They (we really) decided to try to help via low interest loans instead. To determine who gets how much of these loans, the government has families fill out thr FAFSA form. The "expected" family contibution is what the government won,t pay. It is a bad name.

 

Good luck, everyone.

 

Nan

 

ETA this is a simplification, of course, but maybe it will help people be shocked and angry for the right reason (colleges under funded and over spending) rather than the wrong one (they think we can afford to pay an unreasonable amount).

Edited February 6, 2016 by Nan in Mass

[Mom22ns]

 

Generally speaking, the change from when we were young is in the price of state colleges. 

 

Remember that it is YOUR state that make these decision. In our state most State Universities are under $10,000/year for tuition and fees with some under $7,000 even. Some states have starting price tags over $25,000. We have a lot of out of state students at our universities because it is often cheaper for students to pay out of state tuition here, than in state tuition in their own state. 

 

This thread made me look and our EFC is closer to 25% of gross. Since all they offer us for costs above EFC is loans and we aren't doing student loan debt, it really doesn't mean anything at all here though.

[ThisIsTheDay]

I found one reason that some people may getting more sticker shock this year.  The asset allowance is much lower than last year.

For example a 45yo couple could have $28,200  last year but only $17,400 for next school year. 

 

This has hugely impacted my family.  We did not have to declare resources previously; now we do.

 

Our EFC is quite low.  However, with the assets, it appears that dc will be getting half the Pell grant received for the past couple of years.  There is a huge gap between our EFT and what will come in the form of financial aid (grants, loans).  We'll be expected to make up the difference.  For this coming year, we'll have two kids in college. I'm sure it will be ugly.