| Students
and their families are expected to contribute to the cost
of a college education to the extent that they're able. Your
family's Expected Family Contribution (EFC) is a measure of
your family's financial strength and is calculated according
to a formula established by law. Once established, your EFC
figure will be viewed as your family's "fair share"-
the amount of money you'll be expected to contribute toward
college costs for one year. This figure will then become known
to the colleges and universities where your student sent applications.
COA
- EFC = Need
The
basic formula looks simple, doesn't it? Simple, however, it
is not.
COA is
the one year Cost of Attendance for any one school. When you
subtract your given EFC from the cost, the balance is Need
— the amount of financial assistance you're eligible
to receive. The individual schools
will use the EFC figure to calculate your federal student
aid eligibility, and then your family's actual financial aid
award. The emphasis here is on the words "eligible to
receive" because it often does not match the award you
will receive.
How is this EFC figure determined? The information you report
on your Free Application for Federal Student Aid (FAFSA) is
used to calculate your EFC. Your family's taxed and untaxed
income, assets (liquid and investment), benefits received
(such as unemployment and Social Security), alimony and child
support, the age of the oldest parent (weird, huh?), etc.
will all be used to calculate your EFC. Also, they will consider
the family's size, the age of younger siblings and the number
of students in college simultaneously. Of course, there's
more. Lots more.
The actual amount you are "eligible" to receive
will differ from institution to institution. If school A has
a COA of $25,000 and school B has a COA of $35,000, and your
EFC is determined to be $12,000, your Need at school A will
be $13,000 and $23,000 at school B. Because you are "eligible"
for a certain amount does not mean that you will receive this
amount in full. Not at all!
Can my EFC be determined before filing the FAFSA form? Are
there strategies available to examine my EFC to determine
whether this figure can be lowered? Will my family be eligible
for financial help with the costs of college for our student?
If a family cannot qualify for federal student aid, are there
options and strategies available that we should be aware of?
What if our student wants to attend a private school? I've
heard there is yet another form using a different formula.
Is this true?
By attending one of our 90 minute workshops,
you will begin to find answers to frequently asked questions
and learn how the entire college funding process works. Our
workshop is designed to illuminate the college funding process
by exposing the two formulas used, as well as detailing the
process behind the various funding components. The pros and
cons of the college funding process will be discussed, as
well as the ways and means available to help families maximize
the amount of financial assistance their student can receive.
Visit our Workshop (always
FREE) schedules to find the locations,
dates and times of upcoming workshops in your area.
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