<p>runline, there are TWO calculators. The federal methodology (FAFSA) which generates a number the feds call the EFC. This method does not ask for the value of the home.</p>
<p>The second calculator is called Insitutional or some call it Profile. That takes into consideration all assets including the home. Some pubics use the Profile AND the FAFSA and many, many privates use both. </p>
<p>Perhaps your dad ran the institutional calculator? When you actually sit down and fill out the actual federal FAFSA you do not include the value of your primary residence. If you are applying to private colleges that require the Profile you will use much of the same information generally more information.</p>
<p>Look up your colleges and check which form or which forms they need. Some colleges have their own financial aid form and do not use the Profile. All colleges want the FAFSA if you are applying for Staffords or other federal aid.</p>
<p>Runline, it’s great that you and your dad are looking at the EFC calculators now, when you are in your junior year – it will help a LOT with planning.</p>
<p>Here is what you need to know:</p>
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<li><p>A few Ivy league colleges and other top, elite colleges with very large endowments will give you financial aid that is BETTER than matching your EFC. These are schools like Harvard or Stanford. Generally they have their financial aid policies explained on their web sites and it works something like this – they will offer close to a full ride (no charge for tuition and housing) for families below a certain income threshold – for example, $60K, and then will limit costs to a percentage of income for families that are higher – for example, they may say that they will only charge 10% of the family income to families earning up to $170K. Of course these policies are subject to change, so you will want to check next fall when you are applying. Obviously, these schools should be very affordable to your family – the catch is that it is very difficult to get in.</p></li>
<li><p>Most other private colleges will count the value of your home as an asset, so the “institutional methodology” calculators may be giving you a very realistic picture as to the level of aid you might expect at many colleges. So it is worthwhile running that calculation – it gives you a ballpark as to what you might expect in aid from most private colleges (not Ivies) that claim to “meet full need”.</p></li>
<li><p>Most public colleges and many private colleges will only want the FAFSA – they won’t look at home equity – but those schools don’t promise to meet your full need either. It is very possible for someone to have an EFC of, say $15,000 – and get an award from a college (let’s say, NYU) – that requires them to come up with $40K – no one ever says that any college has to give you grants to meet your need. The FAFSA EFC determines your eligibity for federal aid, which in your case will mean subsidized loans and work study. </p></li>
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<p>So don’t make the mistake of thinking that your EFC, however high or low, is the equivalent of what you will end up paying for college.</p>
<ol>
<li> If you have strong enough stats to realistically be considering Ivies, then you also have a high likelihood of qualifying for merit aid at many excellent private colleges that are not as prestigious as Ivies, but will give you an excellent education.</li>
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<p>So you and your dad are on the right track, even if you are now confronting an unpleasant reality. Next year you will want to apply to a range of schools so that you can compare awards – some of the schools should be “financial safeties” – meaning schools that you know you will be able to afford, either because the tuition is pretty low (such as in state pubics) or because they will guarantee you merit aid at a certain level.</p>
<p>^Thank you. That was an excellent, helpful post. I doubt I can get into HYPS, but I think I have a reasonable chance of getting into places like Brown, Duke, etc… Strangely enough, my dad went to another website for EFC and it said $15,000. Weird. And I have a financial safety. A private university that offers full ride to NMSF’s. I’m sure I’m well within my state’s cutoff for that.</p>