<p>Hi. I am new to this forum so bear with me . D1 is a rising HS junior, 3.9 GPA with competative courses, great ECs, volunteer work. She will not get any federal aid according to the FAFSA forecaster. She is looking at grad school at a minimum and likely a Phd. We will have 40000 in a 529 plan when she goes in 2 years.
Questions: 1) Does my EFC come from MY bank accounts or her 529?
2) If number 1 is a, should I limit my 529 contributions and save in my name?</p>
<p>TIA
Kellie</p>
<p>
However, she still could borrow up to $5,500 in Direct (Unsubsidized) Loans. See <a href=“https://studentaid.ed.gov/types/loans/subsidized-unsubsidized”>https://studentaid.ed.gov/types/loans/subsidized-unsubsidized</a>.</p>
<p>See <a href=“Automatic Full Tuition / Full Ride Scholarships - Financial Aid and Scholarships - College Confidential Forums”>Automatic Full Tuition / Full Ride Scholarships - Financial Aid and Scholarships - College Confidential Forums; for merit-based scholarships.</p>
<p>Both her 529 & your savings count up to 5.6% toward your family’s EFC. See <a href=“Are Investments Factored into Financial Aid on the FAFSA?”>Are Investments Factored into Financial Aid on the FAFSA?; Also <a href=“Paying for College: How the Financial Aid Formulas Work”>http://www.forbes.com/sites/baldwin/2013/02/28/college-aid-formulas-fafsa-profile-and-consensus/</a></p>
<p>Here’s the fafsa formula for 2014-15. You can run the numbers yourself if you want to and get a feel for what counts and how much. Generally fafsa is income driven, parent and child, but the child gets a $6260 allowance before their income affects the efc at 50%… Parental assets count 5.6% toward the EFC, student assets count 20%. 529 plan balances whether in the student’s or parents’ names count as parent assets.</p>
<p><a href=“http://ifap.ed.gov/efcformulaguide/attachments/091913EFCFormulaGuide1415.pdf”>http://ifap.ed.gov/efcformulaguide/attachments/091913EFCFormulaGuide1415.pdf</a></p>
<p>Keep in mind that the schools that offer the best need based aid above and beyond federal or state aid collect more detailed financial info using the CSS profile or their own financial aid forms and can count income and assets however they want for their own aid.</p>
<p>Ok, so my EFC is about 13,000.00 Just a couple more questions:
<p>1) Scholarships will reduce your need first. If the scholarships exceed your need (COA-EFC) then it will reduce the EFC. 529 funds can be used for anything you want. However there are tax penalties if it is used for non qualified education expenses.</p>
<p>2) You are never required to take loans.</p>
<p>3) I like “Paying for College Without Going Broke” by “the Princeton Review”</p>
<p>3) You can also look at the pinned threads at the top of this forum.</p>
<p>
Yes.</p>
<p>Thank you everyone!!!</p>
<p>Remember that the top schools and OOS schools will often be 35K-60K per year. 40K goes away pretty fast.</p>
<p>Best to shoot for a school that gives good merit aid. Focus on the ‘top’ schools for grad school. Lots of very good schools that offer good merit aid.</p>
<p>Thank you Torvea. The cost for a terrific school in my state runs from about 24,000 (Ohio, so Ohio state, Ohio University) room and board included. Her ACT as a sophomore without prep was 27. A couple of additional points should get the price within reach although it would be nice to save the savings for grad school. A 31 could net her a full ride at University of Kentucky which is her choice at this time. She’s not interested in Ivys for undergrad–I have a few degrees myself and we’ve had this discussion already ;
</p>
<p>Excellent! S1 had the chops to get into those schools, but was also smart enough to understand that given his expectations for himself, it was wasting money to do so. UK was in the running, but for reasons of his own (I have no idea) he did not even want to visit. I think it is a beautiful place, myself. Best of luck!</p>
<p>I wish more kids got this from their parents–a friend of D1’s classmate, 34 on the ACT wants to go to Cornell. For musical theater. And her parents are encouraging it. </p>
<p>Cornell University does not have a degree in musical theatre. I do not think Cornell College does either. </p>
<p>Perhaps not Cornell, but an East Coast Ivy. </p>
<p>So be sure you understand the difference between your EFC on the FAFSA and what you might be asked to pay by a given university. They are not the same thing. For an estimate on what a specific college might ask you to pay, go to the financial aid website page for the college and look for the link to the net price calculator. It will give you a ballpark idea of your expected cost at that particular college. Note that if you are divorced, have a small business, or own rental real estate, the tool will overestimate for some schools how much aid will be given. But it gives you a pretty good idea otherwise.</p>
<p>And regarding the kid going to an east coast Ivy for musical theater – that is really that family’s business and money to spend. Best during college admission season to keep your eye on your own kid, best fit for them, and affordability for yourself. It is pretty nonproductive to second guess and snipe at the decisions other families are making, and there is enough work to figure out your own path through the maze of college decisions. There are pros and cons to each type of college choice (large university vs. LAC vs. Ivy vs. STEM school vs. state directional vs. community college, etc), and what works for one kid and family could be completely unsuitable for another. I assume you wouldn’t want them second guessing your choices.</p>
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<p>If she gets merit that IS MORE THAN YOUR NEED (not EFC!!), then your EFC begins to be reduced.</p>
<p>If you are trying to get all of your efc eliminated, then she needs a full ride (not just free tuition).</p>
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<p>a full ride? or full tuition? are you instate? If a full-ride, is it highly competitive where a higher score is likely needed? </p>
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<p>If she wants a PhD, then she should go from her BS right to the PhD so all is funded (then you dont pay for grad school at all)</p>
<p>You are right intparent, that did come out as snipe-y and it was not intended that way. </p>
<p>Yes, mom2collegekids, they do have a scholarship that is full-ride for out of state kids (we live in Ohio). I know it is very competitive, believe me and she would continue to take the ACT in an attempt to get a higher score. She is not planning on stopping and working. What do you mean that the Phd would be funded if she went right from her BS?</p>
<p>Looks like you and your DD have some good plans. Just reiterating a few points here, and also adding some things that I think are important.</p>
<p>The FAFSA EFC is the LEAST you will be paying before getting federal aid in most cases. Also, all that is guaranteed from the federal government is PELL if you qualify (which you don’t) and Direct Student loans of $5500 for freshman year and increasing slightly thereafter. Any other aid you get will depend upon your college and outside sources and are not entitlements or sure things. There are schools and programs that do have some guaranteed awards at certain threshholds, but you have to find them and apply to them specifically. Also, I don’t know any colleges that guarantee to meet need 100% as defined by FAFSA EFC.</p>
<p>The EFC will be based on income on the IRS 1040 series from the year before (2014 FAFSA uses AGI on 2013 tax forms) and assets as of the date you fill out out the FAFSA. So payday is not a good day to fill out the form, nor should you do it when you have earmarked funds in your accounts. Also parents are hit at 5.6% of assets over a protection allowance and the student is assessed at 20% of assets with no protection allowance, so if your student has some assets, it might be wise if she reimburses you for some expenses, or spends it down, and you open an joint account with your name and SSN first for college expense money. 529s are treated as parental assets with the 5.6% assessment even if in the student’s name. </p>
<p><<<<
What do you mean that the Phd would be funded if she went right from her BS?
<<<<</p>
<p>I mean exactly what I said. If she applies to PhD programs during her senior year of college and gets accepted, then her graduates school costs would be funded. </p>
<p>Keep in mind that the full-ride OAS scholarship at UK is extremely competitive and 3/4 of those scholarships are awarded to in-state students. The process also involves an in-person interview if the applicant gets that far in the screening process. Most winners are valedictorians with near perfect ACT scores and are very involved in sports and EC’s. Around 400 apply and 30-51 awards are given.</p>
<p>Good luck to your DD!</p>