<p>What is the best book explaining financial aid process. Ideally it would include specific information about some schools (e.g. do some have a more generous definition of need).</p>
<p>I'm one of those parents shocked by the results of an on-line EFC calculation. At first I thought that it must be for four years. If that had been the case, it would have been in line with what I was contemplating. I feel punished for saving. Sure, saving was partly with a view toward financing children's education, but mostly for financial security in retirement. If I take EFC x 6 years I anticipate it will take 2 Ds to get through college (2 yr. overlap), it is over half of assets. It seems to me that the middle class has the hardest time affording college at elite schools. Low income gets tuition waived, and middle income is the same as high if the EFC meets the expected COA.</p>
<p>No doubt a familiar whine. And no doubt those families eligible for tuition waivers would be delighted to have assets that result in a high EFC. So, please excuse my whining and recommend a book that explains the process.</p>
<p>retirement accounts like in an IRA are sheltered from finaid
the exception is, the year that you put the money into the account, it counts as income and thus as available.
Since schools change from year to year, and merit aid is dependent on who else applies, books can get outdated quickly
US News guide does give percentages of students who recieve aid and what size loans they are left with at graduation- that was helpful.
the finaid.org website is helpful as is CC on financial aid information
We did find the EFC calcuators to be fairly accurate, albeit they seem to estimate that approx 1/4 to 1/3 of income is available for school expenses regardless if you make before taxes $200,000 or $40,000
that would be need based.( at a school that offers to meet 100% of need- at a school that doesn't try to meet all of the need, the package may be much smaller)
Many schools do offer merit awards, and need based packages also can look more attractive when weighted for merit.
A less desirable student may get more loans than grants for example, even at a school that offers to meet 100% of need.
But yes- college is fairly pricey- which is probably why many upper middle families that we know, helped to find their kids decent programs at instate universities</p>
<p>I recommend Paying for College Without Going broke (Princeton Review) by Kalman Chany. Wait for the 2007 edition that comes out on Oct 15 (you can pre-order on Amazon, cost is $14).</p>
<p>It does not include information on specific schools, but it will explain the process and give you hints on how to maximize your child's chances for financial aid. It also helps you fill out the FAFSA and the PROFILE.</p>
<p>I also recommend Paying for College Without Going Broke.</p>
<p>As an aside-- if you have sufficient non-retirement savings to cover 6 full years of a high EFC, and still have savings left, you're in very good shape. Remember that the average family income in the US is about 47K per year.</p>
<p>Read the book. You might be able to restructure your income and assets to maximize your aid, legally and ethically.</p>
<p>Thanks for the recommendation.
I knew I would sound like a bit of whiner, and I do try to keep perspective. Maybe I should say I try to widen my perspective. I don't suppose there's a perfect financial aid program (unless it's one that guarantees my D a full ride at the college of her choice with no debt (smile)).</p>
<p>My sister's family did not qualify for need based aid and what she did was scout around for colleges that were known for giving out good merit based aid (her daughter has excellent stats, including NMF)</p>
<p>Your financial aid numbers are primarily driven by the prior year's income. I think that it's about 6% of assets that are expected to be used for a year's tuition,but a whopping third of the student's assets. There are also dollar exemptions and some schools have primary home exclusions as well. As Emeraldkity brought up, qualifed pension assets are not taken into account at all, except when you withdraw the money, and when you make the contribution, that amount is considered income for that year. You will do much better for the time you have two kids in college.</p>
<p>mom58:
We too have an amazing EFC due to savings. (Ha! We even have money saved in our kids' names - the big no-no.) </p>
<p>I try to look at it philosphically, at least we have the money to send them somewhere and not be miserable. On the other hand, it has definitely limited where my kids apply. No reach or dream schools here. We actively seek merit money (which means applying to schools quite a few "ranks" below what they would normally get into), or look at state universities (either in state or out of state). </p>
<p>Although need based aid would be nice, we're not really interested in taking out loans either - and most need based packages will include loans and work study.</p>
<p>If you want to see what sorts of merit money schools give out, I find the easiest source to be the US News Premium online site. Under each school there is a tab for tuition and financial aid. It will give you an idea how much merit money they give out. The problem is that is just a starting point. You need to do a lot more research to figure out if your kid will qualify. For most schools that reported figure includes minority scholarships, violin players, women only, Ohio residents only, or whatever.</p>
<p>The good news is that son #1 went to a LAC that offered him a good scholarship (in spite of the fact that he got into a more selective schools) and he absolutely loves it and is doing well there.</p>