<p>I really just don't understand and I'm trying to sort through other threads but I would greatly appreciate a definite explanation.</p>
<p>So, let's say that I have an EFC of $10,000 and the COA at my school is $20,000...this means I still have $10k to come up with somewhere. Do merit scholarships from the school count towards my EFC? What about outside scholarships like from my HS's PTA or something? How do scholarships play into EFC?</p>
<p>Also, I realize people get loans as part of their aid packages. How exactly does that work and play into the bigger picture?</p>
<p>The $10K difference between the COA and your EFC is your financial need. Merit and other scholarships will be applied toward meeting your need, as will student loans, grants, work study, etc. If you have nothing but student loans and scholarships which exceed $10K, the excess will effectively reduce your family contribution.</p>
<p>*So, let’s say that I have an EFC of $10,000 and the COA at my school is $20,000…this means I still have $10k to come up with somewhere. Do merit scholarships from the school count towards my EFC? What about outside scholarships like from my HS’s PTA or something? How do scholarships play into EFC?</p>
<p>*</p>
<p>First of all, if your EFC is about $10k, then that’s too high for federal grants. If this is a state school, then likely you won’t get any grants or much. If your stats are high, then you might get a scholarship towards your need.</p>
<p>Most schools do not meet need. For instance…</p>
<p>COA = $20k
EFC = $9k
Need = 11k</p>
<p>Many schools will ONLY give you a $5500 loan. That means that you have to pay ALL costs except the 5500 in loans. So, instead of paying $9k EFC, you’re expected to pay $14,500.</p>
<p>EFC does NOT mean that is all your family has to pay. It’s just an index number to determine eligibilty for federal aid…which is mostly only for low income people. A school doesn’t have to do anything with your EFC except see if you’re eligible for fed aid. </p>
<p>Scholarships get applied to “need” first. They do not reduce your EFC unless the scholarships are sooooo big that they cover need and then “cut into” EFC.</p>
<p>Be sure to apply to some schools that you know FOR SURE that you have all costs covered.</p>
<p>My brother’s EFC was about 8k. But I’m paying for college myself…as are my other siblings…I know paying yourself doesn’t exactly get you anywhere in terms of financial aid though.</p>
<p>There’s a really good CC right by me and a 4 year university with a decent reputation that I could commute too. I qualify for good scholarships at the 4 year school where I’d be paying between 5k and 6k a year plus books, so that’s not too awful…plus with outside scholarships hopefully that cost would decrease a little as well…</p>
<p>I just want to develop a really solid understanding on how this process works, so thank you again for your help!</p>