<p>I am from a low income family that makes <$40,000 a year. My sister is entering college this up coming year and based on our FAFSA, our EFC is 0. I took a look at my Financial Award letter and sure enough it said Expected Family Contribution: 0.</p>
<p>However, they are requesting that my parents take out loans. If my parents are not expected to pay, why are they being asked to take out loans? And if I recall correctly, it is about the same amount that they were suggested on taking out the last two years. So it appears that really, my parents are still being expected to pay. Is this an error?</p>
<p>My second question is based on the SEOG (Supplemental Educational Opportunity Grant). I was awarded the SEOG last year when my parents were expected to pay and I was the only child in the house attending college. However, now that my parents aren't expected to pay, my sister is entering college, fees have went up, they have taken away the SEOG. Why?</p>
<p>I can answer your first question. I also have an EFC of 0, and I actually expected to take out loans. Most schools simply do not have enough money to meet the full need of students - and it’s not their fault. The only schools that can are the tippy top ones - like Harvard, Princeton, and Yale - because they have large endowments.</p>
<p>Within the award letter, they gave me loans which I understand. But my parents are expected to pay nothing. So why are they (my parents) expected to take out loans. They’re not expected to contribute.</p>
<p>A zero EFC does not mean your parents will have to pay nothing. It qualifies you for a Pell Grant, Cal Grant and subsidized loan. That’s it. After that any money you get is from the institution and most do not meet full need.</p>
<p>Now it seems you should qualify for Blue and Gold and have your fees paid at your UC. That should help, but UCs don’t meet need unfortunately.</p>
<p>EFC is a misnomer and should really be renamed! It does NOT mean the school doesn’t expect a family contribution. It really only is a measure of your eligibility for federal and state aid. </p>
<p>Schools receive a limited amount of SEOG money each year and award it according to their own financial aid policies. Some schools award a level amount to students with 0 EFCs and some award it to freshmen first (I’m guessing it’s because they have a lower Stafford loan limit). You can ask your school what their policy is.</p>
<p>Because the school is not meeting your full financial need. They are suggesting loans to make up the difference. Someone has to pay…and loans are one way this can happen.</p>
<p>SEOG is a limited funding aid. The schools receive a certain amount of money, make awards and once the money is gone, there isn’t any left to award. Was this financial aid application done on the later side (not late, just later)? It is possible that the money was simply gone.</p>
<p>As the previous posters have said, the SEOG has very limited funding and the school chooses how to award it (both the maximum - my son’s school they offered a max of $100, my daighter’s they offer a max of $2,000). Could be it was gone by the time they got to you, could be that their policy is to give it only to freshmen. (My daughter received it the last 2 years but did not get it this year despite having the same 0 EFC as before).</p>
<p>Loans are part of financial aid. Unless your school is one of the very few that promises to meet full need without loans then you will be offered student loans and, if your full need has no yet been met, you parents will be offered loans as well.</p>
<p>Unfortunately many people see their EFC and think that is all they will have to pay. This is rarely the case. For schools that do not have much in the way of institutional aid to offer the EFC only helps the school see what federal or State aid you are eligible for. Federal aid is very limited and does not come near to covering the cost of even 4 year state schools. So unless you are at a school that offers their own institutional money (many do not) or in a State that offers generous State grants (most do not - our State has a $1000 grant), then it is unlikely that you will have need met with a 0 EFC.</p>
<p>Depending on the school, EFC is often treated as the amount of CASH the family should still be able to cough up after exhausting all the basic loan programs (Sub and UnSub Staffords, Perkins Loans, and ParentPLUS loans).</p>
<p>And EFC is just a number that qualifies the family for federally and state sponsored loans and/or grants. After that, it is just an advisory number, something colleges are free to ignore.</p>
<p>EFC is the expected family contribution.It should be viewed as the MINIMUM that a family might have to contribute as most colleges do not meet full need (Cost of attendance minus EFC). It cannot be met with need based aid or student loans (which are part of student need based aid). The Plus Loan CAN be used to finance the EFC.</p>