<p>I'm a parent of a class of 2015 student. I'm running the numbers and basically, if she doesn't get substantial merit aid, we are screwed. Our EFC, while I understand it's a calculation, if we paid that amount each year, we'd need to never have a car payment, possibly sell our home and get something smaller and cheaper, reduce our savings to a level that is extremely scary considering all of the unknowns of middle age and the economy. And all for one of our three children to attend one year of college. It's depressing. </p>
<p>Our child is on the border of being eligible for significant merit aid. Current ACT (1X, taking again in Sept) of 27, GPA 3.98, salutatorian candidate in a school with rigorous criteria for salutatorians and valedictorians, several AP courses, NHS, band and color guard extraordinaire. Aside from eating beans and rice indefinitely, taking all other children out of their activities, and liquidating reasonable assets that we've worked our rears off for, what do parents do? I feel like we're being penalized for working hard, saving money, and raising good kids! We're now beginning to think, which schools, even if subpar, might provide the most merit aid and provide the right degree programs (engineering)? My spouse is an engineer, and has strong opinions about engineering schools. But debt to this degree scares me. It's just not the same world it was when we graduated 20-25 years ago. Can anyone out their calm my worries?</p>
<p>Maybe the EFC you calculated is wrong? Did you include home equity as an asset or IRA/401k balances as assets, childrens’ 529 plans as their assets instead of yours?</p>
<p>Ohio. Can we afford it? For a year or two. Does the child think the state schools are for her? Not yet. Many of them are possibly not a good fit, others might be. Still figuring that out. I hate that we have to be dream crushers when she’s done everything right. I’m hoping and praying that a school she loves will see that. </p>
<p>I did not include home equity or IRA/401K. No 529 plans in the mix. I believe the calculation is correct. It’s just unrealistic. I could see us paying half of what they say we should pay, but over that, I have no idea how the other bills would get paid. </p>
<p>I should note that it’s not like we’re living in the lap of luxury either. We are common middle class people with a decent home that comes with a hefty monthly payment. We drive used cars that are all paid off at this point. Local income taxes are high, property taxes are not ridiculous, but not cheap either. I can see where we could cut back a little, but not to the tune of EFC without utter misery being involved. Is utter misery the expectation for sending your kids to college?</p>
<p>As one of the prolific posters on CC often says, college costs should be paid for out of past savings, current income and future income (loans). Do you have any non-retirement savings?</p>
<p>^ Very true.
Without merit aid, you are lucky to pay only EFC these days unless you go to a commute public school or cc. There are not many need met schools unless you have excited credential and accepted by some top private schools If you do have that credential, you are likely eligible for merit aid at many schools anyway.</p>
<p>One word in your post bothers me - subpar. If you think schools are beneath you and your daughter deserves to go only to a top school, you’ll have to pay for it, just like anything you want to buy. No one guarantees a free college education for American students. Some schools do give scholarships to high achieving students (merit aid) and others give financial aid to students who are high achieving and also low income. States offer lower tuition for residents. For the vast majority of us, we pay for the product we want. My daughters are both going to schools that we could afford. Many would call them subpar, not top tier, not national names, but they are what we could afford and were a good match and we are very happy with the final choices. She could also attend one of the military academies, which all offer excellent engineering programs for free, or apply for an ROTC scholarship.</p>
<p>My daughter who has just started college (1 week down!) had statistics similar to your daughter’s and wanted an engineering school, not too big, and wanted to play lacrosse. (She did look at the military options) She is going to a private school and received a merit award, an athletic scholarship, a state academic scholarship, a state grant for residents attending a private school, and one private grant to cover most of the tuition and R&B (but still lots for me to pay for in books, fees, transportation). It takes work to pull it all together, but you have to just be creative and you might have to consider schools you think are subpar but offer the big merit money. Check the ‘sticky’ section for guaranteed merit money schools. You won’t find MIT on it, but you will find several good engineering schools.</p>
<p>Neither of my kids got one cent of financial aid (and I am far far far from wealthy), and there is no way I could have paid the EFC (for both of them, it was over $40k/yr). We just had to look to other ways to pay for college and chose the schools carefully. My engineer is not going to Cal Tech and my actress is not going to NYU, but both are in schools that are perfect for them, offered merit, and are affordable.</p>
<p>OP: going back to your question on what do reasonable parents do - I think reasonable parents liquidate assets and use savings, plus current income and loans.</p>
<p>I don’t think that you can plan and save for college overnight. It really does take years and years and the “magic” of compounded interest or good investments. It isn’t reasonable to think that you can pay for college entirely out of current earnings. But it does mean that families who intend to send children to college need to plan ahead. I don’t think the cost of a college education is a big secret!</p>
<p>Please understand that merit aid does not get applied to your EFC. It gets applied to NEED FIRST…and only if it is large enough (covering MORE than need) can it reduce your EFC.</p>
<p>So, if your EFC is 25k, and a school costs $60k, then your need is $35k. So the merit award would have to be larger than $35k per year for it to reduce your EFC.</p>
<p>Your D’s current ACT is good, but not really on the border of receiving enough merit aid for your goals…at least not at the schools that your H would consider ok. </p>
<p>I suggest that you fully inform your H about the situation so that he will have more realistic expectations. Merit is based mostly on test scores, and to get significant merit, her scores need to be well-within the top 25% of the univ. </p>
<p>for instance …at Ohio state…the top 25% have an ACT of 32+…so likely the larger awards are going to those students.</p>
<p>""We’re now beginning to think, which schools, even if subpar, might provide the most merit aid and provide the right degree programs (engineering)? “”</p>
<p>Any ABET accredited engineering program will not be subpar. </p>
<p>Share with us your EFC and the schools that are being considered.</p>
<p>Can you share the range of income and EFC you are talking about? I’m not asking about detailed personal information.</p>
<p>I’d note that if you are only looking at FAFSA EFC, that won’t give you the number that you are likely to get in need based aid. Most private colleges which promise to meet full need require the CSS Profile, which does count home equity, and may also take account of other assets that are disregarded by FAFSA. </p>
<p>Most middle-class families who have not managed to accumulate a lot in college-specific savings (like 529 accounts) borrow, and their kids borrow as well. </p>
<p>WPI gives out at least 20K to valedictorians/salutatorians. There might be other schools with scholarships like that. The test score isn’t good enough for most automatic awards, but getting some merit from RPI/WPI/Stevens/RIT/IIT is certainly possible (especially for girls), maybe Case/URochester/Rose-Hulman/NYU-Poly as well. Olin and Cooper Union are half-tuition. Webb is tuition-free.</p>
<p>Both SD Mines and NM Tech & Mining has quite cheap OOS tuition (and I find NM Tech’s high PhD rate to be impressive).</p>
<p>Being a female engineer should help. However, if she got her test score up a little bit (either ACT or SAT), that would help a lot more with merit money.</p>
<p>One possibility would be to go to Ohio State, and get into the Honours Program. (Also, she might wish to live in the Honours dorm if this is still available). The key is to make a big school small. I don’t know the costs - it has been a fair few years since I was there - but I have to imagine that they are competitive to other engineering programs in the state. </p>
<p>Another possibility would be some place like Case, if some merit aid could be obtained. </p>
<p>@janniegirl I’m in Ohio too and have a pretty similar story, down to the ACT school but my kid is a Junior. We should have about 50000 in 529 when she graduated. I’m 50 and I’m sorry I can’t do parent plus loans, especially as we have a S-class of 19 We’ve seen a few schools. What are you looking at so far?</p>
<p>Have her take the SAT too. Her score may be better. I would let her know that studying for either to ACT or SAT is very important. Her grades are good so if she can get her score up and qualify for merit aid she will have a lot more choices. Also is she interested in engineering or is this coming from your husband?</p>