<p>So I looked on the website on multiple schools and it said that the average EFC of families is around 20k. However, it said that the average debt after four years was 25k- how is this possible?!? Do people save up money to pay the EFC or are most people just able to pay 20k a year?</p>
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Why not? Many schools are including student loans as a part of financial aid.</p>
<p>Do people save up money to pay the EFC or are most people just able to pay 20k a year?</p>
<p>Some save, some pay out of current income.</p>
<p>Keep in mind that many people can’t do either so THEIR kids commute to their local schools (which is what MOST students do). So, those students aren’t included in those stats.</p>
<p>Also…many aren’t using loans at all towards EFC because loans are used to meet “need” first.</p>
<p>Savannah…you need to concern yourself…with YOURSELF. The averages are meaningless. They are averages, meaning some kids have less debt, and some have more. Likewise some have less aid and some more.</p>
<p>You have started MULTIPLE threads about college finances and in each case those responding have told you to use the Net Price Calculators on EACH college website using your family financial information. This will give you an ESTIMATE of your potential aid. Keep on mind…if your parents are divorced, the family owns real estate other than their home, and/or they are self employed or own a business, the figures could be inaccurate.</p>
<p>Most schools include loans in their financial aid offers. The average EFC at many schools may well be around $20K/year, with another $5500-$7500/year covered through loans. That amount in loans would be in line with the federal student loan maximums.</p>
<p>Many families find they have not saved enough to cover the EFC (even after the EFC already has been reduced by student loans). They may have several options (borrow even more, dip into retirement savings, take a new part-time job … or, choose a less expensive college).</p>
<p>Many families find they have not saved enough to cover the EFC (even after the EFC already has been reduced by student loans</p>
<p>Since an overwhelming majority of schools include full loans in their FA pkgs to go towards “need”, few can even use student loans to reduce EFC.</p>
<p>One of the easiest ways to reduce EFC is to get huge merit that covers MORE than need, and then use a student loan to further reduce.</p>
<p>EFCs are rarely all that students have to pay. No school guarantees to meet need as defined by EFC.</p>
<p>I was under impression several schools meet 100% of need.
My older daughters college met need, we paid our FAFSA EFC, they covered the rest ( albeit some was self-help, loans & work study)</p>
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I think average debt reported just represents the *students *debt at graduation, not any debt the parents take on. The average debt of $25k would be close to 4 years of direct student loans. The parents may have borrowed much more than that.</p>
<p>I find it surprising that the average EFC is 20,000. Bt in the end, the only thing that matters is your own EFC. The averages are meaningless really.</p>
<p>Emerald…I think want Cpte was saying is that the FAFSA EFC is not guaranteed to be met. If your daughter’s school met that FAFSA EFC, it was because their calculation using the Profile or school form netted the same family contribution…and the SCHOOL guaranteed to meet full need.</p>
<p>There are NO FAFSA only schools that guarantee to meet full need for all accepted students.</p>
<p>I understand that & I would stress that schools that use additional info can utilize that however they see fit.
This school was also need aware, so they knew what they were getting into.
They did require more than FAFSA EFC for other students apparently as we knew several ( including her sisters freshman roommate) for whom it was still unaffordable.</p>