<p>EFC is coming out 21302. Is that what the 'family', aka myself, is expected to provide for my student? Because in reality we get by paycheck to paycheck. Will my student be able to get ANY loans based on that EFC? Is there any way to make an 18 year old 'independent status' or should the student just wait until age 23 I think it is when they are considered 'independent'. Then they would get actual grants and loans? Any advice is appreciated.</p>
<p>WHat your student will be able to get is based on the Cost of attendance at where she/he will go. If it is below your EFC, all he/she will qualify for is unsubsidizes Stafford and PLUS for you. If the COA is above your EFC, he/she may qualify for more.</p>
<p>There are some very limited circumstances where a student can get independent status, but it’s not easy; cases of homeless students, abuse, neglect, abandonment, parents in prison or otherwise incapcitated, or married with children and self-supporting… that kind of thing. At 24 they will also be considered independent.</p>
<p>The thing is that even with higher levels of federal aid, it’s usually just a drop in the bucket and won’t cover costs for anything other than a community college.</p>
<p>If student going to 2 yr college is the EFC divided by 2 to figure any available loans? What if after the 2 yr student decides to txfr to 4 yr to finish up. Will the EFC change since the overall college degree is going to cost more than the inital planned 2 yr?</p>
<p>The EFC doesn’t change by going to a CC. However, by going to a CC the cost of college usually goes down by a lot. So, the amount you’d have to pay should go down.</p>
<p>Your child can probably pay for a CC with a Stafford loan. </p>
<p>Is your student a senior in high school? </p>
<p>If your EFC is $21k, then your income must be a decent. How much can you afford to contribute to your child’s education.</p>
<p>* What if after the 2 yr student decides to txfr to 4 yr to finish up. Will the EFC change since the overall college degree is going to cost more than the inital planned 2 yr? *</p>
<p>Not sure what you’re asking here. Your EFC is determined by your income/assets for each year. So, if everything remains about the same, each year your EFC will be $21k…regardless of WHERE your child goes to school. </p>
<p>The way to reduce your costs is for your child to choose a school that costs less money - by going to a CC, going to a 4 year that he/she can commute to, by getting some scholarships.</p>
<p>What are your child’s choices for schools?</p>
<p>Yes I have decent income, however I am divorced and support 3 children with only minimal help for child support. I do have some retirement, but is that expected to be used here? I can understand no or minimal grants, but I would like student to be able to get loans. That’s my main question. With my EFC the number it is, will that stop student from being able to get even unsubsidized loans. And if able to, what would be the interest rate on an unsubsidized loan?</p>
<p>The student will be eligible for unsubsidized loans, no matter how high your income/EFC. The interest rate is 6.8%.</p>
<p>Any student that files a FAFSA can borrow $5500 (I think that’s the amount) in an unsubsidized Stafford loan. Their EFC doesn’t effect that.</p>
<p>Retirement savings are not counted by the FAFSA, but contributions made to your retirement account during the year will be added back in to the FAFSA calculations as income.</p>
<p>Eveyone can get an an unsubsidized loan, but in reality, for most it will only cover a community college. If your child has great grades and scores, than he/she could get merit aid from schools where they would be a top applicant.</p>
<p>The EFC assumes that parents have saved and will borrow. This is truly unrealistic for many families. Your child will have to be 24 to be independent-that’s a long wait for college. </p>
<p>Your best bet is to see if your child will qualify for significant merit aid anywhere, and if not start at a CC while working without loans. The necessary borrowing for the final 2 years will probably be acceptable following this.</p>
<p>OP, keep in mind the EFC is a yearly number. So you are expected to pay that every year - it does not matter if it is a 2 or 4 year college</p>
<p>Is your child a junior or a senior? </p>
<p>Where did he/she apply? For freshman year, he/she can borrow $5500.</p>
<p>IF your child is a junior, are his/her stats high enough to get merit anywhere?</p>
<p>Your EFC is based on your adjusted gross income (and perhaps your student’s), your untaxed income (ie. child support), and a percentage of parent/student “unprotected” assets. If this is an estimated EFC or if it seems unusually high in relation to your income (say over 25%) and you don’t have significant assets other than your home and retirement accounts, you may want to confirm it’s correct before going further. Either check your SAR for errors or, if estimating, this publication if fairly easy to follow and will give you great insight into how the FAFSA EFC calculation works. Assuming your student doesn’t earn above $4500/year and doesn’t have a lot of savings, just print the worksheet on page 9 and use the “A” tables on pg 17-20 for the allowances:
<a href=“https://ifap.ed.gov/efcformulaguide/attachments/111609EFCFormulaGuide20102011.pdf[/url]”>https://ifap.ed.gov/efcformulaguide/attachments/111609EFCFormulaGuide20102011.pdf</a></p>
<p>Your FAFSA EFC is the minimum your family will be expected to pay for college for the year. Most schools do not meet full need. In other words, they do not give you enough money to meet the difference between the cost of attendance minus EFC. </p>
<p>You don’t mention where your kiddo is in high school. If she is a junior, start looking at schools where she might qualify for merit aid as well. Some state universities also have merit programs for instate students that might reduce the cost of your instate public universities if your child qualifies. </p>
<p>Remember too…colleges assume that you will pay for school out of past income (savings), current income, and future income (loans). </p>
<p>Any balance IN your retirement account is NOT counted as an asset, but any contribututions made to it are added back in as income for the year of the FAFSA you are completing.</p>
<p>If finances are a significant issue, perhaps doing general education requirements at a CC and transfering in OK.</p>
<p>Also…check schools carefully because if your child applies to a school that requires the Profile, the income and assets of her other parent (and spouse if remarried) will likely be required as well.</p>