What about schools like Rice that say they meet 100% of demonstrated need, but then they say that can include grants, scholarships, LOANS and work/study. How is giving out loans meeting financial need? That’s not meeting need, it’s creating debt. I don’t get it.
The loans Rice includes are the Direct Loans. Those are student loans, not private or parent loans.
If you don’t like Rice’s very generous need based aid policies, apply elsewhere. There are a very small number of colleges that do not package loans at all for low income students. BUT with an efc of $16,000, you might not be considered low income.
Are you or your husband self-employed?
So does that mean that after giving the student direct loans of $5500 per year, Rice would meet the rest of the need with grants, scholarships and work/study? If they determined that the family EFC was around $16k using the CSS and their own calculations, then they would expect the family to pay $16k + $5500 direct loan, and the rest of the need would be met? That’s actually a great deal.
No not self-employed. But the financial situation is very complex and I’m not sure how it’s going to play out.
I’m trying to wrap my head around an EFC of 16k with an AGI of 100k, unless family is very large. Not saying it isn’t accurate, but don’t count your chickens. Your first number was more in the ballpark for most AGIs at that level. When you file your taxes and then pull in those numbers with the DRT, you may see a change.
@ordinarylives Yes, thanks for the reminder! You are right, it does seem a little odd. There are only 3 in our family. And I did not have the exact numbers, especially with regard to things like adjusted gross income and tax. One thing that is going in our favor I believe is that we have basically zero assets. Like, I literally don’t even know how I will pay for college, even if it’s just 15k at Bama! We have zero assets and tons of debt. It sucks, but maybe it will help us a little with need-based aid.
And my opinion…if you have a low family contribution and a school like Rice gives you…say $45,000 a year…I don’t think it’s unreasonable for you to take a $5500 Direct Loan.
If you both have W-2 jobs and no invested assets, and no business income,then AGI should be fairly simple. What is taxable wages on each late December paystub?
Did you make any retirement contributions in 2014?
How did you estimate federal income tax paid? Did you use the federal tax withheld amount from paystubs?
Are there any other income items?
@thumper1 Yes that is totally reasonable! I was thinking they would offer $45,000 in loans. Actually, if our EFC was around 16k and my son took $5,500 in direct loans, that would work out beautifully. But I don’t think I can really count on an EFC of $16k. And also, my ex-husband’s income and his wife’s will be included in the CSS at any private school. They don’t make much, but I don’t have a lot of wiggle room for their extra income to be edging the numbers upward. Still though, I’d love to try at Rice and see what they come back with. My son already applied RD, but we have not had the funds to go out and visit, and I know they want to see a high level of interest. So I’m not too hopeful about it.
Ok, so child support is also an income item included in AGI on your tax return?
I don’t get any child support, and the ex and his wife won’t be helping out with college. Long story, but basically the ex has no money and is essentially unemployed. His wife works but does not make much, and I wouldn’t ask her to pay anyways. However, her income and small amount of assets will still be counted against us on the CSS. sigh
It’s unfortunate you have loads of debt, as that isn’t relevant to EFC.
At an instate public, he probably won’t be eligible for work study, but he may still be able to find a job.
I suggest a campus job, as they are generally more flexible.
With income of 100k, I can’t imagine that PROFILE will give you an affordable number, as private schools consider other sources of income ( like non custodial parents)
Even if you could afford the EFC at a school that met 100% of need, need will be met by grants, work study and loans, some schools add Perkins or private loans to direct loans.
I see that you are instate for Arizona, had he considered any of the WUE schools?
They are just a bit more than an instate school.
http://wue.wiche.edu/search_results.jsp?searchType=all
Thanks! He has applied to ASU and the U of Alabama and both have offered him really great packages that include full-tuition scholarships. At either school, cost of attendance will be around 12k-15k, which is affordable for us. One of his friends plans to go to the U of Hawaii using the WUE program, but that school does not appeal to my son. We are actually very happy with the two great offers, so if nothing else works out, it will be ok. It’s just a little surprising that the FAFSA came back with such a low EFC. Makes me wonder if there might be some surprises down the road. Only time will tell!
I would be concerned that when the schools get the FAFSA, they will find an error and change it. Maybe not- but I would watch for it.
Our before tax income was $100,000 and our EFC was $24,000.( for one kid in college no kids at home, although minimal retirement contribution which is of course added back)
Rice uses PROFILE as do most of the schools that guarantee to meet full need; or they use their own form. They do not use the FAFSA EFC as their institutional expected contribution. I have seen familes with a ZERO EFC get a required student contribution of $2-4K from some of the most generous schools in the country. Some of those schools do have a no loan policy regarding financial aid, but what that means is that there are no loans in the financial aid award. The self help in those cases often comes in the form of work study. But with a $2-4K required payment, the usual way of coming up with that money, if the student cannot earn it over the summer, is to take out that Direct Loan.
How Rice or any specific school will configure their financial aid package, I don’t know. My guess is that even with that $16K EFC, the institutional expected contribution will be more. A lot of schools start right out with that base of $2-4K as the student contribution and then include other things that FAFSA may not. Also the subsidized portion of that Direct Loan of $5500 freshman year (max $3500 can be subsidized) may show up as part of the financial aid package. Maybe even the entire $5500 unsub as well sub could be in the package so that it cannot be used to put towards the EFC.
But that you have that as a possible base, gives some more possibilities. Hopefully, some packages come out that are affordable.
@cptofthehouse Thanks! Yeah, I’m not getting too hopeful. We have really good financial safeties, so it will be ok either way. But my son applied to 14 schools altogether, so we will probably get 14 different responses (including some rejection letters). Even if he got one affordable offer from a non-safety school, it would give my son a little more choice in the spring.