<p>Sue-- there are some things you can do to lower your EFC-- if not for this year, then for subsequent years. Get and read Going to College Without Going Broke-- it's about $14 on Amazon.</p>
<p>I'd also run your numbers through the calculator at FinAid. This will tell you your income and asset protection allowances (how much of your income and assets are sheltered before they start increasing your EFC and lowering your aid). It will also tell you exactly how much of the $12K EFC is due to parent income, parent assets, student income, and student assets.</p>
<p>Your savings of 57,000 is clearly hurting you some-- the book provides strategies for converting these assets from reportable to non-reportable assets. I'd also guess that you have some savings in your child's name-- these get assessed very harshly.</p>
<p>With some planning, a person in your situation should be able to dramatically reduce your EFC and increase your potential aid. Legally and ethically.</p>
<p>0 $ in my son's name. What type of assets are non-reportable? I was really bummed that all the $$ I put into my tax deferred retirement was counted as income. </p>
<p>I guess I could buy a car, go on vacation and get a more efficient heater/ac for my house. Unfortunately I don't spend money until I have to (ie I won't replace my car until the current one dies). 15 years ago I was making less than 14000 a year. now, over 65K. I bought a new tv last year ($600) but only because I couldn't see a 19in tv anymore. I try living like 'the millionaire next door'. I don't buy stuff just because I can, yet I don't live without anything I need.</p>
<p>I have seen the charts on how much income/savings is protected. I'm screwed because I am a single parent. A 2 parent family with the same income gets to protect more than 2x what I do.</p>
<p>Get the book and read it. Use the FnAid calculator.</p>
<p>Non-reportable assets include retirement assets, small business assets, primary residence equity, all personal possessions (cars and furniture and such), pensions and whole life policies. Starting this year, custodial 529 college savings plans and pre-paid tuition plans are excluded from FAFSA calculations-- and next year's budget proposes excluding all 529 assets from FAFSA calculations. So with some planning, the savings that are over your asset protection allowance can be shifted into non-reportable assets.</p>
<p>Similarly, there are ways of sheltering income to reduce the EFC.</p>
<p>The 529's are worth looking into. Another option, if you have a mortgage, is to pay down your mortgage by the 35K or so that you're over your asset protection allowance, thereby converting it to a non-reportable asset. Then take out a Home Equity line of credit for the same amount. So you still owe the same amount on the home, and you still have the same amount available (savings + home equity line). But your contribution to EFC from assets will drop to 0, lowering your EFC by about $2,000 each year.</p>
<p>Lowering it by $2000 isn't really worth all that trouble. If I actually pay the entire EFC this year, I'll have less in the bank next year. After 4 years of college the EFC should be pretty low. </p>
<p>We're waiting on scholarship and finaid info from Rutgers. My son was accepted to the Honors college to study math and we're hoping beyond hope that he gets offered the Presidential scholarship which is 17-19K per year for 4 years. He's out of state, so our cost of attendance is about 28-30K. Between some loans I'll require he take out and my cash, that would make up the difference. Can they refuse to loan him money or provide work-study if my EFC would make up the difference btw any scholarship and the COA?</p>
<p>My son needs to graduate college with a managable amount of debt (20K or so). That's right, I would make him take a loan out even if I could afford to pay. He has a huge sense of entitlement and I'm tired of financing his life 100%. He needs to work for some of this (he thinks any scholarship he gets is his 'contribution'). I disagree.</p>
<p>"Lowering it by $2000 isn't really worth all that trouble."</p>
<p>OK- maybe 2K per year isn't significant to you. </p>
<p>My larger point was that this is just one strategy of many that collectively can lower your EFC by much more than just 2K. You're a good candidate for need-based aid, but with some research and planning you could become a very good candidate.</p>
<p>Amazing. You wouldn't believe what I would do for $2k a year. If I could save that much by just reading a book and making some simple changes to my asset arrangements, better not get between me and that book.</p>
<p>But I guess for some it's easy come, easy go!</p>
<p>I don't want to pay off half my mortgage and take out a different loan. PITA. I'd be paying higher interest rates since I have a super low fixed rate. And putting 4k in a Roth IRA isn't what I want to do either and isn't going to lower my EFC very much. What if need the money for a non-education expense? Can't withdraw it. I already put over 9k per year into a tax deferred account. </p>
<p>I'm not saying I don't want to save money, I'm just saying it sounds like I either have to hide money or spend it. And I won't put it somewhere I can't get it. I don't want to dump a large chunk into a 529 since I don't even know how much my true out of pocket expense for his first year will be. I could have to pay a penalty to get my money back if I don't use it for college.</p>
<p>Whole life insurance - major scam. Nobody should ever buy that. I pay $130 for 75k of insurance. After my son graduates college, I don't need life insurance at all. He can sell the house, I have no other debt</p>