<p>Is anybody else aghast at their EFC? My family's EFC was probably 4 times what my parents can realistically expect to pay. I mean, I don't understand the logic of punishing us for planning ahead. How is it that we incur a penalty for paying off our house, planning ahead for retirement, and receiving a tax free housing allowance from the military? Not to mention, my father retired from the military several months ago, meaning a huge cut in income, and our 2007 income is used to calculate what they can contribute to 2008 educational expenses! Don't get me wrong, I have nothing against giving money to those families who are in poor financial situations, but I don't think middle class families should be left out to dry. I don't know what I expect people to say, but I'm just furious at the way the system works in some cases.</p>
<p>What would one consider a reasonable EFC?</p>
<p>Colleges will take into account that your father recently retired, but you'll have to let them know separately.</p>
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<blockquote> <p>a penalty for paying off our house, planning ahead for retirement, and receiving a tax free housing allowance from the military>></p> </blockquote>
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<p>I'm not sure what the above have to do with the FAFSA. The money IN the retirement account does not count as an asset on the FAFSA. Only the contributions and any distributions are counted for the 2007 tax year. The FAFSA doesn't ask any questions about home values, home equity or the like. AND the FAFSA does consider retirement if that is a factor. Also, if your income is going to be significantly different due to that retirement (remember that retirement INCOME has to be included for 2008), you should send a special circumstances letter to the college and explain the decrease in your income. It may help. But remember, FAFSA only deals with the federal funds dispersed...and those are a drop in the bucket compared to college costs.</p>
<p>Maybe the OP is using "EFC" loosely to refer to what she/he is expected to pay based on CSS/Profile, not necessarily FAFSA.</p>
<p>I was definitely aghast at what I've estimated colleges expect me to pay for my kids! And at the amount of loans kids are expected to take out! Unfortunately people who save $$$ appear to be penalized by financial aid calculators, but I think it kind of works out in the long run; people who save usually make more prudent decisions over their entire lifetime.</p>
<p>The EFC predicted by FAFSA and the Profile isn't always the same one the college will use...every school has their own formula for calculating aid. According to FAFSA...my EFC is $17,000 (who the heck can just write a check for $17,000??) but my parent contribution (as calculated by Cornell) is $9600..which I used a loan to cover b/c my parent's weren't able to get a loan to cover that.</p>
<p>maybe it's just me...but I feel like the middle class gets punched in the face when it comes to affording college.</p>
<p>OP, I think a lot of us in that "middle class" category are suffering from the same thing. I've also got an issue with 2007 income used to estimate 2008 income because my parents' will change a lot too, and even the mention of EFC causes stress in my family. Don't get me wrong, I think it's great that colleges are providing so much aid to low-income students who really need it, but they should at least realistically estimate middle-income parents' contributions so that we can afford non-state colleges as well.</p>
<p>chaz- a military retirement usually occurs at a young enough age that your Dad may not get the "retirement" consideration from FAFSA formulas, I think that is age based. Rather he would be expected to be getting a second career going</p>
<p>The only age based item in the FAFSA formula is the asset protection which increases according to the older parent's age.</p>
<p>Retirement accounts are protected whether the parent is 35 or 65.</p>
<p>If income will be lower in 2008 because of retirement this is a legitimate basis for a special circumstances adjustment request.</p>
<p>Yup, most of us have a cardiac episode when we first see our EFC! That is why I push, push, push students & their parents to run their numbers through the EFC calculators BEFORE beginning the college search.</p>
<p>you meant to say, run the EFC calculator the day your kid starts HS so you aren't surprised 4 years later!</p>
<p>Actually, at birth is probably preferable! I am tempted to say "before birth," but then that might lead to a huge dropoff in the birth rate! :)</p>
<p>Swim Mom, what I meant was that a military retiree may receive lower income, as he retired, but he will still get monthly money and health benefits (at least it used to be that way) and most retired military officers I know also begin a second career so actually end up making more money- unless he is unable to work.</p>
<p>Yes, a lower income due to retirement should work for special circumstances, but the OP may not realize her dad may be working and making more. Most military retirees are in their early 40s and ready to work a second career. </p>
<p>A good financial aid plan in their circumtances would be to live on the retirement income and become self employeed, as that will take a few years to show a profit!</p>
<p>I really don't think people consider what they are going to have to spend on college. </p>
<p>It is alarming that on an income of 61000 (10K of which goes to pre-tax retirement) with savings of 50000 a single parent age 46 has an efc of 11500. that would be me.</p>
<p>Nobody cares that I was never made over 40K before the year 2000.</p>
<p>I'll either be working till I'm 70 or I'll drop dead before that and my son can pay off his student loans with my retirement savings....</p>
<p>how's that for a rant!</p>
<p>Well, I am impressed with your disciplined retirement savings. It's what we are all told to do, yet few heed the advice. And along comes financial aid ... to make sure you don't keep up the good work. You are expected to forego saving for retirement in order to pay for college. Yikes, we can't win, can we?! Add to that the fact that there are people who actually have employers who pay into a retirement fund for them & it magically will appear as an income stream after retirement (hmmm, that was once me & the loss of it sends me scrambling to self-fund, only to be told I am expected to stop). It just adds insult to injury when you dwell on it. And if you are like me & have good friends who make enough in annual bonuses to pay the full freight on an elite college (while my H's wages are frozen at the same company) ... well, it can drive you crazy. Ranting is allowed!! That's why this forum is nice. Misery does enjoy company. Unfortunately, we can rant all we want, but we all have to dig in and deal with the reality. Ramen, anyone?</p>
<p>My employer matches a part of what I put in. </p>
<p>I net slightly more than 1/2 of my gross pay after taxes - which includes 4% to the city, health insurance, extra premium for dental and vision coverage, flexible spending account to pay all the copays with pretax $$, retirement.</p>
<p>Enough to pay my bills and a part of my EFC, the rest comes from the savings.</p>
<p>Just got our raise for 2008. $25 extra on the bottom line per week. </p>
<p>My son's food plan is more than 2X what I spend on food a week. Hormel Chili (buy one get one free plus .55 coupon doubled) over baked potato, anyone??</p>
<p>kelsmom -- don't you mean generic ramen? Who can afford name brand?</p>
<p>I winced at paying $2 for a carton of eggs - in Walmart, they were 2.79 at the grocery store. What the ?</p>
<p>how about being the oldest of four with an EFC of nearly $30 grand a year???? AND living in a state with insanely high living and tax costs.....I think my career will be at Burger King. You want fries with that?</p>
<p>I was thinking maybe of working at Hooters to pay my way through med school....like the character from Big Daddy :-)</p>
<p>I'm living off campus at the moment...and I do agree..the food prices (even at Walmart) are awful!!</p>
<p>All in the name of higher education!!</p>