<p>I just filled out the fafsa and apparently our EFC is 96,000?? How does that even happen? Our adjusted gross income was about 200,000 but that's HALF our income! A ridiculous number. Did anyone else get a number way off like this?</p>
<p>An AGI of $200,000 would result in an EFC of around $55,000, depending on household size and tax percentages. The rest of your $96,000 EFC must come from assets - does your family have a large amount invested?</p>
<p>I’d say we had a decent amount in savings, own a business, and are currently renovating a house which we’ll sell in a few years. I know it sounds like a lot but it’s not like we’re rolling around in money, a college tuition would be 25% of our income. =/</p>
<p>Is a “decent amount in savings” around $700,000? Did you include the value of the business on FAFSA? If it’s a family-owned business with less than 100 employees, you don’t include it as an asset. You also would not include the value of your family’s house.</p>
<p>You need to understand that your EFC is expected to be paid from a combination of savings, current income and loans, thus the relatively high percentage of income.</p>
<p>For EFC > cost of attendance folks, the formula seems to be 1/3 savings, 1/3 income, 1/3 “future earnings” (aka loan). I always have to add, when did families start thinking the difference would come from somewhere else? </p>
<p>In the late eighties, my family apparently thought it should come from a military commitment. In 1990, I was like… “wait… what???”</p>
<p>Oh hm well it’s definitely less than 100 employees, we only have like 10 or 12. I guess that makes sense, still a little bit of a ridiculous formula since these savings can’t all be used for me (I have siblings) but we’ll see how it works out. Thanks!</p>
<p>Also keep in mind that we live in Long Island, where that money doesn’t go nearly as far as it would elsewhere in the country.</p>
<p>Shout out! I grew up in Queens!</p>
<p>I live on Long Island. The financial aid calculations do not take the cost of living into consideration.</p>
<p>That being said, while the cost of living is high, salaries are also high. You wouldn’t have the income and assets you have if you were living in Appalachia, for example.</p>
<p>Even though your EFC is $96,000, most private schools are “only” $50 grand+ to attend. So you will be ok :)</p>
<p>Just because your EFC is high doesn’t mean you don’t have affordable alternatives! You can certainly look for schools that are less expensive, such as the SUNYs, and those that offer generous merit aid, and take advantage of other opportunities to reduce your overall cost. There are plenty of families with kids in college who are making a fraction of what your folks are earning now…hopefully your choices of schools were carefully researched and include some financial safeties!</p>
<p>Susgeek is right, the COL on LI is high, but the salaries are commensurate. Many people live in high cost areas and that’s viewed more as a choice rather than a necessity - I’m not saying that’s an ideal situation, but it is what it is. Even if your family income was less than half of the present level, you wouldn’t qualify for government grant aid as those programs (Pell, SEOG) really only meant to aid low-income families. It’s a common misconception that everyone will qualify for grants for college but grants are meant to help with financial need and those with sufficient income are often surprised to find that the “need” calculations do not account for lifestyle choices and other variables.</p>
<p>Yeah, as Susgeek said, it doesn’t matter too much that your EFC is 90K+. That so far exceeds the total cost of attendance at even the most expensive schools in the country, that you couldn’t get close to spending that much on college costs even if you tried. ;)</p>
<p>shorttracklover</p>
<p>It is important to understand that your EFC is not a dollar amount and it is not “what you are expected to pay from savings, current income and loans” blah, blah blah. Because remember, you don’t have to pay ANYTHING for your child’s college education if you don’t want to. Of course it’s great should you want to (and can afford it) but everyone knows what your child thinks you can afford isn’t nec what you actually can! Again, you don’t have to pay a dime if you don’t want. This is not YOUR EFC, this is your childs. Everyone here always seems to forget that your child is a part of the family too! </p>
<p>Anyway, the EFC is just a code the school uses to determine what kinds and how much aid your child will get. It is NOT the amount your child (or you) will have to pay to go to college. With an EFC of 96000 he can choose a school that costs $3,000 a year and 3K is what he will pay or he can choose a school that costs $30,000 a year and 30K is what he will pay… all with an EFC of 96000! It’s amazingly simple. </p>
<p>This means that if he has an EFC of 96000 or 9600 he will be able to borrow $5,500 in federal Stafford loans his freshman year no matter what. If you are unwilling to help him pay (and he has not saved any money or earned any scholarships) then he will need to find a school that is less than this $5,500 amount for his freshman year. </p>
<p>You can scratch and scribble and pound an adding machine all you want to see how what you reported (or not) changes his EFC, but in the end it seems to be a lot of wasted time and energy as even if your EFC gets cut in HALF or by TWO THIRDS or more, he will STILL only qualify for loans… no federal grants. Even the privates are tightening the belts so it really doesn’t make much of a difference.</p>
<p>Is that a second home that you’re renovating? Or are you renovating your primary home?</p>
<p>Only a small % of assets is considered towards EFC (after a protected amount), so the formula is NOT assuming that most/all of your parents’ assets are to be used for your education.</p>
<p>Income is primarily driving your EFC.</p>
<p>Perhaps the business part wasn’t done correctly.</p>
<p>Anyway…even if you made a mistake or two, your EFC will likely still end up to be too high for need-based aid. </p>
<p>Have you talked to your parents about how much they will spend each year towards your education?</p>
<p>Did you apply to any schools that are financial safeties for you? </p>
<p>Did you apply to any schools that will give you merit scholarships? When your EFC exceeds the cost of schools than ANY merit you receive reduces your EFC.</p>
<p>I feel for your, with the high COLA in the area. I joke with my southern relatives you should need a passport to come to NY. </p>
<p>Speak to your GC counselor. I would also suggest if you have run out of alternatives, and did not apply to a financial safety, get an application into a CUNY (if there is one you like) IMMEDIATELY. While they normally have a Feb 1 deadline, they have temporarily extended it (too many snow related problems in high schools).</p>
<p>With an income approaching a quarter of a million (to have anadjusted income iof $200,000), you are in the enviable position of actually being able to set a budget and then find colleges that fit that budget as many have said. Count your blessings instead of complaining about them. 90% of families with college bound kids would love to be in your shoes regardless of where they live.</p>
<p>Mom, I think that was uncalled for. OP came here asking for help. COLAs are VASTLY different in different parts of the country, and IMHO, it is a little like let them eat cake for someone from the midwest to say stop complaining.</p>
<p>I don’t think anything I wrote was inflamatory. Simply they should feel blessed and simply they do have choice which many, many families do NOT have. Many families with low EFCs have very limited choices whether they live in high cost of living areas or the very lowest cost of living areas. They are priced out of everything but the local CC and have absolutely no other choice. You’re reading too much into what I was saying.</p>
<p>You wrote that OP should stop complaining, like I said I think that was uncalled for. I wouldnt call it inflammatory, but rather mean-spirited and lacking in sympathy. </p>
<p>It seems to me this may actually be a kid writing, and the kid clearly has no control over spending/saving etc.</p>
<p>FAFSA4EVER - great post. wise words there.
You can crunch and crunch the numbers some more but it is not going to change anything.</p>