Efc Too Low

<p>We just got our EFC and it is lower than anticipated. Can this hurt because schools will assume that we can't pay the difference or will they still make an offer anyway? Anyone have an idea?</p>

<p>Well, that is a question that begs to be answered by Sbergman... or someone who really knows. What I've been told on several occasions is tat the "financial aid" box doesn't play into admissions decisions... e.g. if they want the kid, but have no money left, they would offer a spot and be put on a WL for FA. Thad did in fact happen at one school my S applied to, which I read as ... we want your son... but not tht badly." On the other hand, at least on my son's current school FA application there is a box which asks what you think you can afford to pay to attend. I have to believe that would cover the very situation you described in your post And of course the oher obvious question.. if FA doesn't matter, why des it need to be indicated on the main part of the apaplication. GL.</p>

<p>If they want your son enough, they will offer the aid.</p>

<p>KarateDad pointed you in the right direction. What did you put in the "what you can afford to pay for this student" box?</p>

<p>I can tell you from personal experience that if the number you say you can afford to pay is much less than that efc, a school may reject based on the premise that you've told them you can't afford to pay. This is precisely why I recommend parent fill out and submit the PFS to SSS the year BEFORE their child will apply. You'll have a solid ballpark figure as to what the formulas will spit out so you can fill out the box "in the know" the following year rather than taking a stab at it and hoping for the best!</p>

<p>She said the actual EFC was low, though. In other words, she is just concerned that the school will see that the SSS thinks they need a lot of aid. So again, I feel that if your candidate is strong, the school will give the $$. But, baseballmom, that is indeed a good idea. I never knew what to put in that "what can you afford" section. I was always worried that if I put too low a number, it could hurt my sons' chances.</p>

<p>We actually put in a higher figure that we could pay than the SSS came back with. I was shocked. I didn't think we were that poor, but we do have a large family.</p>

<p>We also put in a higher figure than (I knew) our EFC would be. We are full-pay for our college D, so our need is quite high. So, for the FAFSA, we are rich and for the SSS, we are poor! Go figure!</p>

<p>We don't want FA to be a reason for rejection for our son so we're willing to offer to pay more. Who knows how much of the SSS estimated need will be met? It's all a crap shoot in the end. By this fall we might be eating mac 'n cheese by the bucketload! ;)</p>

<p>So...I'll throw out this question...strike that, I'll throw out this SUGGESTION and let the regulars put it through the paddy mill and see if it's still standing when the smoke clears:</p>

<p>warriorboy648: I'm suggesting that you should write the schools to tell them that, notwithstanding the EFC report from SSS, your family is actually able to pay $Xtyump dollars and, if the school and its supporters are generous enough to meet your actual needs, then you would prefer to see any additional FA amount available be used to support and retain other students who will, hopefully, be attending Vundeba Academy along with your son next fall.</p>

<p>Have at it folks....</p>

<p>baseball mom great advise. I actually did exactly what you suggested when my son completed 6th grade. In addition I deferred some pretax income into my retirement account to lessen my gross income on the advise of my accountant. My EFC has remained the same the past two years. I strongly suggest that parents consult an accountant on this matter at least a year prior to going through the process. While it may not help it definitely can't hurt.</p>

<p>adios,</p>

<p>While it is great that you are putting away for your retirement (you can't borrow to to do that - LOL), when you fill out the SSS form they ask you to declare (and the schools can verify from your W2s) the amount you put in the 401k (or 403b) pre-tax account. That amount is added back into your income to be calculated into your EFC. Same goes for pre-tax IRAs. Works the same way with FAFSA and CSS Profile for college.</p>

<p>Unfortunately, the FA people have decided that retirement savings is an optional activity. For those with a generous and guaranteed pension, the 401k accounts are not as critical as for someone whose company retirement plan is purely a match to 401k contributions. It is definitely not fair to the latter group, but nobody has come up with a fair way to assess the value of a pension plan.</p>

<p>If I had to advise parents of prospective FA applicants, I would recommend the following:</p>

<p>1) Eliminate all consumer debt. That would be credit cards, installment loans, loans against 401k plans, and even auto debt. You will need the cash flow that these monthly payments soak up.</p>

<p>2) Try to pre-pay things that will be necessary in the near future before filing SSS. Pay your property taxes early to reduce assets. If your car is going to need replacement and you have the cash do do it, buy it before you file. Don't go and buy a car you don't necessarily need, but if you were going to do it and can pay cash, do so. One thought though.,. The increase to your EFC is not as bad as you think for assets, so don't get crazy spending money. Just move things that are must do's forward.</p>

<p>3) Not all schools adjust FA upwards when your EFC drops from year to year. So if you have a 2nd child who could either start in 9th or 10th grade and one who is 3 year ahead in school, wait until the 2nd child is in 10th grade to have a lower 1st year EFC. When your first child has college expenses to add to the SSS form, it will create a drastic drop in your EFC. If the first year of college corresponds with the first year of prep school for a 2nd child, you will get a better FA offer than if the first year of prep school for the 2nd child corresponds with the Senior year in HS.</p>

<p>
[quote]
1) Eliminate all consumer debt. That would be credit cards, installment loans, loans against 401k plans, and even auto debt. You will need the cash flow that these monthly payments soak up.

[/quote]

Well now that's easier said than done. :)</p>

<p>Did I say it was easy? ;)</p>

<p>Why do you say to eliminate all consumer debt? I know for a fact that our school's fa office considered it for us. We have quite a bit because my husband was unemployed for a long period of time.</p>

<p>I think the second sentence said it all. If you have a legitimate reason for large consumer debt (that unemployment stint, unreimbursed medical bills, equipping a home for a special needs child, etc.) , schools will evaluate that when calculating their FA offer. If you got that $50K in consumer debt taking a nice vacation and buying a house full of furniture, I wouldn't expect to get much sympathy from any school.</p>

<p>However, SSS while asking your consumer debt doesn't give as much assistance (in the calculation of the EFC) for having it as they punish you for having cash in the bank. So if you have the cash position to pay off debt or are refinancing your home mortgage (not a realistic situation these days), the net of paying off the debt (over 30 years) will be in your favor in terms of your EFC number and your cash flow to afford the annual expense.</p>