How does the FAFSA determine EFC?
Just completed the form and it’s saying >55k.
We make around 130K ( put 16k into 401k annually), have some investments.
I’ll end up with 0 in savings after 4 years
In another thread you indicated that paying $40k per year is ideal but you’re prepared to pay for any school your DD chooses.
Are you really concerned about EFC?
Besides…she’s applying to CSS schools. For you, FAFSA EFC is meaningless.
@mom2collegekids
Yes, we will pay for any college she chooses to go to, but I guess I just got a little sticker shock.
I ran some of the calculators and it was projected to be less.
Was / am hoping for 40k/ year.
Shouldn’t everyone be concerned about EFC? Just because I have it doesn’t mean I want to “give it away”.
What I’m saying is that your DD’s schools are CSS Profile. They don’t use FAFSA to determine aid except if low income. Your FAFSA EFC (once beyond Pell) is essentially meaningless for those schools.
So…is your AGI $130,000 a year? Then add to that $16,000 towards your retirement accounts?
That FAFSA EFC sounds right. If your AGI is $130,000 a year…what is your actual gross income? You don’t mention assets, but those count too…bank accounts…etc.
The FAFSA primarily determines your eligibility for federally funded need based aid. On a $130,000 plus a year income, you would not be eligible for any federally funded grant money. But your kiddo could get a $5500 unsubsidized loan.
The CSS Profile will consider your income, and assets. It takes a much deeper look at your finances than the FAFSA. Schools using the Profile use the data in it to determine the awarding of institutional need based aid.
Have you run the net price calculators for your kiddo’s college choices? They will give you a good guestimate of your aid and net costs. If you are divorced, own a business, own real estate other than your primary residence, or are an international student the results will not be accurate.
The FAFSA EFC is not what you pay for a school. You pay the tuition, fees, room and board minus any merit scholarships or institutional grants.
You won’t pay $55k if you pick a school that costs less than that, or gives merit scholarships, or is in your state and has lower tuition or state grants.
What everyone is saying is that it really doesn’t matter if your EFC is $55k or $20k, you’ll get the same federal aid ($0). Ifyour child picks a ‘meets full need’ school, it’s very likely to require the CSS and the EFC won’t matter.
I definitely understand that if the school costs less than the amount I am expected to contribute, that’s what I pay. I just expected when I did this form that my EFC would be less.
Planning on working on the CSS Profile this week.
I’m the type of person who needs to know - so I can (mentally) prepare.
Guess I won’t know what we’re paying until we see where she’s admitted.
True. Run the Net Price Calculators on each school’s web site to see what expected aid is.