Does anyone have information on EFC and how it is calculated by different schools. I already have one student and my second one is getting award letters that are really confusing as each school seems to estimate our contribution differently. Seems like I should get a tax credit instead of as student loan to help pay for college?
Any insights?
Each different college has its own standards and formulas-- so each will calculate differently.
“EFC” doesn’t mean “amount you pay.”
Rather, it is an indication of how much aid you might be eligible for. “Eligible” doesn’t mean “get.”
Did you run the Net Price Calculator at each institution’s website before your kid applied? That shoukd have given you a notion of relative predicted costs. If you ran the NPCs and there is a dicrepancy between the predicted award and the current offer, contact the aid office and ask about it.
Depending on your costs and your income, you may be able to claim the American Opportunity Credit (AOC) or the Lifetime Learning Credit for one or both of your kids while they are in college.
As noted, each college has its own formula for awarding need based aid. It’s not surprising that there is a difference in your awards. Some schools have deeper pockets than others.
I’m not sure what your comment about tax credit means…college financial aid awards don’t give you tax credits…but they do give you loans at most colleges.
If you have W2 income…no additional real estate just your residence, aren’t self employed or a business owner…and are married parents…the net price calculators would have given you a decent estimate of your net costs at each college.
Thanks - I did a couple of times, but my other assets became an issue.
My point on tax credits is that it would be great for me to get more than just my child tax credit on my federal taxes (due this week)…just the cost of college seems like it would be something to incent families…to pay for college.
If your kids don’t have income then you may want to get tax credits.
But it may not make any difference because the deduction rules have changed.
You should try different scenarios with Turbo tax software.
There are education credits you can claim for qualified education expenses. But there are income limits.
We got a child tax credit for our middle schooler, dependent credits for both of our college students, and AOTC for both of our college students. One maximum $2,500 for one and one partial for the other for fees, because she has a tuition scholarship.