How accurate is the college board's EFC calculator?

Paying for College
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<p>Just did the EFC calculator on the college board's website. Not good news. Gross annual income $125,000, EFC $34,000. This EFC is more than a third of available income. I really don't think my family can swing this. My parents are older (late fifties) so retirement is an issue. Plus, I have one brother who will be starting high school next year. </p>

<p>SO my question is, for those of you who have received an actual EFC from a college (I am a HS junior--should be on the ACT forum right now getting some test tips!), is there any chance that a college would expect my family to pay less?</p>

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<p>two children, that would be about right.</p>

<p>From what we have experienced, if you can get merit aid,(go practice for your ACTs :) it winds up about the cost of instate public costs which will be out of pocket costs plus a student loan/work study/parent loan.
We have seen merit/grant money range from 15K-22K</p>

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<p>That sounds about right to me. Sorry, but late 50's puts your parents approximately 10 years from retirement. At this point for full social security benefits, I believe one has to work until age 67.</p>

<p>Your high school brother won't figure into the financial aid equation (other than being a family member) unless you both are attending college at the same time...which doesn't sound likely since you are four years apart in age.</p>

<p>You could pay less than you EFC if you receive a merit aid offer from a school. BUT for need based, it is unlikely that the college will reduce your EFC.</p>

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<p>Merit Aid is available to many students at LAC's, but quite frankly you must be aware of varied facts.</p>

<p>Total costs for estimation of EFC and FA.</p>

<p>Some schools only use the direct costs (tuition.R&B, Fees) to calculate your need. Others will include indirect costs (Books, Transport, expenses).</p>

<p>Now with some variation, but not much, the direct costs (this year) of the average LAC is $40,000 (+ or - $2,000) and indirect costs will vary based on transport costs so figure $2000 at least.</p>

<p>Witrh a EFC of $34,000 your need is from $6 to 10,000 depending on the way the college calculates need.</p>

<p>Now it is realatively easy to get a $7,000 to $10,000 Merit award from school (ex. Earlham, Wooster, Lake Forest, Beloit, Hendrix, and others). Carleton, Macalester, Grinnell, St Olaf, and others would give grant aid but not merit aid except to a realtive few students.</p>

<p>Howsoever $10,000 merit aid would just cover your probable need and you would still be left with your EFC to pay.</p>

<p>Some advise re FA: Since you are a Junior, you have time to eliminate any bank accounts in your name, if your uncles, aunts, grandparents want to give you $ for college, tell them to put that $ away and only give it to you when you have selected your college and are about to pay the bill. WHY! Any $ in your name and in your possession will be divided by 4 and assess on top of your EFC, So if you have none, it will reduce your EFC in the eyes of the schools.</p>

<p>The same foes for your earnings during the senior year, spend the $ for if you save it - it will be assessed against you. Your parents savings are assessed differently than the child's - just a word to the wise!</p>

<p>Now if you have really good test scores and a great GPA merit scholarships are available at many LAC's, but the scholarships are few and the competition is strong.</p>

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<p>KatieApplies, your EFC does not surprise me. The amount most private colleges expect you to pay might be greater since they use additional info on the CSS/Profile. If you are above average academically for the applicant pool, some colleges will give you merit aid. Look at the college websites; some may give you an idea of the SAT scores and grades you need for merit scholarships. Typically, though, these are colleges where you are very likely to get in and not "reach" colleges.</p>

<p>It is so good that you are researching this now so you can discuss realistic tuition figures with your parents. I keep seeing threads posted on CC from kids who had no clue that they could be accepted at their first choice school but be expected to take out $20,000 in loans each year!</p>

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<p>Katie - the EFC formula does take the age of parents into account with a higher asset protection for parents (does not make a vast difference but every little helps). Also parent assets in retirement accounts (IRAs, 401ks - actual retirement accounts - not just money 'earmarked' for retirement) are protected. A student can earn up to 3080 (plus a litttle more to allow for ss taxes etc) 2008-2009 tax year without any impact on the EFC then 50% goes to the EFC (whether you have spent it or not). Student assets have no protection and 20% goes to the EFC. This is all FAFSA rules. CSS is different and I am clueless.</p>

<p>Have a sit down with your parents and discuss college finances - what they are willing/able to pay. I see so many posts from students getting into their dream school and only then discovering their parents will or can not pay for it. Very tough to find out at that stage. </p>

<p>Then go ahead and apply to where you want but make sure there are financial safeties in there that you actually like (ie ones you can afford) in case the dream school does not have merit money (many of the very competitive ones do not).</p>

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<p>My EFC was also about a 3rd of our taxable income.</p>

<p>It's ridiculous, I agree. There's no way my parents can afford that, especially since they have to help pay expenses for our uncle, an amputee.</p>

<p>So yeah, it's public university for me. Good thing I live near some good ones.</p>

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<p>And as for the original question (even if it was facetious), the EFC Calculator is pretty accurate. I went back and worked through it after we received the initial EFC (automatically calculated) of $62,100 +/-. My own calculation resulted in an EFC of $62,250. Close enough for government work.</p>

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<p>Have not used the collegeboard one - the one at finaid.org is very accurate.</p>

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<p>The college board calculator estimated our EFC exactly as it came back from FAFSA</p>

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<p>Thanks for all the replies. I am starting to realize that this will be a very long process because of the uncertainties of colleges that use their own formulas, plus the possibility that some colleges might also consider some additional family circumstances (particulary large medical expenses that are not covered by insurance). </p>

<p>jimjohnjoe: You bring up an interesting issue, which is if I did have some relatives who wanted to contribute, how could they do that without that money just adding to what the family is expected to pay? (I mean, from the college's point of view, the fact that my uncle who doesn't have any kids of his own might want to help me pay for college doesn't change what my parents ought to be able to pay. Or am I missing something?)</p>

<p>And archiemom: I'm confused. What makes you think my question was not serious?</p>