Hi guys-
FAFSA calculated my EFC at 81,789; but my parents AGI is 170K. And mind you, after taxes, rents and student loan payments, they barely have a little left over each month. How is it that FAFSA calculated such a huge EFC for me? And due to that, the college that offered me admission is NOT offering me anything in aid; after my appeal, they only awarded me $1700 in aid which is of no help at all. And unfortunately, I had committed to attending. My parents can’t afford it and don’t look like they can qualify for parent plus loans due to poor credit score. Do I still have a recourse here considering I have appealed already?
Uncommit and switch to an affordable college.
The EFC is high based on the AGI. A few questions: Did your parents roll over an IRA in 2018? If so, that may be the issue (and we can tell you how to fix it). Look at your FAFSA. Did you report your parents’ income both as their income & as your income? That mistake is sometimes made (if so, we can tell you how to fix it). Do your parents have significant savings? Did you ONLY report savings that are NOT qualified retirement savings accounts (401k, 403b and IRA accounts are not reported on the FAFSA.
Look at your information to see if any of the above apply to you. Let us know, and we’ll advise.
My parents did not roll over an IRA in 2018. No, I did not report my parents’ income as my income. My parents had only $90K in checking/savings while i had only $10K in mine. I did not report my parent’s retirement accounts on FAFSA; but reported it on the CSS because it was required.
If you require a large amount of institutional need-based aid in order to attend, then the high FAFSA EFC is not in and of itself the problem. It may be a symptom of the problem, but it is not the reason you were denied a large amount of need-based aid from the school.
Did you commit to enrolling before you had a clear idea of what your finalized aid package would be?
It sounds like this school is just plain not affordable. Parent plus loans are almost always a bad idea even if your parents did qualify.
Do you have other affordable options?
Yes, I was too excited and so I committed. It was after that that my dad yelled and asked what did I do?
Unfortunately, it was the only one of two colleges that accepted my application. The second one is equally as expensive but I didn’t even bother appealing their aid.
Consider starting at a community college and transferring to a four year school (probably an in-state public university) to finish your bachelor’s degree, if that is an affordable path (check the net price calculators).
If you have high stats that can gain merit scholarships, consider finding something to do (no college classes) during the next academic year (gap year) while you apply to a different set of colleges targeting large merit scholarships that are automatic for your stats or which you have a realistic chance of winning. However, be aware that the usual gap year activities like working to save money for college may be harder to get or do this year compared to usual.
While the FAFSA EFC seems high, you seem to indicate that everything was correctly reported. I agree with others who say that the school is not affordable. As difficult as it may seem, it’s time to move on to a different plan.
You might want to see if any of your more affordable in-state options are still accepting applications. It does seem unlikely given the late date.
Otherwise your alternatives are to attend community college or take a gap year.
There is no mystery as to how the FAFSA EFC is calculated. You can find the formula and plug in the numbers. If you think the calculation is incorrect, run through the numbers again.
Also, you can find the school’s NPC on its website and calculate what your expected cost for that school is. You should have done all of this from the beginning, but that did not happen. But you can verify or challenge the calculations. You can also find out what you and your family can afford to spend for college. It’s long past time for a sit down with your parents and come up with what is feasible. Since you now know what your FAFSA EFC is, you understand that you are not likely to get much financial aid. That means looking for a school with a cost that is affordable. You can take out $5500in Direct Loans freshman year. You can also work part time and summers. You can also take a gap year, work and start the college application process again next year, now understanding how things work a lot better.
Thank you for your advice.
This is surely painful but I understand every point you have made.
I have to be realistic but I couldn’t help but wonder if there is anything I can do to get the college to re-assess because I desperately would love to attend beginning this year.
Thank you for your advice.
Thank you.
As, stated, you can recalculate the FAFSA EFC. If that number is correct, you are not entitled to much financial aid. You can flat out tell the colleges what you can afford and see if thy can work out something in the way of merit money. Some Schools are now negotiating and offering deals in ways they had not in the past from what I’ve been reading. But if it’s a huge gap there, IMO, it’s unlikely you are going to get it fully paid. Schools are a business in the end. Still, give it a go. And look for schools that are looking for students that might come up with enough money to make it possible.
I will recalculate and then take it from there. Thank you.
Are either of your parents self employed?
OP can and should calculate their FAFSA EFC, but the school used the CSS Profile to determine his need based aid (per post #3)…so the school’s calculated EFC might have been much higher than FAFSA’s.
There is so much we don’t know about OP’s situation (family business, divorced/remarried parents), except that neither school is affordable. It sounds like OP didn’t run the the schools’ net price calculators prior to applying, going forward that would be a good exercise to do if they submit additional applications.
OP, many schools are still taking applications, including some state flagships. What state do you live in? Stats? How much can your family pay for college, per year?
On a more fundamental level, ask yourself why you are desperate for one thing vs. another (and be honest with yourself). Then ask yourself if that desperation is rational at all. If not, then examine where your emotions and feelings come from. Research that. Also how marketing works.
This is tough work, but emotional wisdom and EQ are oh so important for adulthood.
A nice little article I found: https://www.google.com/amp/s/m.huffpost.com/us/entry/1590707/amp