I recently received my revised financial aid offer from Yale. Problem is, the financial aid letter just states the expected family contribution as a flat figure. It gives no indication of what the EFC goes towards. If for instance the award letter outlined that books and personal expenses were meant to be covered by my EFC, it would give me a basis for more effective budgeting.
I mean $3,000 for books seems ridiculous to me. If I knew this is something I’m expected to cover as part of my EFC it would open up a lot more wriggle room for penny pinching.
My EFC is manageable but not ideal.
At this point, I’m not even sure if I’m expected to buy my own plane ticket!
Financial Aid Award letters are confusing, as they are not presented in a user-friendly format. I personally find it best to disregard EFC amounts to make sure you understand what costs Yale is covering and what you and your family is expected to cover.
The true cost of your attendance is reflected in the NET PRICE. The NET PRICE is the difference between the TOTAL COLLEGE COST listed on your financial aid award minus the YALE COLLEGE SCHOLARSHIP (free $$$), minus any loans you will receive.
Here’s what you do: Add up the BILLABLE COSTS (tuition, room and board) and NON-BILLABLE COSTS (books, personal expenses and travel expenses). That is your TOTAL COLLEGE COSTS for freshman year, as calculated by the financial aid office.
Now, subtract the YALE COLLEGE SCHOLARSHIP (free $$$) you will receive. Then subtract any loans the financial aid award letter might have listed ($$$ you will have to pay back after you graduate). The result is your NET COST.
If your YALE SCHOLARSHIP exceeds the BILLABLE COSTS for tuition room and board, Yale is giving you extra money to help pay for incidental expenses such as plane tickets, books and spending money.*
If your YALE SCHOLARSHIP is less than the BILLABLE COSTS, Yale will send you a term bill each semester for the remaining billable costs and YOU will have to pay for all incidental expenses such as plane tickets, books and spending money on your own.
NOTE: The US Government considers any money you receive for non-billable costs as taxable income, so you will end up having to pay taxes on any non-billable money you receive. This is true for both domestic and international students.