After a few campus tours in the coming weeks, S will need to decide if he wants to apply ED anywhere. If he wants to apply ED to a school without merit aid (or without merit aid assured) that runs in the $68k range for all costs, I need to make sure we can foot the bill. I’ve done the net price calculator, the MyIntuition calculator, and the CSS profile page calculator for a few of these schools. They all come out around the same within the same calculator model, but there is a difference between FAFSA and CSS/myintuition “best” estimate.
–EFC for FAFSA is always $5-8k higher than the CSS’s best estimate: for ex, FAFSA $58k; CSS $52k (best est)
–EFC for CSS is always more generous. And there is a broad range of estimates: low/$39k-best/$52k-high/$64k. The range in EFC here is $25k. That’s a huge unknown when applying ED and being bound by the decision.
For the purposes of ED, what number should we go by? FAFSA? CSS best? Because, for example, if S is accepted and our EFC is the low estimate of CSS, everyone would be thrilled and S would be able to go. If EFC is best estimate, we would likely ask grandparents for a bit of help, or ask FA office for a bit more, but in the end we’d figure out a way to make it work. If EFC is the high estimate, we would not be able to afford it without taking our other children out of their private schools (and their schools remain a priority for us, given where we live).
So what happens in this last scenario, assuming S is accepted? I know that ED is binding but also read that students can withdraw if FA isn’t enough. Also read a thread on “ask the dean” on cc that said schools were frustrated that the perception of ED is that it’s for full pay only. We are in the (upper?) middle class and so in what seems like a bit of a gray zone. Thus, I’m trying to figure out if ED is even an option for my S. Fine if it is not, but ED would give him a boost at one of his reaches. And with a range of EFC from $39k - $64k, it’s pretty hard to know where you’ll land and therefore if you can fulfill the binding decision.
Someone I work with and who makes the same as I do comes out with a $0 EFC because his wife doesn’t work. Their decision on ED is much, much easier because of this, according to them (and I have to agree!). Our household has both parents working and making equivalent amounts (so we basically earn 2x their family). I confess it frustrates me that a family with 2 kids ages 13+ and an able bodied potential wage earner with a masters degree gets assessed at the single income of the father (she is vocal about choosing to be a “stay at home mom”). I should add that this other family is only applying to schools that commit to meeting 100% demonstrated need.
The schools on S’s list that are under ED consideration also say they will meet 100% of demonstrated need. Of course, that number could be anywhere along that $25k range or even outside it, making it difficult to know what the school will determine is our EFC.
@thumper1 Not necessary to apply ED per se, but if S is certain about his top pick and it’s a “reach”, then I was thinking the ED would help him. After our visits in the next few weeks, I anticipate some schools will get dropped from list and some will get added. And if there is a standout that’s a reach, I want to know if I should/can support an ED app.
@vonlost I guess I’m wondering if a school would balk if (after getting admitted) we said the high estimate EFC on their calculator was too high, since we would’ve had access to that info before applying. If they are generous and go with the low or even best estimate EFC then we’d be fine. Clearly if S applies ED then we want to do whatever we can to make it happen, but I wouldn’t want to be bound in a high EFC estimate situation.
You’re never bound by an estimate; you decide yes or no when you get the actual final offer (you will get one number with or shortly after the acceptance notice, before you must decide).
I’m okay with ED if one end of the estimate is affordable. ED provides some admission advantage at some schools, and removes a lot of pressure on the student if it works out. In any case, ED only to the by-far number one choice.
the whole premise of ED is in exchange for an early decision, if accepted, you will attend. You get a small window to decide. There is already an expectation that you have done your due diligence regarding affordability when you applied.
You, your child and the GC sign off on ED that you understand the process when you are applying ED.
Also when you are accepted ED, you are to withdraw all applications and not make any new ones. While you are only concerned with your kid, your high school is looking to maintain relationships with the college because they will have other students applying. At some high schools once you receive the acceptance your application process stops until the school receives notice from the school or the parent, that you are not taking the offer.
At some schools that offer need-based institutional aid, the EFC will account for an able bodied potential wage earner who chooses not to be employed. In such a situation, the EFC is not based solely on the income of the working parent and reportable assets; the EFC is increased based on the understanding that the non-working parent could be contributing to the family income.
@thumper1 Yes, kiddo is 100% clear on this. He is very easy going and I don’t think he would be upset if we just fundamentally said we can’t afford it. He is fully aware of our financial limitations. We are still not anywhere near determining if he has an absolute first choice b/c still have 5 schools to visit in the coming weeks, but I’m trying to get a handle on all this in the event that he starts saying he wants to apply ED at one of them.
@sybbie719 Yes, I know how it works and respect the spirit and ramifications of ED (for our family and also for HS). And I would never knowingly enter into a prospective contract like that if affordability was not in range. My original question was what constitutes due diligence and how to determine estimated EFC if the college’s own website offers varying estimates and a broad range of aid possibilities. I’m asking b/c I want to make sure we don’t, in fact, enter into something that would put college, HS, and/or us in a bad situation.
For Pomona, by way of example, I just did a few “calculators” as test, and their NPC says $52k (sounds like this is the # I should go by?), then their My InTuition calculator says $34k/low-$46k/best-58k/high estimates (followed by “And it’s accurate for approximately 90% of families with your financial profile”). I entered same info for both and we have a very straightforward financial situation with no special income/business/farm stuff that would be different on various calculators. The CB institutional methodology calculator comes back with $39k EFC (fed method = $43k).
If we’ve determined that we can afford, say, $45k, is that a reasonable affordability factor to make a decision to apply ED to Pomona (in the scenario above)? If they come back with $52k, would it be reasonable of us to say that it’s too much and can we withdraw if we can’t get an additional $7k in aid? I realize this may sound picky. But for many families $7k can make or break affordability if you’re already maxing out. And thus I’m trying to determine best case scenario before allowing S to consider this as an option.
Is yiur sitiation straight forward. Income from job, not self employed, you don’t work on commission
Remember contributions to your retirement will be added back as income. Done schools will not count money already in retirement account while others will want to know the value of your retirement account
Straight forward assets
No property outside of your primary residence (different schools look at home equity differently)
No rental income
No farm
Both of your child’s biological parents married to each other living together
–Income: Income from job only. Not self-employed, no commission.
–Retirement: We do not make contributions to our retirement fund (our employer does as a benefit). We do have money accumulated by employer contributions in 401k retirement fund.
–Straight forward assets: only one 529 account with self as owner and children as beneficiaries. Also a checking and savings account. All reported accurately on MyInTuition and NPC and CB.
–No additional property
–No rental income
–No farm
–Child lives with both his parents married to each other.
–Home equity: we do have equity in our home but same amount was input in all the calculators.
@BelknapPoint Well, that makes me feel better. The way the guy talked about it made me feel like he was gaming the system. By his logic, I should take a few years off work b/c nearly my entire paycheck will go towards tuition! Reminded me of that choice many of us make regarding day care when our kids are little. Do we work and pay for day care and “take home” very little $ or do we just stay home with our kids until they are school age? It’s a hard choice for many of us.
Each 529 account can only have one beneficiary. Not that it probably makes any difference, as all 529 accounts owned by a parent will need to be reported on a child’s FAFSA/Profile, regardless of who the designated beneficiary is.
@BelknapPoint My bad! I actually do own 3 separate accounts, one for each of my 3 children (as beneficiary). I entered the total $ amount in the asset/529 field. If I get through this whole college app thing with my brain still intact, it will be a miracle.
What another family is doing or if someone chooses to be a SAHM is none of your concern. That is their family decision.
Analyze the risks of applying ED and determine if you are willing to take those risks based on how much you would be able to pay. Keep in mind the tuition will increase every year. You don’t want to be in a situation where the child attends the first year and is forced to transfer because you can no longer afford to pay tuition at the school.
Either you have already set aside funds for college to pay for the four years or you are dependent on future income to pay the attendance costs. One thing to consider is if you have younger children who will be attending college in the future. You don’t want to use all your savings for one child and not have anything left for the next one. Also there is likely a difference in what you can pay and what you are willing to pay. Determine what that amount is and if you feel this college would be in that range and it is your child’s first choice without a doubt then apply. If later you decide to decline the offer realize that you will be applying to other schools Regular Decision where admission maybe more difficult.
