How to understand a FAFSA Estimate

<p>I used an online calculator to estimate my financial aid for my dream school, but I'm not entirely clear what the estimate means. The total cost of the college is $49,000. According to the calculator, I'm eligible for $5,500 in Stafford Loans. The total federal aid I'm eligible for is $6,965. My EFC is $5,193. The difference is then $42,035--what does this mean? Forgive my ignorance, but should I expect to receive approximately $42,035 in aid, or is this an additional cost we will be expected to pay? (Which is no way feasible). How much of this should I expect to receive in grant form, and how much in loans?</p>

<p>The FAFSA only estimates what federal aid you are eligible for. The rest of the money you need will have to come from the college. Not all colleges have funds to cover costs, only a few promise to meet your financial need. You’d need to talk to the financial aid office at the college to see what you might receive from them in terms of aid, but you won’t get that information until you’ve been accepted.</p>

<p>You will certainly not receive it in federal aid. The main federal grant is the pell grant and the main federal loan is the Stafford. The maximum Pell is $5550, but that requires a 0 EFC. With an EFC of 5193 you would only receive a few hundred in Pell. The maximum Stafford loan for a freshman is $5500.</p>

<p>Ant other aid would depend on the school. Most schools do not promise to meet full need. If it is a school that does promise to meet full need then that will be from their own institutional funds. Most schools that promise to meet full need require CSS profile in addition to FAFSA. Whether the aid will consist of mostly grants or loans will also depend on the school. Some schools promise to meet full need with no loans. Others will include loans, sometimes very high amounts of loans.</p>

<p>Sven, understanding financial aid is a little difficult at first. But the basics are this:
The FAFSA will generate an EFC. In your case this is $5193. You and/or your family will, at the very least, have to pay this amount regardless of any other need-based financial aid you may receive from the college itself or from the government. </p>

<p>But please keep in mind, it is very unlikely that your EFC is all you will have to pay.</p>

<p>Okay, so whatever else is true, you’ll be paying that much and probably more than that.</p>

<p>On top of that, you’ll get a few hundred dollars in the form of a federal grant (called the “Pell Grant”) and also up to $5500 in federal loans.</p>

<p>Okay, so now you have the $5193 of EFC (you pay) and $6965 in federal aid (grant and loans). That takes you to $12,158 of your college costs.</p>

<p>The college cost of attendance is $49000. Apply toward that total cost the $5193 EFC that you know you will have to pay (at minimum) and the federal aid of $6965, and that leaves you with unmet need of $36842.</p>

<p>Whether the college will meet that need, and how they’ll meet it (grant aid? loans?) is what you need to determine. If they meet your “full need” (most colleges do not) then you’d still need to come up with your EFC of $5193. If they don’t meet your full need, then you’ll have to pay the EFC, plus find more money with which to close the gap between the aid you’re offered and the remaining cost-of-attendance.</p>

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<p>Please do yourself a big favor and delete that phrase from your vocabulary…lots of schools can help you achieve your dreams, which are really to get a good education and have a promising future, right?</p>

<p>If this school is in your home state, you may also qualify for some state aid. As SCM said, you’re going to need an awful lot of institutional funding to close the gap between the COA and any government aid though.</p>