<p>Our daughter is entering her senior year of high school. Several experienced CC parents have suggested reading the book, "How to Pay for College Without Going Broke." My husband and I read it this summer and have run the EFC numbers using worksheets in this book for both the FM and IM. We cannot believe the results. On paper, we can pay more than any LAC's yearly tuition. In reality, this is laughable. We have high home equity, but still, the EFC comes out to 50% of our annual incomes. What gives? Is anyone else experiencing this at all?</p>
<p>My parents laughed at ours. It was about 20 times more than they could afford.</p>
<p>Been there! Actually I am still there, but I am over the shock. And there is not going to be a lot of sympathy for you from people with lower EFC’s.</p>
<p>The best advice is to stick to your state university as an option or only allow your child to apply to schools that offer merit aid. And don’t expect miracles or exceptions. The schools are not going to give you a cent unless they give real merit aid.</p>
<p>The only other option you have are Ivies that have their own way of determining need. I know that Harvard and Yale have opened up financial aid to families with incomes of up to $180K to $200K, with parents responsible for contributing 10% of their income.</p>
<p>Good luck!</p>
<p>Keep in mind that the EFC is not something most people can come up with out of that year’s income and so when you say it is 50% of your income, of course you cannot devote that much to that year’s college costs for one child. However, it ought to be a possibility to afford it if some is from money saved up for college (in other words, prior to current year’s income) and some is taken out as loans (Parent Plus Loans and possibly student Stafford Loans) and so that someone in your income bracket (I’m guessing) could afford the EFC OVER TIME…using past savings, some money from current income (surely not 50% of it) and then loans over the next ten years. Unless you are wealthy, most people cannot afford to pay for college out of their current income.</p>
<p>Oh yes, I’ll never forget that moment when I first laid eyeballs on our EFC. I almost fell out of my chair. I think almost everyone feels that.</p>
<p>What I eventually became reconciled to is the fact that we, like almost every college family, would have to do some borrowing for college. The trick is to minimize it, and to get the most advantageous loans.</p>
<p>Funny/sad story: My daughter’s high school had parents meetings at least a couple of times a year. At the one about financial aid for college a dad had a question about the EFC. He thought that it was for all four years. The look on his face when he found out it was for only one year was priceless.</p>
<p>Colleges expect parents of a certain income range and above to have accumulated assets and have the ability to take out loans. When it comes to those really expensive private colleges, paying for college solely out of parental income flow is not what any college is expecting for most of its students’ parents. </p>
<p>Most parents cobble together COA from income flow, parental loans, student loans, savings, investments, home equity lines, a second job or sending a stay at home spouse to work, summer jobs by students, on campus jobs by students, etc. It can be a family affair.</p>
<p>No, my EFC will be zero so I’m not freaking out about it.</p>
<p>I am, however, freaking out about the amount of loans I may have to take out. :P</p>
<p>Ours was high also but as others have said, there is the expectation that if you have assets and a good income (or higher) you have been saving something for college. At first I thought that hurt us, but actually it has been a significant help. Both D’s got merit aid and combined with our college savings for them, the loan amounts are much less. It is not expected that you pull it out of your monthly paycheck. Ellemenope said it right - its a family affair.</p>
<p>When ours came back last year, we were not pleased at all. When the acceptances rolled in with the financial offers, I made calls to several schools asking for some assistance. One school’s financial officer was so nice. She asked me where my son had gained acceptance. I went through the list, and I explained that he had a full ride to one school, thanks to his National Merit standing. She told me, “Tell him to take that offer. I’ll see him in four years for law or business school.” He did take that offer … and he loves where he is. </p>
<p>It is a family decision. I pointed out to my son that he has a younger brother who also wants to go to college. We need to provide for the two, not just him. He understood that, and although he basically has a full ride, we do provide his books, some spending money (he worked all summer), clothing, plane flights.</p>
<p>Some of my son’s friends have a zero EFC. They were rejoicing that they did not have to pay. Well, not exactly. Guess they do not think about the loans. They will be in for a rude awakening.</p>
<p>OP, congratulations.</p>
<p>Pad yourself on the back to start the process early so your child and you are well prepared.</p>
<p>Pad yourself again for doing so well to accumulate enough $$ that now your child has the opportunity to choose. Many families could only wish they could afford the full price so they could send their children any where they want to.</p>
<p>As many have said before - paying for college take three components - past (saving), present (current income), and future (loans). I have been on CC for a while now and have seen very few cases that any family actually could not afford the EFC. </p>
<p>Yes, they may have a difficult time paying out from their current income. But, how many people could pay out $50K after tax $$??</p>
<p>The bottom line (like others have stated) is to understand what you can afford and to have a plan on how to pay for it.</p>
<p>I have increased the hours I am working and I am bringing in an extra $10K take-home.</p>
<p>We have also committed ourself to living off of my husband’s salary and putting my current salary towards college expenses. We have savings for college which we have used sparingly, so far. I would like to pay as much out of current income as possible because some of D’s college money was in mutual funds, and I would prefer holding on to it until there is an upswing in the market and perhaps use it for grad school/ down payment on housing, etc. Plus, we have another D who will be starting college when first D finishes and it would be good to have back up $ for her. So far, we have not taken out loans. We have also been lucky that a grandparent has made some direct payments to NYU for tuition. She would rather use her money there than for a nursing home, is her way of thinking.</p>
<p>D only really applied to schools that give merit aid in her field of study. The exception was Barnard and we put that in only if D did not get merit aid from other schools and if she was truly unhappy with all of the other choices. But since we live in NY, we always had the back up option of having her commute to Barnard if necessary.</p>
<p>Our financial goal was to get at least $10K off per year in merit aid, which we achieved. Other schools offered more than NYU, but we felt that it was the best choice for her and, again, we knew we always had the commuting option in an emeregency.</p>
<p>Also look into the option of outside awards that are not based on finances. D was very lucky to collect over $12K in local scholarships.</p>
<p>Yeah, with child #1 we about fell down laughing at our EFC. The program was laughing with us, I think.</p>
<p>Then we got used to it. Like many people in our situation, we pay what we can afford for college, realizing we have (or had) 4 children to educate. And we sent them all to private school from K-8th grade. Didn’t buy a boat or take fancy vacations, and saved as much money as possible for college tuition.</p>
<p>We’re glad we have smart children and some money to play around with. But the kids know we won’t pay full fare at expensive colleges. And none of them have chosen to take out loans.</p>
<p>I think there are three stages - shock, denial, and acceptance.</p>
<p>Yep I freak out every year I fill it out. Thank god I have twins in college at the same time and they split that EFC</p>
<p>Some of the cost of college can be paid like this: $3000 or much more - is cost savings from not having DD/DS eating/using shampoo,electricty at home. (The “much more”, is if you provide kid with car, or pay car insurance, or pay for EC’s. You won’t have to pay that in college. They can manage without a car. Some car insurances do not charge for kid away at college - and they are still covered for summers and occasional driving.) DD/DS earns $3000 over summer and gives you as summer earning contribution to education. DD/DS earns $2000 over school year and uses money to buy own books, clothes, personal hygiene items. DD/DS takes out stafford loan. That’s at least $13,000 of “savings” right there. We find that our EFC is affordable out of current income, but we don’t pay for things others might take for granted like cable tv, lawn service, maid service, make-up, fancy clothes, etc.</p>
<p>Watch that question about are you eligible to file 1040 ez or 1040A. It is a key to another function in the calculation of EFC. Those eligible are rare, for instance you cant itemize on a 1040A.</p>
<p>anxiousmom, there are some savings to be had when your kids go off to college, I agree (though I don’t feel like we are spending less, ha ha). But with our kids, prior to college, they had attended summer programs and they did many ECs that cost money. So, in college, we did not have that and felt that the equivalent of those things we used to pay could not be put toward college each year. While there are other savings like food, I never seem to notice a whole lot but maybe a little or else something else has taken its place (like travel for kids to come home or us to see them). </p>
<p>I don’t have twins like someone else here but the FA really improved when I had two in college at the same time. While my kids are two years apart, the younger one graduated HS after junior year and so the overlap in college and grad school as well was there and so it helped a bunch with FAFSA.</p>
<p>PS, I don’t think we have a lot of fancy extras but we have to have cable TV (basic) here to get ANY television reception (it is rural) and we do have a lawn service (but have a lot of land) but have no maid (I wish) and no make up or significant cosmetics. We do buy clothing for our kids and ourselves (well, I do but getting my husband to get any new clothing which he desperately needs is difficult). I admit we do go out one night a week usually. We don’t have or do a lot of things I regularly read about on CC though.</p>
<p>When I saw our EFC I wondered why I went through the trouble to file the FAFSA.</p>
<p>If you have a lot of assets, especially in cash, it’s not worth filling out and putting your financial information in yet another database.</p>
<p>Except, check the school re impact on merit aid too. At Rice, DD has to file the FAFSA each year to get her merit aid.</p>