Need advice regarding EFC/amount to provide

Paying for College
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<p>Estimated EFC is $24,000 which is about what we had figured. Problem is D was "crashing" at local public school so we moved her to expensive private school sophomore year. It's worked great but . . .$50,000+ gone. We figure we can continue to provide $18,000 per year for the next four years --- maybe a bit more (we have another child to educate and are facing retirement). </p>

<p>Certainly she can attend regional college for this amount but she is looking at small LAC with COA around $40,000+. Is there any hope for her to do that? She has some possibility of limited merit aid (ACT 30; unwtd GPA around 3.6 with lots of APs). We want her to have some "skin in the game" but don't want to saddle her with unreasonable loans. </p>

<p>Advice? Recommendations? Thoughts?</p>

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<p>If merit aid is a possibility she’ll just need to apply and see what she might be offered. If you can supply 18K per year, and she’ll be able to take out a Stafford loan for $5500 her freshman year ($6500 sophomore, $7500 junior & senior years), for her freshman year that would get her up to $23500. If she worked in the summers earning, say, $2000 she could contribute, you’re up to $25500… but that’s still quite a gap to close and I don’t think you’ll want her taking out more than the Stafford limits for loans.</p>

<p>It will all depend on the merit aid and the potential for that will be higher at schools where her stats put her in the top tier of admitted students.</p>

<p>It’s great that you have the ability to put her through a public university. At least she’s not going to be in the very difficult position of not knowing how she’ll get through college at all… unfortunately so many students are.</p>

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<p>You might consider a small LAC that provides need based aid…which may surprise you with an aid package that fits your expectation of COA.</p>

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<p>If you can supply 18K per year, and she’ll be able to take out a Stafford loan for $5500 her freshman year ($6500 sophomore, $7500 junior & senior years),</p>

<p>There’s a problem with the above scenario…</p>

<p>MOST schools will put student loans in the FA package, so a student loan can’t also go towards EFC. However, if the school is one of the **rare **ones that doesn’t put loans in the FA package, then it’s possible. </p>

<p>Which school is this?</p>

<p>A small amount of merit aid will NOT reduce your EFC…it just gets applied to “need”.</p>

<p>For instance, if COA is $45k, and your EFC is $24k, then your need is $21k.</p>

<p>So, if she were given $5k in merit, it would go towards that $21k in need. </p>

<p>To reduce your EFC, the merit scholarship would have to be much bigger. If the merit scholarship was $20k, then your need would be $1k. So, then your D could cover that $1k with summer earnings and take out a student loan of $5500 and put towards your EFC.</p>

<p>She has some possibility of limited merit aid (ACT 30; unwtd GPA around 3.6 with lots of APs).</p>

<p>With an ACT 30, there are schools that will give her merit.</p>

<p>What is her likely major?</p>

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<p>Any chance the private high school would provide a bit of aid so you can preserve the college fund or is she a senior this year? </p>

<p>I would look at no loan schools, schools with good merit, maybe some smaller publics and be sure to include financial safeties. I would also consider having her take a few classes this summer after checking on transfer requirements. With some APs and a couple of summer classes at a local college, she may be able to graduate a semester early which could save $10K right there. She may also want to look into being an RA in a few years. It’s not usually available for freshman and it can be quite competitive but it offers free room usually.</p>

<p>Frankly, I found that our EFC varied by quite a few thousand dollars so even though the calculator said one number, schools varied in what they expected. Is that $24K based on an IM calculator or is that FAFSA EFC?</p>

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<p>Reasonably up-to-date information: <a href=“http://talk.collegeconfidential.com/financial-aid-scholarships/848226-important-links-automatic-guaranteed-merit-scholarships.html[/url]”>http://talk.collegeconfidential.com/financial-aid-scholarships/848226-important-links-automatic-guaranteed-merit-scholarships.html&lt;/a&gt;&lt;/p&gt;

<p>Merit aid research strategies:
<a href=“http://talk.collegeconfidential.com/parents-forum/291483-update-what-i-learned-about-free-ride-scholarships.html[/url]”>http://talk.collegeconfidential.com/parents-forum/291483-update-what-i-learned-about-free-ride-scholarships.html&lt;/a&gt;
<a href=“http://talk.collegeconfidential.com/parents-forum/148852-what-ive-learned-about-full-ride-scholarships.html[/url]”>http://talk.collegeconfidential.com/parents-forum/148852-what-ive-learned-about-full-ride-scholarships.html&lt;/a&gt;&lt;/p&gt;

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<p>m2ck, I’m not sure what you’re asking. The OP said she could contribute 18K, and I was merely pointing out that her daughter could get 5500 in an unsubsidized Stafford, which added to the 18K would get them to 23500. There is no “problem with that scenario” except that it isn’t enough money for a 40K school. I think you’re making what I posted into something more complicated than it was.</p>

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<p>*I’m not sure what you’re asking. The OP said she could contribute 18K, and I was merely pointing out that her daughter could get 5500 in an unsubsidized Stafford, which added to the 18K would get them to 23500. *</p>

<p>I think you misunderstood.</p>

<p>If the FINANCIAL AID PACKAGE already has $5500 in a Stafford loan (which most FA packages would have), then the student can not borrow $5500 to put towards the EFC.</p>

<p>If the aid package includes a $15k grant and $5500 in student loans, then HOW can the student also borrow $5500 to put towards EFC???</p>

<p>Some parents make that mistake. They think that their child can help with EFC with a Stafford loan, but then they find out that the FA package already has a $5500 loan in it. However, a loan towards EFC can work IF the school is a “no loan” school (which few schools are).</p>

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<p>mom, I don’t think 'rent was saying, “Take out a loan to fill the gap so your kid can go to a $40K private school.” I think 'rent was saying, “Your money plus loan should get your kid enough money to go through a public college.” I had to read it twice but I think the last paragraph clarified. :slight_smile: </p>

<p>In other words, you’re both right but were talking about different things. 'Rent wasn’t talking about aid at all and you were talking about aid packaging.</p>

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<p>Wait, what? If the OP – the parent is already giving her $18k, where is this $15k + $5500 student loan thing coming from? She is using $18k of her own money + $5500 in Stafford loans, a perfectly reasonable plan for most public universities even if she doesn’t get any other aid.</p>

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<p>Maybe I misunderstood, but it looks to me that 'rent is addressing the EFC shortfall. I know that if “need” is met thru merit, THEN a student loan can help with EFC. :)</p>

<p>The EFC is $24k and the family can only pay $18k - so a shortfall of $6k in EFC. It looks like 'rent is saying that most of the EFC shortfall can be met with a $5500 student loan (*get her up to $23500. " *</p>

<p>I was just saying that since most FA packages already have loans in them, a loan can’t also be taken to help meet EFC.</p>

<p>I didn’t want the OP to make the same mistake that many families make…thinking that a $5500 student loan can drop their EFC by that amount. </p>

<p>A friend’s child goes to Cornell. They thought that their child could take a student loan and a part time job to reduce their family contribution by about $9-10k to make it affordable for them. They sadly found out that the aid package already had a student loan and work-study in it, therefore they couldn’t really expect any help from their D to pay for family contribution.</p>

<p>It’s all very confusing…parents sometimes think a merit award can be applied directly to EFC or they think a student loan will get applied towards EFC, yet neither will happen if those moneys are needed to meet need.</p>

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<p>*te:
If the aid package includes a $15k grant and $5500 in student loans, then HOW can the student also borrow $5500 to put towards EFC???</p>

<p>Wait, what? If the OP – the parent is already giving her $18k, where is this $15k + $5500 student loan thing coming from? She is using $18k of her own money + $5500 in Stafford loans, a perfectly reasonable plan for** most public universities **even if she doesn’t get any other aid. *</p>

<p>I was addressing her D’s interest in a private LAC that costs over $40K per year with a chance of some merit. The family already knows that they can cover a public. Certainly she can attend regional college for this amount</p>

<p>And…with the D’s stats, there are some OOS publics and some privates that might give her enough merit to end up costing $18k or less. :)</p>

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<p>Wow . . . I very much appreciate the insights. I’ve decide the college search is like another full time job!</p>

<p>Yes, we can afford a public regional and she has the financial safety lined up but it is not what she wants (and probably not what she needs — she will do better in a very small, focused environment with relationships between faculty and students). </p>

<p>She is a senior and for major . . . well, maybe mathematics or mathematics education; maybe psychology.</p>

<p>She is preparing applications for 5 LACs she has visited (all in the south – she is ready to escape winter) and while several have indicated she will probably be eligible for support, it all seems a bit mysterious to me.</p>

<p>I think I understand better about the EFC now (very helpful clarifications) and yes, we did the FAFSA forecaster to get the number.</p>

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<p>Derbydone, The calculators often have two “efcs.” The FAFSA efc only tells you the number used to determine if you qualify for federal grants. You don’t. The “institutional methodology” estimate tells you what private schools who rely on Profile are likely to think you can contribute (before loans and work-study). It is usually more than the FAFSA efc because it takes additional factors like home equity into account. So if your $24K was based on a fafsa efc, you should run the figures again so you have a better estimate.</p>

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<p>^^^</p>

<p>Very good point. Some people find that their “CSS family contribution” is significantly higher than their FAFSA EFC.</p>

<p>Also, I wouldn’t automatically discount larger schools. Many assume that large schools mean impersonal and large classes, and that small schools mean personal and small classes. That isn’t necessarily true. </p>

<p>And, at larger schools that have honors colleges, you can get the best of both worlds.</p>

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<p>Have you looked at any public LACs? These might fit the bill nicely with their smaller size and lower costs. What state(s) is she interested in?</p>

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<p>Derbydone, I sent you a private message. Just click on the link in the right-hand corner to read it.</p>

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<p>ugh, more bad news, huh? So I need to do this Institutional Methodology – I have just heard about that recently. I will have to steal myself and do that.</p>

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<p>She wants warmth but not particular about the state. She did look at New College (FL) and liked it but was there when students were not, so has limited info.</p>

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<p>Here’s a list of public liberal arts colleges. I know it’s not all of them but maybe this is a place to start:</p>

<p>[COPLAC</a> | Council of Public Liberal Arts Colleges](<a href=“http://www.coplac.org/members.html#smcm]COPLAC”>http://www.coplac.org/members.html#smcm)</p>

<p>Some others: </p>

<p>College of Charleston
College of New Jersey
College of William & Mary</p>