Net Price Calculator results - a little confused?

Paying for College
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<p>I used the net price calculator for four different colleges that I applied to, and these are my results:</p>

<p>College A:</p>

<p>Cost of attendace: $57,650
EFC: $1,760
Grant: $50,490
Employment: $1,900
Loan: $3,500</p>

<p>Family contribution after all aid = $1,760</p>

<p>COLLEGE B</p>

<p>Cost of attendance: $58,343
EFC: $3,803
Grant: $40,190
Employment: $3,100
Student Loans: $5,700
Pell Grant: $5,500</p>

<p>Family contribution after all aid = $3,803</p>

<p>COLLEGE C</p>

<p>Cost of attendance: $56,400
EFC: $2,050
Grant: $42,350
Pell Grant: $5,500
FSEOG: $1,000
Loan: $5,500
Work Study: $2,000</p>

<p>Family contribution after all aid = $50</p>

<p>COLLEGE D</p>

<p>Cost of attendance: $56,275
EFC: $11,581
Grant: $42,850</p>

<p>Family contribution after all aid = 13,425</p>

<p>COLLEGE E</p>

<p>Cost of attendance: $52,020
Grant: $25,565
Loan: $5,500</p>

<p>Family contribution after all aid = $20,955</p>

<p>Obviously there is a huge difference between what I was offered at colleges A, B and C than D and E. I am assuming that this is because D & E do not ask for adjusted gross income. Why don't these schools consider such vital information in determining need? By doing this, they may prevent me from receiving up to $5,500 in Pell Grants, right? I filed the FAFSA last year and my EFC was was almost exactly what College A would offer me. Could someone explain this to me?</p>

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<p>Schools awarding their own institutional aid can use ANY formula they choose to do so. This is why you are seeing a huge variation from school to school.</p>

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<p>deleted - misread OP</p>

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<p>*Obviously there is a huge difference between what I was offered at colleges A, B and C than D and E.</p>

<p>**I am assuming that this is because D & E do not ask for adjusted gross income. **Why don’t these schools consider such vital information in determining need? </p>

<p>By doing this, they may prevent me from receiving up to $5,500 in Pell Grants, right? I filed the FAFSA last year and my EFC was was almost exactly what College A would offer me. Could someone explain this to me?
*</p>

<p>You won’t be prevented from receiving Pell if you deserve Pell. Pell will be based on your FAFSA.</p>

<p>Are you saying that your FAFSA EFC is about 1700? If so, then you’ll get a Pell grant. It won’t be for 5550, unless your EFC would not be 0. </p>

<p>* **I am assuming that this is because D & E do not ask for adjusted gross income. **Why don’t these schools consider such vital information in determining need?
*</p>

<p>??? What do you mean? Are you saying that the NPC for schools D and E didn’t ask about any family income info? Or did it just ask if you knew your EFC and you put that in? If so, then it probably doesn’t need income info to give an estimated NPC.</p>

<p>What did those NPCs ask?</p>

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<p>College C looks awesome :)</p>

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<p>*COLLEGE D</p>

<p>Cost of attendance: $56,275
EFC: $11,581
Grant: $42,850</p>

<p>Family contribution after all aid = 13,425</p>

<p>*</p>

<p>this probably wouldn’t be as bad once they add in a 5500 student loan and any Pell grant. Although, maybe they reduce THEIR grant once a Pell Grant is awarded.</p>

<p>Is one of these schools Occidental? Can you say which school is which? </p>

<p>These seem to be mostly 100% need met schools. Are they?</p>

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<p>

</p>

<p>Mom2collegekids, all colleges ask, “How much did your parents earn in wages, salaries, and tips in the most recent tax year?” Only A, B, and C asked for my parents’ AGI. </p>

<p>Every school calculated my EFC using their own formula. I filed FAFSA last year and just double checked my EFC: $1,117.</p>

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<p>I know College D is committed to not offering loans, but I was under the impression that what would be loans are automatically allocated to grant money.</p>

<p>College B is Occidental.</p>

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<p>College D may be committed to not offering loans to meet need, but you can still get one for 5500 to help pay for EFC.</p>

<p>That said, they’re being disengenuous with their “commitment” if they’re low-balling you and determining your need as being much less than the other schools - essentially forcing you to take out loans to pay your highly estimated EFC. </p>

<p>*but I was under the impression that what would be loans are automatically allocated to grant money.</p>

<p>* </p>

<p>Yes and no. Yes, they give grants instead of loans. No, you can still GET a student loan to help with their over-estimation of your EFC. They’re playing smoke and mirrors. </p>

<p>The point is, you can still ask for a student loan to help meet your EFC. You can also ask for some work-study.</p>

<p>Since your EFC is not 0, you won’t get full Pell. You’d get less than 5550.</p>

<p>What are the other schools???</p>

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<p>Thanks for your explanation.</p>

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<p>Does anyone know why colleges D and E do not ask for AGI, when it is a more accurate way to determine how much a family can afford? The difference between the schools who use AGI to determine FA awards and those who don’t is huge.</p>

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<p>OP I am wondering why your AGI is so much different than income? The AGI comes from the 1040 tax return line 27. This amount is usually gross - any untaxable deduction taken directly from your paycheck (typically health insurance & retirement). Your taxable income (1040 line 43) is after you deduct exemptions, itemized/standard deduction etc. The taxable income is often thousands less than your AGI. Are you using the correct value for the AGI? Also the NPC will add back in any contributions to retirement.</p>

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<p>mom2collegekids, in my experience, the calculators already add in federal aid, so the loans (when applicable) and Pell wouldn’t be in addition to the aid, but part of it.</p>

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<p>NewEnglandMother,</p>

<p>My mother is self-employed. The answer to “Estimate your parents’ 2011 wages, salaries, and tips using their 2011 pay stubs and 2010 IRS Form 1040, line 7.” is about $80,000 higher than my parents’ net income, with the AGI being about $2,000 lower than that. Does this make sense?</p>

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<p>ca87 - Two very important things to note. The self employed person does not get an accurate reading from an NPC. The second is that the CSS Profile (typically) adds back many of the deductions self employed people are allowed to take for tax purposes. Your NET income is not used for any financial aid calculations. I am not sure what you mean by Net Income - do you mean taxable income (Line 43?). Do not use Net Income for any Financial Aid Calculators. Your AGI can be found on line 37. It makes no sense that your AGI is $82,000 less than your income. I would re-run the NPC for schools A-C using the income (from pay stubs) and you will probably get a more accurate number.</p>

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<p>I think by net income I meant “income from work,” which is $2,000 higher than AGI. Both of these are asked on the FAFSA.</p>

<p>The profile asks to estimate your parents’ 2011 wages, salaries, and tips using their 2011 pay stubs and 2010 IRS Form 1040, line 7." This is over $80,000 higher than our AGI. Does this make more sense? There must be a difference between the question the profile asks and “income from work (FAFSA),” right? Or did my parents completely misunderstand the question?</p>

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<p>How is the AGI $80k less than their gross income? What are you subtracting that is worth $80k? If that $80k difference is due to self employment deductions (allowed for tax purposes) then those allowances will most likely be added back by schools that use the CSS Profile. So in order to get an accurate Net Cost in the NPC you should input the actual gross income (from paystubs etc). Many self employed/business owners have discovered this when they get the final financial aid award. Try running the calculators with the gross income. That is more accurate for your situation. Most people that work as employees don’t have such large deductions from gross income to establish AGI and therefore the NPC is more accurate for them. I suspect if your allowable deductions are that large ($80k) then your EFC will be more like $40 - $50k.</p>

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<p>I’m guessing that my parents can write a lot of things off for business expenses? On the FAFSA, they don’t even ask for “parents’ 2011 wages, salaries, and tips using their 2011 pay stubs and 2010 IRS Form 1040, line 7, (on CSS)” only net income and AGI. The highest figure on my fafsa is in the mid $30k range, which is why I have such a low FAFSA EFC. </p>

<p>There is no way my EFC can be $40-$50k. Does this make a little more sense?</p>