Paying the EFC

Paying for College
1

<p>Hello,</p>

<p>My D got accepted into GW and BU. We are waiting for the financial aid package from GW. But BU met most of her $54K need through grants ($48K) and loans/work study ($6K). My EFC is about $10K.</p>

<p>If I am unable to come up with the money to pay this right away, what options do I have? I know BU for example can help schedule monthly payments - say around $900, but that will stretch our household finances?</p>

<p>I understand we can take a Direct Loans to help pay. Is this a viable option ? Any caution about regarding this, in terms of interest rates, repayment etc, since it is going to be in my name?</p>

<p>Also, I just bought a house - do I have to inform FAFSA and the college about a change in my financial circumstances ? How would that affect my D's financial aid and our EFC?</p>

<p>Thanks - PS</p>

2

<p>Your mortgage won’t affect your FAFSA, but may affect the CSS Profile–which cannot be edited, like the FAFSA. You might try contacting them. But if you put a down a big downpayment, some schools would expect you to borrow against that equity. The federal loans will leave your child with about 27K in debt after 4 years, which is reasonable to pay off, given a decent job. There is no ceiling for private loans. Be careful of saddling yourself and your kid with crushing debt. </p>

3

<p>I would suggest you check your (identical) post in the financial aid section. There are more answers there.</p>