<p>So I've been wanting to go to the the University of Chicago for awhile now, but recently I realized my financial situation is gonna make it a little difficult. Since we really dont make that much money, a small decrease in aid of just one or two thousand dollars a year would affect us pretty hard. So what I want to ask is if my Expected Student Contribution is $1,980, which I was planning to work for over the summer, would that increase in EFC be taken into account by the school or would they see it as a profit and raise my tuition, which I would think is pretty silly considering that they are asking me to work.</p>
<p>Normally a student contribution is separate from EFC. From the awards I have seen with a student contribution, EFC is subtracted from COA and what remains is need. The student contribution would be considered part of meeting the need along with loans, grants, and scholarships. Depending on the school, they may do things differently.</p>
<p>UChicago does do things differently from other schools in terms of student contributions. Read exactly what they say on their website. Are you an accepted student who already has a package from UC or are you planning to apply to the school later this year? </p>
<p>Chicago has certain expectation in student contribution that are based on the initial numbers the student reports for financial aid and they carry forward for future years, if I remember correctly. This is something a bit unusual, so you need to read up on it, call financial aid with questions about the policy if there is anything not clear, and understand it well if you want to apply.</p>
<p>a student can earn up to about $5k without any affect on EFC.</p>
<p>So, you’re good!</p>
<p>The trick is…don’t have that money sitting in savings when you file FAFSA next year. Don’t blow it, but use it to pay for college stuff.</p>
<p>
Actually the income protection allowance is $6K. And don’t have the money sitting in the student’s checking OR savings as they will be expected to contribute 20% of that towards the EFC. Much better to put it in the parent’s account if necessary as it’s only a 12% hit assuming they are even over their asset protection allowance.</p>
<p>Thanks for the update.</p>
<p>I think if the money is in parents’ acct (over allowance) then the expected contribution is between 5-6%</p>
<p>According to the FAFSA worksheet, the asset conversion rate for the parents contribution over income protection allowance is .12 (see item 23 on page 9).</p>
<p><a href=“http://www.ifap.ed.gov/efcformulaguide/attachments/010512EFCFormulaGuide1213.pdf[/url]”>http://www.ifap.ed.gov/efcformulaguide/attachments/010512EFCFormulaGuide1213.pdf</a></p>
<p>Is that an increase? It’s been commonly reported that the amount is about 5.6%. Was that always wrong or has there been a change?</p>
<p>wow…to expect 12% for 4 years straight seems high.</p>
<p>Contribution from assets is just one factor, that with AI (Available Income) are added together resulting in the AAI (Adjusted Available Income) and a portion of that total is what creates the parent EFC. This is reduced by multiple kids in college. The bottom line is adding it to the parent is still better as only a portion would affect EFC (if it all as the parent’s asset protection allowance may exceed that amount). A student’s savings or checking account total is a straight 20% number added right to the EFC.</p>
<p>Mom2 - no, it is still 5.6%. </p>
<p>12% of Parent assets over the protected allowance are added to parent’s available income to give adjusted available income (page 9 of the EFC formula). Then the formula uses adjusted available income and the table on page 19 to calculate the total parent contribution. The maximum % of AAI that goes to the EFC is 47%. 47% of 12% = 5.64%</p>
<p>Swimcat…thanks…glad to hear it’s still 5.6%.</p>
<p>Not that it matters at a PROFILE school. They can use whatever formula they please. Many stick close to the FAFSA numbers, but some do not. I know UCh has some policies that are a bit unusual but spelled out on their finanical aid site. Many schools have their own policies that they do not share with applicants.</p>