''Expected Family Contribution'' (FAFSA)

[barkley]

one mechanism to try to decrease the fasfa is to devour the application paperwork and find out exactly what they consider to be the parent's countable income. some federal aide programs (be it school, medical assistance, public assistance) disregard certain types or portions of earned or unearned income. if a person receives a portion of their earnings as a result of overtime, selling back of leave time or a company bonus or incentive, it should be explored if this is GUARANTEED income or is unanticipated (an example would be a person who works for an employer who has hired them at 40 hours per week at x salary, but works overtime that results in higher earnings-some fed programs will say if it is not guaranteed that the overtime earnings will continue, that income must be considered as exempt). also, if there are extenuating circumstances that are or can be anticipated to occur that change the financial status of the parents-it needs to be explored for how it may impact the financial contribution (if a parent of family member has medical costs-perscriptions, co-pays...-that impact their monthly income it may be higher than the fed program normaly uses as a standard deduction for budgeting, in which case the person may qualify for use of actual expenses). if a parent will be off work for a medical issue at no pay or lowered disability insurance rates, or be off to care for an ill child or family member-proper documentation may result in some consideration for the financial ramifications.

the regulations are screwy for sure, but there are means to work within them. a good financial aide officer can provide tremendous information. i had one co-worker who by virtue of nearly killing herself as a single mom to make the mortgage on her home found that years later when the girls were college age her almost paid off home resulted in them not qualifying for much if anything. the financial aide officer looked at her and new hubby's situation and advised them to do a home equity loan (in order to establish a mortgage) so the girls could qualify for something. they ended up using the money for the college costs that financial aide did'nt cover (but at least they qualified for some) at a lower interest rate than the girls would have qualified for on student loans. her kids were upset that she was taking a mortgage out on the home she had worked so hard to almost pay off, but it was the only way they could feasably attend.

personaly, i'm a big proponant of community colleges and j.c.'s-get all the general ed. stuff done for a much lower cost and spend the big bucks on the classes for the actual major work. i also know some kids who have opted to take entry level government jobs that provide tuition assistance programs-they do their general ed in the evenings/weekends and some take a leave of absence for their 2 years of major work (side benefit is some postions will let you come back for summer breaks and earn extra money).

 

[UnderTheMistletoe]

We're a newly married young couple living in the expense of Annapolis/DC. DH's salary last year reflected DEPARTMENT OF DEFENSE pay and it was still outrageous. They're nuts. They expect you to contribute every cent to educationn after you pay your rent or mortgage, I think. The whole utilities bills, grocery money, and money to support a lifestyle (gas, clothing now and again, or even a nice dinner out and a movie date) is a foreign concept to them.

Be very careful taking out student loans. Some of the interest rates are insane. I checked one and it was around a 13% interest rate! Keep an eye on the variable ones....

 

[Snow Brite]

I am a full-time student and have learned how to FAFSA myself. College is expensive!

The only thing I would say, that hasn't already been covered, is that you can call and request a Change of Status form from your Financial Aid office. If you have had any changes in income, work, number of family members etc, this can help a lot. I also know my financial aid counselor by name (and she me). I call her all the time to see how things are going, if I qualified for this or that...etc. She has been immensely helpful in this regard.

 

[Towncrier]

We were under the false impression that FAFSA would take into account debt as far as figuring out the EFC number. In retrospect, this would not be a fair measure of what a family should be able to pay (although I now wish that we had gone ahead and stayed on track to pay off our mortage by the time our first child was ready for college). We have learned a lot this year, but I doubt that there is anything that we can do to effectively change our EFC in the near or distant future.

 

[arminnie]

So no I don't think the low income people have it worst when it comes to college.

My experience was different. I guess we'll just have to agree to disagree.

I think you are both right. It depends on the school and the quality of the student. Many of the very top schools admit on a need blind basis and commit (often with no loans) that the student will financially be able to attend.
The vast majority of schools (public and private) do not have those resources. It might be financially impossible for an impoverished student to attend his or her own state university. That same student might get a totally free ride to Harvard.

 

[stm61]

I've got a good one for ya'll. I paid for college with student loans, which I paid off myself. My parents had 4 kids in 5 yrs, I was the oldest, and they absolutely could not contribute to anyone's education. Fast forward about 8 yrs, I'm now the single parent of a 1 yr old, working a just over min. wage job and I decide to go back for a teaching certificate. I remember all the low income kids who got free rides with TAG grants and other aid. I figure I can't get much lower income. Fill out all the applications, the govt. says my expected contribution is $5. Great, there's got to be something I qualify for. Wrong! Due to the fact that I already have a degree, even if it's basically useless and I'll get another undergrad. degree, and I received no aid while getting said degree, I am now ineligable for any type of aid! Ended up taking out $27,000 worth of student loans which I am still paying for 9 yrs later. With the interest rates they charge, even with consolidation, I figure I'll be paying them until a few yrs after I retire! At least I ended up in a 2 1/2 yr Master's program, it was cheaper then the 3 yr B.S. program.

 

[mickeysgal]

We were under the false impression that FAFSA would take into account debt as far as figuring out the EFC number. In retrospect, this would not be a fair measure of what a family should be able to pay (although I now wish that we had gone ahead and stayed on track to pay off our mortage by the time our first child was ready for college). We have learned a lot this year, but I doubt that there is anything that we can do to effectively change our EFC in the near or distant future.

DS will be a junior next year. This is new, unchartered territory to us.

Please, someone elaborate on what goes into a FAFSA calculation. If you have a low or no mortgage, does this count for you or against you? If you have a car loan or are driving paid off cars, how does this count? In other words, how does a family with a bit of savings and no bills compare against a family with no savings, mortgaged up to their eyeballs, and driving brand new cars? Does the family scrimping and saving get hit with FAFSA harder than the family living on the edge with all the pretty bells and whistles?

 

[Michie]

our expected family contribution~ an arm and a leg

 

[poohandwendy]

DS will be a junior next year. This is new, unchartered territory to us.

Please, someone elaborate on what goes into a FAFSA calculation. If you have a low or no mortgage, does this count for you or against you? If you have a car loan or are driving paid off cars, how does this count? In other words, how does a family with a bit of savings and no bills compare against a family with no savings, mortgaged up to their eyeballs, and driving brand new cars? Does the family scrimping and saving get hit with FAFSA harder than the family living on the edge with all the pretty bells and whistles?

They do not figure in your income/debt ratio, so it does not matter.

In our case, we did not have enough saved to pay for our DDs college expenses, so having very little debt and no car payments makes it easier for us to afford the monthly tuition payments (in our case, it's about $1000 per month, at a VERY affordable state college- nothing fancy- no ivy ). Actually, I should not say easier...it makes it possible rather than impossible, LOL. If we were 'up to our eyeballs, it's doubtful we could have afforded to be much help.

It's really all about your income, savings and investments. They do not ask any questions about your debts at all. They also do not consider your home in the equation.

You can download the exact questions they ask at www.fafsa.ed.gov

Hope that helps

 

[hooP]

I grew up knowing that my parents hadn't saved anything for my college education (mom was stay at home for most of my childhood, dad was horrible with money.) When my parents divorced when I was 16, it got even worse because mom was making practically nothing, and dad just didn't care.

So... I busted my butt studying for the SAT so that I could ace it and get a full scholarship to UGA, which is where I wanted to go. And I did. I made it through my entire undergrad years staying on scholarship by keeping my grades up. I didn't even have to work!

I took out loans for grad school, though.

Anyway, I think student loans are just a necessary evil for a lot of middle class kids who aren't getting the scholarships and who insist on going to expensive schools. There are worse things in life, though, really.

I just wanted to say that what you've accomplished is awesome. Good for you. You got a scholarship and kept your grades up. You should be really proud of your accomplishments.

 

[mickeysgal]

It's really all about your income, savings and investments. They do not ask any questions about your debts at all. They also do not consider your home in the equation.

You can download the exact questions they ask at www.fafsa.ed.gov

Hope that helps

Thanks for the link. It will undoubtably come in handy.

If its about your income, savings, and investments, then do people that are savers by nature judged harder (i.e. get no financial aid) than those that spend it all and don't save?

 

[bicker]

The object isn't to judge people harder or less hard base on their nature, but rather to evaluate how much money can legitimately be considered available for application toward education. It assesses, dispassionately, a family's ability to afford educational expenses.

 

[Free4Life11]

Back to the FAFSA... we are in the same boat. We don't make over $65K with both of us working but we don't qualify for any financial aid for our son who is a sophomore in college. I know that is plenty to live on and we are very lucky but it is hard to pay for college. We were lucky that we purchased a pre paid tuition plan when he was four. That is helping some!

I believe Stafford loans are for all students, but your FAFSA determines if it is subsidized (government pays interest while in school) or not. Yes it is a loan, but even if it is unsubisided, 4.7% interest (current rate) is very reaonsable. Plus they don't do a credit check for it.

The only federal aid I know of is Stafford Loans (unsubsidize and subsidized), Pell Grants, Work Study, and Perkins Loans.

 

[Free4Life11]

Be very careful taking out student loans. Some of the interest rates are insane. I checked one and it was around a 13% interest rate! Keep an eye on the variable ones....

You got that right. My Wells Fargo one is at 11%.

I have searched high and low though: where or where can I find a fixed rate loan?? I have looked EVERYWHERE and can't find a single bank or institution that offers a fixed interest student loan.