FAFSA question...

[indimom]

I just completed my fafsa (going back to school and nearly 40 ) and a question or two occurred to me...

1. When I completed the application, it gave an EFC number which it states is NOT a dollar amount for what we are expected to contribute. Anyone know what these numbers mean??

2. Also, when completed, it listed an amount I "may be" eligible for in loans. Is this a total loan amount (for the two-year associates degree I included in the application), an annual amount, OR an amount just for the first year (do I reapply every year with new/updated information from our tax return??)... I'm guessing annual, but want to be sure.

Boy, do I feel green. At least by the time my kids head to college in a few years, I'll be a pro.

Speaking of my kids... one more question that came to mind while I was completing the application...

I had to create a pin to access my fafsa online. I noticed while filling out that section that it appears parents of minors who are heading off to college have to have a pin when their children apply (both parent and student need a pin it appears). Since I just got one for myself as a student, will I use this pin in four years when my daughter heads off to school? Or will I have to get a new one then since this is a "student pin" as opposed to a "parent's pin"?? Just wonderin'...

Thanks for the help.

 

[lulamc]

Hi, I can help. I'm a financial aid director at a private univeristy in Houston, TX. Answers below

I just completed my fafsa (going back to school and nearly 40 ) and a question or two occurred to me...

1. When I completed the application, it gave an EFC number which it states is NOT a dollar amount for what we are expected to contribute. Anyone know what these numbers mean??

A. Schools use the EFC to see how needy you are... For example, if a school's total cost of attendance (which includes direct and indirect costs, like books and transportation) is $20,000 and your EFC is $10,000, you have financial need of $10,000. If a school's total cost of attendance is $12,000 and your EFC is $10,000 you have financial need of $2000. Schools will try to award you based on the determined need.

2. Also, when completed, it listed an amount I "may be" eligible for in loans. Is this a total loan amount (for the two-year associates degree I included in the application), an annual amount, OR an amount just for the first year (do I reapply every year with new/updated information from our tax return??)... I'm guessing annual, but want to be sure.

A. Not sure what FAFSA showed you, but here are the annual loan amounts, for an independent student:

Freshman: 3500 Subsidized, 6000 Unsubsidized
Sophomore: 4500 Subsidized, 6000 Unsubsidized
Junior and Senior: 5500 Subsidized, 7000 Unsubsidized

There are aggregate loan limits too, but since you're just starting you won't need to worry about that!

Boy, do I feel green. At least by the time my kids head to college in a few years, I'll be a pro.

Speaking of my kids... one more question that came to mind while I was completing the application...

I had to create a pin to access my fafsa online. I noticed while filling out that section that it appears parents of minors who are heading off to college have to have a pin when their children apply (both parent and student need a pin it appears). Since I just got one for myself as a student, will I use this pin in four years when my daughter heads off to school? Or will I have to get a new one then since this is a "student pin" as opposed to a "parent's pin"?? Just wonderin'...

A. You have just one PIN to keep track of. It's your PIN when you or the kids file FAFSA.

GOOD LUCK!

Thanks for the help.

 

[indimom]

Thanks lulamc!
I knew I was posting in the right place. That was quick!

 

[SandrA9810]

Fafsa is filed annually, and you need to do it before March for the following school year. So in January you want to resubmit your FAFSA based on your new w-2. It saves all of your information, so you just have to double check and make sure everything is still the same as the previous year. I think it took all of about 5 minutes to file it this year.

 

[Magix]

OP - If it makes you feel any better, I'm 43 and just filled out my FAFSA last night. Thank goodness I realized it had to be filed by Mar 2 in my state! Just got word that I've been accepted to the MA program I applied to in England, so thought I'd better get right to work on loans!

I figured the EFC number was a coded number for the university to reference, which provides them with the pertinent info. No idea, really. I'm gonna need a LOT of money to do this 1 year MA program, when I figure in exchange rates. Holy cow! Hope I can get a graduate PLUS loan on top of the Stafford loan it indicated on my FAFSA info.

 

[msimatovich]

lulamc, I am hoping you can help me with this question...(by the way sorry not meaning to highjack this thread!)

Little background...3 stepchildren my husband has joint custodial/physical custody...we do have them exactly 50% of the time...he does pay a little child support to his ex-wife. The ex-wife does have another child so 4 total for her...we (my husband and I ) have 3 children together also so 6 total for us. The oldest (stepson) will head off to college this fall. Currently I am attending school full-time and my husbands ex-wife is attending school(she is getting a certificate program that will be done this May).

$$$ stuff...My husband works full -time and I work part-time. His ex-wife is unemployed. She does receive some rental income though as well as child support. We rent and do not have any assests. ( I do receive some grants for school) His ex-wife does own her home and has some rental proporties.

I have read all the rules on who should be the "primary" parent for the FASFA and truely either could. Paying for my stepsons college will be hard for us but since we want to make sure he has the opportunity we are willing to.

Which parent should be primary so that he can receive the best aid package possible? Also once that parent is primary should that parent continue to be primary the entire time even if situations change?

THank you for all your help in advance!

 

[ctinct]

Fafsa is filed annually, and you need to do it before March for the following school year. So in January you want to resubmit your FAFSA based on your new w-2. It saves all of your information, so you just have to double check and make sure everything is still the same as the previous year. I think it took all of about 5 minutes to file it this year.

Different schools have different deadlines; sometimes there are even different deadlines for new vs returning students at the same school.

 

[lulamc]

Okay - I'll do my best. FAFSA says whichever parent supports the student more than 50% of the time should complete FAFSA. If you truly can't determine which parent that is, and it is really 50/50, student will have to choose one family's income to put on FAFSA. If the student picks mom, sounds like it will be just her financial info. If student picks dad, it will be dad and your (stepmom) info on the FAFSA. If the support is truly 50/50, I'd pick the parent with the smallest income.

The school will create a financial aid package, and anything that isn't covered will need to be paid with payment plan, parent loan, or any other plan the college offers. This is where the students parents will need to work together to see who covers what.

Hope this helps.

lulamc, I am hoping you can help me with this question...(by the way sorry not meaning to highjack this thread!)

Little background...3 stepchildren my husband has joint custodial/physical custody...we do have them exactly 50% of the time...he does pay a little child support to his ex-wife. The ex-wife does have another child so 4 total for her...we (my husband and I ) have 3 children together also so 6 total for us. The oldest (stepson) will head off to college this fall. Currently I am attending school full-time and my husbands ex-wife is attending school(she is getting a certificate program that will be done this May).

$$$ stuff...My husband works full -time and I work part-time. His ex-wife is unemployed. She does receive some rental income though as well as child support. We rent and do not have any assests. ( I do receive some grants for school) His ex-wife does own her home and has some rental proporties.

I have read all the rules on who should be the "primary" parent for the FASFA and truely either could. Paying for my stepsons college will be hard for us but since we want to make sure he has the opportunity we are willing to.

Which parent should be primary so that he can receive the best aid package possible? Also once that parent is primary should that parent continue to be primary the entire time even if situations change?

THank you for all your help in advance!

 

[ColoradoMom!!]

Finally finished ours - I figured it was a waste of time, and I think I was right. I don't understand the EFC - it is over 25% of our annual income. We don't have hardly any savings accounts or any other $$ out there in any form. How can we contribute 25% of our annual income. I wonder if I did something wrong.

 

[Trishtack]

OP the EFC is the Expected Family Contribution. It is determine by a complicated formula devised by the Dept. of Education. In theory it is how much money you should be able to pay towards your education based on your income for the prior year, your household size, the number of members in college, etc. In special circumstances the EFC can be adjusted if there was job loss, extraordinary expenses, or special circumstances. You didn't state what your EFC was but if you feel it was unreasonable based on circumstances, you can talk to your Financial Aid Department.

In addition to what lulamc stated, the EFC is also used to determine how much if any PELL grant eligibility you have. For example, a student with an EFC of $0 who does not have a Bachelor's degree already and is enrolled full time, may have PELL Grant eligibility of $5,550 per academic/award year. It is on a sliding scale thereafter.

I am a Director of Financial Aid for a private school in Kentucky and we have student of all ages just starting! Never fell bad about asking and I am so happy to answer any questions. The more informed you are, the better decisions you will make!

Best of Luck to you.

 

[Trishtack]

Colorado Mom - It is a theoretical amount based on income, household size, assets, number of members in college, etc. Please have the Financial Aid Department take a look at what you entered on the FAFSA. 25% is a rather large amount to see. How many are in your household?

Also, did you have any significant changes to your income last year?

 

[clh2]

Finally finished ours - I figured it was a waste of time, and I think I was right. I don't understand the EFC - it is over 25% of our annual income. We don't have hardly any savings accounts or any other $$ out there in any form. How can we contribute 25% of our annual income. I wonder if I did something wrong.

Nope you probably filled it out correctly - Ours is a pretty high percentage and a scary $$$ amount too.

 

[Trishtack]

msiamatovich - I would recommend the mom and you compare EFC's based on your FAFSAs. Although a primary home does not count towards the EFC calculation, rental properties (and rental income) must be declared. IF the custody is a true 50/50 then you have the luxury of choosing which parent files the FAFSA. I would recommend going with the family with the lowest EFC from the last FAFSA unless income has increased significantly.

 

[mama2ella]

funny that OP is asking these ?'s as I have been wondering about this too.

I have a B.S. but want to go back to get my LPN license and eventually BSN. I filled out the FAFSA and of course I am not eligible for a Pell Grant b/c I have a degree. Is my next step to go to the school and see what grants/scholarships they have??

 

[tinkmom2]

Congrats! I am 39 and am currently in school My EFC (Expected Family Contribution) was around 900. My school used that to determine my need. In my case my Grants covered my tuition, and books. I also had a loan which is going towards my living expenses as I have to work reduced hours to study and go to school.

That pin number you get you will need to access your information again and apply in the future for aid so make sure you know it. (There is a way to retrieve it though)

You should generally fill out the FAFSA as soon as you get your taxes done. But you can file up until you go to school. (I wouldn't recommend that though because Federal Grants go fast) I received 2 grants and a loan I like going to school so much I am considering going for a different degree than the one I am in now.

When you kids go to school they will have their own pin numbers and will most likely apply their senior year in high school.

They do offer scholarships for almost anything you can think of. Your schools' website should have a link to a website where you can apply.

 

[Patience]

I know filling out the FAFSA was pretty much a waste of my time, although it didn't really take as long as I thought it would. Our EFC is significantly higher than the cost of attendance and we are not planning to accept the unsubsidized Stafford loan ($5500?). After debating and debating, I finally decided to file one anyway because the Financial Aid office at the college where my daughter will be a freshman this fall stated it would be best to have a FAFSA on file in the event of some big change in our finances (death, disability, job loss, etc.) during the school year. If we didn't have one on file, they wouldn't be able to help. Death is not really an issue because of our life insurance but I decided to file one in the event of some other major change in finances. Better safe than sorry, I guess.

 

[DebMcDonald]

I know filling out the FAFSA was pretty much a waste of my time, although it didn't really take as long as I thought it would. Our EFC is significantly higher than the cost of attendance and we are not planning to accept the unsubsidized Stafford loan ($5500?). After debating and debating, I finally decided to file one anyway because the Financial Aid office at the college where my daughter will be a freshman this fall stated it would be best to have one on file in the event of some big change in our finances (death, disability, job loss, etc.) during the school year. If we didn't have one on file, they wouldn't be able to help. Death is not really an issue because of our life insurance but I decided to file one in the event of some other major change in finances. Better safe than sorry, I guess.

We had the same thing happen to us, our EFC is far above the cost of the eduction, no where did it take into consideration that we are very upside down on our house, we do own a second house, but according to our taxes that was a loss too. The worst part is this is my husband's step-daughter and all his saving is being taken into consideration. Now, my husband doesn't think that way, he's been in my DD's life since she was 2 and her father does pay bare minimum for child support, but it won't pay a dime for college because "he doesn't feel she needs college", but clearly where they think we can come up with $32,000 a year is beyond me. What also isn't taken into consideration is that three years ago my husband got laid off and we're living on less than half his previous income nor the fact that our house is worth half of what we paid for it.

 

[natfrac]

We had the same thing happen to us, our EFC is far above the cost of the eduction, no where did it take into consideration that we are very upside down on our house, we do own a second house, but according to our taxes that was a loss too. The worst part is this is my husband's step-daughter and all his saving is being taken into consideration. Now, my husband doesn't think that way, he's been in my DD's life since she was 2 and her father does pay bare minimum for child support, but it won't pay a dime for college because "he doesn't feel she needs college", but clearly where they think we can come up with $32,000 a year is beyond me. What also isn't taken into consideration is that three years ago my husband got laid off and we're living on less than half his previous income nor the fact that our house is worth half of what we paid for it.

From what I remember (it's been 17 years), the EFC also included cost of living. I remember my EFC being much higher than I actually had to contribute, due to living in an area with a lower cost of living.

We're also upside down on two houses and I know how tough that is. We had to move near my husband's doctors just as the market was tanking. We couldn't sell for what we owe, so we now rent it out at a loss each month. We bought a condo at our new location thinking prices wouldn't go any lower---but we were wrong. But because I have a decent job, my step-daughter will have to use her mother's information when filing for financial aid. Otherwise, she'd get only loans.

 

[Patience]

From what I remember (it's been 17 years), the EFC also included cost of living. I remember my EFC being much higher than I actually had to contribute, due to living in an area with a lower cost of living.

We're also upside down on two houses and I know how tough that is. We had to move near my husband's doctors just as the market was tanking. We couldn't sell for what we owe, so we now rent it out at a loss each month. We bought a condo at our new location thinking prices wouldn't go any lower---but we were wrong. But because I have a decent job, my step-daughter will have to use her mother's information when filing for financial aid. Otherwise, she'd get only loans.

I could be wrong but I don't think the FAFSA or the EFC takes cost of living into account at all. Maybe some of the financial aid counselors here can chime in on that?

 

[maggiew]

They also don't expect you to be paying for college out of just this year's paychecks. They expect that you have been saving all along. So even though your EFC might be 25% of your current yearly income, they don't think you will actually be spending 25% of your income.

Maggie