Understanding FAFSA Anticipated Family Contribution

[Aurora D]

Thanks everyone for the information. I guess we'll just wait to see what kind of financial aid packages the colleges send. I was just hoping to get a heads up on actual cost. My daughter realizes she is going to have a lot of loan debt at the end of all this. My husband and I have no retirement savings. Luckily I'm a teacher and will hopefully get a pension. (Our new governor is trying to limit that, so we'll see). My husband didn't go to college and I went part time for twelve years while working and taking care of the kids before getting my degree at age 30, so we really want DD to have the experience and become all she is capable of.

 

[msmayor]

Yes we've already told her that, hopefully it will sink in. She will need to take
a vested interest (financial and otherwise) in her education and take it alot more seriously than she is now before we make any major $$ committments.

Its a tough lesson for them to learn sometimes. My DH and I were lucky that our daughter "got it" pretty quickly as college approached.

She didn't turn 18 until one month before she left for school, and unfortunately that made her too young for many jobs (most here require you to be 18). We made it VERY clear that all books, supplies (she's an art/design major) and 'fun money' was on her. We only had the resources to cover tuition, room and board. She had to rely on whatever she had saved up to that point plus whatever graduation money she got.

In addition, she was awarded a merit scholarship that requires her to maintain a 3.5 GPA. Its renewable every year, so its a substantial sum in total. We told her that one big reason we could afford this school was that scholarship, so one of her jobs was to make sure she didn't lose it...and to keep her grades up.

She left here in September after her father sat her down and went over a budget for the whole year, when she learned that after estimates she'd have about $30/week for 'fun money'. Maybe not a whole lot, but considering she was on a meal plan and many school activities were free, she'd be fine.

Once leaving for school she realized how expensive things were, and started to hate seeing that bank balance go DOWN. Even though we reassured her that she was staying on budget (and she was), it bothered her in a way it never did before.

When she came home for her long holiday break (Thanksgiving to New Year's...she's on the quarter system) the first thing she did was get a holiday temp job and she plowed every penny she made back into her savings account. We were very proud of her. She was proud of herself, too...rightfully so.

She's seeing first-hand through her friends at school what its like to have no money. Both her roommates have blown through the money their parents gave them, and are now looking for some sort of campus job to get them through to the end of the year. Its definitely made her understand why we never just handed her money like her friends got.

 

[VLee]

The way they do things is ridiculous. I had lived on my own for 3 years and still had to use my parent's income.

Unless the federal regs have changed in the last 9 months, any single person without legal dependents under the age of 24 is considered a dependent student by their guidelines and must report parents' income. The fact that a student has income of his own and has been supporting himself or that parents are unwillinging to contribute to the expense of college or unwilling to report their income on the FAFSA does not make a person independent. In the feds' viewpoint, they consider it a parent's obligation to contribute to their child's educational expenses--whether the parent actually chooses to or not to.

To override this regulation, a financial aid officer is required to have documentation that a parent either abandoned the child or that the child was in some sort of abusive home environment.

I know it doesn't seem fair and many kids are caught in this situation; but on the other hand, there would be plenty to abuse this and just "say" that they are not receiving any support from a parent.

 

[feezle]

Which is why I still have $13,000 to pay off on a 2 year degree.

 

[MrsPete]

I'm hoping someone who has been through it can explain this process. My daughter is a senior. She has been accepted at 5 schools, ranging in tuition from in-state at about 20K a year to private at 45K a year(including everything). I just filled out the FAFSA and it gave me an Anticipated Family Contribution of 4800. Is this the amount we're expected to contribute or is it a number for a formula? And how is the difference made up? We're also starting to look into scholarships. We basically live paycheck to paycheck, I can't imagine how we'll come up w/an extra 5K a year. I guess that could include my daughter working part time and contributing also though. Thanks for any advice you can give.

I know where they're coming from, though you won't like it: Their expectation is that you've been saving over the years and have that 4800 in a college account for her. Their expectation is that that should've been possible based upon your income.

I know, I know . . . everyone says, "How could I possibly have done that?" And I don't know whether you could or couldn't've done that -- but that's the assumption that the financial aid folks are making. 20 years ago when I was in college, my family's expected contribution was $90 . . . and they didn't have even that small amount to give me.

 

[brymolmom]

I know where they're coming from, though you won't like it: Their expectation is that you've been saving over the years and have that 4800 in a college account for her. Their expectation is that that should've been possible based upon your income.

I know, I know . . . everyone says, "How could I possibly have done that?" And I don't know whether you could or couldn't've done that -- but that's the assumption that the financial aid folks are making. 20 years ago when I was in college, my family's expected contribution was $90 . . . and they didn't have even that small amount to give me.

Good point about the saving expectation. And with hind sight it is easy to see, as everything is. This is doable for many (but not all) families. When you think about it 4800 x4 (for the usual 4 years of college) could have been done in 16 years with $100 per month with NO interest (less than that with interest). For most families I know downgrading a cell phone plan alone would cover that....Or eating out 2 fewer times. It is something that many of us CAN do if we set our minds to it. But many of us don't. This thread is making me think long and hard...I have been considering putting some extra into the kids' 529's (we do it every month - but not a large number) and I believe I am going to go do just that SOON. We started with a pretty low number because we don't feel a need to cover 100% of the kids college, but now I'm thinking I need to up it just to meet the expected family contribution alone!

 

[lastminutemom]

It is important to understand that the family contribution is meaningless if a college doesn't meet full need (and most don't). In addition, the financial aide package can be primarily loans.

This is a very unpleasant surprise to many parents and students.

 

[DayDreaming]

Hi 4Seasons

Long time reader of these boards but seldom poster. After reading your post I think you should read the following story.

http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_wasik&sid=apX_jqTz1zgE

 

[DizMom11]

The FAFSA will look at the money saved in a 529 so be careful who's name it is under. I just completed my son's FAFSA and got around 9280 My son is also not serious about school, but wants to go away. We live in NY and he got into University of Arizona. (along with his girlfriend and BF!!) I refuse to go into debt so he can party for 4 years. I see community college in his future.

 

[SDSorority]

I'm hoping someone who has been through it can explain this process. My daughter is a senior. She has been accepted at 5 schools, ranging in tuition from in-state at about 20K a year to private at 45K a year(including everything). I just filled out the FAFSA and it gave me an Anticipated Family Contribution of 4800. Is this the amount we're expected to contribute or is it a number for a formula? And how is the difference made up? We're also starting to look into scholarships. We basically live paycheck to paycheck, I can't imagine how we'll come up w/an extra 5K a year. I guess that could include my daughter working part time and contributing also though. Thanks for any advice you can give.

Hi! I work in college admissions!! You have a low EFC and that will work in your favor! You will qualify for more need based aid from the government and from the schools she applied for, so that's the good news!! The bad news is that you have to sit and wait for Financial Aid packages to come out. Our FA office sends them out Mid March/Early April. Until then, have her go to www.collegeboard.com (or any google search engine) to look for 3rd party scholarships. Have her apply for anything and everything. Don't forget to look around your town. Often times, Rotary clubs offer scholarships to students. It'll be a lot of essay writing and reference requests, but it could pay off!

I hope this helps you.

 

[AlexandAndysMom]

I work for a university in Louisvlle that is a private school and pretty expensive. Add in housing and special programs and I to this day wonder how all these people can afford it.

As far as the EFC on the FAFSA, that determines your grant eligability. If your EFC is high (and it doesn't take much...lol) you will not be Pell eligable. In Kentucky however, there is a grant that is not need based for private schools (as we are not funded in any way by the state) that helps make up for most of our students not being Pell eligable. You need to look into your state to find out if they have a private school grant like Kentucky does. The money for this runs out very fast, which is why they push those early deadlines, like before most people file their taxes

As far as needing mom and dads information until you are 24 (or married, or have a kid), I still haven't figured that one out. They are beginning to make changes on it (this is the first year they are asking if you the student have lived outside of your parents home for X amt. of time).

Scholarships are also a good way to find some money. Just remember that no scholarship is too small...that 200.00 scholarship will at least buy a book (maybe even 2! ). There are still scholarships out there, but you have to search for them....and don't use fastweb.com...seriously...you will be getting spam from them in 50 years. I do however like scholarshipexperts.com and myfreedegree.com...you can narrow your searches on these down to find your perfect scholarship. (Did I mention I used to be the 'scholarship guru' at work?

My word of advise is not to look at that number on the FAFSA until you look at the schools that make the final 'I really want to go here' list. Then talk to the FA departments there and see what is available....and don't leave until you KNOW the answers to ALL of your questions.

Did that help??

 

[msmayor]

I know a few posters have talked about looking for scholarships. Some caution though...remember that a majority of these outside scholarships are one-year only, and in many cases only incoming freshman are eligible. You may find enough to meet the gap for freshman year at the school of your choice, but realize that you may very well need to make up that amount on your own the next three years.

Many schools that offer big merit scholarships have VERY early deadlines...as in November and December of your senior year. Miss those deadlines and you miss eligibility.

Finally, PAY ATTENTION TO FINANCIAL AID DEADLINES! I can't tell you the number of times I've read on the College Confidential message board how kids have missed the priority deadline for financial aid and wonder if the school will make an exception. The deadlines are there for a reason: if you want the best chance at the most aid, make sure you get your applications and paperwork/filings in on time!

 

[rlduvall]

We had to fill out a FAFSA for my stepson who was living with us at age 20, there's a reason I am mentioning his age. I've been married to his father for 16 years and love him dearly, so that was not the issue. What really infuriated me is that both my parents had deceased right around that time and I had to list all the assets and money that I received as my inheritance - which should be irrelevant. Now were not talking a ton of money, but it was still insulting to me to have to basically bear my financial soul. I am a very private person when it comes to my finances and I really didn't appreciate my stepson seeing what I make, what I have in 401(k), savings, etc. I'm sure his mother knows now - who refused to do it when he resided with her [at age 18 and 19]. I found it overly intrusive . . . but I am trying to understand the need for it.

 

[msmayor]

We had to fill out a FAFSA for my stepson who was living with us at age 20, there's a reason I am mentioning his age. I've been married to his father for 16 years and love him dearly, so that was not the issue. What really infuriated me is that both my parents had deceased right around that time and I had to list all the assets and money that I received as my inheritance - which should be irrelevant. Now were not talking a ton of money, but it was still insulting to me to have to basically bear my financial soul. I am a very private person when it comes to my finances and I really didn't appreciate my stepson seeing what I make, what I have in 401(k), savings, etc. I'm sure his mother knows now - who refused to do it when he resided with her [at age 18 and 19]. I found it overly intrusive . . . but I am trying to understand the need for it.

Its because you are considered part of the custodial parent...marrying his father and having him live under your roof makes you part of the custodial parent 'unit'.

Had his mother been the custodial parent, then only her income and asset information would be required for FAFSA.

 

[eolian]

Just wanted to add my two cents. Don't let that EFC make you rule out private schools over public. My parents had a very low EFC when I went to college (1,000ish) and I decided to go to a private college. I had several grants and a scholarship along with student loans. I thought about transferring my junior year to a public university and went through the financial aid process there and while they still only expected my family to contribute the EFC they also only gave me loans, no scholarships/grants, cover the difference and it would have cost me MORE to go to the public college, so don't rule out the privates colleges.

 

[janette]

Just wanted to add my two cents. Don't let that EFC make you rule out private schools over public. My parents had a very low EFC when I went to college (1,000ish) and I decided to go to a private college. I had several grants and a scholarship along with student loans. I thought about transferring my junior year to a public university and went through the financial aid process there and while they still only expected my family to contribute the EFC they also only gave me loans, no scholarships/grants, cover the difference and it would have cost me MORE to go to the public college, so don't rule out the privates colleges.

This is true, my DD will get scholarships based on her ACT/SAT scores at private school that the public schools don't offer. The room/boarding costs are also lower at the private school so it may end up cheaper than the public university would have.

I'm expecting our contribution to be high but hoping for at least some Stafford loans; I'd plan on paying those too but at least it would allow us to spread out the cost a few more years.

 

[allison443]

This is true, my DD will get scholarships based on her ACT/SAT scores at private school that the public schools don't offer. The room/boarding costs are also lower at the private school so it may end up cheaper than the public university would have.

I'm expecting our contribution to be high but hoping for at least some Stafford loans; I'd plan on paying those too but at least it would allow us to spread out the cost a few more years.

Everyone can get a Stafford loan, no matter how high your EFC.

 

[Lisa_M]

Everyone can get a Stafford loan, no matter how high your EFC.

Yes, but if a Stafford loan (the limits are very low for undergrad) and any merit based scholarships don't cover your tuition, the student is looking at private student loans. Since the parent would be paying in this case, it wouldn't matter, but it seems like alot of parents look at the EFC like that is all they are expected to contribute and the school/government will cover the rest. Not so...

 

[maggiew]

I'm hoping someone who has been through it can explain this process. My daughter is a senior. She has been accepted at 5 schools, ranging in tuition from in-state at about 20K a year to private at 45K a year(including everything). I just filled out the FAFSA and it gave me an Anticipated Family Contribution of 4800. Is this the amount we're expected to contribute or is it a number for a formula? And how is the difference made up? We're also starting to look into scholarships. We basically live paycheck to paycheck, I can't imagine how we'll come up w/an extra 5K a year. I guess that could include my daughter working part time and contributing also though. Thanks for any advice you can give.

We just filled out the FAFSA also for my senior DD. Our EFC is out of sight. But I wasn't surprised by it.

With colleges averaging $30K a year, I don't understand how you are surprised that your expected contribution is only $4800? How did you think the costs were going to get paid? And you are only thinking about it now, with a few months to go in HS? I ask in true curiousity and I am NOT flaming you.

My parents were very low middle class. We lived paycheck to paycheck. I knew this from an early age and worked hard in school so I could get scholarships. I also worked in the University chemistry supply room to make money.

For my 2 kids, we had a plan early on in their schooling for how we would pay for college.

Maggie

 

[allison443]

We just filled out the FAFSA also for my senior DD. Our EFC is out of sight. But I wasn't surprised by it.

With colleges averaging $30K a year, I don't understand how you are surprised that your expected contribution is only $4800? How did you think the costs were going to get paid? And you are only thinking about it now, with a few months to go in HS? I ask in true curiousity and I am NOT flaming you.

My parents were very low middle class. We lived paycheck to paycheck. I knew this from an early age and worked hard in school so I could get scholarships. I also worked in the University chemistry supply room to make money.

For my 2 kids, we had a plan early on in their schooling for how we would pay for college.

Maggie

You make some great points! Many people will tell you that the most important college you apply to is your "financial safety", one that you can get into and afford. Hopefully when the OP's daughter was picking her schools to apply to, they thoroughly investigated the financial aid situation at those schools, knowing that financial aid was going to be an issue. Many schools provide loans and work study as part of their financial aid package. While some schools will guarantee to meet all of a student's need, many schools "gap", that is, they do not meet all of your demonstrated need. As I said hopefully all this research was done as part of the college search/application process, but it doesn't seem to clear that the OP even understood what the expected family contribution on fafsa meant.