EFC and merit aid

[Anonymous]

Let’s say, hypothetically, that I run the net price calculator for Faber College (tuition: $55k, room, board, etc.: $15k) and it comes back with an EFC of $35k. Now suppose I somehow get a merit scholarship for $10k/year. Would my total cost of attendance be $25k/year? Or is the merit already factored into the EFC?

[Anonymous]

Anonymous wrote:Let’s say, hypothetically, that I run the net price calculator for Faber College (tuition: $55k, room, board, etc.: $15k) and it comes back with an EFC of $35k. Now suppose I somehow get a merit scholarship for $10k/year. Would my total cost of attendance be $25k/year? Or is the merit already factored into the EFC?

Not already factored in.

[Anonymous]

It really depends on the policy of the school: does the school use institutional aid to cover the gap between the cost of attendance and whatever federal/state you are eligible for? And then, do they allow you to stack merit aid from the school or outside scholarships on top of institutional aid, or would merit/scholarship money lead to a reduced grant from the school? Every school has their own policies which can make it a lot of work for you.

[Anonymous]

The former.

Although not all schools guarantee you that they will meet the EFC, so it is really a bargaining situation:

School: Please apply
You: Here's how great I am
School: You can come, and we will give you a net price of X, some merit, some need. This is because we like you, but not as much as some other guy who has a lower net price.
You: Hmmm, well that's a lot of money. Thanks you, but the net price at Schmarvard was less, so I will go there.

[Anonymous]

Net price calculators are not binding -- you could get more merit aid that it tells you.

But they are saying based on the data you provided, they would expect the family to pay $35K per year.

[Anonymous]

It depends. But merit is always great, as you don't have to pay it back , If your EFC is 35k, and you get 20k of loans, then you move to a setup with only 10k of loans. No immediate help, but a better post-grad payment schedule

[Anonymous]

EFC really means nothing. Schools have their own calculations for what they think you can pay.

[Anonymous]

EFC is not a guarantee of what YOUR cost will be. As others have said, every school calculates differently. That's why you apply broadly so you can compare your cost when the financial aid numbers are released (usually in March).

[Anonymous]

Anonymous wrote:EFC is not a guarantee of what YOUR cost will be. As others have said, every school calculates differently. That's why you apply broadly so you can compare your cost when the financial aid numbers are released (usually in March).

But the NPC on each school’s website are definitely more accurate — and vary a great deal for each school. It is worth trying a few, especially if you are considering a private school.