Reply to Financial aid is a scam

Forum Index » College and University Discussion

Reply to "Financial aid is a scam"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]"The reality is that a family’s income is assessed at 47%, after allowances, and the parent assets are only assessed at a maximum of 5.64% after allowances. BIG difference!

Ok, so what is making up the remaining percentage?
"

This means that the amount you're expected to be CAPABLE of paying is set at about 47% of your income in the year you fill out FAFSA. Add about 5% of whatever you have in assets not counting retirement or your house, and that's pretty close to your Expected Family Contribution number, the EFC. The EFC is just what the feds use to determine whether you qualify for a Pell Grant. Filling out the FAFSA enables your student to access the low-interest Stafford student loans, and it enables you to borrow using the Parent PLUS program.

Our family EFC is about $100K, but we only pay $32K/year at a private school thanks to a merit award. Our kid applied to some schools that would have cost a little over $80K/year and that are very tight with merit awards, so we'd be paying about $70K/year there after merit. Same EFC, but different schools offer different discounts. And that merit money is not at all dependent on our EFC or whether we renovated our kitchen or bought a new Range Rover. [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics