Predicting the Cost of College
Each family can predict very closely what college will cost them.
The expense of college is one of the major concerns of a family. The cost of tuition is skyrocketing and so is anxiety about the same. There is a trick to all of this.
The FAFSA
Parents that have been through the college process know about the FAFSA. FAFSA stands for Free Application for Federal Student Aid. If you want funding for college, you will file the FAFSA. This is not something you sit down and do quickly. It is a complete financial statement and many of the figures are from the 1040. If you have a senior bound for college, either make arrangements to file your income tax in January or make a close estimate and get the FAFSA filed. Waiting too long can disqualify you from funding.
Deadlines
Each college has a financial aid deadline. Find out what each college lists for a deadline. DO NOT miss this deadline. Financial aid may be a disaster if you let this deadline lapse.
Need-Blind
The majority of colleges are need-blind. This means that they do not look at the financial needs of a student before they accept them as a student to the institution. Some schools are beginning to look at the financial needs of a student before they accept them. They may decide to not accept a student that would require large amounts of financial aid from their institution. You may ask a college if they are need-blind or look for this in the literature.
The EFC
When you file the FAFSA, the processed results come in the form of a Student Aid Report. At the top of the report are three little letters -- EFC followed by some numbers. You may not even notice these numbers but they are the most valuable piece of information on the SAR. EFC is the Expected Family Contribution. An EFC of 2000 means that the family will be expected to spend $2000 for college. EFC of 20000 means that the family will be expected to pay $20,000 for college.
Preview
If you are parents of a junior, you do not need to wait until your child is a senior to find out what college will probably cost you. Have financial information ready and go to www.act.org. On this site is a "calculator" that will give you a preview of your EFC. How accurate it is? If you are close to estimating your true income, it will be quite accurate.
The Fine Print
Do colleges have to honor the EFC? No, and that is where the college search gets sticky. Colleges vary greatly in how they honor the EFC. If a family has an EFC of $3000, they may receive offers from colleges ranging from $3500 to $10,000. The trick is to find a college that has what you want and that is generous. You don't select a college based on where a girlfriend is going, or where all the kids are going. You select a college based on what is in your best interests academically and financially.
The Goal
No one wants to pay three times more for college than they can afford. Do your homework. Investigage colleges. Find out how generous they have been in the past. Apply at schools more likely to be generous.
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Copyright article 2007 Barbara Pytel. All Rights Reserved.
