COLLEGE FINANCIAL PREP (516)225-5224
  • Home
  • About
    • About
    • Happy Clients / Testimonials
  • Work With US
    • Work With Us
    • Courses and Memberships
    • Professional Colleagues
    • Event Calendar
  • For Divorced Parents
    • For Divorced Parents
    • Divorce & College Podcasts and Videos
  • Resources
    • Podcasts & Videos
    • Digital Resources
    • Blog
    • FAQ
    • Scholarships
  • Contact

Why Having an EFC (soon SAI) of $0 Does Not Guarantee A Free Ride To College

1/8/2021

 
Picture

In my practice, I work with many families of all different tax brackets, including some who have considerably lower incomes.  There are many reasons for these clients, many of whom are highly educated individuals, to have both lower incomes and typically less in assets.  Sometimes it’s due to job loss.  Sometimes it’s due to divorce.  Sometimes, it’s due to a medical illness within the family…  There is a whole host of possibilities…

So, when these families complete FAFSA and it spits out an extremely low EFC, even $0, it is still highly unlikely that the student will be getting a free ride to college!  Why is that you wonder?  

Simply put, the colleges can’t afford to give everyone a free ride (or free tuition).  EFC which stands for Expected Family Contribution, is actually receiving a name change soon to the SAI (Student Aid Index.)  This name change is supposed to help clarify the confusion that many parents experience when they think that their EFC generated by FAFSA is the amount of money that they will pay for a year of college.  So what is a family to do…

Consider the following:
  • Many colleges and universities award merit scholarships (both private schools and public, state schools).  It is key to look for those opportunities as they can help you save money on the cost of college.  It is especially important to begin this research Junior Year of High School before it’s time to send out any college applications!  Test scores and grades will likely matter and will vary for different colleges and universities!  
  • Know in advance that public universities (both in state and out of state) have less wiggle room typically than private colleges to award large amounts of need based financial aid beyond the federal pell grant and any state aid that is available.  They will typically expect the family to make up the difference in loans.  As many of our state budgets have been so negatively impacted by Covid, there is just less room for the public universities to offer more aid. 
  • If in a divorce situation, consider those colleges that only look at one parent’s income and assets instead of both parents.  They are out there!  And this may improve your chances to receive financial aid.
  • Maximize the federal student loans that offer the lowest interest rate each year (if loans are needed.)
  • Analyze all financial aid offers.
  • And for current parents of high school seniors or college students, if there has been a significant change in your financial situation since filing the FAFSA, it is possible to appeal the financial aid offer.  (Very important to consider, especially with the number of people impacted in one way or another by Covid.)  This may further help to improve your chances of receiving increased financial aid.

While the cost of a college education can seem excessively prohibitive, there are action steps to be taken to help reduce the overall expense.  College Financial Prep is here to help.



Vicki Vollweiler, founder of College Financial Prep, works with families as they navigate the College Financial Aid, Scholarship and Student Loan processes.  The ultimate goal is to help families maximize savings, minimize costs and reduce the need for student loan debt.  Contact College Financial Prep to discuss your needs and concerns.  Let's create a plan together...

​

Comments are closed.

    Author

    College Financial Prep provides families with cost saving strategies, scholarship research and financial aid preparation.  Contact College Financial Prep today at 516-225-5224!

    Archives

    April 2022
    April 2021
    February 2021
    January 2021
    December 2020
    October 2020
    September 2020
    July 2020
    June 2020
    April 2020
    March 2020
    December 2019
    October 2019
    June 2019
    October 2018
    August 2018
    July 2018

    RSS Feed

While Vicki Vollweiler of College Financial Prep, or any college financial aid advisor, cannot guarantee receipt of financial aid, utilization of our confidential services will provide you with cost saving strategies to implement in regards to college and savings.  Client understands that savings on the cost of college are not guaranteed with our college planning, preparation and advisory services.  However, College Financial Prep will guide you based on your family specifics as to how to be best served to potentially maximize aid and/or scholarships.  Please note: Not all cost saving strategies that may benefit you in terms of reducing your Expected Family Contribution for college are beneficial to you from a tax perspective.  College Financial Prep is not a replacement for your Attorney, Accountant, Financial Planner or Investment Advisor.  It is recommended to discuss various strategies, as necessary, with the above mentioned professionals.  FAFSA, TAP and CSS Profile may all be completed free of charge without professional assistance.  Fees charged are not for submitting the financial aid applications. Fees charged are for the advice and expertise offered.  College Financial Prep is not affiliated with the Department of Education.
  • Home
  • About
    • About
    • Happy Clients / Testimonials
  • Work With US
    • Work With Us
    • Courses and Memberships
    • Professional Colleagues
    • Event Calendar
  • For Divorced Parents
    • For Divorced Parents
    • Divorce & College Podcasts and Videos
  • Resources
    • Podcasts & Videos
    • Digital Resources
    • Blog
    • FAQ
    • Scholarships
  • Contact