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

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 this is what it will cost the student to attend 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...

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