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The new Simplified FAFSA is here! Here’s a quick video with some tips that will help you get through it with a minimum of chaos and maximum of financial aid. 🔗
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Net Price Calculators
Getting an estimate of your Expected Family Contribution is really helpful, and it's pretty easy. The Department of Education's unfortunately-named Student Aid Estimator will calculate the FAFSA's EFC for you with a few data inputs; the College Board offers one for the CSS Profile.
EFC vs Net Cost 2021
Families of college-bound students are always looking for strategies to manage their Expected Family Contribution, and I’m happy to oblige. However, lowering your EFC is no guarantee of getting financial aid. And that’s why net cost is important.
FAFSA 2022-23 EFC Formula Guide
The FAFSA becomes available onOctober 1, but you can download the EFC Formula Guide to see how the sausage gets made in advance. Here are some suggestions for how to use this data.
EFC vs SAI: What’s in a Name?
A great deal of attention has gone to the renaming of the FAFSA’s Expected Family Contribution to Student Aid Index. The change is a good one, even if it is primarily cosmetic.
Better EFC Strategies
I get tons of questions about strategies for reducing EFC, especially those related to the Asset Protection Allowance. And there are plenty, but sheltering assets is typically the lowest bang-for-the-buck strategy out there: Every $1,000 you shelter will only reduce your EFC by $54. And that assumes that the school will meet your full need. Here are some better options…
EFC for Multiple Children
Many people asked, after my last post, how EFC gets calculated or divided with multiple children in college. It’s not a strict 50/50 division; some adjustments get made first.
EFC vs Net Cost
Families who are a few years out from college should calculate their EFC, but as college approaches and students start identifying schools they’re interested in, net price calculators become far more valuable.
Lowering Your EFC at the Last Minute
The first step in lowering your EFC is to determine whether or not it’s worth doing. How to do that? Determine if you’re a need-based aid candidate at any of the schools you are serious about.
FAFSA 4caster vs FAFSA
Learn about how the FAFSA 4caster can help estimate your EFC, but be aware of its limitations.
FAFSA 2016-2017 EFC Formula
Detailed insights into The FAFSA’s EFC formula for the 2016-2017 school year.
EFC: Why You Need to Know
EFC is your Expected Family Contribution. In the real world, think of it as your Minimum Family Contribution. There is no requirement that a school meet your need, though some will.
Form 1098-T is a tuition statement that students receive from their college. It serves two primary purposes:
Documenting eligibility to claim the American Opportunity Tax Credit or Lifetime Learning Credit
Documenting that the student was enrolled in a college and that 529 withdrawals up to net cost of attendance are therefore qualified
Form 1098-T isn't filed with your taxes; instead, you use the information to file and then keep it for your records.