Ep. 52 The College Money Puzzle Part 1: EFC & Net Price Calculator
The College Money “PUZZLE” consists of four pieces – EFC (expected family contribution), Net Price Calculator, Financial Aid and Scholarships that when used “strategically” can help you figure out how to pay for college. This begins our two-part series to talk in depth about these pieces of the puzzle that are uniquely intertwined and interconnected. We will begin with Expected Family Contribution and Net Price Calculator.
According to this January 31, 2014 Forbes article by Tony Onink, you
can have a household income up to $425,000 and still qualify for some financial aid. It is just a matter of the number of dependents and type of school that you apply to, either public/private as well as two-year vs four-year college or university.
In this episode, we discuss why you should know your EFC (expected family contribution) and use the Net Price Calculator to find out the “true cost” of the college that you are looking at. Every college and university has some sort of calculator on their website, you just have to find it. They don’t really want you to know what it will cost. The “real cost” consists of tuition + room & board+ fees – EFC- Merit Aid/scholarships= balance or gap. This gap is what you have to be worried about.
Your EFC will usually not change from year to year. If you have more than one child in college, your EFC is split between the children. That is a good thing because you will likely receive more financial aid as a result. Stay tuned for Part 2 next week: Scholarships & Financial Aid.
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