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Prepaid-tuition plan-does the payment count toward EFC?

phuangphuang Posts: 11Registered User New Member
edited January 2013 in Harvard University
any parent out there has Prepaid-tuition plan?

does the payment from Prepaid-tuition plan count toward EFC? for example, if the EFC is $28,000, and pre-paid tuition plan pays $8,000 for the student's tuition, does the family only need to pay the remaining $20,000?

how do we know what type of expense the EFC, the harvard grant, ...etc. are actually paying towards - tuition? room? board,...? This is all hazy to me.

This is a parent of an early action admitted. Thanks.
Post edited by phuang on

Replies to: Prepaid-tuition plan-does the payment count toward EFC?

  • gibbygibby Posts: 6,260Registered User Senior Member
    No. Your EFC changes every year, depending upon your income -- and you must file the FAFSA and CSS Profile every year to obtain financial aid. Harvard's Prepaid-tuition plan is only for families NOT receiving grant assistance from the College.. See: http://isites.harvard.edu/fs/docs/icb.topic551531.files/TPO%20Fact%20sheet.pdf
  • 5amriser5amriser Posts: 149Registered User Junior Member
    Are you referring to Harvard's prepaid tuition plan or other prepaid tuition plan offered by your state of residence? If the former, gibby is correct, if the latter, we have experience with it and will elaborate if it's what you meant.
  • phuangphuang Posts: 11Registered User New Member
    sorry, I was not clear. I'm referring to state Prepaid-tuition plan we purchased for our son long time ago whe he was little. it pays the average state college cost to private out-of-state college. please share your experience.
  • 5amriser5amriser Posts: 149Registered User Junior Member
    Ok then we have exactly the same situation. This is how it works. Each year H will come up with an EFC amount based on the CSS profile you submitted. For example, the complete cost to attend H is $55,000 and your family contribution is $20,000 (H doesn't charge by credit etc. You are given a total amount). You will have to pay your share first (e.g., $10,000). H will then bill your prepaid agency for the amount you are entitled under that program (e.g., for us it's the equivalent of in-state tuition of that semester). You will then get a credit on your balance with H which will reduce your next bill.
  • 5amriser5amriser Posts: 149Registered User Junior Member
    Just to be clear, that's $10,000 per semester in the example. Although H would give you an estimated breakdown of the room and board, tuition, etc. the prepaid is not applied to a specific category, just part of your family contribution, in the form of credit since it's billed afterwards.
  • phuangphuang Posts: 11Registered User New Member
    Thanks for sharing, this is very helpful.

    does your child need to file tax return because of the payment from the pre-paid tuition plan?
  • 5amriser5amriser Posts: 149Registered User Junior Member
    She does file a tax return because she works at H for her spending money. The prepaid is from us so I don't think it impacts her.
  • phuangphuang Posts: 11Registered User New Member
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