College Financial Planning

Paying for College
1

<p>I am getting close to my retirement age and would like to find out more details in helping my children to get the financial aids they need to go to colleges the next two years. Currently they are in junior high but one of my children will go to grade 11 the coming semester in September/09.
I would like to find out

  1. Calculate the EFC - What are the key factors affecting the family contribution?
  2. Reduce the EFC - What kind of recommendations and strategies in order to reduce EFC?
  3. Cash Flow Plan - What types of expenses and costs for a student to complete a four years college?
  4. Finanical Planning Service - Do we need to hire some College Financial Planning Services?</p>

<p>I would appreciate if our member can provide their recommendations and advices on these matters.</p>

2

<ol>
<li> There are many EFC calculators available on the web, I like to use the ones on the College Board site, it calculates both Federal (FAFSA) and Institutional (Profile) EFC:</li>
</ol>

<p>However, you must realize, that if your child applies to schools who use the Profile for Institutional funds, each school uses their own calculations and EFCs may vary widely depending on the school’s policies.</p>

<p>The 2 main financial factors in calculating your EFC are income (salary, retirement benefits, untaxed income, etc.) and assets (home is not counted in FAFSA, but is either not counted, counted, or capped by Profile; investments, etc.). Other non-financial factors are such things as age of parents, number of kids in college, etc.</p>

<ol>
<li> Here are some suggestions for reducing EFC:</li>
</ol>

<p>[FinAid</a> | Financial Aid Applications | Maximizing Your Aid Eligibility](<a href=“http://www.finaid.org/fafsa/maximize.phtml]FinAid”>http://www.finaid.org/fafsa/maximize.phtml)</p>

<ol>
<li><p>This depends on the college (Cost of Attendance could range from about 20k/yr for an instate public to 50k+/yr for a private), and how much need based aid, institutional merit scholarships and outside scholarships your child gets.</p></li>
<li><p>There are books and websites that can help you get a general understanding of need based financial aid, institutional merit scholarhips and outside scholarships, here are a few:</p></li>
</ol>

<p>[Amazon.com:</a> Paying for College without Going Broke, 2008 Edition (College Admissions Guides): Princeton Review: Books](<a href=“http://www.amazon.com/Paying-College-without-Admissions-Guides/dp/0375766308]Amazon.com:”>http://www.amazon.com/Paying-College-without-Admissions-Guides/dp/0375766308)</p>

<p>[FinAid</a>! Financial Aid, College Scholarships and Student Loans](<a href=“http://www.finaid.org/]FinAid”>http://www.finaid.org/)</p>

<p>[College</a> Calculators - savings calculators - college costs, loans](<a href=“College Board - SAT, AP, College Search and Admission Tools”>http://www.collegeboard.com/student/pay/add-it-up/401.html)</p>

<p>More specific questions can be asked here on CC, we have many experienced posters, just always check and double check information.</p>