Colleges to implement 'shopping sheet' for fin aid

Paying for College
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<p><a href=“http://www.nytimes.com/2012/06/05/education/deal-reached-on-student-loans.html?_r=1&hpw[/url]”>http://www.nytimes.com/2012/06/05/education/deal-reached-on-student-loans.html?_r=1&hpw&lt;/a&gt;&lt;/p&gt;

<p>College and university presidents representing more than one million students will meet with White House officials on Tuesday to announce an agreement to provide incoming students a “shopping sheet” of easy-to-understand terms for financial aid packages, beginning in the 2013-14 school year. The participants promised to clearly detail a student’s net cost after grants and scholarships are taken into account, and estimate the monthly payments a student would have to make after graduation to repay any federal loans.</p>

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<p>This is a step in the right direction, but unless there is some attempt to project costs and the impact of loans beyond the first year it may end up grossly understating the impact of loans. 80% of the $27,000 maximum for Stafford loans occurs after the first year.</p>

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<p>So here is the most common shopping sheet, from my experience:</p>

<p>EFC: Some amount in excess of the threshold for federal and institutional grants
COA: $20,000
Work Study: $2,500
Loans: $5,500 </p>

<p>And what will this mean to parents and students? They will look at it and think that surely money will fall from the sky and the school will magically become affordable. Which beats understanding the fact that all they have to help them pay the bill come August is $2,736 (don’t forget the loan fees!). </p>

<p>How long do we add up the interest during school and repayment? For the 5-6 years it seems to take so many kids to get through undergrad? For the grad school years, too? For the extra years it takes because they are using a reduced payment schedule?</p>

<p>I know I am jaded, and I know I have no faith in people … unfortunately, it is born of experience. </p>

<p>Sorry … I know it’s not helpful to the thread. I am just lamenting. It’s time to pay the piper, and I am tired of reading posts from people who insist that somehow they will get the money they need, no matter what the award letter, financial aid office, and CC wisdom says.</p>

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<p>Kelsmom is right. At many, many schools, once your EFC is beyond Pell, you get nothing but loans and maybe some work-study. </p>

<p>When those college presidents are there, why don’t they INSIST that the federal gov’t change the stupid acronym of EFC…THAT is what messes up so many families expectations.</p>

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<p>^^^^ absolutely. EFC is an unfortunate misnomer.</p>

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<p>Annasdad has a thread he started on this and the title is apt.</p>

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<p>It is really a shame that the proposed information is still not clear enough for families to understand the implications.</p>