Fidelity's take on EFC

Paying for College
1

<p><a href=“https://www.fidelity.com/viewpoints/countdown-to-college?ccsource=email_weekly[/url]”>https://www.fidelity.com/viewpoints/countdown-to-college?ccsource=email_weekly&lt;/a&gt;&lt;/p&gt;

2

<p>Petty good. Its shortcomings are:

  1. Should mention that Pell Grant available only to very low EFC. The maximum Pell Grant eligible EFC is $4995 (Pell Grant of $555).
  2. Should mention that top private colleges also use CSS to calculate family contriution for their financial aid. Planning for CSS is different from the FAFSA.
  3. For last 10 years or so, the returns on the 529 savings plans nowhere near the rate of tuition increase.</p>
3

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<p>no kidding…ugh…</p>

4

<p>It perpetuates the misunderstanding that EFC is “the amount of money that students and parents must pay together toward college expenses.” If only that were so!</p>