Financial Aid for Upper-Middle Class

mom2collegekids
Fri, 16 Nov 2012 17:21:08 +0000

Is there a rule-of-thumb, like $100,000 household income translates into $30,000 EFC? $200,000 income translates into $60,000 EFC? I’m thinking there’s no reason for us to complete the FAFSA and Profile, because student’s selected LACs apparently all grant merit aid without parents’ financial info.

Yes, there is a kind of “rule of thumb” rough estimate, but it’s not as you’ve described above…and assets can change the “rule of thumb” as well.

Those who earn around $120k, often have EFCs around 33%.
Once, beyond $120k, the family contribution can be 50%

Those who earn below $100k, often have EFCs around 20% all the way down to zero (for the low income).

And, those who are self-employed or have “business deductions” often find that CSS schools “add some deductions back in” as income. :(

It sounds like your child needs to apply to some safety schools that give ASSURED large merit scholarships just in case the other schools expect you to pay too much.

We’ve been to several LACs that promised “financial aid” (not merit award) to households earning as much as $150,000+. But NPC calculations seem to reflect an altogether different scenario: EFC in $45,000+ range for us.

Schools are terrible about bragging about all the aid they give which gives the upper-middle class the wrong perception. It leaves too many thinking that they’ll get LOTS of aid.

If you can’t afford $45k per year, let your child know that now. Tell him/her how much you can spend. Insist of a couple of “parent pick” college applications to schools that you know for sure that your child will get large merit for stats…just in case.