“The EFC is < $3000” That means Pell eligible this year (so some need based aid).
If everything stays the same except no sibling in college EFC would be $6,000, so not Pell eligible assuming…
“The maximum expected family contribution (EFC) eligible for a Pell Grant for the 2020–21 Award Year is 5711 as compared to 5576 for the 2019–20 Award Year.”
https://ifap.ed.gov/electronic-announcements/030420OperImpleGuidFSA2021FedPGPayDisbSch
This tool might help you make estimates https://studentaid.gov/understand-aid/estimate
Here is the formula form https://ifap.ed.gov/sites/default/files/attachments/2019-10/2021EFCFormulaGuideOct2019UpdateAttach.pdf
$15k short—if OP throws some money in there, and borrows some using PLUS loan proceeds as loan to D, all documentation done for loan scenario, that could work.
Problem is that it’s a redo for sophomore year. With FAFSA asking for income two years prior to the school year for which financial aid is being requested, if the daughter graduated in 4 years, one can start pulling funds out of the 529 to pay tuition, and to repay the loanS up to $20k. But be aware, things happen, and an extra year often is needed, not just because a student needs more credits or courses but things like this pandemic can happen, things that involve taking a gap year. I’d wait till second semester junior year before breaking into the 529
Some valid points raised about EFC changing when there are no longer more than one student in college. Also, OP says in first post that there isn’t enough in the 529 to pay that first year balance. That means no $80k sitting there to repay.
OP should run some numbers to see what the 4 year cost is likely to be, keeping in mind that there may just be one in college which will likely end PELL eligibility.
There is an radiation allergy $4k in studebt Direct loans in another year is needed for college, this the $31k number.
Good luck in coming up with the magic formulas for your D to maximize financial aid possibilities
What does this mean? What is “an radiation allergy”?
I like it, whatever it is. You guys that post from your phones have all my admiration. God only knows what I would post on with my auto correct and squinting at tiny font sizes.
Wow, that is my phone’s best auto correct! Sorry about the sloppiness of that post. Very much my bad.
I believe I meant to say that there is an additional amount of $4k in Student Direct Loans permitted for dependent students taking an additional semester or year beyond the 4 years. I mistakenly quoted the $31K over 4 years in an earlier post. The amounts a student can borrow are $5500 as a freshman, $6500 as a sophomore, $7500 a year thereafter with $4k left once $27k total has been borrowed with no principle paid back.
But OP seems to have that part down pat. The aid package apparently includes loans; the DD will be taking loans, but there is a shortfall of $15k. How much of that OP is willing and able to pay out of pocket, we do not know. But some amount he wants to borrow so he does not break into the 529 as a noncustodial parent because that could affect aid two years later.
The OP said he doesn’t plan to borrow after this year, and the money in the 529 isn’t enough to cover the gap for even one year. In my opinion, the issue is that nobody in this family has the money to pay for this school and there’s no plan in place to cover expenses for all 4 years.
What good does it do to figure out how to maximize financial aid when nobody is willing/able to cover the gap?
Austin-- correct. By my math no matter how you time the loans or time the withdrawals…not affordable without a lot more pain than many folks can tolerate.
I am still confused about the student attending a public university that asks for the non-custodial parental information. Is this a home-state U for the student? And if so, can the parent tell us which one so we know for the future?
@happymomof1 She’s attending Colorado State University in our home state. Unlike other public universities in Colorado, CSU required me to provide all my financial info as non-custodial parent.
CSU has some thing called TAG which provides grants for those showing financial need. There isn’t enough there for all who qualify by FAFSa EFC so they ask for additional information. They figure that those students with noncustodial parents who can afford to pay are better off than those who do not have that possible resource.
Schools can come up with just about any additional requirements and information remittance in giving out their own money. My state, NY, has TAP which has state money available for NY state kids needing financial aid. It has restrictions and requirements that FAFSA does not address. So what CSU is not way off in that requirement. Hopefully your D did get some aid from TAG.
Bear in mind, as mentioned, that your D will likely show a reduction in need when her college sibling is out of school. That can double the EFC.
@cptofthehouse Thanks for the info. I’m all for universities trying to make financial aid distribution as fair as possible. Was my mistake to assume all Colorado public universities worked pretty much the same.