<p>We can cover maybe the fist two years. After that we will need to get aid, borrow money etc. Right now our EFC is a bit greater than the tuition. In two years we will have spent our savings. I’m assuming the EFC will go down at that point, but not by much based on salary,etc. So when do we apply for aid? Do we do it now and spread our savings over the four years or spend it on the first two years, then apply for aid?</p>
<p>You must really check the financial aid policies because they vary from school to school. At some colleges, if you do not apply for FA freshman year, you would not be eligible to apply subsequent years. That is why imho, unless you know you are going to pay for all 4 years, you should never eliminate your self out of the FA picture.</p>
<p>In addition, life acan and will throw you all kinds of curves. Case in point I am quite sure that there are a number of full paying parents living in the gulf states and now depending on their situation, the’re financial situation has changed. </p>
<p>We received a letter this week from Dartmouth’s president which stated</p>
<p>As we prepare to start the academic year, we have reached out to our own students who have been affected by the hurricane and have provided individual counseling and support. We have assured them that we will work with them if they need a financial aid reassessment or time away from their studies.</p>
<p>Thanks. I didn’t know that the policies vary regarding when to apply</p>
<p>Personally I would apply every year, just in case. Even if your EFC is a little more than tuition, what about room and board, books, personal expenses? You still could get a small amount of financial aid. And, if nothing else, you get practice at filling out the FAFSA and are well-prepared when you actually NEED the help.</p>
<p>Plus, some colleges require FAFSA to be filled out for ANY kind of aid, even merit. I just figure, what can it hurt?</p>
<p>I would agree that filing every year makes sense. The other issue to realize, though, is that reductions in savings (and other assets) will generally only make about a 3 to 5% difference (based on the formulas used).</p>
<p>For instance, let’s say that your contribution is $42,000 right now, and that the budget of the school is $40,000. If you deplete your savings by $40,000 to pay for the first year, all things being equal, your contribution is only likely to be reduce by about $1200 to $1600 (not enough to give you any eligibility for funding).</p>
<p>Since the formula is much more highly income-based, asset changes (unless exceptionally significant) don’t tend to make that much of a difference. You may want to read about the way the formulas are determined on my blog (click on my name and view the web page link – look at the category of “How We Determine your Family Contribution” on the blog).</p>