If you have questions please fee free to contact me. Email: [email protected]. How to Maximize Financial Aid? Privacy Policy. Terms and Conditions Policy. Refund Policy. Rankings or Student Engagement? Basic formula, total cost of attendance minus your EFC number equals your family financial need.
What does your EFC number mean if it is not ? Pell Federal Educational Grants money that does not have to be paid back Federal Work-Study Program does not count as financial aid income for student Perkins Loans Subsidized Unsubsidized Stafford Loans You will see these programs in the financial aid award example below. Perkins loans are campus-based meaning decisions are made the college you are attending. Available for students with exceptional financial need EFC 0 qualifies , No interest rate is charged while the student is in school at least half-time, Repayment starts 9 months after graduation.
Most parents misunderstand how an EFC number is used and it is generally assumed that a low EFC number is a better number. In general, a lower EFC number will result in a higher award from the government. EFC numbers are calculated by schools using the same scale as does the government. Once your FAFSA form is received, the schools arrive at a number between 0 and that will result in a federal student aid grant for the following academic year. Any person with an EFC number at 0 will receive the maximum amount of student aid, while a number over will result in no aid at all.
The numbers, and the amount awarded, fluctuate annually. The closer you can get to zero, the more federal dollars you'll have to help pay for tuition and fees. However, if your family receives a low EFC number that is still higher than what is affordable, it is not a good EFC number. Your EFC number is factored by taking into account family size, including the number of family members currently enrolled in college, parental income and assets and student income and assets.
There is no easy way to lower your EFC number without hiding assets and engaging in other illegal activity. If you plan in advance, you may be able to slightly lower your EFC by:. If you do not feel comfortable with those options or they do not seem feasible, there are ways to make your EFC number less of a burden.
Merit-based scholarships including those for artistic and athletic ability do not usually take into account the EFC number. In addition if you have an EFC number that you think you cannot afford, you may apply for need-based scholarships through the college or independent organizations.
The award letter will show how much financial aid the university will give you, including federal subsidized and unsubsidized student loans, grants, work-study and scholarships. In many cases, students will still have to rely on student loans to finance their college tuition, even if they had a 0 EFC and qualified for all eligible need-based aid. This depends on how many scholarships you receive and where you attend college.
Some schools are more generous to students, while others have less money to dole out. Completing this form may qualify you for more financial aid through the college, like scholarships or grants. Students with a 0 EFC may receive the following types of need-based aid:. Colleges with work-study programs match students to on-campus or off-campus jobs.
Students usually work between 10 and 20 hours a week and are paid minimum wage or slightly more. The exact wage depends on the college. Because there is a limited amount of work-study jobs, students should complete the FAFSA early to receive a position. There are two types of federal student loans, unsubsidized and subsidized. Subsidized student loans do not accrue interest during enrollment, the six-month grace period after graduation and during deferment periods.
This can be a huge cost savings for students who qualify. Some state grants are only available for need-based students, and most states use the FAFSA to determine eligibility. These grants are only available to students who remain in-state for college.
Grants do not need to be repaid, and many can be renewed for multiple years. While many scholarships are given to students regardless of need, some are only available for students who meet certain income thresholds. Both colleges and third-party providers may have need-based scholarships available. Juno can help you get the lowest private student loan interest rates with a repayment schedule that works for you. Juno negotiates with lenders on behalf of you and other students and families to get the most favorable possible payoff terms.
Join Juno today to find out more about your options for affordable private student loans to help fund your degree. Zina Kumok is a freelance writer specializing in personal finance. A former reporter, she has covered murder trials, the Final Four and everything in between. She has been featured in Lifehacker, DailyWorth and Time. Learn more about the average MBA debt to help you decide whether the degree is right for you and, if so, how to manage your payments.
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