current EFC calculator. accurate?

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chipperd
Posts: 323
Joined: Sat Sep 24, 2011 5:58 am

current EFC calculator. accurate?

Post by chipperd » Fri Sep 14, 2018 9:56 am

Hello all,
So I plugged my numbers into the current 2018/2019 EFC calculator here:
https://bigfuture.collegeboard.org/pay- ... calculator
My family's EFC was much lower for my current h.s. senior relative to last year when my oldest (current college frosh) was college shopping. This is in spite of our AGI being about 12k higher in 2016 vs 2015 (numbers needed to use).
Anyone else take this for a test drive yet?
Thanks

soxfan99
Posts: 1
Joined: Fri Sep 14, 2018 11:51 am

Re: current EFC calculator. accurate?

Post by soxfan99 » Fri Sep 14, 2018 12:04 pm

Assuming the EFC for your older child was based on 1 child in college and when you ran the calculator for your current HS senior you indicated that you had 2 children in college, and there has been no significant change to your finances, then your efc would be much lower this year. With one child in college the entire EFC for the parents is applied, if there are two in college then the EFC for the parents is split between the two children.

Said another way...if the parent portion of the EFC is calculated to be $100, then with 1 child in college, the $100 is included in the EFC for that one child. When there are two children in college then $50 is applied to the EFC for the first child and $50 is applied to the EFC for the second child. Your first child's EFC will likely drop next year as well. To what degree the college your child attends will make up for the drop is a whole other question.

It is always best to run the Net Price calculator on the web site of the colleges your child is interested in to get an estimate for each college.

SimonJester
Posts: 1617
Joined: Tue Aug 16, 2011 12:39 pm

Re: current EFC calculator. accurate?

Post by SimonJester » Fri Sep 14, 2018 4:52 pm

I just ran the numbers from my current College Freshman FAFSA, they are exactly what the FAFSA generated to the dollar.

Keep in mind this form is for last years FAFSA not what will be opening up in a month, that will be the 2019-2020 FAFSA.

When I calculate as if I have two kids in College my EFC drops in half...

However comparing the 2018-2019 to 2019-2020 EFC formula guides, they significantly decreased the Asset Protection Allowances!

Example in 2018 a 40 Year old could deduct $17,700 vs S9,900 this year.

https://ifap.ed.gov/efcformulaguide/att ... aGuide.pdf

https://ifap.ed.gov/efcformulaguide/att ... de1819.pdf
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin

chipperd
Posts: 323
Joined: Sat Sep 24, 2011 5:58 am

Re: current EFC calculator. accurate?

Post by chipperd » Fri Sep 14, 2018 5:08 pm

Thanks for the feedback. I assumed that EFC stands for Expected Family Contribution and therefore the number would be for the family, not the individual student. From what I am reading as feed back, this assumption is incorrect? If so, they really need to change the name to something like Expected Family Contribution per student.

SimonJester
Posts: 1617
Joined: Tue Aug 16, 2011 12:39 pm

Re: current EFC calculator. accurate?

Post by SimonJester » Fri Sep 14, 2018 5:33 pm

chipperd wrote:
Fri Sep 14, 2018 5:08 pm
Thanks for the feedback. I assumed that EFC stands for Expected Family Contribution and therefore the number would be for the family, not the individual student. From what I am reading as feed back, this assumption is incorrect? If so, they really need to change the name to something like Expected Family Contribution per student.
Correct, Each student fills out their own FAFSA using their income (probably small) and the parents income / assets, so each student gets their own EFC, but this number is cut in 1/2 (for two students).

Also doing some more reading the decrease in asset protection allowance is not a big deal as it seems at first due to the conversion formula...

https://thecollegefinanciallady.com/201 ... 2019-2020/
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin

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