Hey! What a great idea: Get college students to work a little bit for their financial aid! They call it “skin in the game”, probably some old gambling terminology! Well, as with everything presented by our federal government, there are a lot of rules for the Federal Work-Study Program. The College Money Mom probes gently with her latest youtube video…so as not to bore you too much…the rest is up to you!
EFC means Expected Family Contribution. It’s a calculation done by the Federal Government and/or certain upper tier colleges based on your family’s finances. This calculation will result in an immutable number around which your financial aid package (if any) will be designed. If your child is a senior when you discover this process, it’s pretty much too late to make any changes in your finances. If you are starting earlier to address this issue, then there are a few changes you can make in your finances that will change how they will be viewed for the EFC calculations. Mostly this is something to take up with your financial advisor (if you can even find one that understands the issues at hand). Check out this video I made about the College Board’s EFC Calculator. It can help you get a rough idea of what factors are considered in defining your EFC. Additionally, each college has a net price calculator on its website (usually inconspicuous) through which you can feed your financial information to learn whether you can afford the school or not. It’s pretty much a crap shoot as to the value of this information. You will be left with more questions than answers. So, if you have a financial aid question concerning the college to which your child will be applying, just call up the financial aid department! They are all regular people just like us! They will mostly try to answer your questions. Even if you feel dumb, just keep asking. The worst they can do is mock you behind your back. Oh well… So be a pest, but be a very nice pest, until you get the answers you want!