There is no upper limit on the Exepcted Family Contribution. Some very wealthy families will have EFCs that exceed the cost of an expensive private university.
It’s always wonderful when grandparents can help with college costs, but they have to be careful to avoid hurting their grandchildren’s chances for financial aid.
Here are five things that grandparents (or other relatives and friends) should be aware of when helping to pay for college.
This fall marks the start of major changes in how parents of college students will seek financial aid. The new rules, which took effect October 1, are expected to make the financial aid application process less stressful for parents and allow them more time to make important financial decisions.
Faced with challenging aid deadlines, parents are forced to file for financial aid using estimated tax return information; but families who do this will receive a financial aid package contingent on a school receiving their final tax numbers. And sometimes those finalized figures will result in schools reducing their aid packages.
“My family makes too much to qualify for financial aid.” Lots of parents believe this statement, but plenty of them are wrong. In reality, many families qualify for some sort of financial aid. This financial aid myth is a stubborn one because parents don’t understand how financial aid needs are determined.