EFC: Who gets it?

Question

I've been living with my fiance for the past two years (im 22) making peanuts and spending what little i do make on the necessities of life. My dad is THE penny-pincher to a 'T'. The man makes 70+ thousand a year. my 'efc' (whatever that's supposed to mean!) or 'expected family contribution' is almost 16,000 a year. I havn't went to school for the past two years, partly because I wasn't sure what I wanted and partly because I was struggling to pay out of pocket each semester for school, books etc....

But the thing is that now that I DO know what I want to go for my father won't even co-sign for my student loans. I have good credit, I just checked and my score is around 700 between the three agencies, so I'm just baffled why he doesn't do this for me to better my life! blah....

So who actually gets this mystical EFC? Is it a mere government fabrication? Am I just being selfish or dramatic in thinking I'm entitled to, if not my efc, at least a co-signer? I want to hear your stories!

Answer 1

Your EFC is not what you will pay to your school and not what your father is expected to pay for your school either.  Your EFC is just a "Code" your school uses to determine what kinds and how much financial aid you will get.

You will get the best estimate of how much you will have to pay for your school by going to your schools website and looking at the cost of tuition, fees, estimated cost of books, parking permit ect.  Choose a school that has a low cost of attendance and is in-state, you could only pay 1200 a semester.  Choose a private school and you could pay as much as 25K+ a year.  I guess you could say it's both mystical and misunderstood.

It's easier to think about paying for college in regards to the max Stafford loan amounts to determine if you can afford school.  Fresh borrow up to 3,500 a year, soph 4,500 a year and jrs and srs 5,500 per year.  if your school is more than this, you have a problem (no matter what your efc is).  If your school is less, then congratulations ... it's time to enroll.

Your middle class father is not obligated to pay for or cosign for your schooling in any way, form or fashion.  Yes, it is a little disappointing not to have a parent who write a blank check every year, but everyone gets a different hand in life and this is yours to deal with and it's always easier to spend someone else's money. Don't look back and have no regrets.

My parents paid my first two years at a state school including dorm- less than 4K per year at the time.  Many years later they forked out over 25K for two years for a private school for my baby sister ... so she could find her a good Christian husband.  lol

Answer 2

from what i understand EFC just means an estimate of how much [out-of-pocket] you'll have to put in after financial aid

Answer 3

Like you said, EFC is what your parents/yourself can contribute to your education. Since your father earns 70+, your family is expected to contribute $16,000 to your education. Unfortunately, I doubt you can get any federal or state grants. Just in case, do file an application with FAFSA. This is for the federal aid.

You don't need your father as a co-signer. Maybe your fiance can be your co-signer. Here is some information about some student loans with SAllie Mae:

Federal Stafford loanFederal Stafford loans first disbursed July 1, 2006 are fixed-rate, low interest loans available to undergraduate students attending accredited schools at least half time. Stafford loans are the most common source of college loan funds.

Eligibility

You must have submitted a FAFSA to be eligible for a Stafford loan.

For subsidized Stafford loans, you must have financial need as determined by your school.

You must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen.

You must be enrolled or plan to enroll at least half time.

You must be accepted for enrollment or attend a school that participates in the Federal Family Education Loan Program.

You must not be in default on any education loan or owe a refund on an education grant.

Features

Sallie Mae lenders offer borrower benefits on Stafford loans that can save you money in repayment.

Flexible repayment options are available for Stafford loans.

No payments are required while you are in school at least half time.

You can manage your account online 24/7 at www.ManageYourLoans.com.

You get life-of-loan servicing from Sallie Mae.

There is no prepayment penalty.

No credit check is required for a Stafford loan.

Six-month grace period when no payments are required immediately following your graduation or dropping to less-than-half-time status.

Loan terms

Loan limits

Dependent Annual loan limit

Freshman $3,500*

Sophomore $4,500*

Junior or senior $5,500

Independent Annual loan limit

Freshman $7,500*

Sophomore $8,500*

Junior or senior $10,500

Graduate or professional $20,500*

Undergraduate dependent lifetime limit $23,000

Undergraduate independent lifetime limit $46,000

Graduate or professional lifetime limit** $138,500

*For loans first disbursed on or after July 1, 2007. **Exceptions may apply to certain graduate students.

Interest rate

For Stafford loans first disbursed beginning July 1, 2006, the interest rate is fixed at 6.8%.

Fees

For loans first disbursed July 1, 2007–June 30, 2008: Up to 2.5% in fees that includes a 1.5% federal origination fee and a 1% federal default fee. There are lenders and guarantors that work with Sallie Mae that pay all or a portion of these fees.

I would recommend that since you will paying for your education, you should attend a public college or university. Even better, complete your general education at a community college (the first 2 years) and finish @ a public university. This way you will pay for an excellent education!

This is exactly what I am doing, and I have save thousands!

Good luck!

Answer 4

EFC is your Expected Family Contribution. Since you are under the age of 24 and not married you are still considered to be dependent on your parents for help to pay for school. That is where the major downfall lies. Becasue your father has such a high income, the government assumes he is going to be putting X dollars toward your education (in your case 16K). This is usually an unrealistic number even for low income people.

I can understand your frustration at this situation. I am on the other end of the spectrum; I come from a low income family. I was frustrated always having to have my Dad on my FAFSA and couldn't wait til I turned 24 so I would only have to base my financial situation on my own income, not two. Well, I ended up getting screwed because I was making like 1200/month (living on my own, in an apartment...blah, blah, blah...all the stuff real life is) and they told me my EFC for the last FAFSA I filled out was $6000 for the year.

The only two options you have for changing your EFC (other than waiting until you turn 24) are: having a child or getting married.

It might be best to see if maybe another relative would be willing to act as a co-signer.

Hang in there...things will work out. I had a friend who had to go through the same thing as you.