EFC...&...Loans

This forum made possible through the generous support of SDN members, donors, and sponsors. Thank you.

gsinccom

Full Member
10+ Year Member
7+ Year Member
15+ Year Member
Joined
Sep 19, 2005
Messages
867
Reaction score
1
So I got my FAFSA SAR back recently and my EFC is quite higher than I expected (it went off the combined 2006 income of my spouse and I-which will be cut in half when I start pharmacy school-and our $ in checking/savings/cash which is gradually decreasing now that we bought a condo). I'm worried this might prevent me from getting the best loan package possible; I'd like the Subsidized and Unsubsidized Stafford Loans to cover my tuition and hope to avoid private lenders. How much is too much on the EFC? I know I can make changes to my Fafsa and plan to soon as my checking/savings/cash is decreasing quite a bit but how much is too much on the EFC? Please advise:) Thank You:)

Members don't see this ad.
 
I'm in the same boat as you - the FAFSA based my EFC on my husband and I's income from last year, but I'm not going to be working at all while I'm in school.
I'd check with the financial aid office at the school you're going to to see if they have some sort of way to correct for that. I was able to file a "reconsideration of income" petition with my school so that they would base it on what our upcoming year's projected salaries will be. Not sure if all schools do that or not, but worth looking into.
I would much rather take out Stafford loans to pay for school since I know I could repay them in a few years after graduating, than the alternative of draining all of our savings/investments which we will need for living expenses.
Good luck to you :luck:
 
My EFC was 18000+/- because we sold our condo last year and I still work + I did pretty well in stock market last year. I (at least for now) don't plan on working the first year or two. Since I'm the head of a single income household and that income disappears next year, we'll see what happens to the EFC. Though if I can continue to do well in the stock market, hopefully it won't hurt too bad.
 
Members don't see this ad :)
I'm in the same boat as you - the FAFSA based my EFC on my husband and I's income from last year, but I'm not going to be working at all while I'm in school.
I'd check with the financial aid office at the school you're going to to see if they have some sort of way to correct for that. I was able to file a "reconsideration of income" petition with my school so that they would base it on what our upcoming year's projected salaries will be. Not sure if all schools do that or not, but worth looking into.
I would much rather take out Stafford loans to pay for school since I know I could repay them in a few years after graduating, than the alternative of draining all of our savings/investments which we will need for living expenses.
Good luck to you :luck:

I'll check with my school today. Thanks for the info.

updated - 5/22/07 - haven't heard back from my school yet...
 
My EFC was 18000+/- because we sold our condo last year and I still work + I did pretty well in stock market last year. I (at least for now) don't plan on working the first year or two. Since I'm the head of a single income household and that income disappears next year, we'll see what happens to the EFC. Though if I can continue to do well in the stock market, hopefully it won't hurt too bad.
My EFC was just a bit under that. Have you received your loan package yet? If so, for tuition did you receive both stafford loans and were you able to avoid the private loans?
Thanks.
 
After the school offers you a loan package can you make adjustments to the Fafsa/EFC or is it set at that point?
 
I redid my FAFSA today because my spouse and I bought a condo a month or so ago. Our savings/checking/cash decreased by over 5K but the EFC is still the same as before. How is this explained?
 
I have the same question as you - "how much is too much on the EFC". I'm not exactly clear on whether or not it can be so high that FAFSA offers absolutely nothing.
In my experience for the 2006-07 year, my EFC exceeded the college Cost of Attendence by a couple thousand, but I was still offered a Stafford loan (unsubsidized). This is still better than going through private lenders. Since I'm a 3rd year undergrad student, the loan limits for the academic year covered my COA. The current annual max for grad/professional students is $18,500. So, if you're offered at least an unsub Stafford and your pharmacy school's annual COA is less than than $18,500, you should be able to avoid private lenders.
My financial situation for the 2007-08 year has changed due to a significant decrease of income for 2007 compared to 2006 (loss of job in Feb '07). I submitted the petition for financial aid reconsideration about two weeks ago. Just yesterday, I was notified by FAFSA that my EFC has been "corrected". I was quite disappointed to see that it was still quite high, considering what my income will end up being for '07. I will be curious to see what my award letter offers - I'm hoping for at least a subsidized Stafford.
I realize this doesn't answer your question, but my advice would be to take a stab at submitting a petition to have your EFC reconsidered. The worst outcome will be no change.
 
I have the same question as you - "how much is too much on the EFC". I'm not exactly clear on whether or not it can be so high that FAFSA offers absolutely nothing.
In my experience for the 2006-07 year, my EFC exceeded the college Cost of Attendence by a couple thousand, but I was still offered a Stafford loan (unsubsidized). This is still better than going through private lenders. Since I'm a 3rd year undergrad student, the loan limits for the academic year covered my COA. The current annual max for grad/professional students is $18,500. So, if you're offered at least an unsub Stafford and your pharmacy school's annual COA is less than than $18,500, you should be able to avoid private lenders.
My financial situation for the 2007-08 year has changed due to a significant decrease of income for 2007 compared to 2006 (loss of job in Feb '07). I submitted the petition for financial aid reconsideration about two weeks ago. Just yesterday, I was notified by FAFSA that my EFC has been "corrected". I was quite disappointed to see that it was still quite high, considering what my income will end up being for '07. I will be curious to see what my award letter offers - I'm hoping for at least a subsidized Stafford.
I realize this doesn't answer your question, but my advice would be to take a stab at submitting a petition to have your EFC reconsidered. The worst outcome will be no change.

I'm not sure how much "play" there is in the numbers. I don't know if it's bracketed like IRS where EFC is $X for an income range of [Y-Z] Or if it's calculated like a FICO score where no one knows exactly what all goes into it. It seems odd that $5000 wouldn't make a difference. Though quite frankly it represents about 3% of my reported assets due to the sale of our condo last year. So a three percent (corresponding) decrease would only be ~$540 on my EFC. That's just a guess but it would explain why such a small decrease. I'm counting on getting the entire thing anyway since USC's COA is 55K+/-.
 
I redid my FAFSA today because my spouse and I bought a condo a month or so ago. Our savings/checking/cash decreased by over 5K but the EFC is still the same as before. How is this explained?

I'm totally confused about it all, too. I filed the FAFSA and our EFC was quite high because it went off of my husband and I's combined income for last year. Well, I am not going to be working at all when I go to school, so I filed a reconsideration of income with my school's financial aid office and I just got word back from FAFSA that my EFC has been corrected. Well it is only like $1000 less! How in the world does a $36000 drop in income translate to only having to pay $1000 less for the EFC?!?!?:mad: And the worst part is that at my school P1 is considered undergrad for financial aid reasons, so the Stafford loan limit is $10,500 - only about 2/3 of the COA. I guess I'm just screwed however you look at it!
 
.... I'm counting on getting the entire thing anyway since USC's COA is 55K+/-.

USC's annual COA is 'bout 55K!?! I hope that includes room & board (in the Four Seasons!) :eek:
 
Hey guys,

Just wondering about some things. I am so new to financial aid...so I'm kinda confused about some things. I know some of you stated that our max is 18500 in stafford.....but I thought you could only take out what your school offers you in loans. Has anyone been able to change this and ask for more, or did you just have to go by what the school offered you too? I would like to max the stafford loans, but I don't know if it's possible or not.....any help would be appreciated.
 
Hey guys,

Just wondering about some things. I am so new to financial aid...so I'm kinda confused about some things. I know some of you stated that our max is 18500 in stafford.....but I thought you could only take out what your school offers you in loans. Has anyone been able to change this and ask for more, or did you just have to go by what the school offered you too? I would like to max the stafford loans, but I don't know if it's possible or not.....any help would be appreciated.


You can file a petition for them to reconsider your financial aid. however, generally, the schools will always maximize the stafford loans they can give you first. If you don't hit the max, it's probably because you've had stafford loans in the past (those are included as well). But it never hurts to try to ask.
 
Members don't see this ad :)
USC's annual COA is 'bout 55K!?! I hope that includes room & board (in the Four Seasons!) :eek:

Resident (Off-Campus) calculated by the USC Financial Aid Guru's $52,690 for 2007-2008, (http://www.usc.edu/schools/pharmacy/pharmd/fa/aid_awarded.html)
not including Mandatory Health Insurance at 1,391 for adults and 1,139 for kids. For me 2 + 2 Total comes to 57,750 for the year. That's provided I can find a house for the 4 of us at their estimated $1,018/mo (And all I've been able to find in a decent neighborhood is $1800/mo+/- 200/mo)
 
Resident (Off-Campus) calculated by the USC Financial Aid Guru's $52,690 for 2007-2008, (http://www.usc.edu/schools/pharmacy/pharmd/fa/aid_awarded.html)
not including Mandatory Health Insurance at 1,391 for adults and 1,139 for kids. For me 2 + 2 Total comes to 57,750 for the year. That's provided I can find a house for the 4 of us at their estimated $1,018/mo (And all I've been able to find in a decent neighborhood is $1800/mo+/- 200/mo)

That is why God created the ghetto - so we wouldn't be limited to living in a "nice" neighborhood...

~above~
 
That is why God created the ghetto - so we wouldn't be limited to living in a "nice" neighborhood...

~above~

Tis true, but it's worth it to keep my kids out of the ghetto for 4 years. Besides, I'm not talking about Beverly Hills or Pacific Palisades, I'm talking Alhambra, Monterey Park, San Gabriel Areas.
 
More Government grant money should be given to professional.doctoral degree seeking students.
 
More Government grant money should be given to professional.doctoral degree seeking students.

Ummmm, no. Money shouldn't be "given" to anyone. There should be specific criteria, set by the person/organization/institution that is making the funds available.

Not too many years back, small towns would fund the professional education for, say, a doctor, on the agreement that the student would return to the town to practice. Sadly, too many people aren't interested in going to rural areas or small towns, mainly because of the perceived lower prestige and the likely lower salary. Dollar signs were much more interesting to professional-level students, and they turned down the chances. From my perspective, if their money isn't good enough for you, why should anyone else "give" you money?
 
Ummmm, no. Money shouldn't be "given" to anyone. There should be specific criteria, set by the person/organization/institution that is making the funds available.

Not too many years back, small towns would fund the professional education for, say, a doctor, on the agreement that the student would return to the town to practice. Sadly, too many people aren't interested in going to rural areas or small towns, mainly because of the perceived lower prestige and the likely lower salary. Dollar signs were much more interesting to professional-level students, and they turned down the chances. From my perspective, if their money isn't good enough for you, why should anyone else "give" you money?

I am going to have to agree with the Gov not "Granting" more money... but I dont see an issue with loaning more. To grant money - you are saying that the money must never be repaid - ie need based grants (pell). On the flip side of that - why cant Farmercyst - who has to care for a family of four not receive a larger loan per year to live more comfortably.

For myself - I dont want to have to find the cheapest apartment possible - or give up my car because I want to go to school. Especially in light of how much I will be able to afford once it is all said and done...

~above~
 
I am going to have to agree with the Gov not "Granting" more money... but I dont see an issue with loaning more. To grant money - you are saying that the money must never be repaid - ie need based grants (pell). On the flip side of that - why cant Farmercyst - who has to care for a family of four not receive a larger loan per year to live more comfortably.

For myself - I dont want to have to find the cheapest apartment possible - or give up my car because I want to go to school. Especially in light of how much I will be able to afford once it is all said and done...

~above~

Loans are fine.... it's a calculated risk that the lender takes, based on what they think the borrower can afford to pay back. And I'm going on the assumption that Farmercyst has a respectable track record as an adult/borrower/student etc, and will be able to get additional funding.

But I do have a problem with the 'entitlement mentality;' I think people should have to show something substantial that represents their ability to pay the loan back (be that credit history, projected earnings, whatever). I am really bothered by people who think that the money should be just given to them, that for whatever reason, they're entitled to it. Show me that loaning youi money is a good risk, and sure, I'm more than willing to invest in your (and ultimately our) future.
 
I am going to have to agree with the Gov not "Granting" more money... but I dont see an issue with loaning more. To grant money - you are saying that the money must never be repaid - ie need based grants (pell). On the flip side of that - why cant Farmercyst - who has to care for a family of four not receive a larger loan per year to live more comfortably.

For myself - I dont want to have to find the cheapest apartment possible - or give up my car because I want to go to school. Especially in light of how much I will be able to afford once it is all said and done...

~above~

And with interest rates being not much lower than private loans, even less is being "given away" Though the limits for professional students are higher than for Undergrad/non-professional programs. If the info isn't at FAFSA.ed.gov it should be at studentaid.ed.gov Granted the interest rates are higher for GradPLUS than they are for Perkins, but what do you do?
 
I think there should be more money to assist students at all levels of education. Granted, it should be on a scaled level: less income-more grants, higher income-more loans. A combination of the two should cover everyone's total college expenses.
I know far too many people (including myself) who without government assistance and scholarships never would have been able to attend college...now most of them are doctors, lawyers, and other very accomplished people who contribute greatly to society. It would have been a terrible waste of intelligence and motivation had they never attended college due to financial concerns. Education is one of the most worthwhile investments a government can make.
 
I redid my FAFSA today because my spouse and I bought a condo a month or so ago. Our savings/checking/cash decreased by over 5K but the EFC is still the same as before. How is this explained?

I think it has to do with whether or not you could have filed your taxes with the Form 1040A, even if you filed with 1040 or something else. If you look it up on the web, somewhere the IRS posts an EFC calculation worksheet that allows you to see how they calculate your EFC. Try typing "2007-2008 EFC Formula" in Google and you will probably find it. It gives explanation as to who qualifies for what, etc. For example, I was eligible to file a 1040A for last year's taxes and my adjusted gross income was low enough to exempt my savings/checking account assets from the EFC calculation. It also has to do with whether or not you are an independent student or not, etc. If you can find the EFC formula online, that will answer a lot of your questions.
 
Here is a listing of current ('07-'08) worksheets for all 3 situations (dependent student, independent student with no dependents other than a spouse, and independent students with dependents other than a spouse)... hope that helps.
 
I just spoke to someone at Creighton, as I had questions, too. I filed my FAFSA and got an EFC. I then wondered (as I have never taken out a loan) how they know my living expenses and how much/little I planned to work. So I called Creighton's Finanacial Aid Office, and they said that when they get the EFC from the government they send me a form that I fill out asking my personal situation (mortgage, working, etc). From that they determine how much funding I would get. So it sounds like it is up to the school to give you your amount based on your personal criteria. Sounds reasonable and makes sense. I would assume other schools do it this way too??
 

Similar threads

S
Replies
0
Views
533
Student Doctor Network
S
E
Replies
0
Views
254
Ernest Atta Adjei
E
Top