North Fork College Bound
A Local, Comprehensive, Pro Bono College-Admission Support Site
Bob McCaughey
Professor of History Emeritus
Barnard College, Columbia University
ram31@columbia.edu
How FAFSA Works [FAFSA = Free Advice for Federal Student Aid}
https://studentaid.gov/complete-aid-process/how-calculated
Three major considerations:
1. The list cost (“sticker price”) of attending the colleges you are considering per year (COA);
2. How much the colleges/government determines to be the expected family
contribution (EFC)
3. How much (what % ) of the difference between the COA and the EFC — the remaining
gap or need — the college is willing to cover with grants, work-study, and loans
Cost of Attendance (COA)
In-state public college/commuting from home — tuition/fees/books –> $10,000 per year;
In-state public college living on campus — tuition/fees/rm&board/books/travel –> $25,000 Out-of-state public college — tuition/fees/rm&board/books/travel –> $45,000
Private college — tuition/fees/rm&board/books/travel –> $65,000 to $80,000
Expected Family Contribution (EFC)
In general, the more family resources available for college the larger the EFC.
On the other hand, the more other children of below college-going age the
smaller the EFC for any one child
EFC takes into account parents’ adjusted income and assets, plus dependent student’s
income and savings; does not count home equity.
If parents’ combined adjusted (gross – health insurance) annual income is less
than $26,000, EFC = 0
Assuming applicant is the dependent of a family with two kids earning an annual income and with savings of 10% of annual income:
1. Family income of $70,000 and savings of $7,000 –> EFC of $4600
2. Family income of $100,000 and savings of $10,000 –> EFC of $6500
3. Family income of $150,000 and savings of $15,000 –> EFC of $10,000
4. Family income of $200,000 and savings of $20,000 –> EFC of $13,500
Gap between COA and EFC = COA minus EFC
Varies from low of $5400 for low-come family with child commuting to a nearby pubic
college, to a high of $75,400 going away to a private college
College Contribution in Financial Aid to Close Gap
For In-state public colleges
Can provide financial for families with EFC of less than $6,000 to cover cost of
tuition and fees. Use of federal (Pell) and state (TAP and Excelsior) funds to do so.
For families with $10,000 to $15,000 in EFC, state colleges can cover around 60% of the
$10,000 to $15,000 gap between COA and EFC, or between $6,000 or $9000.
For high-income families the remaining uncovered gap is $6000, for lower-income families
the uncovered gap is $4000
Out of pocket annual costs to $200,000 income family is EFC + uncovered gap after
financial aid = $20,000; for $150,000 income family = $15,000
Adjusted gross income of dependent student
Interest on savings of both
Other income from investments
Some adjustments for high-tax states/home equity not considered
529 Plan savings of parents at 7.6%
Cost of Attendance (COA) = What a given college charges for tuition/fees/room/board/ expenses
Sample: Princeton 2020-21
Tuition — $53,890
Room — $10,480
Board — $7,340
Books/Other — $3,500
Cost of Attendance — $75,210
“Gap” = Cost of Attendance – Expected Family Contribution
to be filled by college and family (beyond its EFC)
$75,000 – $8,000 = $67,000 à
A few very wealthy colleges (e.g., Princeton) provide “Full Need Met/No Loans ” financial aid plans
which cover the entire gap with college grants;
Example: Princeton (COA = $75,000) would make aid package consisting of a grant of $67,000, leaving family (EFC = $8000) with net annual cost to family of $8000.
Other wealthy “Full Need Met” colleges (e.g., Barnard, where COA = $78,000) would make aid package of $70,000 in grant and $7000 in guaranteed student work ($2500) and loan ($3500), leaving same family (EFC = $8000) with net price of $15,000
Less wealthy “Not Full Need Met” colleges (e.g., Adelphi, with COA = $60,000) would make an aid package of $25,000 in grants, $10,000 in loans and expect the family to borrow the rest or draw on other resources
For-Profits – Some expect students to load up on student loans/debt
CSS Profile {College Scholarship Service Profile]
Administered by College Board and tailored for each participating college
More intrusive; but also more used by colleges with more $
North Fork College Bound 