Tag: Cost of Attendance

WHAT IS EFC (EXPECTED FAMILY CONTRIBUTION) OR SAI (STUDENT AID INDEX)?

Financial Aids

The EFC (Expected Family Contribution) is the amount of money family is expected to contribute towards COA (cost of attendance).

Parents’ AGI (Adjusted Gross Income) + Untaxed Income & Benefits–Income Allowance
Fed Income Taxes
SS (Social Security) Taxes
State Taxes
Employment Exp. Allowance		x 22 – 47% (assessed at a variable rate)=Parents’ Contribution from Income
Parents’ Assets–Asset protection Allowancex 5.64% (assessed at a variable rate, no asset protection allowance as of 2023-2024, FAFSA)=Parents’ Contribution from Assets
Students’ AGI (Adjusted Gross Income) + Untaxed Income & Benefits–Income Allowance
Fed Income Taxes
SS (Social Security) Taxes
State Taxes		x 50% (assessed at a flat rate)=
Students’ Contribution from Assets
Students’ Assets–x 20% (assessed at a flat rate)=
Students’ Contribution from Assets
EFC (Expected Family Contribution)

In the EFC calculation: The family’s home/farm (if family lives in the home/farm) are not assessed. Business assets are not counted if the owner employs 100 or fewer full time employees. Above 100 employees are assess at a special net worth adjustment. Parental asset protection allowance is based on the age of the older parent. The allowance increases with the age of the older parent.

What are the assets included in FAFSA:
Included: 529s (Parent Assets), Bonds, Checking, CDs, Mutual Funds, Other Real Estate, Savings, Stocks, UTMA/UGMA & Trusts.

Excluded: 401K, Annuities, Family owned small business and Farms (2024-2025 + will be included), Home Equity, IRA, Life Insurance Values, Pension, Personal Property.

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What is Cost of Attendance (COA)?

Financial Aids

Admissions office and financial aids office work hand in hand, usually they are run by one umbrella, the department called “Enrollment Management”. There are many types of Admissions: ED (Early Decision), EA (Early Action), EV (Early Evaluation), RA (Regular Admission), Rolling, Open, Deferred Admission.

ED (Early Decision):
ED is when students apply to Early Deadline and if accepted, they are obligated to or committed to attend. Students are typically notified either acceptance or rejection by early December, sometime right before Christmas. This can be one of the best Christmas gifts!

EA (Early Action):
EA is when students apply to Early Deadline and if accepted, they are NOT obligated to or NOT committed to attend. EA application are usually due in Fall, and students receive decisions before the year end.

EV (Early Evaluation):
EV is when student apply in Early (by November) and were sent a decision (not an acceptance letter) by January about their chance of getting in.

RA (Regular Admission):
RA is the common type. Students usually send applications between November and January. Schools have minimum requirements, such as GPA, SAT or ACT, high school diploma, personal statement, essays, letters of recommendations. Schools usually compare students’: academic performance, extracurricular activities (EA), letters of recommendations.

Rolling (Rolling Admission):
Rolling allows students to apply ANYTIME during admission period (between September thru July).

Open (Open Admission):
Open are normally for community college students and online students. They allow students who meet minimum requirements to be admitted.

Deferred (Deferred Admission):
Deferred allows students who have personal, financial and other concerns to postpone their enrollment for up to one year.

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