Saturday, April 13, 2013

Rude Financial Awakenings


This is my plea to parents of 7th-10th graders: get a financial reality check for college now! Yes, I know it might be scary and your expected family contribution (EFC) may be more than you feel you can afford. It's easy to put off unpleasant tasks and pulling out your tax returns and filling out financial estimators is not anyone's idea of fun. But hey, those taxes for 2012 should be just about filed by now, and this is the perfect time to use that paperwork for another purpose.

Your student deserves to know before he or she creates a college list what the financial parameters are. If you get tough news now, at least you will still have a few years left to deal with it.

Use the Expected Family Contribution calculator on a site like finaid.org. Calculate the numbers twice--once using federal methodology and once using institutional methodology (save the info!) You'll have a ballpark idea of what is expected of you, and you and your student can make rational decisions about next steps.

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