Why is efc so high

This is a big surprise to us as everyone is telling us it will be cheaper so… why it is more? Thus far we have not seen ANY real benefit of having two in college at the same time. Thanks for this info, Lynne. Get your free guide to finding the most generous colleges. Email Required. Let's Connect. The College Solution Blog. Admission practices. High school counselors. Academic majors. Academic quality. College readiness. College Life.

A smaller bank account balance may have an effect on the EFC though not a major effect. Move a student's assets to a parent's or grandparent's so the EFC isn't affected.

Another tip: keep in mind that a parent's k is sheltered from the EFC needs analysis process, so if a parent withdraws his or her k to pay for college, it will be removed from its shelter and it will become income that increases your EFC.

Use a college savings account : Along the lines of smart financial decisions, putting money into a college savings account in the parent's name such as a plan is another way for the resources you have to pay for college not weigh so heavily in the EFC calculation. When distributions are made from it, they don't count as income in the EFC formula.

It Never Hurts to Try As long as you're being honest on your application, you should do smart planning before you apply for financial aid. By Jennifer L. Amount of Money Made by College Graduates. By Karen Y. Where to Keep Your Savings.

By Rosemary Terpolilli. By Kathleen Esposito. Alicia Hahn. Begin Your Research on Education and Featured Stories. Filter By Categories cost-of-college financial-aid-and-scholarships student-loans salary-and-career. Your household income is high For most students, a high household income will be the reason for a high EFC.

You have a high-value business or farm Like other kinds of assets, a business or farm owned by your family can contribute to a higher EFC. You live in a low-tax state Because state taxes can contribute greatly to the cost of living, the EFC formula grants higher state tax allowances to families from states with higher tax rates.

Next Steps If your student has been given a high EFC and any of these above circumstances apply to you or your family, you could now have an explanation for why. Stephen Ngo. Stephen is a Boston-based digital marketing manager and data analyst. He graduated summa cum laude from Northeastern University with a B. Share This:. Edmit's advice helps you to be better off after graduation. Merit and financial aid estimates based on your student profile Earnings estimates and financial scores for your college and major Recommendations to save thousands on college.

Sign Up. Read More:. Sign up for updates. Popular Stories. Jan 14, Is Tuition per Year or per Semester? Ben Davis April 6, Why is my EFC so high this year?

How much EFC is too much? What is a good EFC score?