Let's say your EFC is 40,000 and COA is 50,000, your child qualify for 10,000 financial aid. The financial aid include grant (free money) or interest free loan (free money during college) or interest bearing loans.
where
1. COA: cost of attendance published by the school, including tuition, books, and room and board.
2. Expected Family Contribution (EFC), the formula is roughly the following
EFC = Parent Income x (up to 47%) + Parent Asset x 5.64 % + Student Asset x (up to 20%) + Student Income x 50%
As you can see, parent's asset is rated the lowest, followed by Student asset. Student income is rated the highest. Note the up-to means usually for middle class the parent income is not factored as 47%.
Also Parent's asset does not income primary residence and retirement account.
Also EFC is different if you have more than one child in college.
虽然俺是新手加穷人，对群里各位大佬只能景仰，但是已经把本坛当家人了。 请教家人们： 俺refinance 出来几万块， 打算给娃明年上大学用个两三年。 家里收入不高， 但是不太可能拿到公立的助学金，私立的话， 学费太高， 全额的话支付不起，所以希望能申请到一些补助， 自己每年出个两三万（这个根据我们收入很有希望拿到）. 但听说学校会让你把银行里的存款全部先拿出来， 不够的部分再由学校补。 如果是这样， 那cash out 出来的钱就要全部拿去付学费， 那到大二的时候， 俺就没钱支付了。 咋办？ 求支招！
谢大佬指点！请问哪里看这些规则？孩子已经12年级，正在申请， 俺咋什么也不懂啊？ 我们已经填了FAFSA CSS了， 那时refinance cash out 的钱还没到手。
Potential Financial Assistance = COA - EFC.
Let's say your EFC is 40,000 and COA is 50,000, your child qualify for 10,000 financial aid. The financial aid include grant (free money) or interest free loan (free money during college) or interest bearing loans.
where
1. COA: cost of attendance published by the school, including tuition, books, and room and board.
2. Expected Family Contribution (EFC), the formula is roughly the following
EFC = Parent Income x (up to 47%) + Parent Asset x 5.64 % + Student Asset x (up to 20%) + Student Income x 50%
As you can see, parent's asset is rated the lowest, followed by Student asset. Student income is rated the highest. Note the up-to means usually for middle class the parent income is not factored as 47%.
Also Parent's asset does not income primary residence and retirement account.
Also EFC is different if you have more than one child in college.
Good luck.
CSS's parent asset factor is more complicated. For example 529 counts 25%. This is why some Chinese say don't put money in 529.
自住房一百万以下不用报。所以可以藏一百万元。
这里一些更详细的情况， 供后面的人参考/警醒：我是夏天买了新的自住房， 旧的就自动成了rental property, 我也被迫当上了地主， 但其实房子还在修整，离出租还远。 我们收入真不是谦虚，确实中等偏下。我cash out 是拿老房子做的，因为买了新房子， 又修理老房子 欠一屁股债， 就想着干脆趁利息低， cash out 出来点钱， 一来缓口气， 二来万一孩子上私立就还有点钱付第一二年的费用（否则真的没有钱付学费）。 我其实老房子有个HELOC， 但是利息是浮动的，高的时候有4以上， 所以我才琢磨着搞个固定的refinance cash out, 降低利息 （当然， 现在看来我做错了， 我应该重新弄HELOC， 弄更好的利息）。 现在拿着几万块， 真是烫手， 拿去还新房子贷款吧， 其利息又高于新房的， 不合算， 而且万一到明年娃开学需要钱交学费， 我上哪儿去弄钱？
不好卖。 但因为在市中心， 地皮值钱， 就琢磨着等再涨涨再卖。