College Funding Myths and Facts

Families need to hire a college planning or financial aid planning consultant in order to find out how much aid a college might offer… Financial aid data is out there. However, it is hard for students and parents to interpret… OCIS Username: LEAF Password: ohiocan03 Myth…

Student’s with a Zero Expected Family Contribution (EFC) are not expected to pay anything towards their college education. At Community Colleges a Zero EFC student typically will have all expenses covered by the Federal Pell Grant. Myth… EFC is calculated when the Free Application for Federal Student Aid (FAFSA) is submitted by the student.

Colleges don’t negotiate. They typically give their best offer in the initial award letter. For the award year Baldwin-Wallace and the University of Mount Union looked at financial aid award letters from other institutions, but it didn’t guarantee more aid. Myth You can “negotiate” financial aid award letters by pitting colleges against each other.

EFC Contribution from Parental Assets= 12% of (Asset Protection Allowance – Parental Assets) Money put into a 401k or IRA shows up as untaxed income on the FAFSA. If parents have a business or can gift large sums of money to the student they may be able to get tax credits. EFC Contribution from Student’s Assets= 20% of the student’s assets. Myth/Fact You can move assets around to get more aid. Parental AssetsStudent’s Assets EFC is primarily driven from the parents’ & student’s AGI!!!

Financial Aid Offices will help you file the FAFSA. Some Colleges offer community outreach & assist in filing the FAFSA, like community colleges, but the vast majority do not. ALL financial aid offices will answer questions about the FAFSA. Myth…  Financial aid administrators and others perform these same services FREE of charge!  Contact the financial aid office at a local college or university or the reference librarian at the public library for information or assistance. Even if you are planning to attend another school, the staff in any financial aid office or a reference librarian should be able to provide you with the same information and assistance that a consultant would provide. College websites, publications, and catalogs are also good sources of information. This is from the NASFAA website!!!

Myth… Students can get a “full-ride” on an athletic scholarship. Most athletic scholarships DO NOT cover room and board. The average NCAA athletic scholarship is $8,707*. *The New York Times, Expectations Lose to Reality of Sports Scholarships 2008

Facts… Most colleges do not offer the same aid opportunities to transfer students as they offer incoming freshmen. Private colleges may reduce institutional aid based on a student living at home. Some Colleges will not “stack” institutional aid. Division III colleges do NOT give out athletic scholarships… regardless of what the coach says. Fact Currently, you cannot bankrupt Federal or Private Student Loans. Fact Just because a non-custodial parent lives in another state does not mean the student will get in-state tuition if he/she moves there!

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