Money for College 3 – of red tape and “need”


As the giant mountains for snow slowly transform to great gray mushy globs, it’s time for a similarly mushy subject: need-based aid.

But first, a Shameless Plug! I couldn’t think of any way to connect this to today’s topic, but I am thrilled that one of my heroes, Dr. Thomas Lovejoy, has joined the George Mason University faculty. He has a whole slew of academic accolades and accomplishments, but I’ll admit to knowing him best as the founder of the PBS show, “Nature,” which is, according to the linked article, “the most popular long-term series on public television.”

Need-based aid is, for the most part, determined by the Free Application for Federal Student Aid, or, in street lingo, FAFSA. Actually, it would more likely be “FAFSizzle”, but that’s not important right now. The U.S. Department of Education works hard every year to make the form easier, but the truth is that any way you cut it the form is going to be somewhat time consuming and confusing. On the upside, lots of the information you’ll need is the same as what you’ll put together for your family’s taxes. As a result, the year you are applying for college is a great year to get your taxes done early.

Once you submit the FAFSA, the Department of Education works much magic to come up with your Estimated Family Contribution, or EFC. The EFC is how much the government believes you can afford to pay for college. You can do the estimate yourself – just decide how much you can afford to pay for college and assume it’s a lot more than that.

While the government is deciding how much you can pay, the colleges are reporting how much we cost. Our Total Cost includes room, board, books, tuition, and fees. The basic equation that drives the financial aid system is Total Cost minus EFC equals NEED, the amount of money the government believes you need to afford college. Colleges then try to meet your need in four ways: scholarships, grants, loans, and workstudy.

You’d think that would make things really clear. That’s, however, when it gets REALLY complicated. Each college will have a different mix, higher or lower percentages of scholarships and grants compared to loans and workstudy. And they all have different Total Costs. Bottom line – it can take a lot of time and careful examination to determine exactly what each institution is planning to charge you.

Next up: all the many many many ways your scholarships, financial aid, and costs can change. Be seeing you.

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2 Responses

  1. Zinch is a wonderful scholarship site. It doubles the scholarship amount of any scholarship you find, apply and win through Zinch. You can join at http://www.zinch.com/Anonymous/StudentRegister.aspx?affid=324845 .

    For the 2nd year in a row, I am competing in the Sweet Diggity Dawg Scholarship, also known as the March Madnezz Scholarship Competition at Zinch, for $20,000. There are 8 rounds remaining, and from now on, the winner is selected by votes.

    To help with the environment while I am in this contest, I will recycle 1 bottle for every vote I receive. At first, this may not seem like that much. It takes thousands of votes to win this competition.

    You can vote for me at I’m over at http://www.zinch.com/voting/Regionals.aspx?GroupId=37#Samantha-Kelley . If you could also join my Facebook group at http://www.facebook.com/group.php?gid=337138029668&ref=ts , that would be wonderful (I can make it into the top 64 simply by having the largest Facebook group).

    Thanks to all who support me in my quest to pay for college by myself and leave debt free!

    • We’ve used Zinch before – seems pretty much like another of the many many college match sites – so I’m kind of assuming this is spam, but I’ll let the rest of you decide for yourselves

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