EFC

So one of the things that they do at work is offer occasional lunch seminars.  They have a free lunch and have various topics.  Some are interesting, and some I just go for the free lunch.  Okay, that’s a lie – I go to all of them for the free lunch.  But nevertheless, some of them just turn out to be interesting :-)

So over the past few weeks, I’ve attended two interesting ones – one was about retirement planning in a down economy, and another was about saving for college.  Of course, as I said to one of my co-workers – the first thing about saving for retirement is taking advantage of free lunches!

The other day at the college one, I learned about EFC.  Now, I think of EFC as <a href=”http://everywhatever.blogspot.com/2007/12/efc-ohio-table-of-contents.html”>Every Freakin County</a> but in the context of college savings, EFC is the Expected Family Contribution.  Basically when filling out financial aid forms, the government looks at your income and assets and determines how much you are expected to contribute to your child’s education.

It was interesting.  There are of course a plethora of online calculators for EFC.  I used <a href=”http://www.finaid.org/calculators/finaidestimate.phtml”>this one</a>.  I just plugged in my tax info and assumed it was 10 years from now (one of the things it asks for is the age of the oldest parent).  It came up with an EFC of $6,000.  So then I ran a few spreadsheet simulations to figure out when different folks would be in college.  Accounting for missions and such, and assuming 5 years per kid, it looks like we will have 3 in college in 2025, 2026 and 2029.  The EFC is not per student but per family, so if you had an EFC of $6,000 and 2 kids, it would be $3,000 per kid.  Though your EFC goes up (but not double) as you have more kids in school.  So with 2 kids in school maybe your EFC would be $7,000.

Anyway, my (really rough) calculations said that 5 kids at 5 years per kid will cost us about $100,000.  And that is just to pay our EFC – the rest would have to be either loans, grants, scholarships, or additional savings.  But it definitely made me feel a little better about things.

Possibly Related posts:

  1. EFC For awhile now, some friends of mine have been planning a trip to try and visit all 88 Ohio Counties in 24 hours or less. This trip is code-named EFC (Every Freakin’ County). In any case, I would just like to report to all my loyal readers that I have come up with a route [...]...
  2. EFC Tests Okay so I did some testing of my EFC route. One of my problems is that although I have estimated times for several different routes, I don’t have a very good way of determining if my estimates are accurate (other than driving and timing them). The way I do my estimates is that I classify [...]...
  3. Sunday Sacrament meeting So as I mentioned in my last post, we’ve been dealing with some kid sickness. Because I have meetings and such that I have to go to church anyways, I went by myself last week. Church is definitely interesting with the no-kid factor in there. So while I was sitting there in sacrament meeting, actually [...]...
  4. Family sizes So my oldest son brought home a “My kindergarten friends” book detailing the kids in his class. While going through it with him, I was very surprised by the number of large families in the class. 3 families with 3 members 8 families with 4 2 families with 5 4 families with 6 (including ours) [...]...
  5. So I may have been mistaken for a homeless person First of all apologies to those of you I’ve already told this story.  But yes, I fear I may have been mistaken for a homeless person yesterday.  I was out at the mall last night with my 2 older children.  I had gone there to walk around because I was in a pedometer challenge (who [...]...

Comments (1) left to “EFC”

  1. Donna Norman wrote:

    I had to laugh at this one. Last year’s my EFC for Stephen’s college education was my entire year’s salary. I think Uncle Sam forgets that we occasionally like to eat, and we really enjoy having a roof over our heads. The FAFSA can be pretty tricky at times.

Post a Comment

*Required
*Required (Never published)