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# FAFSA Strategies

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Current Student
Joined: 27 Feb 2008
Posts: 299
Schools: Kellogg Class of 2011
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17 Feb 2009, 08:27
Good point rca215. I chose 4 year private school and off campus housing. That still only estimates $23,055 annual expenses. I guess I'll have to submit the real FAFSA and financial aid applications to see what I'm really eligible for. Maybe the$8500 subsidized portion will be possible since the estmated cost of MBA programs is around $75000. Director Joined: 14 Sep 2007 Posts: 908 Schools: Kellogg '10 Followers: 6 Kudos [?]: 89 [0], given: 15 Re: FAFSA Strategies [#permalink] ### Show Tags 17 Feb 2009, 08:31 maverick2011 wrote: Good point rca215. I chose 4 year private school and off campus housing. That still only estimates$23,055 annual expenses. I guess I'll have to submit the real FAFSA and financial aid applications to see what I'm really eligible for. Maybe the $8500 subsidized portion will be possible since the estmated cost of MBA programs is around$75000.

I submitted FAFSA officially,but since they don't have any estimated costs for MBA programs they don't give any guidance on whether you are subsidized-eligible. They just provide your expected family contribution. I guess the school then provides the estimated cost after you accept an offer. It's a bit of a buzz kill after submitting because they don't really tell you anything other than that they expect you to use virtually every cent of your savings!
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17 Feb 2009, 09:26
It's up to the schools to determine whether you qualify for need-based assistance, such as subsidized Stafford loans, which is why you don't find out anything when you submit your FAFSA. The school will use the estimated family contribution from the FAFSA, as well as their estimated cost of attendance, to determine the aid package to offer you.
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17 Feb 2009, 22:36
Great thread! I organized info spread across several posts and put it into a mini-guide in the blog to show it off - great reference information.

I tried to give everyone a credit, but forgive me if I missed you - was not intentional.

http://gmatclub.com/blog/2009/02/guide- ... ss-school/
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23 Feb 2009, 11:28
maverick2011 wrote:
bb wrote:
Great thread! I organized info spread across several posts and put it into a mini-guide in the blog to show it off - great reference information.

I tried to give everyone a credit, but forgive me if I missed you - was not intentional.

http://gmatclub.com/blog/2009/02/guide- ... ss-school/

bb, you may want to modify the financial aid guide slightly. Step 2 should have some sort of disclaimer in it about being set up for undergrad only. Also, I would add the link that I provided in the previous post to Step 2...I think it is more helpful in determining EFC. Then the student can compare that number to projected cost from their respective programs.

Thank you - editing it right now
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Current Student
Joined: 09 Mar 2007
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Schools: Erb Institute: Ross | SNRE
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27 Feb 2009, 08:46
i'm trying to figure out if lowering cash balances really has an impact on expected contribution. to me, it seems like it doesn't and what really matters is your salary and the difference between $10k vs$20k of cash probably won't make much of a difference in EFC. but if it's $10k vs$50k then maybe there will be a big difference in the EFC (assuming the same salary in both scenarios).

what are your thoughts? basically, i'm trying to figure out if it's worth shedding some cash which i can easily do through mortgage payments.

thanks.
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27 Feb 2009, 08:57
peaceyall wrote:
i'm trying to figure out if lowering cash balances really has an impact on expected contribution. to me, it seems like it doesn't and what really matters is your salary and the difference between $10k vs$20k of cash probably won't make much of a difference in EFC. but if it's $10k vs$50k then maybe there will be a big difference in the EFC (assuming the same salary in both scenarios).

what are your thoughts? basically, i'm trying to figure out if it's worth shedding some cash which i can easily do through mortgage payments.

thanks.

I am trying to figure out the same thing....
I find it unfair that it's asking about your current savings, but ignoring stuff like loans & mortgages.
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27 Feb 2009, 09:30
fatb wrote:
peaceyall wrote:
i'm trying to figure out if lowering cash balances really has an impact on expected contribution. to me, it seems like it doesn't and what really matters is your salary and the difference between $10k vs$20k of cash probably won't make much of a difference in EFC. but if it's $10k vs$50k then maybe there will be a big difference in the EFC (assuming the same salary in both scenarios).

what are your thoughts? basically, i'm trying to figure out if it's worth shedding some cash which i can easily do through mortgage payments.

thanks.

I am trying to figure out the same thing....
I find it unfair that it's asking about your current savings, but ignoring stuff like loans & mortgages.

I honestly wouldn't worry all that much about EFC in my opinion. Since fafsa is used through UG and graduate school it doesn't really corrolate all that much into B-school. My thoughts are that unlike undergrad where Need-Based grant are a significant portion, as well as work-study and other perks. Bschool is mostly for the people who are gonna be pretty well off when they graduate.

That's just my opinion.
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27 Feb 2009, 09:56
Sorry for the silly question but is there any benefit in applying for FAFSA if the combination of scholarship and savings may get you through the 2 years?
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27 Feb 2009, 10:17
chineseburned wrote:
Sorry for the silly question but is there any benefit in applying for FAFSA if the combination of scholarship and savings may get you through the 2 years?

More money is never a bad thing...You can always decide to turn it down later once you've seen your aid package.
Current Student
Joined: 27 Feb 2008
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Schools: Kellogg Class of 2011
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27 Feb 2009, 10:27
peaceyall wrote:
i'm trying to figure out if lowering cash balances really has an impact on expected contribution. to me, it seems like it doesn't and what really matters is your salary and the difference between $10k vs$20k of cash probably won't make much of a difference in EFC. but if it's $10k vs$50k then maybe there will be a big difference in the EFC (assuming the same salary in both scenarios).

what are your thoughts? basically, i'm trying to figure out if it's worth shedding some cash which i can easily do through mortgage payments.

thanks.

Click the link I provided earlier and manually calculate your EFC (page 21 if no dependents other than spouse):
http://studentaid.ed.gov/students/attac ... update.pdf

Or try this online calculator:
http://www.finaid.org/calculators/finaidestimate.phtml

As I said earlier, your assets only contribute .2*(amount of assets you have) to your EFC. Therefore, if you were able to reduce your assets from $50K to$10K then you would reduce your EFC by $8000. Current Student Joined: 27 Feb 2008 Posts: 299 Schools: Kellogg Class of 2011 Followers: 3 Kudos [?]: 70 [0], given: 15 Re: FAFSA Strategies [#permalink] ### Show Tags 27 Feb 2009, 10:35 GoBruins wrote: I honestly wouldn't worry all that much about EFC in my opinion. Since fafsa is used through UG and graduate school it doesn't really corrolate all that much into B-school. My thoughts are that unlike undergrad where Need-Based grant are a significant portion, as well as work-study and other perks. Bschool is mostly for the people who are gonna be pretty well off when they graduate. That's just my opinion. EFC does matter. The financial aid office is going to compare your EFC to the expected cost of attending their school for 2009-2010. Let's say your EFC is$15K per year and the cost of attendance is $75K. Then the school will allow you to make up that$60K difference with scholarships, loans, and to a lesser extent, grants. The lower your EFC is, the more money you are eligible for.

I agree that it probably doesn't make sense trying to reduce your assets since they don't count that much, but most people need loans for bschool even if they are "gonna be pretty well off when they graduate."
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27 Feb 2009, 11:47
maverick2011 wrote:
EFC does matter. The financial aid office is going to compare your EFC to the expected cost of attending their school for 2009-2010. Let's say your EFC is $15K per year and the cost of attendance is$75K. Then the school will allow you to make up that $60K difference with scholarships, loans, and to a lesser extent, grants. The lower your EFC is, the more money you are eligible for. That's not quite true. Regardless of what your EFC is, you can still borrow full cost of attendance (less scholarships and grants) with Stafford and GradPLUS loans. So in your example above, assuming the person got no scholarships, they could get$20.5k in Stafford loans and $54.5k in GradPLUS loans. The EFC is used as an index so that schools can quickly assess the relative financial need of applicants for determining who qualifies for need-based aid. _________________ Senior Manager Joined: 24 Feb 2008 Posts: 348 Schools: UCSD ($) , UCLA, USC ($), Stanford Followers: 178 Kudos [?]: 2640 [0], given: 2 Re: FAFSA Strategies [#permalink] ### Show Tags 27 Feb 2009, 11:48 zoinnk wrote: chineseburned wrote: Sorry for the silly question but is there any benefit in applying for FAFSA if the combination of scholarship and savings may get you through the 2 years? More money is never a bad thing...You can always decide to turn it down later once you've seen your aid package. I see. Thanks. My only concern with filing (and not using) is that this is an inquiry on your credit report that will affect negatively your score in the short term and will stay on your report for 2 years. _________________ Chinese Democracy is misunderstood...at your nearest BestBuy. Best AWA guide here: http://gmatclub.com/forum/how-to-get-6-0-awa-my-guide-64327.html VP Joined: 09 Dec 2008 Posts: 1221 Schools: Kellogg Class of 2011 Followers: 21 Kudos [?]: 242 [0], given: 17 Re: FAFSA Strategies [#permalink] ### Show Tags 27 Feb 2009, 12:01 Filing a FAFSA isn't a credit inquiry because you're not applying for a loan yet. After you file the FAFSA and your school determines your financial aid package, then you apply for loans - at which point the inquiry will show up on your credit history. _________________ Current Student Joined: 27 Feb 2008 Posts: 299 Schools: Kellogg Class of 2011 Followers: 3 Kudos [?]: 70 [0], given: 15 Re: FAFSA Strategies [#permalink] ### Show Tags 27 Feb 2009, 12:32 Jerz wrote: That's not quite true. Regardless of what your EFC is, you can still borrow full cost of attendance (less scholarships and grants) with Stafford and GradPLUS loans. So in your example above, assuming the person got no scholarships, they could get$20.5k in Stafford loans and $54.5k in GradPLUS loans. The EFC is used as an index so that schools can quickly assess the relative financial need of applicants for determining who qualifies for need-based aid. I see. Thanks for the clarification. I guess I misunderstood the financial aid officer at Kellogg. I've never been able to find this information (how they use EFC) on the schools' websites. EDIT: I think I remember what she was saying now...basically, just what you said: they subtract the EFC from the cost of attendance to determine your "need". Your "need" is used to determine eligibility for need-based aid and, in Kellogg's case, merit/need-based scholarships. But you can take out a loan for the full cost minus scholarships and grants. SVP Joined: 04 Dec 2007 Posts: 1689 Schools: Kellogg '11 Followers: 14 Kudos [?]: 195 [0], given: 31 Re: FAFSA Strategies [#permalink] ### Show Tags 14 Mar 2009, 18:48 Finally filed the FAFSA. Woo. Yes, it was a bit later than ideal. But better later than never Intern Joined: 10 Nov 2008 Posts: 46 Followers: 0 Kudos [?]: 2 [0], given: 0 Re: FAFSA Strategies [#permalink] ### Show Tags 15 Mar 2009, 18:33 How little do you have to make to qualify for subsidized Stafford loans? I qualified and I am almost positive it was a mistake by the school.... Current Student Joined: 21 Aug 2008 Posts: 348 Schools: Fuqua '11 Followers: 5 Kudos [?]: 38 [0], given: 0 Re: FAFSA Strategies [#permalink] ### Show Tags 27 Mar 2009, 11:11 Just sent mine away(with$0 expected family contribution, woohoo. Being a volunteer has its perks sometimes). Since I placed 3 schools on my 'schools you are considering attending' list, I'm curious how will they base their aid package since the 2 (especially Wharton vs Duke) have a much different expected cost of living.
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27 Mar 2009, 11:15
getmeouttahere wrote:
How little do you have to make to qualify for subsidized Stafford loans? I qualified and I am almost positive it was a mistake by the school....

This issue popped up for a few of us at Kellogg who thought we made above the subsidized limit but still qualify, so I'm not really sure how it works.
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Re: FAFSA Strategies   [#permalink] 27 Mar 2009, 11:15

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