When your children go to college, your family’s share of the total cost will be determined in this manner:
What a federal student aid form determines to be your “expected family contribution” (EFC).
What the school calculates to be the amount that your family can pay, based on school policies as well as federal law. This calculation might take into consideration whether your family has other children who will be going to college.
However much your family is asked to pay, the rest might come from financial aid, which is offered to over one-half of all undergraduate students.
Federal programs provide two-thirds of all student financial aid. These include Pell grants, which are based on need and the cost of attendance at a particular school. There are also direct or guaranteed loans, such as Stafford loans, on which interest may be deferred until graduation and may be deductible from taxable income.
Loans and grants from universities and colleges Some schools base their aid on merit as well as need, which may also be helpful to upper-income families.
Scholarships. Many organizations offer some form of award for higher education.
