Originally Posted by HowlerKarma
a) EFC = 25% of household income, say 20K. If college tuition is 40K annually, then furthermore--


b) merit or need based scholarships = 6K
c) work-study, 2K
d) loans, 12K

Presto--

20 K of annual "need" has been met! Hurray!

And if costs are 60K, you can probably pile another 10-15K onto that loan.

Either way, presto ---

You have a student with a minimum of ~50K in loans and maybe up to 100K (many reasonable people would call the latter number "the equivalent of a mortgage"). And a solid chunk of it will be private loans (no bankruptcy protection, maybe even interest accrual while studying).

But need (especially the bank's laugh ) has been met!

Last edited by Val; 06/03/13 05:46 PM. Reason: Add smiley for happy bank