Company Logo

Leonard Golub, CFA, MBA
Fiduciary Advisor
3355 West Alabama Street
Suite 275
Houston, TX 77098
713-874-1444
info@newcapitalmgmt.com
newcapitalmgmt.com View Bio

Leonard Golub's Profile Picture

January 03, 2020

Financial Aid for College

Paying for college with a combination of strategies

Families typically fund college with a combination of strategies including savings, financial aid, and current income. Outside scholarships and gifts are a bonus.

 

Finding the Funds to Pay for a College Education

Finding the funds to pay for your child's college education is like filling a glass. The full glass represents the cost of education at any one school, which includes tuition, fees, room and board, books, transportation, and personal expenses.

The first ingredient is what you'll have to contribute from your own pocket, which is determined by your student aid index (SAI), formerly called the expected family contribution (EFC), which is calculated by the federal government's financial aid formula. This contribution can come from savings and/or loans.

Your SAI/EFC is the same regardless of the college your child chooses. The difference between your SAI/EFC and the cost of a particular college equals your child's financial need, which is a variable.

To meet this financial need, your child might be eligible for financial aid in the form of loans, grants, scholarships, and/or work-study funds from the federal government, college, and/or independent organizations. Your child may not receive all the financial aid he or she needs. If so, you'll have to top off the glass with more of your own funds.

This illustration represents one possible financial situation. Actual percentages may vary from student to student.

Refer a friend To find out more click here

The information contained herein is based on sources believed to be reliable, but its accuracy cannot be guaranteed. The articles, information, calculators, and opinions presented herein are for general information only and are not intended to provide specific advice or recommendations for any individual. New Capital Management does not provide tax, accounting, or legal advice. All decisions regarding the tax or legal implications of your investments and finances should be made with your tax or legal advisor. New Capital Management is not a bank, mortgage lender, or broker. Nothing herein should be construed as an offer or commitment to lend. Any calculations are provided as educational tools, are hypothetical in nature, depend wholly on information you provide, do not assume the effects of all pertinent factors, and are not intended to provide investment advice or serve as a financial plan.



This communication is strictly intended for individuals residing in the state(s) of TX. No offers may be made or accepted from any resident outside the specific states referenced.

Prepared by Broadridge Advisor Solutions Copyright 2024.