How Much Is My Expected Family Contribution Amount for College

Q. How much should I prepare to pay for my child's college expense?

A. You can use the following free tool to calculate your Expected Family Contribution (EFC).

Once you figure out your EFC, Financial Aid = Cost of Attendance - EFC

There are many factors affect a family's EFC, including:

• Parents' assets
• Parents' incomes
• Child's assets
• Child's incomes

While income is relatively easy to figure out, what should be included in parents' assets calculation? Below is a list to consider:

• Net worth of any investments (stocks, bonds, mutual funds, money market funds, certificates of deposit (CD), commodities, etc.)
  
• Value of trust funds, even if access to principal and/or income is restricted
  
• Real estate investment equity (excluding primary residence)
  
• Coverdell education savings accounts
  
• 529 college savings plans
  
• The refund value of prepaid tuition plans (these savings plans are assets of the account owner, not the beneficiary. Savings plans owned by a dependent student are not reported as assets.)
  

Which assets would not be included in the calculation?

• Value of the family's primary place of residence
  
• Retirement funds
  
• Pensions
  
• Life insurance policies
  
• Annuities