Daniel Barkowitz | January 12, 2005

"Singing in Four Part Harmony -- Or What Makes up your EFC. "

I love to sing.

It helps that I sing fairly well (or at least I like to think I do), but I do love to sing.

As for what I sing, it varies from Broadway show-tunes to Abba to Air to Eminem (I have a pretty eclectic taste in music).

And I belong to a choir. Now, my choir isn't an MIT thing (although there are MANY MANY MIT choirs -- from the Logs to Techiya to the Muses and everything in between). My group practices every Monday night.

Last Monday night in rehearsal, I was thinking about what to put on this blog as we were working on harmonies for one particularly difficult song, and it hit me! The perfect image! Singing in 4 part harmony.

So why is it the perfect metaphor? Well, just like in music you need 4 parts to make up the whole (S, A, T, B), in financial aid, you need four parts to make up the whole as well (PC-I, PC-A, SC-I, SC-A).

So, enough with the metaphor (I feel like I have beat it to death) and on to what I mean.

The Expected Family Contribution is made up of four components:

1. Parent Contribution from Income
2. Parent Contribution from Assets
3. Student Contribution from Income
4. Student Contribution from Assets

(Do note that if you are from a divorced or separated family, there may also be a Non-custodial contribution from income and assets -- see here for more information on who is considered to be your parent).

What I thought I would do in the coming days is spend a little bit of time on each of these 4 components and answer some questions about each one, providing some information that will help you understand how we conduct our business.

But for today, I need to tackle one issue before we can even get started, and that is the question of who is considered to be an independent student, therefore not requiring a parental contribution of any variety.

Remember that before, I explained how there were really two different formulas, one used by the Federal Government at all schools to determine Federal aid, and one used by a number of colleges (including MIT) to determine how to award their own aid. Also, remember that I said that while the Federal rules were pretty standard across the board, there were many variations in the Institutional formula.

So, let me tackle the Federal rules first. If you meet any of the following 7 criteria, then you are considered to be an independent student (for Federal purposes only) and do not need to fill out parental information on the FAFSA (although some colleges may ask you to):

1. You will be 24 by January 1, 2006.
2. You are an orphan or a ward of the court.
3. You are married.
4. You are a graduate student.
5. You are a veteran of the United States armed forces.
6. You have a legal dependent of your own (other than a spouse) who lives with you.
7. You have a legal dependent of your own who doesn't live with you, but for whom you provide more than 1/2 of their support.

If any of these are true, then you are an Independent student for Federal aid purposes.

For institutional aid, the rules may be different. At MIT, we only consider as independent undergraduate students, those students whose parents are deceased. We believe that a parent's obligation to assist with a student's undergraduate college cost doesn't end just because the student turns 24 or gets married. For our funding in these cases, we require parental information. (If you are curious about how other colleges might handle this, you should contact their financial aid office).

Also, it is important to remember that our process measures a family's ability to pay, not willingness to pay, so whether a parent is or is not willing to make a contribution has no bearing to either the Federal or the institutional formulas.

That is not to say that there are never situations where we would waive parental contributions (how is that for a double negative?), but they are extremely rare and handled on a case-by-case basis. The issues would need to be egregious for us to consider them. You should talk to your financial aid counselor if you feel your situation might qualify to be considered this way.

Look next for a beginning breakdown of the parental contribution from income.

Keep working on your applications! A number of them have started rolling in! How nice to see them!