The FAFSA4caster – Tool Provides Early EFC Estimate

Once upon a time, a family would have little idea as to what the expected out of pocket expense for their college-bound son or daughter would be until the second half of the student’s senior year in high school. Prior to last year, this important calculation was made and the information sent to the family only after the financial aid process had been completed.

Now, thanks to the FAFSA4caster, a relatively new tool from the federal government, waiting for this key financial data has become a thing of the past.

The Tool
The FAFSA4caster will immediately calculate the critical number for families, the Expected Family Contribution (EFC). The EFC is the specific amount of money that families can expect to pay in out of pocket expenses towards the college costs for each school year.

The tool helps a family identify how both assets and income will affect the EFC. Because the EFC is calculated primarily based on income, a family’s assets actually have very limited impact on the the amount families are required to pay for school. The 4caster will determine the extent of the asset impact, helping parents and students plan accordingly.

However, it should be noted that the tool is for estimation purposes only. Only when a student applies and is accepted to a school will the EFC be finalized by the college financial aid office. It is also only as accurate as the uploaded information, so it is important to be thorough with the data entry process.

But the web tool represented such a huge step forward, the 4caster web site was named one of Time Magazine’s top 50 websites for 2007.

Use the New Form Early On
Because the new tool is for estimation purposes, families can begin to research this critical number at any time. In addition, families can update the calculation every year, beginning when their son or daughter is in sixth grade.

Calculating this important number can then be a key component to financial planning for families. Adjusting savings plans and investments can actually be done at a time when it is still possible to have a significant impact.

Adding to the user-friendly nature of the tool, the FAFSA4caster will store many of the mundane pieces of information for the true FAFSA form. Later, when it comes time for the real application, the 4caster tool will allow for a simple transfer so as to pre-populate the actual FAFSA form. It even enables families to secure the Personal Information Number (PIN) at the time that they first begin using the 4caster tool.

Site Help Is Available
Customer Service Chat hours for the FAFSA4caster are extensive, Monday – Friday, 8 a.m. – 11:59 p.m. (EST) and Saturdays 9 a.m. – 6 p.m. (EST). The only exceptions are federal holidays.