Despite an emphasis to begin an early college savings plan, until now parents could not get a sense of the progress of that plan as it related to actual college costs until their son or daughter applied for school. But thanks to a new tool from the federal government, parents and students can get an immediate snap shot of their status.
But thanks to a new tool from the federal government, the FAFSA4Caster, parents and students can get an immediate snap shot of their status. The 4Caster tool provides an instant estimate of a family’s Expected Financial Contribution, the actual amount they can expect to pay in out-of-pocket expenses for each year their son or daughter is in college.
The new 4Caster tool projects the college expenses based on current income and assets, including those funds earmarked for college. Previously, a family could not get a real sense of their EFC, especially as to how their assets affected the calculation, until their son or daughter’s senior year in high school.
Angela Dostie, the "Manager of Outreach and Default Prevention at the Finance Authority of Maine (FAME), has become intimately familiar with the FAFSA4Caster tool. The Financial Authority of Maine does somewhere between 30 and 40 financial aid sessions a year and has promoted the tool at each of those presentations.
"Parents always ask, ‘What can we do now?’” states Dostie. She notes that the new tool gives parents something they can begin to work on immediately, even when their son or daughter is in middle school.
Dostie also indicates that, "Parents are often unaware of how assets affect the Expected Financial Contribution of a family.” Because the EFC is an income driven calculation, the new 4 CASTER tool allows students and their parents to determine how their income and their assets affect that calculation.”
Parents do need to understand that the tool is for estimation purposes only. Though the tool will give families an approximation of the Expected Financial Contribution it is important that parents understand that it is only when the actual college financial letter arrives that the calculation becomes exact. Of course, the tool also is only as accurate as the information provided.
The new FAFSA4Caster tool allows for data transfer to the actual FAFSA financial aid form when the time comes for the aid application process. With the touch of a button, all personal data can be uploaded from the 4CASTER to the actual FAFSA at the appropriate time.
One other advantage is that all students must secure a Personal Identification Number (PIN) for the actual aid application process. That PIN number may now be secured at the time that they first begin using the 4CASTER tool.
The FAFSA web site also provides parents and students an opportunity to increase their knowledge of the financial aid process and to become familiar with the various types of federal student aid that are available.