When you have estimates or actual financial figures and other data for your base year (2005 for those attending school during the Fall 2006-Spring 2007 academic year), you're on your way to a rough approximation of what your Expected Family Contribution will be. In this way, you can get a rough idea of your aid eligibility before you complete any of the aid applications.

Bear in mind that the amount you calculate for your EFC will be an approximation. Even though you are using the same formula(s) developed by the need analysis companies, you will probably be estimating many of the numbers so there is little likelihood that the results will be exact.

So what's the bottom line? Well, there really is no one number fixed in stone for your family. In fact, you will see as you begin to play with your numbers that there are numerous ways to present yourselves to the schools. By using the tax and finance strategies we outline, you can radically change the financial snapshot that will determine your Expected Family Contribution. Your EFC's bottom line will also be determined in part by whether you choose schools that use the federal or the institutional methodology to award institutional aid.

The FAOs Tinker with the Numbers
You should also bear in mind that the financial aid officers have a wide latitude to change the preliminary results the need analysis companies send to them. If a school wants a particular student badly, the FAO can sweeten the pot. If a school has a strict policy on business losses and chooses to disallow them, your Estimated Family Contribution at that school may be higher than the Feds said it would be. It can almost be as if you submitted your tax return to many different countries. Each of them will look at you a little differently. One country may allow you to have capital losses that exceed capital gains. Another country may disallow your losses.

Even if your numbers look high, never assume that you won't qualify for aid. And of course, to qualify for any aid you will need to complete the required aid forms in a timely manner. For information on financial aid deadlines and filing requirements, carefully review the appropriate year's financial aid information for each and every school under consideration. While you cannot file the FAFSA until January 1 of the year you are seeking aid (for example, January 1, 2006 if you are seeking aid for the 2006-2007 school year), other aid forms may be due on an earlier date.