Peniaphobia rooted in Didaskaleinophobia

October 30, 2008

Parents of future college students diagnosed with Peniaphobia rooted in Didaskaleinophobia

During this season some people have confessed they have Samhainophobia, the fear of Halloween, or other scary things like Hexakosioihexekontahexaphobia the fear of the number 666 and Paraskavedekatriaphobia the fear of Friday the 13th. Personally when I was younger the Friday the 13th movies did scare me.

In all seriousness many people are afflicted with a serious phobia and it is not unfounded. Peniaphobia, the fear of poverty, especially in this day and age with this economy. Plus it is compounded if you have a student who is soon to head off to college.

Understand that the college sticker price is irrelevant until you know two things. 1. your EFC. (expected family contribution) and 2. what is the average percentage of aid the college gives out.

Here is the formula.

COA – EFC = Need

COA is the cost of attendance at a college. This can range from around $9,000.00 a year for ASU to upwards of $55,000 for an elite college. Your EFC is calculated when you fill out the federal financial aid form. (Yes there are legal ways to adjust your EFC so that you can qualify for more aid.) Need is the difference between the COA and EFC. Of this NEED, what percentage of aid is the college going to award? 9%, 32%, 68% 100% or somewhere in between these figures.

We are looking for colleges that meet 100% of our need. Yes they are out there. Not to be overlooked it is also extremely important to have a college financial plan to cover all these costs. Winging it is recipe for disaster.

Knowing these complex things is essential and vital or else you might end up with Peniaphobia, the fear of poverty because of Didaskaleinophobia, the fear of going to school.

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