i think its shoddy reporting.

the way i understand it, the EFC (expected family contribution) would be the same if fees were increased, but then that percentage of money allocated to financial aid (university grants im assuming) would increase. so you have the same efc but with more financial aid money available.

so i think the daily cal author was either misinformed or didnt understand.
 

no... the reporter was right... Here is how it works:

EFC is based on need... so the needier you are, the less your EFC. When the fees increase, your total expenses for the semester increase, while your living expenses stay the same... This means that you will have to pay more... given your family income stays the same, you will be in a lower bracket, because the formula for determining the EFC takes into account the ratio of your family income to your total expenses (it also includes other factors such as the size of the family and number of college students and etc.)

This means that you will look needier according to the formula and your family contribution goes down; i.e. you will allotted more money for living expenses.

I am pretty sure that all of the grants (federal or university) that undergraduates receive (scholarships excepted) have a ceiling and most people take out all of it... So the additional fees will have to be taken out in loans, probably with steeper APRs. The total budget increases, but to get more money, poor students will have to take out more loans, which means that in the long-run they will just be poorer, since their BA is not going to get them jobs to pay off their exorbitant loans.
 

I was under the impression that EFC is not based on need. Financial aid is based on need, and need is determined through a comparison of costs of attendance and EFC.
 

No. Your total Financial Aid budget is set and does not change. It is based on tuition and expected cost of living. EFC changes based on need.
 

efc is set by the federal govt, right? how would that change if uc fees go up? whether it costs 18k or 20k a year to go here, my parents make the same.