<p>Oh smart EFC analysts: Looked at our just released SAR today and our EFC doubled this year for no apparent reason...I've been over the numbers twice and compared them to last year...EFC is double. I didn't use any of the calculators because I thought the EFC would be within a couple hundred dollars since there have been no material changes in our income and asset configuration. Nothing much changed on our taxes. Dividend income and capital gains...very similar to last year. Rental property flat and not increasing in our area. Only difference is the Hope Learning Credit (new) and a rather small (in my mind) merit scholarship of $3500 and S's income which was $4500 instead of $1000 cause he worked the end of senior year and all summer. Could roughly $10000 really double a low double digit ERC? Did something change this year in the Fed computations? It's more disconcerting than anything because while it won't impact greatly with S1, if it doesn't go back down, it will impact (our cashflow) when S2 starts and his possibilities.</p>
<p>The increased income for your son would affect the EFC a little bit. Roughly $3000 (a little more - 3,200ish - when allowances for State tax and FICA is factored in) students income is protected then 50% goes to EFC so maybe from his income 650 increase to the EFC. (unless any part of the income was WS - that does not affect EFC).</p>
<p>The merit scholarship should not impact the EFC at all. If any part of it was taxable it would be in the AGI but then would be deducted again in one of the schedules.</p>
<p><<could roughly=“” $10000=“” really=“” double=“” a=“” low=“” digit=“” erc=“”>></could></p>
<p>a double digit EFC??? Mine has 5 digits.</p>
<p>Also I think the Hope tax credit should not impact it. </p>
<p>Did you make sure you included any taxable scholarships, WS and learning credits in worksheet C. Items from there are deducted from the available income before the EFC is calculated.</p>
<p>LOL, SueinPhilly, LOL, That’s double digits with an XXX behind them as opposed to a digit with an XXX or simpy XXX and my H is already retired so we’re already drawing down abit. I’m not crying, and we’ll pony up, just more perplexed and know that it WILL make a different if it stays where it is for S2. I’m going to go back and recheck, yet again, the Hope and the Merit might be one mistake although I distinctly remember those questions and I can see the amount as you mentioned worksheet C, but obviously it’s not being deducted…I still can’t come up with this much dollar increase. I’ll rerun everything I guess and hopefully find the error 'cause there’s just got to be one. It just went so very smoothly last year, EFC equaled the EFC calculators so I’m mystified. It’s not rocket science so if what you all say is true, I’ve made an error and I’m just not seeing it. Gaaarh.</p>
<p>Silly question maybe - you did remember to transfer the numbers from worksheet C to FAFSA (question 42 for students, 86 for parents)?</p>
<p>OK there are no dumb questions, right? I put the Worksheet C (Hope and merit scholarship - on the parents side, because that’s where I took the credits on the taxes…Is this correct, if so it has to be “adding” to income, not subtracting I think or even though we took the credits on tax, do you put the scholarship and the Hope on the kids side?</p>
<p>No - you show it on the worksheet for whoever took the deduction. 42 deducts from the students income and 86 deducts from parents.</p>
<p>Hmm I’m baffled. Other than the increase to EFC from your sons income I don’t know what it would be. </p>
<p>Same number of household members? Same number in college?</p>
<p>did your son have any assets?</p>
<p>Thanks swimcatsmom…I don’t know, I expected a slight increase and frankly fogot about the impact of a “summer kids job” vs. my son working 12 months out of 12, but still…not a doubling, not at our income level, couple thousand I could live with. It seems like it should be clearer what the formula for creating the EFC really is, I’ll have to do some internet search on how this EFC thing is actually calculated and let it sit for a couple days to look at with fresh eyes. It’s like the EFC lords are looking down and saying “hah get a taste of this number it’s your future, last year was just a tease and you were waaay too smug” I’m so stubborn I’ll calculate the whole darn thing if I can find what formulas they use. If it’s right I’ll have to figure out a soft landing way to break it to my husband (who deep, deep inside still thinks all kids should pay for their own college just like he did LOL) Thanks for your advice. Doubly unfortunate, my son will undoutedly sign on, see the EFC and think his 'rents won the lottery…</p>
<p>here is the formula</p>
<p><a href=“http://ifap.ed.gov/eannouncements/attachments/0809EFCFormulaGuide.pdf[/url]”>http://ifap.ed.gov/eannouncements/attachments/0809EFCFormulaGuide.pdf</a></p>
<p>It does sound odd.</p>