<p>Momof4:</p>
<p>not sure I know the exact answer to your question, but you can go to CB's website and use their efc calculator -- just change the number of kids in college and recalc the efc scenario with the same income and assets -- and you'll get a good feel for how it works under both IM and fafsa. Of course, each private college manipulates the methodology to meet its own goals.</p>
<p>If parents use a 529 to pay for college expenses, does that count as the student's income on the FAFSA? Also if parents directly pay for tuitition that surely can not count as student income, can it? </p>
<p>One more question, our EFC was about one third of our income. Does that sound about righ?. My friend's EFC was only about one seventh of her income. She is divorced and thinks that's why. Is that true? Thank you.</p>
<p>No. Parents income and assests are taken into account on FAFSA. So they can use any of it to pay for the student and the tuition. It's any outside money that comes in that needs to accounded for. And Toshimi, yes, one third sounds right to me. One seventh is very low. Being a single parent does lower the contribution to the extent that the income and assest are less. For FAFSA, only the custodial parent's income is taken into account.</p>
<p>Thanks jamimom!</p>
<p>Momof Four: ask that multiple student question agin in the summertime. Any one with a grade 12 student entering university will not see their continuing students aid package until June/July- then we can tell you how it shifted with 2 in university.</p>
<p>Advance Planning will save you BIG Bucks.</p>
<p>We are probably very near or passed the inflection point where getting a refi or 2nd mortgage (assuming personal credit and home equity is A quality) is cheaper than getting a PLUS loan. </p>
<p>If PLUS is recalculated today Feb 23, parents would be looking at 5.65% {2.65% (91 day US Treasury Bill) plus 3%}</p>