Yes, as far as I know for simplified needs only assets are ignored.
You can read about the requirements for auto zero EFC and simplified needs test in the EFC formula in post #8.
You can also see the worksheets for parent and student there.
And on the one for simplified needs only the asset fields are blacked out. I think they are on page 13 and 14 of the pdf.
Thanks for all this discussion! I suspect our EFC is an auto-zero. We were below the income threshold in 2015 AND our kids received free school meals,
I didn’t understand that an auto-zero EFC rendered a dependent student’s income a non-issue, but that makes sense (auto zero).
We had a similar situation for 2016, so it looks like we might have another auto-zero for the 2018-19 FAFSA. But I’m working hard to eliminate that situation in 2017 (and, by extension, the 2019-20 FAFSA).
Super late here, but I’ll try to come back to the thread tomorrow. Thanks again!
Yes, you had to have parent income under $25,000 and a means tested federal benefit (or filed a 1040A, or parent is dislocated worker).
So the FAFSA probably skipped parent asset and student income/asset questions.
I was just pointing out that the parent income might go up for 2017 and 2018 which would be a good thing, right?
But if no auto zero, then student income would be considered. But I still don’t think it would be a problem until maybe the last college year.
And any Pell reduction could possibly be covered by the grandparent 529 balance and/or student summer work.
The most important thing is that your D is going to college and can afford it thanks to Hope, Pell, private scholarship and grandparent 529!!!
You know…you are fortunate to have a 529 from the grandparents to help fund college. Very fortunate.
So…use it to help,fund college…and be grateful that you have it. It’s not likely to reduce your need based aid dollar for dollar.
If rhe college doesn’t guarantee to meet full need for all…this discussion is moot anyway.
And it the college DOES meet full need for all…and uses the Profile…understand there is NO auto $0 EFC or simplified needs test for the Profile.
For 529 accounts that are not owned by the student or a parent, the easiest and simplest thing to do to avoid financial aid impact is to wait until spring of sophomore year to make any distributions for the student’s education benefit. Assuming the student completes school in the normal four academic years, none of these 529 distributions would need to be reported on FAFSA or Profile, given the new prior-prior year reporting system.
@BelknapPoint - I understand the point about Spring (or I guess you can say Jan 1) of the Sophomore year. How about if the child goes to grad school? Would distributions from a 529 owned by a grandparent after Jan 1 of Sophomore year be a factor?
There is not much financial aid off the FAFSA for grad students