<p>I have never had this happen before although I have heard a lot about it here! I got the notice from FAFSA that a nameless college corrected my FAFSA. Well they lowered my Education Credit Line 91a from $1500 to $1098. Note this value was electronically pulled from my taxes and is indeed correct. Then they changed my income from work (line 87) from the correct amount to equal my AGI in line 83. </p>
<p>The problem with changing my income is that the FAFSA formula uses line 87 to calculate FICA/SS deductions. I have money taken out for the 401(k) that is not federally taxed as income but is still taxed for FICA/SS and should be included in 87 (but not in AGI line 83).</p>
<p>All told this did not make much difference in the EFC - but it is frustrating to be at the mercy of some stranger who may not really know what they are doing.</p>
<p>If I have misunderstood something will someone here clarify for me? Maybe another college will correct it back?</p>