Do people in Illinois qualify for the "Automatic Zero EFC" rule?

Paying for College
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<p>Hello, I'm new here and I signed up just to ask this question because it seems like you people really know your stuff!</p>

<p>Okay, I'm applying for financial aid for the 2009-2010 year.</p>

<p>My parents AGI is much less than $15,000 ($1,500) and they filed the 1040A. (The rest is social security)
My AGI is $0.</p>

<p>According to Fafsa, if I lived in 38 other states I'd be done right there with an EFC of 0. However, on the official FAFSA website it says that since I live in Illinois I am still required to fill out the entire FAFSA form.</p>

<p>Does this mean that since I have to fill out the entire thing they will see my savings in the bank and my EFC won't be zero anymore? There's about $10k in there which would push my EFC to $2,000.</p>

<p>Thanks so much for taking the time out to help me figure this out!</p>

<p>(These are the exact words taken from the site,</p>

<p>"Which states allow students who qualify for an Automatic Zero EFC (Expected Family Contribution) to skip certain income questions?</p>

<p>If you qualify for an Automatic Zero EFC and reside in one of the following states, you may be allowed to skip:</p>

<pre><code>* Income tax and exemption questions.
* Additional Financial Information and Untaxed Income questions.
* Asset questions.")
</code></pre>

<p>And yeah, I'm not located in one of the listed states.</p>

<p>It says "allow students who QUALIFY" to skip certain income questions...</p>

<p>So does this mean that I'd already be qualified and I'd just be filling out the rest for no reason? Or should I expect the $2,000?</p>

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<p>You are still eligible for the automatic 0 EFC. For some reason certain states still require that you supply the information (perhaps for state aid purposes?). Our state requires it also, but my kids both still get the 0 EFC and any federal aid is based on that 0 EFC.</p>

<p>I am guessing that some states may take into account assets when they award state aid (not federal aid). I know California has an asset cap for their calgrants. Our state awards a small grant that they say is based on having an EFC below 1500. As far as I know they don't look at assets. So I don't know why they ask for it.</p>

3

<p>Alright, thanks so much!</p>

<p>Phew.</p>

<p>That's weird that they still require it.</p>

<p>Also, what is the exact maximum AGI to qualify?
Is it 15k or 20k? Different sites say different things.</p>

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<p>For 2009-2010 it is $30k. it used to be $15k several years ago. Has been $20k for at least the past 2 years (not sure exactly when it increased from 15 to 20). This year it was increased to $30k.</p>

5

<p>Oh wow.</p>

<p>Thanks again!</p>

<p>I'm so happy I don't have to look into that whole 529 plan thing and I can just keep my savings.</p>

<p>So since I don't have my parent's 2008 return yet I should use the 2007 information to get my foot in the door and update it to 2008 as soon as I get it, right?</p>

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<p>Yes. .................</p>

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<p>The FAFSA gives a sort of adjustment for family expenses, depending on which state your family lives in. That's why it sometimes varies from state to state as to who gets the automatic zero EFC.</p>

<p>While it is OK to estimate using 2007 taxes for now (and yes, get your foot in the door ASAP), if your parent's income is low, and doesn't have much in savings, you may be able to use the numbers from their last pay stub of 2008, which usually will show earnings for the year, as a more accurate estimate. </p>

<p>Either way, be absolutely certain to go back after you have received your Student Aid Report (which will come as an email attachment) and input the ACTUAL numbers for your family AS SOON AS POSSIBLE. Tell your parents that this is one year that they don't want to wait until April to do their taxes. Actually, that will be true for the next four years.</p>

<p>Good luck!</p>

8

<p>
[quote]
That's why it sometimes varies from state to state as to who gets the automatic zero EFC.

[/quote]
It does not vary from state to state who gets the automatic 0 EFC. The automatic 0 EFC is based on the AGI from the federal tax return. If the AGI is below the required income ($30k) and the other requirements are met (type of tax return etc) then the formula stops there and gives the 0 EFC. Does not matter whether you are in Oklahoma, Illinois
, or New York. </p>

<p>Also FAFSA does not give any sort of adjustment for family expenses dependent on the state your family lives in. It does give an allowance for State and FICA taxes (though this is not done if you qualify for the automatic 0 EFC). The allowance for state taxes does not necessarily correlate to the actual state taxes in your state (not in our state anyway).</p>