<p>I've been doing more research on the student's earning limit, but I just want to verify some information. Any feedback would be greatly appreciated :)</p>
<p>Based on my research it seems like the student's earning cap is $6,260 (before it begins hurting my EFC). I am very positive I will be going over that limit, but not sure how adversely it will affect my financial correct. Can someone verify my math below?</p>
<p>I.E. I earn $10,000 over the course of this summer. Upon filing for FAFSA, my EFC would be affected by: $10,000 - $6,260 = $3,740 --> $3,740 * 0.5 = $1,870 added to my EFC.</p>
<p>With that in mind, my EFC will only go up by $1,870, correct? I am just worried my EFC might skyrocket...</p>
<p>And this "cap" is pre-taxed right?</p>
<p>Thanks for all the help! :)</p>
<p>Are you a dependent student for fafsa? Yes, the cap is gross income and you have the math correct. But how did you get a 0 EFC before? If you are a dependent student and qualified for the auto 0 efc because your parent(s) had an AGI < $24,000, then I don’t think your earnings will change the 0 EFC.</p>
<p>Yes, I am an dependent student. I don’t think my parents’ income qualify for the auto 0 efc, unfortunately. So grateful we’re at EFC 0 though.</p>
<p>Are there any other caveats that I should know about? Or is it simply: once you make over the cap, every $1 you earn, $0.50 is contributed to your EFC. </p>
<p>Thanks a lot @annoyingdad!</p>
<p>Here’s the fafsa formula guide. You can check over the requirements for the auto 0 and simplified formula.</p>
<p><a href=“http://ifap.ed.gov/efcformulaguide/attachments/091913EFCFormulaGuide1415.pdf”>http://ifap.ed.gov/efcformulaguide/attachments/091913EFCFormulaGuide1415.pdf</a></p>
<p>With the simplified formula the excess income would still be counted at 50% but any of the total earnings not spent wouldn’t be counted toward the efc as a student asset. Student assets are counted at 20% each year in the regular formula.</p>