<p>if my parents are retired, and i work, and i get around 1,000 a month
will my EFC for fafsa be 0 dollars?</p>
<p>Thank you</p>
<p>No.</p>
<p>A dependent student with 12K income will have a contribution to the EFC from student income. If you keep your income below about 3K, you'll have no contribution to EFC from student income.</p>
<p>(only exception would be automatic zero EFC if parents income is under 20K and you and your parents are eligible to file 1040A or EZ).</p>
<p>Realize that if you have a 0 or otherwise very low EFC that will restrict greatly your college options. Very few colleges give very generous non loan-based aid to poor people. The few colleges that do are places like Harvard, Princeton and Bowdoin that are very difficult to gain admission to.</p>
<p>Some colleges will consider financial need as part of admissions decisions and may reject students with very high financial need.</p>
<p>Other colleges may give such students very loan-heavy aid packages.</p>
<p>For many poor students, their virtually only good college options are to live at home and go to the local public 4 or 2-year college. This includes poor students who are extremely bright and have high scores.</p>
<p>When you apply to college, take the time beforehand to find out detailed info about their financial aid policies and packages or else you may waste your time applying to colleges where you get accepted, but can't afford attending. Being expected to carry, for instance, $50 k in loans for an undergrad education is not a good deal for anyone. </p>
<p>It's worth it to spend the $15 to access U.S. News Premium College website, where you can get detailed info about colleges' admissions and financial aid practices.</p>
<p>Research well. If you think they are likely to come up with significant $$, apply broadly to various types of schools in different geographic areas (but only if you would be happy to attend them). Remember about application fee waivers. Start looking for outside scholarships. Don't neglect Questbridge and other programs that help low-income applicants. </p>
<p>Basically, it is going to be a ton of work but it may well be quite worth the effort. </p>
<p>Good luck.</p>
<p>thanks for the replies</p>
<p>i just want to clarify some things.</p>
<p>i work, i get paid around $1,000 a month, but no one knows about it because i get paid cash.</p>
<p>so technically, my family lives off my parents' retirement money.</p>
<p>would this still make me EFC = 0?</p>
<p>thank you for your time.</p>
<p>Well, if you're willing to take the risk of committing fraud, you could falsify your FAFSA application, yes-- and you'd end up with a zero EFC if you also showed no reportable assets.</p>
<p>But you could also rob a bank. I wouldn't recommend either.</p>
<p>how is it fraud?</p>
<p>even if i do get paid check, the taxes wouldn't be taken off anyways since i earn below the poverty level.</p>
<p>It's fraud because you would be falsely stating on the FAFSA that your income was zero, instead of the truth. You have to report the income, regardless of how it's paid, or whether taxes are taken out.</p>
<p>Now, if you're filing the 07/08 FAFSA, you'd put down your income for '06. If you weren't working in '06, then zero would be correct.</p>
<p>Interesting. For those of you who know, is it true that if a student's parents are "retired," then their EFC is automatically "0?"</p>
<p>No- retirement status has no bearing on EFC. It's based on income and assets of the parents and the student, the number in the household, and the age of the older parent.</p>
<p>Thank you.</p>
<p>kai, where is the money? Do you spend it all the minute you get it (in cash)? If not, it will be considered an asset, and if there is enough of it, someone is going to wonder where it came from. Think about it.</p>
<p>Financial aid forms are not just about what you report to the IRS for taxes. They ask for all the money you make -- even gifts, even money "under the table". As others have said, if you do not report all money, you're committing fraud. If schools found out, you could have your financial aid eligilibility taken away.</p>
<p>To Thumper:
The money that I earned each month from my work is used to pay for the basic necessities; water bills, electric, car insurance, etc etc.
Because of this, I rarely have any leftover to save, let alone spend.
And no I am not trying to cheat the government or committing fraud or anything of that sort.
And when I get the FAFSA forms next year, I will state how much I make and all that stuff.
So with that said, thanks for your answers and contributions and at least letting me know that I "might" be committing "fraud" if anything.</p>
<p>Thanks for your time.</p>
<p>"The money that I earned each month from my work is used to pay for the basic necessities; water bills, electric, car insurance, etc etc. "</p>
<p>How will your parents survive without your economic help?</p>
<p>The fact that you're working to help pay for basic necessities will help in college admission: Make sure that your application includes that info.</p>
<p>Because you're very low income, you will need to take extra care in applying only to colleges that are likely to be affordable for you. Make sure that you have a couple of financial safeties: colleges that you know you will be accepted to and that you know you'll be able to afford. Usually such colleges are local public colleges that you can commute to from home.</p>
<p>Kai, It sounds like your financial situation will net you some need based aid even IF your EFC is not $0. Just be sure to research your colleges carefully...look at how much need is met, and what total costs are. Look for some schools where you are at the high end of student admits stats wise and might qualify for merit aid as well. And please toss in at least one financial safety as well. Re: your EFC...your parent's retirement income is counted as income. From what you are posting, it seems that there isn't much retirement income. Can they file a 1040EZ or 1040A as SBlake noted above?</p>
<p>Cross posted with NSM...much the same info. Good luck to you. Good that you are thinking about this now.</p>
<p>my parents are really old; they're 70.
So like, and they also have memory lapses so I pretty much have to worry about everything around the house.</p>
<p>I have three older brothers and one older sister and little sister.
One is in medical school, one is in pharmacy school, the other is living in new york somewhere and one attends a UC.
Because of this, no one is really at home to take care of me and my little sister. So I stepped up, as of freshman year to work and earn money to pay for stuff.</p>
<p>Right now, I'm not sure about where I want to go.
I mean, money is a big issue to me when deciding colleges.
I actually want to go somewhere where I'll get a full ride. But I don't know where.</p>
<p>You can always go the two years of community college and then transfer route. That way you save money and can keep working and taking care of your sister/household issues.</p>
<p>Considering your family's situation, it seems reasonable to go to a college that you can commute to. It sounds like your family is depending on your help and income. </p>
<p>Do you live in a place where there are colleges within commuting distance? Typically colleges offer special scholarships to students who live nearby.</p>
<p>How old is your little sister?</p>
<p>Given your family's financial circumstances and your strong work ethic, if you submit careful applications documenting your hard work and need to local scholarship programs, you should have much better than average chances of winning some scholarships.</p>
<p>The FAFSA specifically asks for "money received, or paid on your behalf (e.g., bills) not reported elsewhere on this form." This line means that the $1,000.00 per month that you make must be reported. Failure to report the financial information is fraud, as others have stated. In fact, the Department of Education takes this matter very seriously...have you ever read the statement you agree to when you sign the FAFSA application?? It reads: "If you purposely give false or misleading information, you may be fined up to $20,000.00, sent to prison, or both." Knowing you make this money and not reporting it on the FAFSA is purposely giving false information.</p>
<p>However, there is also another issue. You said you make $1,000.00 a month. That equals $12,000.00 per year. According to Internal Revenue Service filing requirements, you should have filed a 2006 Federal Tax Return. For dependent's, the threshhold for earned income is a mere $5,150.00. Being as this money was untaxed by your employer, you would also be required to file a tax return since you would owe Medicare and Social Security tax on the funds. You might what to get with a Tax Professional in your area to discuss your options....because even moneys received "under the table" or from illegal activities is not exempt from the filing requirements of the IRS. (And just for clarification...I am not saying the money you received was from illegal activities. I am, instead, pointing out that the IRS regulations even require money received from illegal activities to be reported as income, so monies received from "under the table" would also have to be reported. Remember, it was tax evasion which did in Al Capone and others....and not reporting your earnings is tax evasion.)</p>