EFC calculation question

<p>Hi,</p>

<p>I used Finaid.org to calculate my EFC.</p>

<p>This is what showed up: Parents' Contribution from Assets
(12% of DNW-Discretionary Net Worth)</p>

<p>What I have read elsewhere at CC, is that only 5.6% of assets go toward the EFC.</p>

<p>What am I missing or doing incorrectly?</p>

<p>Thanks for your help.</p>

<p>See 091312EFCFormulaGuide1314.pdf</p>

<p>Discretionary net worth * 12% = Contribution from assets</p>

<p>Contribution from assets * Table A6 factor = Parents’ contribution</p>

<p>Table A6 factor ranges 22% to 47% depending on assets, therefore, 12%*47% = 5.64%</p>

<p>Thanks for your reply. </p>

<p>So the EFC comes mostly from income earned and less so from assets. </p>

<p>Up to 47% of the calculated parent’s available income is calculated to pay the student’s tuition. </p>

<p>And the FAFSA calculation of the parents available income is quite generous- compared to perhaps the actual available income from the parent’s point of view which is probably much less, especially if the expenses are high for the parent.</p>

<p>In any case, the Fafsa figure is often only a starting point. Many of us find the colleges calculate our EFC higher (especially where the CSS is also required.) And, not all schools meet need- or even come close. Be sure to run the colleges’ NPCs/Net Price Calculators.</p>