<p>This is my fourth year of college and every year I've had no problems with my FAFSA but this year the SAR stated that I don't qualify for a Pell Grant. My EFC was about $5000, but last year it was far below that (about $3700). The only real difference from last year is that my dad (the only working parent) made about $4000 more on his income this year and paid more for taxes as well (about $1400 more).</p>
<p>I noticed that I forgot to include Worksheet B's info (deferred comp.) for this year so I corrected it and now my EFC is about $7200. I don't get why this year's EFC is so much higher than last year's, practically doubled. Any ideas?</p>
<p>Difficult to know exactly as so many things go toward the EFC. Remember both parent income and assets *and *student income and assets can affect the EFC. Student income and assets have a higher impact with 50% of unprotected income (income over @ $3200) and 20% of assets going to the EFC as opposed to between 22% to 47% of unprotected parent income and @ 5.6% of unprotected parent assets.</p>
<p>There is a certain amount of parents income that is protected and also a certain amount of parents assets are also protected. Anything over the protected income limit is considered Available Income (AI). 12% of any parent assets over the protected asset amount is added to the AI to give the Adjusted Available Income (AAI). The amount of the AAI that goes toward the EFC is @ 22% up to @ 47% depending on how high the AAI is. The higher the AAI the higher the % that goes to the EFC. Once you get to a certain level it is surprising how much affect a few $s can have on the EFC.</p>
<p>If you (the student) have higher income and/or assets than before that may have an even bigger impact on the EFC. Students have @ $3200 in income protection and over that 50% of the income goes to the EFC. Students have no asset protection and 20% of their assets go to the EFC.
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I noticed that I forgot to include Worksheet B's info (deferred comp.)
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The worksheet B items are added to income making the income higher before that EFC formula is run. For instance if the AGI from the tax return is $50,000 but there was an item on the tax return such as an IRA contribution of say $6,000 that was used to reduce the income then that is added back giving a $56,000 income for the EFC formula. The same applies to any untaxed income such as pensions.</p>
<p>To illustrate how hard it is to answer your question not knowing your income and assets - if the amount you added to worksheet B increased your EFC by 2,200 that amount could be as little as $4,680 ( at the income level that takes 47% of AAI for the EFC - 47% of 4680 = 2,200) to up to $10,000 (at the income level where 22% of the AAI goes to the EFC - 22% of $10,000 = $2,200).</p>
<p>Once you get above certain income levels (not particularly high ones) it is surprising how much affect each $ has on the EFC.</p>
<p>Also there are certain cut off points for income that can trigger certain events in the EFC formula and just a very small increase in income can then have a devastating affect. For instance a parent income of below $50,000 combined with some other requirements may make you eligible for the simplified needs test where assets are completely ignored in the EFC formula. An increase of income of $1 (from $49,999 to $50,000) makes you ineligible for the simplified needs test and the assets are included in the formula. If unprotected assets above the asset allowance are say $100k then that $1 income increase may cause the EFC to rise by $5,600 (5.6% of $100,000).</p>
<p>The percentages of income and assets have changed from last year to this year. While Congress upped the amount of the Pell Grant, they also lowered the allowable income. Last year I had a zero EFC...this year, same income, less assets, my EFC went to 527.</p>