<p>Before last year, our gross family income was around $100,000. We had 1 child in college, and the EFC was around $11,000. Last year our income was about 112,000 and had 2 kids in college and the EFC for each child was about $8000.</p>
<p>This past year, our income jumped to $16,000 and now the EFC for each child is $17,000 which is more than double that what it was last year. This high income is new to us, in that my wife just went back to work. We haven't had it for many years, so there has been no savings. Does this sound right? My kids go to state schools, so their tuition and room and board comes out to about $15,000 each, so we are expected now to pay the whole thing. I hope they will qualify for federal loans. Do these numbers sound right?</p>
<p>If it is $160k then it does seem about right, if not a little low. I would have expected it to be closer to $19-20k per child. The $8k per child with the $112k income is also lower than I would have expected. </p>
<p>As income increases the % considered available for the EFC increases. Over a certain income (well below $110k) 47% is considered available income. So an increase of income of $48k could easily increase the total EFC by $18k.</p>
<p>All students qualify for unsubsidized Stafford loans (they are not need based) as long as they complete FAFSA. For sophomores the limit is $6500.</p>
<p>Ok…thanks…just wanted to make sure my numbers made sense. Also, our AGI was $160,147 for taxes, so we didn’t qualify for any credit or tax break for having paid tuition. Damn $147! Now I know for next year to contribute more to our 401k to reduce the income to get the credit.</p>
<p>The cut off for the tax credits (Hope and Lifetime learning) is lower than that - $116k I think. But for tuition deductions - can’t you still contribute to an IRA up to April 15th? (it is a while since we have had any money to contribute to one but I thought the cut off was April 15th).</p>
<p>Yes…the hope and lifetime learning credits limits are $116k but the tuition deduction limit is $160…I beleive part of Obama’s plan is to raise the limit to $180 next year, and give a little more. We can’t contribute to IRA and get credit for it since we both have 401k taken from our paychecks. I tried to figure it out in taxcut, and it would not deduct the IRA.</p>
<p>I don’t think I have to explain myself, but we do not consider ourselves ‘rich’ by making $160k, and we feel that we just get by. I was not asking for ‘poor peoples’ money, just asking if the numbers looked right after calculating the EFC. If you saw my post earlier, I was asking about federal loans, and not about grants, so I am not expecting money from the government, just loans to help my kids get though college, since we didn’t always make this much, and have not had the opportunity to save for college. We have the kids take the federal loans, and we pay the balance monthly out of our salaries.</p>