<p>I know the EFC doesn't look at your primary property value, but does it look at assets as in checkings? I see that it asks for it, but I am confused on how this works. On the Collegeboard.com calculator, which calculates both the IM and FM (Institutional Methodology and Federal Methodology), my EFC is 0 (FM) and 40,000 (IM). Basically, my family is on SSI after my father died and our AGI is low - under 10,000. We own a house with no mortgage which is valued at $450,000 and we have a lot of CD accounts that are under me and my sisters name, amounting to close to 450,000 as well. If I use College Confidential's EFC calculator, there is no spot to put "assets written in children's name", so my EFC is high ($14K approx.) Do CDs in children's names count as their assets or still under Parents - Cash in checking, saving accounts?</p>
<p>Also, do colleges that use the CSS Profile use it to determine federal aid or only institutional aid? </p>
<p>They’re not really on my name, per se. According to the College Board calculator, my EFC is 0 when putting in the information. Those are not my assets, really, they are my parents money and I am under 19. It is only held in my name, and I input it in a section on Collegeboard’s website called “assets held under the sibling name” but owned by parents. Here’s the description:</p>
<p>Clearly, I’m screwed for CSS profile, which I think is institutional aid? :P</p>
<p>But, does the 0 EFC on the FM due to the zero income and SSI allow me to take advantage of federal grants on the FAFSA, even if I apply to CSS schools? I read somewhere that it is a requirement of schools to use the FM/FAFSA calculation for Federal Pell grant eligibility along with any fed loans.</p>
<p>You are (probably) eligible for automatic-zero EFC because a family member is receiving SSI and your family is low-income.</p>
<p>So yes, you will likely be eligible for a full Pell Grant.</p>
<p>However, that is only $5,500 per year.</p>
<p>Any aid beyond that will be institutional aid, and for that, schools will look at your family’s very large savings and expect a significant contribution from those funds.</p>
<p>If it’s held in your name this year, it will be “hit” by FAFSA EFC at the 12 percent rate of parents’ funds. (12 percent of $450,000 is still a lot of money.) However, next year, if that money is transferred to you, it will be “hit” at 20 percent.</p>
<p>Schools using the CSS-PROFILE (which are the vast majority of schools offering “full-need”-type aid) may expect even larger family contributions.</p>
<p>We had to fill a IRS form 1040, not 1040EZ, so we’re not auto-zero.</p>
<p>They are held in my name but it’s a CD custodial account. Really, it can be switched over to my parents name in about two minutes - they own it too, my name is on it as well. </p>
<p>If my CSS profile is about 44K, that leaves about a 10-15K cost of attendance for most expensive privates. If they meet that 10K with need based aid and then I get $5.5k Pell and additional $5-9K from Stafford loans, it is a cost of attendance of about $25-30K, which is something I can probably work out. Just wanted to see that the FM vs IM was really right, as it’s a huge difference.</p>
If the assets are in your name, they are reported as your assets under students assets for FAFSA and for CSS. The reason there is not a section under FAFSA for “assets held under students name”, is because assets held under your name are your assets. I imagine there is some tax thing going on here with the assets being “held” in your name (which is a whole other legal and tax issue/problem). I wont go into that, but legally those assets are your assets if they have been put in your name. And that is how they must be reported on FAFSA.</p>
<p>You may qualify for the simplified needs or auto 0 EFC if you meet all the requirements (income, type of return filed, etc). If you genuinely qualify, the assets will be ignored in the EFC formula. If not, the assets will make your EFC very high. Student assets are assessed at 20%. </p>
<p>CSS schools use CSS to award institutional aid, and FAFSA to award federal aid. I would be surprised if a CSS school did not verify your FAFSA. The situation is odd enough that I would be very surprised if you are not selected for verification by other schools also. </p>
<p>Also interest income from the CDs must be reported on FAFSA and CSS,</p>
<p>The auto 0 and simplified needs test require the income limit and one of the other requirements. Not all social security payments qualify. Only need based programs. Unless you are receiving means tested benefits, you probably do not qualify.</p>
<p>
This is not correct. If it is a custodial account then legally they are just custodians because you are under age. A custodial account can not be switched back to parents names in two minutes. That is illegal.</p>
<p>We get survivors social security. My father died and he was the worker of our house. He made a lot of money, so we get social security and are able to comfortably live on that. It is $1334/person and we have 3 in our family. My mother, myself, and my sister.</p>
<hr>
<p>I spoke to my mom - my name was removed from the CD account a year ago, and she is the sole owner. I am only a beneficiary. In this case, I believe we get 0 EFC.</p>
<p>If you get survivor’s Social Security… that is not SSI, not a means-tested benefit. You will not be eligible for auto-zero EFC unless you’re on food stamps or some other income-based benefit.</p>
<p>If she is the sole owner of the account, the account will still be leveraged by FAFSA - just at the rate of 12 percent rather than 20 percent. 12 percent of $450,000 is…</p>
As polarscribe said, Survivor’s SS is not a qualifier for the auto 0 or simplified needs tests. It is not the same as supplemental SS which is a means tested benefit. So you are probably not eligible for the simplified needs test or the auto 0 EFC.</p>
<p>The SS income will not have to be reported on FAFSA. ANy income from the CDs will. The CDs will have to be reported (as parent assets if they are in the parent name). Parent assets over the protected allowances are assessed at up to 5.6% of their value. (it is not 12%, at first look it appears to be - but the 12 % is added to adjusted available income and then a % of that is taken). Asset protection is very low for a single parent. So say it is $30,000, that would leave $420,000. 420,000 x 5.6% = EFC 23,520 (from the assets, not including any income).</p>
<p>Right. I inputted the correct numbers, a bit different from my original post.</p>
<p>Home equity: ~450,000
CD accounts in MY name: 0
CD accounts in my sisters name (not a college student, age 16): 375000 (under assets held in sibling name)
CD accounts in my mom’s name: 100000 (under investments)
Cash in Savings Account: 50000</p>
<p>I put these into the CB calc I linked a few posts above…EFC 0 but the institutional methodology is high @ 44K as stated.</p>
<p>Am I doing something wrong? </p>
<p>Our AGI is only $7K and our SS benefits are untaxable but reported under a special line “Parents’ untaxed social security benefits received for all family members except the student.”</p>
<p>We also spend a lot in medical expenses (mom has private health insurance) and the med expenses are $7K/yr and I entered that on the CB calc.</p>
<p>My final question is really this: We have a large amount of money in CDs which my mom is a custodian for my sister, who is not app’ing for college. On the regular FAFSA (not the CSS/IM), there is no place for assets in the sibling names. ** Would we be required to put this as parental assets, or leave it out, as it is in my sisters name? **</p>
<p>If the assets actually belong to your sister they would not be reported. If they belong to your mother they must be reported. They either belong to your mother, or they belong to your sister. They can not be just “in your sister’s name” - it is not legal to hide assets in someone elses name. It sounds to me as if these are your mother’s assets. You could run into some huge legal problems in the future if you get federal aid based on these assets not being reported, if in fact they do belong to your mother.</p>
<p>The calculator is probably just looking at income and is not taking into account that you do not qualify for the simplified needs test. You must meet the income requirements and one of the other requirements. It does not sound as if you meet the other requirements.</p>
<p>Who gets the 1098 I (the interest statement for tax purposes) for these accounts. If it’s your mom…the accounts are HERS. If it’s YOU…the accounts are yours.</p>
<p>In any event…I can’t imagine that a real FASFA will give you an EFC of $0 unless you qualify for the simplified needs test. There is too much money in your name…and in your mom’s name to get that $0 EFC.</p>
<p>Remember too…the FAFSA only schools will not meet your full financial need anyway. The FAFSA would qualify you for whatever you would get in a Pell Grant (depends on your REAL EFC), and a $5500 Stafford loan…and perhaps some state grants for low income families.</p>
<p>Your SISTER has $375,000 in accounts in HER name and your mom $100,000? Don’t you think the colleges will figure out that someone is trying to hide usable funds from them?</p>
<p>If the sister has $375K in almost any kind of bank account, she is earning well over the threshold in unearned income (I believe) and would be required to file federal income taxes. </p>
<p>This financial picture is a very odd one. I’m not sure the OP can safely apply for financial aid given the complicated picture presented here. Better to have some financial safeties.</p>
<p>OP…Your sister has $375,000 in accounts in her name but you…the college bound kid have NONE…why is this?</p>
<p>My parents put money in CD accounts for both myself and my younger sister. My parents decided to put all the money into one account under my sisters name a year ago. Anyways, my mom reports the interest on her tax returns each year…so, although my sister is the account holder, she is a minor, and this money is savings over several years. Its interest is legally reported on my mom’s 1040…so it is her asset. </p>
<p>And also, please don’t expect a family to give up their entire life savings for a college fee. Many people state similar things - there are weird cslculations with the CSS. If your CSS EFC is $45K, you are basically expected to put up a ton of money. My mom is more than willing to help me out with any expense, whether $10k or 50, but I just want to know the federal differences. It’s not like the funds are being hidden, it’s just the way they are assigned. All is reported fine.</p>