My family has an income just under 100k, for 5 people. 2 in college as freshman in 2017 (twins).
The EFC given through an email is 035020
Is this per year or in total? Also, is this the number that colleges will try to target when it comes to financial aid/merit money, if they see fit? I’m just a little confused on what this all means lol
That doesn’t sound right. Did you put on each fafsa that there would be TWO in college?
OR do you have some significant assets?
I would have estimated your EFC PER KIDDO to be about half that amount…so $35000 total for the two.
With regard to aid…that all depends on the aid awarding policies of the college in terms of both need based aid…and criteria for merit.
But something isn’t right.
Did you put parent income in both the student and parent sections?
@thumper1 i think the problem is this - my mom inherited a beach house from a relative that passed away that has a value of 650,000. she doesnt pay for it, my grandparents do because obviously we cant afford a house that is more expensive than our main residence. We have to keep it in my mothers name though because its apparently illegal to transfer an inherited property to somebody else within the family. But the FAFSA doesn’t know that.
It seems exceptionally high and I dont know what to do about it. Even though this property asset isnt truly ours, its still in my parents name but the FAFSA has nowhere to clarify this
If the beach house is in your mother’s name, than yes, it his truly hers.
Illegal? I doubt that very much. Public policy favors the unrestricted transfer of private property. There may be a some sort of restriction imposed by the will, though. What exactly are the terms of the inheritance?
@BelknapPoint ok but the problem is my family doesn’t pay for it at all, we aren’t gaining anything from “owning” this property. its simply a matter of being unable to transfer the title due to restrictions in the will. its a complicated and unique situation that the fafsa doesnt account for 
So what? If they own it, they can sell it. Or they can mortgage it. Either way, it’s an asset that can be used to help pay for your college.
@BelknapPoint my mistake, its terms in the will that don’t allow it. In the long term this inheritance/the payoff from it most likely will not go to me to help pay for college. I’m just at odds over this because its driving up my EFC so much
Can she sell the beach house to pay the college costs for all three children? She’s lucky that she has that opportunity to fund your educations.
@brantly ive asked about it before, and im honestly not sure. Its kind of an uncomfortable subject because my parents don’t like us to know their finances (im assuming most parents feel this way). My parents have said in the past they might buy a smaller condo if they sell the house, because of high taxes if they just sell the property.
How much can your parents pay each year for 4 years for each twin?
You have to deal with the situation you have, which is that you have an EFC of $35k. Yes, it is per year and yes, it is $35k for you and $35k for your twin. It is caused by the beach house and you might be able to explain that to some CSS schools and they will consider that it is not a liquid asset, but you can’t count on that. You’ll have to pick your schools carefully. Look for merit schools.
It may not matter. Even if you took a gap year, sold (or transferred) the beach house, and applied again next year, your FAFSA EFC might still be too high to receive much aid. If your family has an income of $100k, with two in college the FAFSA EFC could still be $15k+/each. At many schools there just is no need based aid after federal Pell, SEOG, subsidized loans, or there might be some state grants that match up with the federal ones (still need a low EFC). It is really a school by school, state by state, public v private decision. Run the NPC without the asset and see what changes it yields at different schools.
What do you mean by this? Are you referring to capital gains tax? It’s not her primary residence, so there’s no exemption on the profits. But she really should check with a financial professional. I am almost certain that the basis for the profit is the value of the house at the time she inherited it. So, if it was worth $600k when she inherited it, and she sells it for $650, then she is taxed only on $50k. The tax rate on cap gains (for most people) is 15%. Also, have her check on the “transferring an inherited house to someone in the family is illegal” thing. That does not ring true. Why would it be illegal? She can sell it for any consideration—even $1.00. Happens all the time. I’m sure someone who knows more will chime in here.
Anyway, I realize that your parents don’t want to discuss all their finances with you, but the point is that they need a full reckoning of their financial situation now that it’s college time. Encourage them to get the facts.
Yes, the property would have been inherited with a stepped-up basis (fair market value at time of death).
It’s common to transfer property for no consideration with a simple quit claim deed. But OP is saying that there is some limitation in the will. Perhaps if mom sells the property within a certain amount of time, or if the property is transferred outside of the family, some other condition of the will kicks in. Without knowing what the will says, it’s just guessing. Unfortunately, this large asset will have a negative impact on need-based financial aid. A good example of unintended consequences.
Inherited property can be a headache. But the reality is…this property is in your mom’s name. Legally it is HERS until she transfers ownership of it to someone else.
It sounds like this property can’t be transferred. But perhaps loans against its value could be taken.
Is your parent income less than $50,000 by any chance??
@thumper1, OP’s family (of 5) has an income of ~$100k. Is that over the limit for Pell?
I believe a family of five with $100,000 in income would not be eligible for the Pell Grant. To be eligible for a Pell, the EFC would need to be below $5500.
Oops…sorry, I now see that OP family income is well over $50,000! If it had been be,ow that number, the asset might not have counted…but that is not the case.
A house with a value of $650,000 would add $36,000 to the EFC…so yes…the EFC this family got would be correct.
$35,000 or so…per student with twins.
Maybe the parents should rent out the beach house for income to pay for college?
If that’s not feasible, then the twins need to look for affordable schools…either commute to a local school or find a school that will give merit for stats.
ASK your parents how much they’ll spend each year for EACH twin
Yes they could rent it out… ur then the income from the rental will be added to their income…and their family contribution would go up more.
They need to look for schools with merit awards for these kids.
Oh I know that. They can’t afford their current EFC so more income/higher EFC may be the only way to go.
This student doesn’t have the stats to get into schools that give great aid anyway. So, more income with possibly merit and “some contribution” from parents is the likely answer.
Family income isn’t really high enough to contribute a lot to two kids at the same time, coming from NJ.
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are my stats:
Large Suburban NJ HS (500+ Students)
GPA: 4.7 Weighted
Class Rank: 1st Decile
AP Scores: 4 LANG, 4 APUSH
ACT Scores: 30C (28M, 28S, 30R, 34E)
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OK!! Now it’s time to come up with a REALISTIC list since this list will NOT work out.
You’re a NJ resident
UPitt will not be affordable unless your parents pay all costs.
Don’t waste your time with Princeton. That’s a waste of time and money
Frankly, the only school that might be affordable is Rutgers instate, UNLESS your parents will pay for those other schools.
Most of these schools are CSS Profile and they’ll be brutal with that beach house AND they’ll count your home equity.
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The fafsa will count the beach house as well.