EFC Question

[confusedLI]

<p>My EFC is $13,630 and I'm trying to figure out if it's right.
Parent Income (deceased father): ~15,800
I have a UGMA account with ~67,000
No other assets. </p>

<p>I can provide any other needed information. I'll be paying for school with my UGMA account, but I'm concerned it might not last all four years. What type of aid should I expect?</p>

[swimcatsmom]

<p>Where are you getting that your EFC will be 13,000+ ? Did you use some sort of online calculator?</p>

<p>With such a low parent income you could be eligible for an automatic 0 EFC. To be eligible for the auto 0 EFC the parent income must be below $30,000 and you must meet one other qualifying criteria. Most commonly this is that the parent does not have to file a tax return or is eligible to file a 1040a or 1040ez (rather than a 1040). Other possible qualifiers are if anyone in the household qualifies for means tested benefits (such as food stamps) or the parent is a displaced worker. With a 0 EFC you would be eligible for $5550 in Pell grants a year.</p>

<p>With the auto 0 EFC your assets will be ignored. Otherwise 20% of the assets go to the EFC.</p>

[mom2collegekids]

<p>The has $67k in a college fund but the mom has no savings herself? Odd.</p>

<p>If the mom is a homeowner and deducts mortgage interest or other things, can they have an auto 0?</p>

<p>Can you file a 1040 but get free lunch and then have an auto 0?</p>

<p>If the family has no assets other than the college fund, is that what is giving the high EFC on the calculators?</p>

[thumper1]

<p>

If the mom is a homeowner and deducts mortgage interest or other things, can they have an auto 0?

</p>

<p>I think so…if someone in the family got free lunch or food stamps or any of the other qualified benefits.</p>

<p>Sadly, in these times there are folks with very expensive homes in suburban places who are applying for free or reduced lunch due to job layoffs.</p>

[vballmom]

<p>I’d think in the absence of a zero EFC, an income of $15K would fall under the mother’s income protection allowance, leaving an EFC of 20% of the unprotected student assets ($67,000 X 20% = $13,400).</p>

<p>If you live at home and you’re going to a state school, it’s possible that your savings will pay for 4 years of college, but it will be very tight.</p>

<p>If you spend $13,400 in Year 1, in Year 2 your EFC would be ($53,600 x .20% = $10,720), so any financial aid might be adjusted to compensate for the lower EFC.</p>

<p>Check into the zero EFC criteria for your family.</p>

[confusedLI]

<p>

Where are you getting that your EFC will be 13,000+ ? Did you use some sort of online calculator?

It’s from my actual FAFSA/SAR Report.</p>

<p>

The has $67k in a college fund but the mom has no savings herself? Odd.

I have it because of a settlement from my dad. My brother also has one and was claimed on my moms taxes. I don’t know if it makes a difference. She did have to file a 1040 though.</p>

<p>

If the mom is a homeowner and deducts mortgage interest or other things, can they have an auto 0?

She’s a homeowner, but it’s all paid, so no mortgage.</p>

<p>

I think so…if someone in the family got free lunch or food stamps or any of the other qualified benefits.

I believe we’re eligible for free lunch, but haven’t applied.</p>

<p>Thanks for the replies everyone.</p>

[lookingforward]

<p>I just tested this at [FinAid</a> | Calculators | Quick EFC Calculator Results](<a href=“Your Guide for College Financial Aid - Finaid”>Your Guide for College Financial Aid - Finaid)</p>

[lookingforward]

<p>I just tested this at [url=&lt;a href=“Your Guide for College Financial Aid - Finaid”&gt;Your Guide for College Financial Aid - Finaid]FinAid</a> | Calculators | Quick EFC Calculator Results<a href=“or%20google” title=“FAFSA calculator”>/url</a> and your sample quickie EFC is zero. The 67000 is student assets (other.) I think the 13k+ figure is the expected contribution from your college fund. I would think you are technicaly ok- Mom not expected to contribute.</p>

[mom2collegekids]

<p>Are you in college now?</p>

<p>If you can qualify for an auto 0 then your assets won’t count.</p>

[swimcatsmom]

<p>What tax return did your Mom file? If it was 1 1040a or 1040ez then make sure that you checked that on your FAFSA. </p>

<p>If it was a 1040 check to see if she was eligible to file a 1040a or 1040ez.</p>

<p>The criteria for automatic 0 EFC is an income under $30,000 and

Certain students are automatically eligible for a zero EFC.
For the 2010-2011 award year, a dependent student automatically qualifes for a zero EFC if both (1) below and (2) on the next page are true.
(1) Anyone included in the parents’ household size (as defined on the FAFSA) received benefits during 2008 or 2009 from any of the designated means-tested Federal benefit programs: the SSI Program, the Food Stamp Program, the Free and Reduced Price
School Lunch Program, the TANF Program, and WIC;
OR
the student’s parents fled or are eligible to fle a 2009 IRS Form 1040A or 1040EZ (they are not required to fle a 2009 Form 1040)
or the parents are not required to fle
any income tax return;
OR the student’s parent is a dislocated worker.

</p>

<p>If for some reason she was not eligible to file a 1040a or 1040ez this year then have make sure you check into the possibility for next year. With a 0 EFC you will be eligible for the Pell grant ($5550) and possibly some other need based aid.</p>

<p>Why are you just now finding your EFC? It seems very late to be dealing with FA applications.</p>

[thumper1]

<p>

She’s a homeowner, but it’s all paid, so no mortgage.

</p>

<p>

She did have to file a 1040 though.

</p>

<p>These are quotes from the OP. I guess I wonder…WHY did she have to file a 1040…if the home is paid for, it wasn’t for in interest deduction.</p>

[AliMom]

<p>I was actually wondering about the automatic $0 myself. If someone receives free lunch, but is required to file a 1040 due to itemized deductions or owning a small business; will they still qualify for an automatic $0?</p>

[sk8rmom]

<p>Yes, if the AGI is under $30K. They only need to meet one of the other qualifiers.</p>

[mom2collegekids]

<p>I wonder if the spouse died in 2009. Maybe there were expenses or something involved with his death that required the 1040 filing.</p>