<p>When you get your SAR, look to see if there is a * next to your EFC. Bet there is … I think you probably entered something incorrectly from the tax return. The EFC is too low.</p>
<p>For what it’s worth, the Quick Calculator at Finaid.org is also coming out with an EFC in the 8.6K range:
[FinAid</a> | Calculators | Quick EFC Calculator Results](<a href=“Your Guide for College Financial Aid - Finaid”>Your Guide for College Financial Aid - Finaid)</p>
<p>I used variables of “age of older parent: 46”, income of $73K and zeros for all assets.</p>
<p>(But I agree with everyone else, that does sound too low!)</p>
<p>I thought the finaid.org calculator was not an accurate one…am I imagining that?</p>
<p>I don’t think fin.aid.org has been updated in several years- much of the written information is still valuable- but it is always good to double check it with more current data.</p>
<p>It totally makes sense, you have to look at the formulas.</p>
<p>Assume 73K income, 6K Federal taxes, 5K state taxes, $5600 FICA (you get 7.65% even though the rate is 5.65% this year).</p>
<p>This gives an income of $56.4K.</p>
<p>Income protection allowance for a family of 4 with one in college is $25.0K, bringing income down to $31.4K.</p>
<p>From the Parents’ Contribution from AAI table:</p>
<p>$29,301 or more $7,926 + 47% of AAI over $29,300</p>
<p>This gives $7926 + $987 = $8913</p>
<p>This also assumes parents’ assets are less than $44K and the student also has no qualifying income and assets.</p>
<p>It’s all in here:</p>
<p><a href=“http://ifap.ed.gov/efcformulaguide/attachments/101310EFCFormulaGuide1112.pdf[/url]”>http://ifap.ed.gov/efcformulaguide/attachments/101310EFCFormulaGuide1112.pdf</a></p>
<p>OP, we have a similar income, no assets that counted since what we have is way below the first $50 thousand or whatever that is protected anyway, and our EFC is right about what you got. We are paying 1 and 1/2 times that, to the school that made the best financial offer. (I stayed home for 12 years homeschooling, so no income for all that time for me. My husband made a modest income that covered our living expenses, with a little left, but not enough to save. I felt the investment I was making in my children was worth the cash I was not earning/able to save.)</p>
<p>As for assets, I think the only thing we have is a little in an IRA account. My older parent is 53.</p>
<p>I was thinking the OP was talking about AGI not gross so this makes more sense to me know.</p>
<p>I just did a calculator, as well, and it came out even lower with my assumptions — so guess the EFC OP got is good. It must be that the break where EFC is less than 25% comes at a higher earnings amount than I had figured.</p>
<p>It must be that the break where EFC is less than 25% comes at a higher earnings amount than I had figured.</p>
<p>It was confusing to me because our income is just slightly more, but our EFC is significantly more.</p>
<p>I can tell you that my EFC took a very noticeable hike when we earned more than a certain amount. I can usually tell the ballpark for an EFC from the info given, but once in awhile it does surprise me.</p>
<p>I think I’m confused now then because I got around the same EFC with much less income.</p>
<p>~$37k AGI (Income is 37k with only a $500 deduction for wife’s student loan payments)
Everything else was 0 (assets, savings, etc - I’m 23) and I put $1,000 for current balance in checking, but that can vary greatly depending on the time of the month, obviously. I file 1040A.</p>
<p>My EFC was 08328 or so. Should mine be lower then? Thanks for everyone’s input.</p>
<p>^ How much did you pay in Federal and FICA income tax? What state are you in?</p>
<p>Also, independent students whose only dependent is a spouse pay at a 50% flat rate, it is not graduated at all like for married with children. And the income protection is much less.</p>
<p>And at age 23 you get zero asset protection. So even that $1000 in your checking account will get hit if it’s there when you file.</p>
<p>Yikes. I can’t really remember how much I paid in taxes . . . I’ll check the next time I get it in front of me. I got a refund of about $1,000 though. I’m in CA.</p>
<p>Sooo, I should have a kid then?</p>
<p>
Hahahahaha! That’s funny. 
</p>
<p>Let’s see:</p>
<p>$37K income, assuming 2 exemptions and standard deduction gives about $1.8K federal tax, $2.8K FICA, $1.8K CA tax.</p>
<p>This leaves you $30.6K, you get an income allowance of $13.7K assuming your wife is not a student, that leaves $16.9K.</p>
<p>At 50%, that gives you an EFC from income of $8350.</p>
<p>Thanks for showing how it works out. Everytime I ask about it I secretly hope that I’m told it must be worng. Oh well.</p>
<p>Official: the estimate was right. I do not qualify for Pell. Not sure about Perkins and subsidized loans atm.</p>
<p>*I think I’m confused now then because I got around the same EFC with much less income.</p>
<p>~$37k AGI (Income is 37k with only a $500 deduction for wife’s student loan payments)
Everything else was 0 (assets, savings, etc - I’m 23) and I put $1,000 for current balance in checking, but that can vary greatly depending on the time of the month, obviously. I file 1040A.</p>
<p>My EFC was 08328 or so. Should mine be lower then? *</p>
<p>You’re in a different situation because YOU, the adult, will be going to college…not a child. You’re independent for FA purposes.</p>
<p>Since it’s just you and your wife, the formula assumes that a LOT more of your income can go towards your education…your housing, your food, your tuition…all of the COA. It would be very different if you were a dependent child who would be living apart from the family home. You and your wife will be living in your home, while you go to school. There won’t be two residences.</p>
<p>When the adult is going to college, there is only a small amount that is exempted for you and then there is an amount for your wife. Having a kid won’t matter much, because again, the child will be in the same home.</p>
<p>Does that make sense?</p>
<p>
This is not true, if you look at how the formulas work, an independent married student with a kid is almost identical to the case where the student is a dependent.</p>
<p>The income formula is graduated exactly the same, you get the bigger deduction for state taxes over the independent with no kids case, the income protection is actually <em>better</em> than the case where the student is a dependent.</p>
<p>In this case, the state tax credit would be $2.7K instead of $1.8K, and the income protection would be $27.0K instead of $13.7K. This would give an AAI of only $2.7K, which puts them on this line of the table:</p>
<p>-$3,409 to $14,500: 22% of AAI</p>
<p>Which would give him an EFC of about $600.</p>
<p>That’s a pretty big difference from $8300.</p>
<p>Having a child is going to cost much, much more than the difference between $8300 and $600.</p>