<p>I wouldn’t recommend it either, but it is interesting to see the effect on EFC.</p>
<p>According to wikipedia though, a kid 0-2 only costs $6490/year on average, and a large %age of that is housing. So maybe it would be a smart move. 
</p>
<p>^ If you have good health insurance for the delivery…</p>
<p>[Cost</a> of Raising a Child Calculator | BabyCenter](<a href=“http://www.babycenter.com/cost-of-raising-child-calculator]Cost”>Baby costs calculator: How much does a baby cost? | BabyCenter)</p>
<p>Hahaha, I didn’t know my sarcasm was gonna turn the thread. I’m not having a kid - yet.</p>
<p>mom2, I get it and have accepted that that is my EFC. I just think it’s a little odd that they expect an independent person who is going to school full time contribute more up front to their education that say a dependent who has the potential of having 1, 2, or more incomes in the household to support them. Although, I hear a lot too that parents won’t contribute anything to their child’s educational expenses anyway. I’m sure I’d be in the same boat if I was a dependent.</p>
<p>* I just think it’s a little odd that they expect an independent person who is going to school full time contribute more up front to their education that say a dependent who has the potential of having 1, 2, or more incomes in the household to support them.*</p>
<p>Look at it this way…</p>
<p>If you were a single independent person, and earning $30k per year, wouldn’t it make sense that you can put much of that towards housing, meals, books, and tuition (your COA)? It really wouldn’t make sense to give such a person a $5k or so EFC. What is the other money to be used for?</p>
<p>When a family has a child going to college, there has to be an assumption that the first $20-25k or so is needed for the family’s housing and such, which are not part of their child’s COA.</p>
<p>I guess the key word there is single.</p>
<p>I’m pretty sure the first ~$20,000 of any of my earnings will go to rent, another $5,000 (conservative estimate) to feeding my wife and I, and a few k more for utilities, etc. Just because I’m independent doesn’t mean I can live on campus and have a meal plan every semester - especially with my wife. I can see a single student doing such, but once you check the little “Are you Married?” box, then it should be a little different.</p>
<p>However, the system is the system and oddly enough the only way to change it is to get an education to vie for a position with enough power to change it.</p>
<p>$20,000 a year for rent?! If you want to spend that much, that is fine … but it is not the obligation of the taxpayers to guarantee loans for you to use for rent that is so much higher than the average college student’s rent.</p>
<p>Whoa, I’m not saying I’d take out loans to pay rent. That’s the last thing I would try to take a loan out for. I was just throwing my side thought out there, but I know the system works as it does for a reason.</p>
<p>Oh and BTW, I live in Bay Area California where a CHEAP place with an actual designated kitchen, living room etc costs $1,500/mo. I’ll do the math to save you the trouble: 1,500x12 months=$18,000. Costs of living are obviously different for different parts of the country and incomes are adjusted accordingly. So in case no one else heard about it in the news, San Francisco just raised the minimum wage to ^$10.00/hr. Otherwise no one would be able to live there.</p>
<p>For the validity of the thread, I updated my FAFSA today because I was able to get my 2011 W-2 and my EFC dropped from 08328 to 05599. So I guess the moral of the story is UPDATE YO FAFSA.</p>
<p>Still don’t think this makes me eligible for a Pell Grant. . . .</p>
<p>I still haven’t updated my FAFSA or sent in my Profle!!! Michigan doesn’t file taxes until the end of Jan and I’m still waiting on my dad’s W-2.</p>
<p>You can update based on the info from the last pay stub without having the W-2.</p>
<p>^I agree. There should be some totals for “total fed taxes paid to date” and like terminology that will be the same amounts in the corresponding boxes on the W-2.</p>
<p>Be very, very careful when you use a W2 to update your FAFSA. Do NOT total the taxes paid on the W2 and put that on the FAFSA as taxes paid. I have seen this mistake many times … You will get an artificially low EFC, and it will surely get you selected for verification (since the software on the processor side will pick up on the fact that the reported taxes paid are too high for the other information given).</p>
<p>^ ok, I’ll keep this is mind.</p>
<p>It would only make a significant difference if you are filing more complicated tax, i.e. you must file a 1040 as opposed to a 1040A or 1040EZ.</p>
<p>If you are filing a 1040A/EZ, then you can use the W-2 (or 1099s) and it’s a simple process of amounting credits and looking at the tax table for 2011 to determine the tax liability.</p>
<p>Where you should be careful when trying to use the W-2 to estimate your EFC before you actually file is if you are adding business income, deductions/expenses, and other like situations that will require a filing of a regular 1040.</p>
<p>I determined my tax liability/refund on a 1040A like 10 minutes after I printed my W-2. Only difference in total income from AGI was a student loan interest deduction. After a standard deduction, and maybe a Making Work Pay credit . . . very simple stuff.</p>
<p>Making work pay credit? I don’t believe that exists in 2011. It was just a 2009 and 2010 tax credit.</p>
<p>The issue I refer to is students who add up the taxes on the W2 and plug that into the FAFSA as “taxes paid.” They do not understand that for many, the taxes paid on the W2 are quite a bit higher than those ACTUALLY paid … that is, if there is a refund, the taxes paid are lower than the W2 taxes. Oh … and they often add ALL the W2 taxes, including social security. If you are familiar with doing a tax return, you will understand the error, but many young people do not realize this.</p>
<p>^^Sorry, You’re right. I meant Earned Income Credit in general like American opportunity.</p>
<p>@rbouwens: Hopefully you will discuss with your Dad if placing his W-2 figures on the FAFSA to minimize any confusion in the reported amounts.</p>
<p>One of my friends had an EFC of like 40,000 and another had one of around 80. HOW THE HECK IS THAT POSSIBLE???</p>
<p>Sounds like you have friends from all classes of society.</p>