I recently got my EFC from the Fafsa, and when I saw it was around $60, I immediately thought it was a mistake. My family is not rich by any means. I got the same thing from the Collegeboard Net Price Calculator as well, so I’m wondering if someone with an income of around $70/yr can have that EFC?
Any thoughts?
Whoops, I meant an EFC of $60k, not $60. lol sorry.
Check your math and make sure you didn’t inadvertently add a zero or two. what kind of assets do you have?
Either you made a mistake or your parents have lots of assets?
Do your parents have a lot of assets? Savings? Properties? etc??
no, prob your efc should be 10k or less, depending on a few of the items. Unless you have a business or a lot of property or very high assets for that income.
I don’t think there was an error in the numbers, unless you aren’t supposed to add commas. I was thinking about assets, because that was the second biggest thing next to income. My parents do have another house and investments in stocks, but could that be great enough significantly raise the EFC?
You are not supposed to put the house for FAFSA. How much in stocks? Assets like savings and stocks are assessed at 5.6 pct for FAFSA EFC. What about student income or assets, do you have any?
What is their equity in the other house and the current value of their stock investments? $800k-$900k?
OP wrote:
presumably meaning a second, non-primary residence piece of property, which does need to be reported on FAFSA.
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My parents do have another house and investments in stocks
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How much is the other house worth?
Does the other house bring in rent income? If so, how much?
how much in stocks?
No, much much less. I have no assets and barely any money (around 1k). The house on the other hand is worth about $400k and stocks are about $60k. Those are the only other assets. And I know I’m not supposed to put MY house of residence on the fafsa, but you have to put any other real estate on it.
Are you saying that your parents have two houses (including your home). You don’t put your home’s value into your parents’ assets.
The house is worth $400k and the stocks are worth $60k.
Is the house being rented out? Any income from that?
Something still seems wrong…
the assets add about $25k to EFC, but the income shouldn’t add that much.
5.6% of $460,000 assets is $25,760
Is the $70k income “after taxes”?
Does your family make retirement contributions?
The house is being rented out ($12k/yr) and the $70k is after taxes.
Also, no retirement savings.
Adjusted Gross Income, not income after taxes, is the starting of FAFSA EFC calculation.
Ok…
So the gross is higher than $70k.
You really should have given accurate info from the beginning…the correct AGI, the rental house value, the rental house income, and the stocks.
What is the AGI?
Ok sorry for the confusion: The AGI is $78k
*Since this is 2015’s Tax info, these are estimates as we havent filed taxes yet.
Your parents have $78k in income from work
12k income from the rental
and assets of $460k
your FAFSA EFC is may be ~ 40k (your EFC may be even more when you file the CSS Profile)