<p>EFC is calculated mainly from income. Income does include dividends, interest and realized gains from investments. Realized gains are profits realized from sale of investments. These are the same figures that need to be reported for tax purpose, and are reported on an annual basis. If you are going to be starting college in fall of 2009, the income used for financial aid will be that reported on your family 2008 tax forms only–not prior years’ gains or dividends.</p>
<p>The other part used for aid determination would be assets. That figure would be the market value of your parents stocks and other investments, savings accounts, etc on the date they fill out the FAFSA. There is an allowance allowed, and then about 5-6% of the the assets over that allowance is used as part of the EFC. So all of the gains from the stocks over all of the years is not assessed. OFten the tax forms are requested for verification of the FAFSA figures.</p>