FAFSA EFC significantly higher than previous years?

I’m a dependent student, and my household income is very low with very high assets.

Last year for my 2016-2017 school year, it was based on my 2015 income. My parents income was 22k, and total assets and savings of 500k. My EFC was 0.

Since FAFSA changed their policy and requires income information from two years ago, I pretty much submitted the exact same information for the 2017-2018 FAFSA. This time however, my EFC was 17k.

With an EFC calculator I found online, it seems the assets and savings are what affected it. But for the last two years with pretty similar incomes and assets/savings, I got an EFC of 400 and 0. Does FAFSA now take account of assets and savings now?

Ok here we go I know why.

Last year it asked this: Do you want to skip the remaining questions about your and your parents’ income and assets?

I answered no.

This year it asked something like this: “Do you parents have more than 31k in assets?”

I answered yes and the following questions. And that’s why it bumped my EFC so high up. How do I circumvent this?

I figured out why. Last year, I went straight into auto-zero EFC. This time I answered “don’t know” to some questions that I actually do know, but just not at the moment, so it booted me out of it and thus I had to answer asset questions.

I’m going to edit my FAFSA once it’s processed. If I’m able to complete an auto-zero EFC, will my EFC score update after my changes?

Get the info you need…and complete the FAFSA with all of the info…ASAP.

If you had the answers last year…why didn’t you have them for this year??

If the parent income is under $25k and either someone in the household received federal means tested benefit, or parents could file 1040A, or parent was dislocated worker, then auto zero EFC applies.

If that is still the case then you should have auto zero EFC again.

When you answered the questions right after the parent income that qualify you for this you didn’t answer any of them with yes.

Yes, do correct it when you can. Then it should let you skip the asset question.

Why do your parents have that high in unprotected assets? Could they put some of it into qualified retirement accounts?
What happens if their 2016 income is higher than $25,000?

As you have seen, the assets would cause the FAFSA EFC to go way up.

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My parents income was 22k, and total assets and savings of 500k. My EFC was 0.


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Do your parents own a business?

(Not that it matters for FAFSA, just curious)

With that income…wouldn’t he qualify for auto $0 EFC…no assets reported?

Does your college use the fafsa only?

I was able to edit it today. To get auto-zero EFC, I was missing only one thing. I selected “reduced/free lunch” again, I I had it selected last year, but I deselected it previously for this year thinking I don’t go to high school anymore obviously. But I was always able to qualify for it, and still am. Once I selected that, the skip assets popped up, clicked yes and submitted. Now my EFC is 0, awesome.

@thumper1 - Yes, I should have looked back carefully at what I submitted last year. And no, my college uses grants as well.

@mommdc - Assets are high because of real estate.

@fartoosoon

Your primary residence is not included on the fafsa even IF assets are listed.

Are you saying your family owns $500,000 in other assets…not your home?

But whatever! You don’t have to report them if your income is below a certain amount…and you qualify for free/reduced lunch.

How long have you been out of high school?

@thumper1

Yep, that’s $500,000 of savings and other assets. My home not included.

@sybbie719, I think OP graduated in 2015. As long as someone in his household received free lunch in 2016 he can check yes, can’t he?

Yes, I believe the 2017/18 FAFSA asks if anyone in the household received a federal means tested benefit in 2015 or 2016.

Ok…so this brings up a question.

What happens for the 2019-2020 fafsa when this kid will have been lit of HS for two years? What if he doesn’t have a younger sibling who gets free lunch? What if the family doesn’t qualify for a men’s tested benefit?

Does he lose that auto $0 EFC?

If so…something to think about.

Yes, I also asked OP if 2016 income was over $25k, because then auto zero EFC might also be gone next year.

With rental income they probably can’t file a 1040A.

I agree with @mommdc, that having real estate, especially if there is a mortgage or rental income would prevent OP’s parents from filing a 1040A.

@BelknapPoint , thoughts???

@Madison85

I think @BelknapPoint must be away!

Good question @thumper1

While I’m sure my families yearly income will continue to remain below $25k, I won’t be able to truthfully answer “received free/reduced lunch”. I am interested in how that will fare out?

@sybbie719 - You are correct. My parents cannot file a 1040A, only a 1040 for that sole reason. What would a 1040A bring to the table opposed to the 1040?