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?
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?
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.
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.
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?
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?