FAFSA EFC with 2 kids in college

Paying for College
1

I understand that the EFC is calculated and then divided by the number of children in college. I am not sure that I am seeing that. Last year I had 1 in school, this year 2 in school and the EFC for each child this year is essentially the same as for 1 last year. I did earn more this year but is it enough for my total EFC to have almost doubled? Here is a quick summary - can anyone confirm i this seems plausible based on knowledge of EFC formulas?

Last year w 1 child - EFC $38K
Taxable Income - $150K / Investments $240K (essentially all 529 funds for 2 kids)

This year w 2 children - EFC $37K each ($74K total)
Taxable Income - $244K / Investments $240 (essentially all 529 funds for 2 kids)

So Extra $94K income results in extra $36K EFC?

2

Yes, it sounds right. EFC is about 1/3 income at higher wages, and the asset protection allowance was reduced for 20-21. I know it’s not what you had hoped to hear, but hopefully the additional income will allow you to pay for an affordable school. I started earning more when my oldest started college, and we used the additional income for college. Once they graduated, we put the money that we had used for tuition to fund retirement accounts at a my much higher level than we had been.

3

Sounds absolutely right to me. Hopefully you were living like you earned $94K less, and saved some of that for college costs.

4

@JayMcN as @thumper1 and @kelsmom indicated, this does sound accurate as the EFC is often approximately 1/3 of a families annual income.