<p>you are missing my point. If you earn 7000, figure on about 20% for taxes so now you are at 5600. The govt adds 2000 to the EFC. That’s an effective rate of over 35% of net pay mandated to the EFC.</p>
<p>I think the $3000 income allowance is too low. And the 50% over 3K is too high</p>
<p>Of course the student is going to be putting money from their earnings towards school, but IMO, the govt’s calculation putting a really high percentage of their earnings onto the EFC. </p>
<p>Where does that (arbitrary 3K figure) come from and does it increase from year to year.</p>
<p>Why do I have this sinking feeling that it’s been set at 3K for the last 20 years when 3k was alot for a student to earn.</p>