<p>I was wondering whether or not there is a difference when doing your FAFSA if your parents are self employed. My dad just works by himself. According to the fafsa4caster I don't apply for anything besides a loan. I need the aid but because of his income it says we don't =/. Another thing, when i did the 4caster, they asked for the W-2 Form... which my dad doesn't get due to being self employed... What do I do about that?</p>
<p>Eligibility for need based Federal aid for a dependent student is based mainly on parent income. When you do the actual FAFSA you will enter the income and taxes that shows on your Dad's tax returns. FAFSA only asks that the information be shown from W2s if the person does not have to file a tax return. For instance if you have a part time job but do not earn enough to require a tax return then you can use the info from your W2s.</p>
<p>The EFC is based mostly on parent income and also on parent assets. Also 50% of student income over the protected income allowance (@$3200 for 2008-2009) goes to the EFC. 20% of student assets go to the EFC.</p>
<p>For 2008-2009 the EFC had to be 4041 or below to qualify for any federal grant money. It will probably change a little for 2009-2010. To have an EFC below 4041 requires a fairly low parent income. Assuming no major assets or student income/assets, and just one student in college, a parent income a little over $40,000 would push the EFC high enough to not qualify for Federal grant money. Other than grant money federal financial aid consists of loans and possibly work study.</p>