<p>How big of a factor does the saving accounts of our parents' account play in our EFC (particularly in a case where there is a bit of money saved, but with small annual incomes? And At what lengths will they go to verify that these numbers are correct?</p>
<p>I believe that assets are assessed at about 6% after an allowance. The big focus is really on the income. I would use the numbers as they exist when you filed the FAFSA. Save a printout or statement to show them incase they audit you.</p>
<p>Parents have a certain amount of asset protection based on the # of parents and the age of the older parent. After that 5.6% of reportable assets go to the EFC. However if income is low (<$50k) and you meet one of the other criteria (such as being eligible to file a 1040a or ez) then you would be elibile for the simplified needs formula that ignores assets.</p>
<p>Best to be honest when completing federal forms. The penalties for not being honest are severe.</p>
<p>However if income is low (<$50k) and you meet one of the other criteria (such as being eligible to file a 1040a or ez) then you would be elibile for the simplified needs formula that ignores assets.</p>
<p>So, do both have to be met…income being low AND 1040a or ez? </p>
<p>When you say “income” …that would include interest and capital gains, too, right?</p>
<p>Both criteria need to be met. Income and one of the other criteria (Swimcats can list them…but I believe they include things like receiving free lunch, and other government subsidized things).</p>
<p>
I should have said AGI. It is the AGI that counts for both simplified needs and auto 0 EFC.</p>
<p>And you have to meet both the income limits and one of the other criteria (1040a/ez or receive one of certain means tested benefits or be a dislocated worke etc)</p>