Fafsa

Paying for College
1

<p>I have about $3K in a savings account. I am not a dependent. Will this amount significantly affect my reward from FASFA? If so, should I gift it to my mom? My income is less than $8K for 2009 return.</p>

2

<p>By saying you’re not a dependent, do you mean for income tax purposes or that you meet the qualifications for an independent student (per attached)? Independent students have an income protection allowance of $7500 ($4500 for dependent students) and tax/social security paid, so your $8K income should not produce much of an EFC, if any. Students of either type do not have an asset protection allowance, unlike parents, so 20% of your savings will translate into EFC. So, the most it will give you is an EFC of $600. If you have other bills to pay or large purchases to make, consider doing that before you file FAFSA.</p>

<p><a href=“https://ifap.ed.gov/efcformulaguide/attachments/111609EFCFormulaGuide20102011.pdf[/url]”>https://ifap.ed.gov/efcformulaguide/attachments/111609EFCFormulaGuide20102011.pdf&lt;/a&gt;&lt;/p&gt;

3

<p>Actually once an independent student reaches 26 they do start getting asset protection(increases as they get older). And the income protection for an independent student increased to $7780 for a single independent student.</p>

<p>You do need to meet the FAFSA criteria to be considered independent (main one is age, 24, but there are others that are less common).</p>

4

<p>I am 27. I do not live with my parents, they provide no assistance. I believe I meet the qualifications for an independent student. So, do you suggest I just leave the $3K in my savings? I do not have any significant bills or large purchases to make, but read that maybe I should gift it to my parents.</p>

5

<p>Yes you are independent. If you are 27 your asset protection will be $2200 ($3300 if you will be 28 by December 31st). Any assets over that 20% will go to the EFC.</p>

<p>You income protection will be $7780 plus allowances for FICA and State taxes based on tables in the EFC formula and for actual federal taxes. Any income over that 50% will go to theEFC.</p>

6

<p>My birthdate is in Nov.</p>

<p>Do I understand you correctly: If I leave 3300 in savings, it should not affect my EFC? </p>

<p>I appreciate all your help.</p>