<p>is this infact true??</p>
<p>That would mean even a school that costs 40k a yr, is your parents have assets of 700k, you would be eligeable for any FA????</p>
<p>I know 700k sounds like a lot but what if both parents are retired and they are living on that. You take 40k *4= 160k, then take 700k-160= only 540k of total assets to live on. On top of that what if they want to move out of a bad neighberhood, sent future kids to college, sudden health problems that costs money and so on.....</p>
<p>The answer varies by income level. Usually somewhere between 2 - 4.5% of the assets are used in the EFC. Look at it this way: you can (and probably should) be getting at least that in a return (interest, asset growth, etc) on these assets.</p>
<p>As for your income and asset question, this may be something to appeal to the FAO about (especially if they are double counting money -- money in the asset and spending the asset at income).</p>
<p>Remember also that income percentages are much higher (more like 20-35% of gross income), so consider yourself lucky that the 700,000 isn't income (or, well, I guess if the $700,000 was income, we wouldn't be having this conversation... Um... never mind me, it's May 1, my brain is fried).</p>
<p>barkowitz,</p>
<p>So do you think that 2nd tier schools will also just look at 2-4.5% of assets for the EFC? I am surprised to learn from you that the figure is not 5.6%, which is what I have read elsewhere.</p>
<p>PS you are good to be doing this checking on CC while fried. I would imagine you might just as soon stop thinking about finaid.</p>
<p>Does depend on whether you are talking institutional or federal formulas. They can have different figures. Also depends on the income level of the family. Generally, the higher the income, the higher the percentage from assets.</p>
<p>I believe 5.6% is the top marginal rate for assets once you have gotten your basic asset exemptions for FAFSA. I ran it through a few times, and that is what I ended up getting.</p>