<p>I just filed my FAFSA. and My estimated efc is $28,000. I have a family of 4, with a $77,000 income. </p>
<p>I am attending a UC school next year, and it costs around $25,000. My EFC is higher than one year's tuition. Does this mean I will get absolutely no help form the CA gov. and the UC school? Is my family and i expected to pay my efc all by ourselves? i am a little confuse...</p>
<p>That seems a very high EFC for a $77,000 income about double what I would expect based on income alone. Are there a large amount of assets? Run your income and asset numbers through one of the EFC calculators (finaid.com is a pretty accurate one). It will give you an idea of where the EFC is coming from.
To give you some possible ideas - Certain parent assets are protected - primary home, retirement funds. After that a certain $ amount of other parent assets are protected depending on the age of the oldest parent. Anything over that @5.6% goes toward the EFC. Student assets have no protection - 20% goes to EFC. Student income up to @ $3000 is protected and then 50% goes to the EFC. Anything standing out as causing your high EFC?</p>
<p>Unfortunately that's what it most likely means. Did you have investemnts listed? $$ in your name or in savings?? That seems just a bit high for that income, but remember the FAFSA and SAR are based on NATIONAL averages. </p>
<p>The cost of living is so high in CA that it doesn't really seem fair. Unless yo have a very low income=generating a very low EFC, most people get very, very little from UC.</p>
<p>Thank you so much swimcatsmom and bus52.</p>
<p>Aside from my family's $77,000 income. I listed $40,000 in the checking accounts/savings. </p>
<p>Also, my dad has this rental property net worth is $250,000 owned by my mom and him. So, I listed $250,000 under "investments" (should i list that under business investments instead?). Or should I list the rental property at all since it is for a "Small business," but under the ownership of my mom and dad?</p>
<p>And my EFC turned out to be $28,000. Would this be accurate? I have no income, assets, or savings. My dad is the oldest, but he is only 48 years old. </p>
<p>So does this mean my family and I have to pay all of UC's tuition on our own? I am just worry I will get no aid whatsoever.</p>
<p>I think you are right to ask about the rental property. I'm not sure where it should be listed, but if it was under small business, you would get a different figure from fafsa. Family businesses with less than 100 employees are exempt in fafsa.</p>
<p>Also, even if the rental property was listed under investments, make sure you have checked to see how much (if anything) equity your father has in it. If the property is worth 250K but he owes 100K, then the asset is now 150K.</p>
<p>Before you ask any more questions, go to finaid.com and run your numbers through the calculator, using federal methodology. That will tell you if the numbers were put in correctly, the calculation was done right, and specify the individual components of your EFC. </p>
<p>The "problem" seems to be the liquid assets and rental property value, $290,000 total, of which FAFSA assumes about 6% can be spent on your college education each year.</p>
<p>I think the rental property can be excluded under the small family business rule. I would at least try it until something more definitive in the way of guidelines comes out. Think of the rental home as "Mom and Pop Realty Management Co."</p>
<p>Unfortunately, according to FAFSA, rental properties are generally considered assets not a small business. from: <a href="http://studentaid.ed.gov/students/publications/completing_fafsa/2007_2008/ques5-5.html%5B/url%5D">http://studentaid.ed.gov/students/publications/completing_fafsa/2007_2008/ques5-5.html</a>
[quote]
Investments</p>
<p>Rental properties. Generally, rental properties must be reported as investment assets rather than as business assets. To be reported as a business, a rental property would have to be part of a formally recognized business. (Usually such a business would provide additional services, such as regular cleaning, linen, or maid service.)
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</p>
<p>I am not sure what would qualify it to be a 'formally recognized business'. How the income is reported for tax purposes perhaps?</p>
<p>Oooh, nice! Guidelines (= loophole). I'm not saying any more.</p>