<p>I'm a sophomore in college and for the past 2 years my EFC has been about $7,000. My parents combined income is around $60,000 and have $5,000 in assets. This year, my parents had to take about $50,000 out of one of their 401ks in order to fix up their house (had to be done or else the insurance would be taken away). This caused their income to jump to $110,000(the 50k has been completely used on the house, so basically my parents "true" income is still $60,000) which made the EFC $24,000!! </p>
<p>Will this jump in EFC reduce my financial aid for the next school year at my current school?</p>
<p>Also, I was planning to transfer to a different school (cheaper than my current school) next fall and the total cost of the school is $22,124, which is lower than my EFC. So basically i wouldn't get any financial aid right?</p>
<p>Someone who knows more should be able to answer, but I’m pretty sure you would contact the FA office of the schools you are truly interested in and explain the situation. there is usually an appeal process where you would explain the situation. Be prepared to have proof of the income and expenditures. Follow phone calls up in writing. Might want parents to handle it since it’s their income being explained.</p>
<p>Doesn’t sound like you’d be getting any aid other that an unsub loan. You may have to ask for a leave of absense from your education for one year to allow for this blip to go away.</p>
<p>Even without this EFC change, do you know what kind of aid a different school would give you ? Many schools don’t give much aid to transfers.</p>
<p>You need to go and discuss this with your school financial aid office. If the money was used for things that were absolute necessities (you will need to document) in order to live in your house, the school MIGHT consider this 401 withdrawal as a one time addition to your income and make an adjustment. There is no way for anyone here to tell you how your school will handle this. Go and talk to them.</p>