Higher income but lower EFC?

Paying for College
1

<p>I'm a grad student, so I'm an independent student and the only federal aid I'm eligible for is loans anyway. Still, I'm curious about this...</p>

<p>Last year, I made less than $10k (part-time work as an undergrad), but had to file a 1040, and had an EFC of about $6200 (I have a decent amount in savings). This year, I made about $17k as GA, BUT I was eligible to file a 1040A and thus wasn't asked to report savings. My EFC for this year was $0. Am I correct in assuming this was a result of some 1040A automatic 0 EFC clause?</p>

2

<p>Do you have a dependent other than a spouse? As an independent you must have a dependent other than a spouse to be eligible for the automatic 0 EFC. With or without a dependent other than a spouse, if your income is <$50k and you can file a 1040A you are eligible for the simplified needs test where assets are ignored.</p>

3

<p>Nope, no spouse and no other dependents, so I’m thinking the latter is the case.</p>

4

<p>But that would not cause your income to be ignored, only your assets. With an income of $17k I am surprised that your EFC is 0. You would have income protection of $8550 plus some allowances for federal and state taxes and FICA taxes. Anything over that 50% would go to your EFC. Unless part of your income is from some sort of financial aid such as work study or scholarships? .</p>

5

<p>^
Yep, more than half of it was designated as from being from scholarships (per my 1098T), so that must have brought the remaining amount below the $8550 gap, I’m guessing?</p>

6

<p>Yes. The amount of the scholarships would be deducted from income in the EFC formula. Scholarship income does not impact the EFC.</p>

7

<p>Is there something “different” about the EFC formula for grad students? I’ve noticed that grad students seem to get an EFC 0 even though when their incomes are high enough that they would have had an EFC if they were independent undergrads.</p>

8

<p>No. An independent student is an independent student. There is no difference in the formula if they are a grad or undergrad. </p>

<p>In this poster’s case half his income is scholarship money so is not counted in the EFC formula. That is the reason for the 0 EFC. That would be the same if he was an undergrad.</p>