<p>DS will have a decently paying internship this summer, but of course will have to pay rent and living expenses where the job is located. I was just curious as to the % of their summer income is expected to be used for the following school year? I don't know if there is a formula or if every school is different, but perhaps the formula comes into play on the FAFSA?</p>
<p>About 1/2 of the amount over about $6K will got towards EFC. Any money left over should be spent down on necessities or put into an account joint with parent with parent’s name and ssn first on it, so that it isn’t sitting there as an asset the day FAFSA is filed because then it gets assessed again at 20% directly onto the EFC. Parents get a protection allowance; students don’t, and it’s a 5.6% hit vs 20% pver that protection allowance for parents.</p>
<p>So a student’s money only gets considered if it’s over $6000? Or is it 50% of any money they have in an account, even if it’s just $500 or $1000?</p>
<p>It’s 50% of earning over $6K (or so, I don’t know what the new exact amount is) PLUS 20% of what’s sitting in the account on the day FAFSA is filed. So if a kid makes, say $7K, the EFC starts out with $500 and if it sits in an account the day the kid files FAFSA, the $1000 is assessed AGAIN at 20% for an additional $200 towards EFC for a total of $700 right there for the student EFC. Nothiing one can do about the earnings part. The formula is set as I;ve described, but one can make sure that money is paid to the school, books or other bills paid or set up in a parent joint account as I described to make sure it doesn’t get hit again at 20%. There is no protection allowance on asset for students in FAFSA calculation . There is an asset protection allowance for the parents based on age of the oldest parent, if there are 2 parents or 1 on the FAFSA and number of dependents. </p>
<p>Thanks cptofthehouse. So, if he is expected to make let’s say, 7k for the summer, that is the figure I would use on this years FA applications on expected summer income. They will add 500 to the EFC for the coming year. The following year he will not be applying for FA as he will be a senior, so we just have to worry about summer expenses and take into account the extra 500 to be used for next year. Did I get that right?</p>
<p>Are you filing financial aid forms NOW for the 2014/15 school year? I honestly would NOT put in any “expected summer income”. Until it’s made and a done deal, you don’t know what the deal would be. Next year when you fill out the forms for the 2015-16 FAFSA and/or PROFILE, you are required and then know what the numbers are and your student can input actual income earned for all of 2014 including that summer money. If the student is a senior, then the money won’t ever be reported for aid purposes. </p>
<p>PROFILE in particular asks questions like “what can you afford”, “what do you expect to make”, “what can you expect/hope to get from relatives/ friend?” (not getting the wording right, but the gist). I recommend you leave that as big fat zeroes until you have the bird in hand. Your kid can get mono the week before said internship and get zip, and still have to pay on the apartment. The internship can disappear. A lot of things can happen and if you tell a school you expect to get some money, some of these money grubbers will take a piece of that action and put their hands up in the air when the money did not pan out and say, “too bad, so sad, but our fin aid pot is empty and we went by your projections and estimates” . That can be your reward for this kind of honesty. You really don’t know what will happen and these are hopes. Until the money is received in a period, do not report it. I’ve seen nothing but trouble from this. </p>
<p>So this year, you expect zero for the summer, though you may hope for that $7K. The 2014 FAFSA and PROFILE for the 2014-15 school year MUST include all income earned in 2013 and all assets sitting in accounts on the day the form is filled out (so watch that student account, if a lot is in it, read what I said about in above posts.Also don’t fill out the form on payday or when you earmarked funds in your account. Pay off your bills so you don’t get hit unless you have less than the parental allowance in assets) . That’s what you need to report. FOrget that Aunt Maisie MIGHT send a check, forget that your son just might earn some money over the summer and that maybe you’ll earn some extra too. If it happens good for you, but you are no clairvoyant. </p>
<p>Yes, I am just finishing up the applications that are due the 22 of this month. Finally got tax returns back, so can finish up and submit. I didn’t remember specifically if the question I saw was from the FAFSA or Profile, but it did ask what does student expect to make. In past years I put 0 because I knew that there were going to be unpaid internships, but since this year he has an offer, I wasn’t sure if I had to estimate an amount. I was also worried about if the offer falls through, or something else happens. Glad to know I can put 0 again since the money isn’t actually paid at this point. </p>
<p>FAFSA is all based on 2013 income, so if he didn’t earn any, don’t put any in.</p>
<p>Absolutely do not put a dime of that in there. Yes, it asks that. It also asks how much you can afford to pay, and if grandma or Aunt Maisie is going to come up with some $s. Until it happens, it’ s a big fat goose egg. Otherwise you run the risk of them earmarking money that should NOT be used until the next year, (and lucky you there is no next year for this) and making you spend it. If anything goes wrong, the school could be out of money to bring UP the award and you’d be fighting for more and begging as will be your son. Oh no. DO NOT put down the money that has conditions. He has a possibility, that’s all it is, and believe me, I’ve seen these things evaporate leaving a kid with nothing. My friend’s son just got the rug yanked out from under him on one of these. He can still do the internship but on a volunteer basis with a per diem for lunch and travel costs. Nice, huh? It happens. </p>
<p>There’s a reason they call it the EFC–Every Friggin’ Cent!</p>
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<p>That is depressing!</p>
<p>Thanks again for for your input. I feel better leaving it blank knowing I am not doing something wrong. But I do agree, until it is in his bank account, it isn’t. </p>