<p>I recently got a job and now I'm wondering how that is going to impact my FAFSA. My mom had an AGI of $11,866. She's a single mother.</p>
<p>I expect to make roughly $10,000 this year. What will this do to my EFC?</p>
<p>Assuming this isn’t work-study income (which is not included as income for FAFSA), then it will increase your EFC by around $2500. You get a $4500/year income protection allowance, and can also subtract out FICA and taxes paid. The remainder is assessed at 50%, which comes to around $2500 of the original $10,000 earned.</p>
<p>If your mother has an automatic zero EFC, then your income won’t have an impact.</p>
<p>What is an automatic zero EFC?</p>
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<p>[Low</a> Income Families & the Automatic Zero EFC](<a href=“http://college-financial-aid.suite101.com/article.cfm/low-income-families--the-automatic-zero-efc]Low”>http://college-financial-aid.suite101.com/article.cfm/low-income-families--the-automatic-zero-efc)</p>
<p>I get free lunch and she makes well under 30k, so it would be an automatic 0 right? </p>
<p>If that’s so, this will not apply to me, but I’m still curious. When assets and income both counted, isn’t that sort of a double whammy? Say, for instance, everything in the bank is from your income (no investments). You’re getting hit for making that income and then for having money in the bank from that income. Does that make sense?</p>
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<p>It makes sense to me. If you have the income and you are able to BANK it, it is available as an asset. </p>
<p>Many people who have jobs use their income for current expenses and don’t have it available in the bank for college expenses.</p>
<p>Personally I think it’s wonderful that you are able to help yourself with the college expenses. Congratulations!</p>
<p>Thank you! I understand now.</p>
<p>One more question. On the link it also states:</p>
<p>“Yet if the family qualifies for the Automatic Zero EFC loophole, the accountant must use one of two short forms called a 1040A or 1040EZ.”</p>
<p>I think she just used the 1040 
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<p>She must have been ELIGIBLE to file 1040A or EZ in order to qualify for Auto 0. That generally means no self-employment income, itemized deductions, etc. If she was eligible to file one of those but filed 1040 instead, I’m pretty sure you can still qualify. If you’ve already filed FAFSA, check your SAR…I think it would tell you if you qualified for one of the modified programs.</p>
<p>If she has a situation where she HAS to use the 1040 like getting alimony, then she is NOT eligible for the automatic zero.</p>
<p>Yes, there is always that double whammy. For parents too. You get hit by your relevant % of income and if you bank or invest the money, you are hit for the same money in terms of assets. The idea being, as Thumper says, you can afford to have the money sitting there, than you can afford to spare some for education. Before anyone starts completing FAFSA, it is wise to pay off that month’s bills so you don’t have your whole paycheck sitting in your bank accounts. And the college years may well be the time to get that roof repaired, pay off those credit cards, so you don’t have loose money sitting in the accounts when you have uses for them. Otherwise a part of that will be hit for college costs.</p>
<p>She doesn’t get alimony. She gets child support, would that make her ineligible? </p>
<p>You gotta find out if she COULD have used a 1040EZ or A. Why did she use the 1040 long form?</p>
<p>She used turbo tax. Looking at the form, I see the rental that I forgot to mention here. Also child support. Maybe that’s why?</p>
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<p>Your family owns a rental property? If so, remember that the rents collected are income and should be noted on the FAFSA as such. In addition, this rental property’s value must be listed as an asset on the FAFSA as well. </p>
<p>If your parent owns a rental property, it is likely that she has to file a 1040 long form.</p>
<p>Well, sort of. It’s an old house that we let a family friend live in for free. It’s considered a rental but we don’t make anything off it (in fact, we lose, but that’s my mom’s poor decision…)</p>
<p>Still, I suppose that’s why we have to use the 1040.</p>
<p>Most families who qualify for zero EFC don’t have extra porperties sitting around that they can afford to let others live in for free - Zero EFC families generally have all they can do to keep a roof over their own heads in this economy.</p>
<p>Sounds like there are significant assets (due to divorce from well off ex-spouse?) that were considered as primary residence even though someone else is living there for free. Sounds complicated…</p>
<p>We’re struggling. The house is not a big house. We have been trying to sell it forever. It’s worth about 90k probably, looking at other home’s in the area and their value.</p>
<p>It was paid off long ago. Since then, things have gotten very rough. Household income is under 20k, no other assets.</p>
<p>It was paid off long ago.</p>
<p>If where you are paying now isn’t paid off, can you sell it and move to the other place?</p>
<p>Well, that takes care of the automatic zero. If you have a second home, that does count as an asset.</p>
<p>I meant * living* where you are * living* now.
:o</p>
<p>But heck, most of us don’t have many choices regarding our bills, if you have an asset that you aren’t utilizing, like a property that could be sold or rented-that is going to make it more complicated.</p>