Income & Asset Variability

Paying for College
1

<p>I know that FA and EFC are calculated based on the parent's yearly income and assets. I'm curious to know, if the income and assets go up and down each year, would the FA and EFC be reevaluated by the college your child goes to each year? How much variability does there need to be to effect a change? Which is weighted more - Assets or income? the reason I ask this is that I have some fixed assets that are hard to evaluate, but I could enter into a transaction whereby I would take a loss, which would reduce my asset values and lower my income for the initial FA package evaluation.</p>

<p>Thanks for any info/advice.</p>

2

<p>You have to reapply for FA every year. Every change can affect your aid. Though most schools do not promise to meet full need.</p>

<p>In general income has more impact on FA. In the FAFSA formula up to 47% of income will go to the EFC, but only a maximum of 5.6% of assets. High assets will have an impact of course.</p>

3

<p>^ Nothing to add.</p>