<p>I filled out the FAFSA this week (last minute, I know), and now that it's processed it's saying that I don't qualify for Pell Grant and my EFC is like $7200. My parents' income was $-38,000. They own a home ($250,000) and some property inherited from my grandmother ($210,000), but that's about all. I hate to be stingy, but I feel like I should have gotten a little more, considering my parents took a loss. Should I do something?</p>
<p>With zero income but assets - second home - the $7500 makes sense to me. It’s still a relatively very low EFC. Good luck. The negative I dont’ think would matter… if you have investment losses you can only deduct a small amount - like 3K a year - over your profits.</p>
<p>I don’t think you can put negative numbers on FAFSA, but I could be wrong.</p>
<p>Are your parents self-employed? Is that why they have a large negative income?</p>
<p>What did your family live on and continue to live on?</p>
<p>Do they rent out grandma’s home?</p>
<p>It sounds grandma’s home value is giving you the EFC.</p>
<p>Yes, 5% of 210,000 is $7500 so $7200 EFC makes perfect sense if income was zero (can’t have negative income). With $210,000 of assets I doubt you would qualify for Pell. $7500 is still a very low EFC, hopefully you have some colleges that meet need on your list or a high probability of giving you good merit or need aid.</p>
<p>For FAFSA you can have negative income. His EFC makes no sense if his parents income is actually -38,000.</p>
<p>$210000 - $50000 asset protection (rough guess) *.12 = $19200</p>
<p>The negative income would totally wipe that out.</p>
<p>If that is a typo, income comtribution would be 38,000 - 25,000 lincome protection - 3600 two jobs allowance - some taxes is about $7500, which gives a total of about $26,700.</p>
<p>From the table this gives a contribution of around $6500.</p>
<p>OP, can you clarify your parents’ income? Was it actually negative?</p>
<p>Yes, it was negative. Dad’s a business owner, and the business went under and reported a loss. I’m not entirely sure how that all works out… But there are two “second homes”, one that isn’t being rented, and a duplex that is. Their value totals 210k. Also, for my assets, I have about 5k in savings, no income or taxes though.</p>
<p>Business loss can only be reported as 0, although AGI can be reported as a negative number. If the OP reported all information according to the directions on the FAFSA website … that is, reporting the info on the return for the line requested … then the EFC is correct. The assets (second home included) may very well be driving the EFC. The duplex has income, which may contribute to some income in the AGI.</p>
<p>What was your parents’ Adjusted Gross Income (AGI)?</p>
<p>This is line 37 on their 1040 tax form.</p>
<p>^^^^That is key.</p>
<p>“Yes, it was negative. Dad’s a business owner, and the business went under and reported a loss. I’m not entirely sure how that all works out… But there are two “second homes”, one that isn’t being rented, and a duplex that is. Their value totals 210k. Also, for my assets, I have about 5k in savings, no income or taxes though.”</p>
<p>There are TWO non-primary homes? Is the rent from the Duplex being reported on FAFSA? If it’s a Duplex, then it sounds like 2 rentals, so 12 months of rent from 2 parties.</p>
<p>Your $5k of savings is also impacting EFC a bit. Student assets are assessed at a higher rate than parent assets.</p>