<p>So, I am graduating early and going to a local CC free using a Missouri program, anyways..
So I had to fill out the FAFSA and I got it back recently and our EFC was 9411.
Yet, our income for that year was 53,382$, our lowest ever. These two numbers don't seem to correlate, how is anyone making 54k$ expected to pay nearly 10k$ before any financial aid kicks in?</p>
<p>I would really appreciate if you helped me grasp this malarkey.</p>
<p>Does your family have savings? Assets?</p>
<p>If not, then I would think that your EFC would be about $5k.</p>
<p>However, if you’re going to a CC for free, why do you need FA?</p>
<p>Your EFC only makes sense if you have very high assets, well over the asset protection allowance which is around $80,000. If you don’t, then double-check your numbers. You can use the information in this document to confirm your EFC for 2011:</p>
<p><a href=“http://www.ifap.ed.gov/efcformulaguide/attachments/101310EFCFormulaGuide1112.pdf[/url]”>http://www.ifap.ed.gov/efcformulaguide/attachments/101310EFCFormulaGuide1112.pdf</a></p>
<p>it sounds right to me.
How many people are in your family?</p>
<p>Efc is about 1/4 to 1/3 of income.
Our is $20,000 and our before tax is less than $80,000.However just three in our family.</p>
<p>If you own a home that could cause it to go way up too. Besides, I think $10k is perfectly reasonable for a family making $50k. That’s only 1/5th of your total income. As the income increases, people are expected to pay up to about 1/3 of their total income. Besides, your family is well above the national median for household income, which is about $44,000 before taxes. ([Household</a> income in the United States - Wikipedia, the free encyclopedia](<a href=“http://en.wikipedia.org/wiki/Household_income_in_the_United_States]Household”>Household income in the United States - Wikipedia))</p>
<p>“how is anyone making 54k$ expected to pay nearly 10k$ before any financial aid kicks in?”</p>
<p>They expect your family to have saved for college. It’s not expected to all come from current income. (The standard CC advice is that colleges expect families to come up with the $ from past, current and future income. The future income is where loans come into play.)</p>
<p>Vballmom is mistaken as to asset protection – if you have 2 parents and the older parent is age 46, then the family asset protection would be $44,000. For a single parent of the same age, the asset protection would only be $15,200. So it isn’t that much.</p>
<p>But Bigkev is also wrong - the FAFSA won’t count the value of your home, though if your parents own other property it might be counted. </p>
<p>Without any assets at all, a $53,000 income for a 3 person family (2 parents, 1 kid in college) would be roughly $7500 – with a single parent household, it would be roughly $9,000 – so it doesn’t take much to nudge yours up. </p>
<p>The system assumes that parents will contribute from a combination of earnings, savings, and borrowing. It’s also a system designed primarily to help very poor students – $53K is middle income, not poor – at that level the EFC formula is structured to go up by 47 cents for every extra dollar earned. Since you say that it the lowest your family’s income has ever been, its likely that there are savings from past years that are being weighed in. Also, keep in mind that if you have any money saved for college, that is also going into EFC – so if you have $5000 in savings in your own name, that would push the EFC up by $1000.</p>
<p>*If you own a home that could cause it to go way up too. *</p>
<p>NO, it won’t. A person’s home doesn’t count on FAFSA.</p>
<p>Acesplit…how many people are in your family? That is high if you have a family of 4 and have few assets. However, if it’s just you and one parent, then it could be about that much.</p>
<p>Sorry, the asset protection allowance I had was miscalculated. It’s more along the lines of what calmom said (see table 5 in the link above). Still, assuming assets under the allowance, the EFC that the OP calculated seems high. I have a spreadsheet that approximates the information in the EFC formula. Running the numbers, assuming a high state tax, household size of 3 with 1 in college, I get an EFC of $4001.</p>
<p>D. Parent income 53000
– parent income from work 53000
E. Parent assets 50000</p>
<p>Parent FICA $4054.5
Parent federal income tax $5300
state income tax $3710
Parent income protection allowance $20210
Employment expense allowance $3500</p>
<ol>
<li><p>Total allowances $36774.5</p></li>
<li><p>Available income $16225.5</p></li>
</ol>
<p>Asset protection allowance $50000
3. Discretionary net worth 0
Asset conversion rate 12%
4. Parent contribution from assets 0</p>
<p>Adjusted available income $16226
Contribution from AAI ($3190 + 26% of AAI over $14,500) 4001</p>
<ol>
<li> Parent contribution $4001</li>
</ol>
<p>
</p>
<p>BigKev, you do not report your primary residence ownership on the FAFSA at all.</p>
<p>Hey guys, thanks for your help so far, let me give you some more information.
Its just the three of us, I will be the only in college. We have about 15,000 in the bank.
I’m just being honest to get the most accurate information, but I think I found a problem/the problem, it says we only payed 363$ in US tax. LOL, obviously that is not right. Suggestions? Seems strange because I used the linking feature from the IRS website.</p>
<p>Edit: We also have about 20,000 in stocks (investments).</p>
<p>Do you have income and assets in your own name? Student income/assets have a bigger impact than parent income/assets.</p>
<p>Also is the aid you received at the CC reported anywhere on your FAFSA? Some grant/scholarship aid is taxable income on the tax return but should also be reported elsewhere on FAFSA to make sure it does not impact the EFC.</p>
<p>What were the actual taxes on the 2009 return? Are they different to what the link thing says?</p>
<p>When is this FAFSA for? Are you transferring in the spring?</p>
<p>Let me explain what program I am referring to, it is the Missouri A+ Program, basically you tutor/teach a class you’ve taken alongside the teacher for 50 hours and you get to go to certain community colleges for free for two years. I decided to take a few classes I was interested in + pre calc next semester as I will never use the money at any other time.
So the FAFSA is for next semester, and I will not be considered a “Transfer” student, still a first time when I go to a four year in the fall.</p>
<p>Oh, and no I just put down that I had 50$, which is pretty accurate most of the time.</p>
<p>I may be being obtuse, but I am a little confused as to why you are doing a FAFSA for the spring? Are you actually going to be enrolled as a degree seeking student there in the spring (necessary to be eligible FAFSA). </p>
<p>And if that is the case, are you absolutely sure you will not then be considered a transfer student next fall? The reason I ask is that in our state if you take CC classes as a concurrent student while you are in high school then you are not considered a transfer student when you apply to go to a state 4 year school. But, if you take any CC classes *after *you graduate HS, then when you apply to a 4 year school you are a transfer if you have over a certain # of credits. It can be important as merit scholarships for freshmen are typically *much *higher than those for transfer students (our state U actually warned students not to take classes at the CC between graduation and starting at the 4 year school because it could cause them to lose their freshman status and any freshman scholarships they had been offered).</p>
<p>May be completely different in your state, but do check it out.</p>
<p>So I went and looked at the 1040 we filed and we actually paid 1536$ in taxes, so I corrected it, and changed that we got free/reduced lunches and it dropped to 8860$, thats better…
Anyways, next year we’re expecting 75000$ in income and 12000$ in taxes with the same investments and savings, any idea what the EFC will be? Ill use an EFC calculator but I would still like an opinion.</p>
<p>Swimcatsmom, thanks for the concern but I’ll work it all out, it will only be 15 hours of credit. </p>
<p>And the reason I am filling out the FAFSA is because you have to, to use A+.</p>
<p>A family of three with an income of $53,000 is not eligible for free or reduced lunches.</p>
<p>I don’t remember exactly how we came to that income because my dad was on unemployment and we opened a business (and sold earlier this year), but I did get free lunches, this year I have reduced. It works out somehow.</p>
<p>acesplit…</p>
<p>When are you “formally” graduating from high school? May/June? or Dec 2010?</p>
<p>May 13, 2010! :)</p>