<p>Hi,</p>
<p>I'm a junior in high school and thinking a lot about college but since I come from a low income household (~$15k), I am worried about financial aid! My dad really wants to sell our house which is worth like $150-$170k and we have another house (worth like $10k) in need of renovation so we would probably fix up that one and move there. Also, my grandfather who had a lot of assets died last year and my dad's name is on the will but he doesn't know what he got. So when I am applying to college, my parents would have a lot of money in the bank but still have a really low income. Would my financial aid awarded be much less than I need because of this? Should I convince my dad to hold off on selling the house until I graduate college? They don't have a retirement fund or anything so I don't want them to use the extra money to pay for my college education. </p>
<p>Thanks for the help!</p>
<p>Because financial aid is based mainly on income, yes, it is possible to get a low Expected Family Contribution if your income is low enough and your assets are not way up there. I beileve income below $22K gives you an automatic zero EFC. You can play around with EFC calculators to get some idea how it works, using different income and asset amounts. Primary home equity is not counted as assets. But any sale of a house that shows a profit will certainly be income, and that is heavily hit. Assets over a protected parental allowance are assessed 5.6% towards the EFC. Income is hit at the 25-40% level to give you some idea how this works. </p>
<p>However, more important for you to know is that even with a zero EFC, it does not necessarily mean getting a lot of college money. Very simply, most college do not meet need. So having the need is just the first step. You have to find a college that will meet it and the vast majority of them do not for the vast majority for students. They gap. And point the family towards loans. Getting real money for college is very difficult.</p>
<p>Some schools do meet or come close to meeting full need, and those tend to be the more difficult ones to gain entry. They usually require another form in addition to FAFSA and count things like primary home equity and tend to add back in business deduction and count business assets, so if dad is self employed and has those thing in the picture,…well, a lot of schools will use the info and that can generate a bigger expected contribution.</p>
<p>So it’s a wise idea to talk to your parents and find out what they can realistically pay, and if it’s truly up in the air , look for some alternatives that you will be able to afford yourself. Look at the local options, look at the state options, look at schools that might give you a large scholarship. Ask around where they money is in your area for students with your numbers. RUn your numbers through the FAFSA calculator the best you can and the NPCs on the websites of schools that interest you and find out what they may be asking your family to pay in varied scenarios. The most important schools on your list will be the ones you know will be affordable.</p>