<p>Yes, it is possible for someone to have a parent going bankrupt and still have a high EFC. The EFC is set up with standard rules and if the way things work are in set categories, the assets and income are fully included. That the parent owns a business and property outside of his primary residence is included in the calculations. Your friend can ask for an appeal and perhaps the market values can be reassessed, but the methodology remains firm. It is federal methodology. </p>
<p>I have a friend who make his living and has his retirement in a bunch of rental properties. His income is modest, but because of the values of his real estate his kids got no financial aid. His FAFSA EFC is high and his son who went to Harvard which has one of the most generous financial aid calculators, did not give him a cent. A young man on this forum, turned down Yale because the college would not give him aid, again based on income properties. For financial aid purposes, such properties are going to be counted at full value as assets and there is no break there.</p>