<p>I have been running NPCs for S2, a HS senior. He's no great shakes academically but has done well for himself in wrestling and lacross, so we're hoping he might qualify for some athletic scholarship money. We have some savings and could carry him for a year or possibly two if he walked on someplace and got a scholarship later. DH and I have relatively low salaries but started receiving DH's Army Reserve pension when he turned 60 in March. Therein lies the rub ...
Some NPCs ask only for what the parents and student make from working. Others ask for information on all taxed income (i.e. military pension.) As a result, some NPCs list us as eligible for Pell and state need-based aid, and some have us eligible for very little aid. Just about every school in our state does things differently, with some listing Pell and our state Higher Education Grant, some listing only the Higher Ed. grant and some listing nothing at all. Same with the faith-based LACs I looked at, some of which were out of state and would give only Pell in any case (although I'm hoping those of our own faith would be a little more generous.)
I'm confused - I know from S1 that the FAFSA asks for all taxable income and it will be reported to all the colleges listed. Do some schools simply choose to take income from working into consideration? Even those in the same state higher education system? This just strikes me as strange. S1 was so much easier - he got our state merit scholarship, went to his match school and everybody was happy.</p>
<p>If the college/university only uses the FAFSA for determining financial aid, you can find out your FAFSA EFC by printing out the formula, and working through it on paper: <a href=“http://ifap.ed.gov/efcformulaguide/attachments/091312EFCFormulaGuide1314.pdf[/url]”>http://ifap.ed.gov/efcformulaguide/attachments/091312EFCFormulaGuide1314.pdf</a></p>
<p>If the college/university also requires the CSS Profile and/or its own financial aid forms, then they can ask for a lot more information. This means that many more factors will show up in the EFC.</p>
<p>If you are confused by the results, contact the financial aid office at that institution, and find out whether or not they are FAFSA-only. Work your way past the first couple of people, and get to someone who can tell you how they want you to deal with the pension.</p>
<p>I would think most schools providing financial aid require tax returns?</p>
<p>Unless pension is tax free, it is income. The fact that some NPCs are not asking for a specific type of income does not necessarily mean they will give you aid after they look at your tax return.</p>
<p>Yes, there is a vast range of quality of the NPCs. Schools that meet need generally have the better ones but they are also giving out more aid.</p>
<p>If the pension is taxable it will show up in your AGI and be counted for fafsa and the Pell grant. Schools will almost certainly count it for their aid too.</p>
<p>Even if it’s not taxable, it looks like it’s reportable for fafsa as other untaxed income:</p>
<p><a href=“https://fafsa.ed.gov/fotw1314/help/faadef33.htm[/url]”>https://fafsa.ed.gov/fotw1314/help/faadef33.htm</a></p>
<p>Military pensions aren’t among the listed exceptions. If some of the NCPs that ask for all income say you’re not Pell eligible, it’s almost certain you aren’t.</p>
<p>The only way to get Pell would be thru the FAFSA formula. If that requires reporting of the pension, then the schools can’t choose to ignore that and award Pell. It’s the fed’s formula and the fed’s Pell.</p>
<p>I wouldn’t trust the NPC’s that are only asking for income “from working”. What schools do that? </p>
<p>If you had $100k in income from rentals, I hardly think schools would ignore that. I don’t think schools will ignore pension income, either.</p>
<p>Thanks. I realize the pension is taxable. I just want to make sure I’m getting the whole picture. I refigured H’s and my alma mater, a midsize regional state U, with a projected EFC based on our entire income. S2 still qualified for some state money, while at a smaller state U, which he is considering for athletic reasons, he qualified for squat. That, I don’t understand. S1 actually did get Pell his first two years due to my unemployment, but has gotten only scholarships and loans since I went back to work. Now, my question is, is EFC considered to cover the indirect costs, such as transportation, that colleges don’t require up front? For S1, I never factored in indirect costs when figuring things out. He’s always covered tuition, room and board from scholarships, grants and loans and we’ve ponied up for books, some spending money and other little things that have cropped up. I thought S2 would be easier since it wasn’t our first time at the rodeo, but I guess not.</p>
<p>Most state schools, while they are promising FA, are giving you loan money. </p>
<p>You need to find out what exactly is being given out when FA is being promised at any given school. Very few give grants that don’t need to be repaid.</p>
<p>Now, my question is, is EFC considered to cover the indirect costs, such as transportation, that colleges don’t require up front?</p>
<p>??</p>
<p>Not sure what you’re asking.</p>
<p>COA covers everything related to attending college…tuition, fees, R&B, books, personal expenses, and travel. </p>
<p>for example
COA = $40k</p>
<h2>EFC = $15k</h2>
<p>need = $25k (but most schools do NOT meet need, so you can’t count on this aid)</p>
<p>EFC is EFC no matter what you’re counting as expenses.</p>
<p>It sounds like S1’s situation was much easier because he qualified for a lot of merit aid.</p>
<p>S1 actually did get Pell his first two years due to my unemployment,</p>
<p>Yes, because of only one “modest” income and no pension. Sounds like with two incomes plus a pension, the family income is much higher now.</p>
<p>@Texas - this was actually spelled out by the school as West Virginia Higher Education Opportunity Grant. S1 also received it his first two years of school - I think it’s only for freshmen and sophomores.
@Mom2collegekids - Yes, our situation is flip-flopped now - more income and less merit aid available. Anyway, most of the schools whose NPCs I printed out broke costs into two categories - Direct (tuition, room and board) and indirect (books, transportation and what-have-you.) Let’s say LAC A has direct costs of $35,000 and indirect costs of $2,000, and we have an EFC of $9,000. If full need is met (and yes, I understand that this is rare) would we pay $7,000 of our EFC up front and be considered to be using the other $2,000 for indirect costs that are spread out over the school year?</p>
<p>Let’s say LAC A has direct costs of $35,000 and indirect costs of $2,000, and we have an EFC of $9,000. If full need is met (and yes, I understand that this is rare) would we pay $7,000 of our EFC up front and be considered to be using the other $2,000 for indirect costs that are spread out over the school year?</p>
<p>yes…</p>
<p>and, that’s how some people indirectly cut their EFCs (when need is met). They’ll be very thrifty with personal expenses and travel, or the student will work part-time or during the summer to cover those costs.</p>
<p>Thanks, Mom2 - you’ve been very helpful. One of the LACs we’re looking at long and hard is in-state and affiliated with our religious faith so if anyplace meets full need, it will likely be this one, if we can cobble something together between church membership, sports and community service. It also doesn’t hurt that it has both his sports and a lacrosse teammate is already playing for them.</p>
<p>Is your $9k EFC with one child in college or with two in college? </p>
<p>If it’s with 2, also run the NPC with 1 child to get an idea of what you’ll lose when S1 graduates. It sounds like you don’t have to pay your EFC for S1, so you could end up paying a lot more when only one is in college.</p>
<p>However, if S1 is graduating this year, and you’ll only have one in college next fall, then that minimizes surprises.</p>
<p>S1 will be done with his classes in the spring (also with his merit scholarship). However, he has to do an intership to graduate, which I expect him to do in the summer, so officially he’ll probably be an August graduate. But I did run the EFC for one student.</p>