<p>I tried to qualify for financial aid, and I make under $50k, not sure why my EFC is 14,444; they say I don't qualify for Pell Grant either. What should I do?</p>
<p>Are you a single independent adult with no dependents? If so, I doubt you would qualify for a Pell.</p>
<p>If you are a single independent adult with no dependents, then it would appear that all your “take home” income is available for you alone. So, you should be able to use at least $14k towards college.</p>
<p>We need to know if you’re filing as an independent (over age 24, married, or meeting the other criteria for independent filing) or if you’re a dependent student. If you’re a dependent student then you must include your parents’ income in the FAFSA calculation. If you’re an independent, then check your numbers because your EFC is way too high. If you have significant assets (savings, investments, cash) then they would increase your EFC.</p>
<p>Here’s a quick estimate when I run the numbers:</p>
<p>Income from work: 50,000
FICA 3825
federal income tax 5000
state income tax 3500
income protection allowance 21660
Employment expense allowance 3500</p>
<ol>
<li> Total allowances 37485</li>
</ol>
<p>Available income: 12515</p>
<p>Adjusted available income (assumes zero assets): 12515
Contribution from AAI (-$3,409 to $14,200 22% of AAI) $4034</p>
<p>Total EFC: $4034</p>
<p>NOTE: This is mostly using the 2008 formula. It has changed for 2009, specifically the amount of income protection allowance and the contribution from AAI percentages. </p>
<p>Here is the 2009-2010 formula: <a href=“http://ifap.ed.gov/efcformulaguide/attachments/111408EFCFormulaGuide0910.pdf[/url]”>http://ifap.ed.gov/efcformulaguide/attachments/111408EFCFormulaGuide0910.pdf</a></p>
<p>Here’s the 2009 AAI calculation:</p>
<p>If parents’ AAI is— The parents’ contribution from AAI is—
Less than -$3,409 -$750
-$3,409 to $14,200 22% of AAI
$14,201 to $17,800 $3,124 + 25% of AAI over $14,200
$17,801 to $21,400 $4,024 + 29% of AAI over $17,800
$21,401 to $25,000 $5,068 + 34% of AAI over $21,400
$25,001 to $28,600 $6,292 + 40% of AAI over $25,000
$28,601 or more $7,732 + 47% of AAI over $28,600</p>
<p>Maybe someone can explain this to me…</p>
<p>If an independent person has no dependents, why wouldn’t FAFSA consider that much of that person’s available income can be used towards COA? I realize that most can’t be used towards tuition by itself, but much could be used towards COA - living expenses (room & board), personal expenses, and yes, tuition.</p>
<p>It doesn’t make sense that such a person’s “take home pay” should first have an expemption for living expenses, and then have EFC determined. It’s not as if the person is allowed to have 2 places to live…one on/near campus and also another home somewhere else.</p>
<p>I think if a single person with no dependents has a take home of - say - $30k, it should be expected that at least $20k be the EFC towards one’s COA (tuition, room, board, personal expenses, books). What am I missing?</p>
<p>vballmom–I haven’t run the numbers like you have, but I work with students who, as independent, with incomes in the high 20s to low 30s, who do not qualify for Pell. In fact, I’ve yet to meet an independent student who does, unless they’re on SSI or something similar. All the full-time working ones I know do not qualify for Pell, and have EFCs equivalent to the OPs.</p>
<p>As I said, I can’t show you the breakdown, but I know that the EFC you came up with does not square with what my independent students are getting.</p>
<p>Yeah… it doesn’t seem right, Vballmom. Our income (familiy of 4) is about 62K/yr AGI (no assets) and our EFC is just under $8000.</p>
<p>A $4K EFC for a single person earning $50K seems very low. Half as much as ours? We’re four people and don’t make all that much more than the OP.</p>
<p>The difference may very well be the income protection allowance. The one I have in my calculation is probably too high, and it skews the calculated EFC too low. I don’t really have a spreadsheet for independent, I just plugged the $50K income into the parent column of my spreadsheet that I used last year. </p>
<p>Here’s from the 2009-2010 worksheet that I linked in my post above:</p>
<p>2009-2010 EFC FORMULA B : INDEPENDENT STUDENT
Without Dependent(s) Other than a Spouse</p>
<ol>
<li>Income protection allowance:
• $7,000 for unmarried or separated student;
• $7,000 for married student if spouse is enrolled at least 1/2 time;
• $11,220 for married student if spouse is not enrolled at least 1/2 time. </li>
</ol>
<p>Meanwhile we haven’t heard anything from the OP in answer to our questions of whether he/she really is independent.</p>
<p>Ah. that makes sense. I was wondering about the income protection allowance, but I didn’t have the charts in front of me.</p>
<p>You can’t treat “parent income” like you do a single independent income. Parents typically have to provide their main home for their family, while also having to provide a place for their child/student to live near campus. Therefore, a family income would have to pay for two places to live. </p>
<p>But a single independent with no dependents should be able to spend all of his money on himself, and he only needs one place of residence - by the campus. A single person doesn’t need to pay for two residences…one near campus and one in his home city. </p>
<p>So if single person’s “take home” income is about $40k, why can’t most of that income be used to pay for his total cost of attendance of room, board, books, personal expenses, and tuition?</p>
<p>'rentof2 >>>>> Yeah… it doesn’t seem right, Vballmom. Our income (familiy of 4) is about 62K/yr AGI (no assets) and our EFC is just under $8000.<br>
A $4K EFC for a single person earning $50K seems very low. Half as much as ours? We’re four people and don’t make all that much more than the OP.
<<<<<<<<</p>
<p>Right, because a family would have to pay for 2 places to live…and have to pay for several people’s expenses.</p>
<p>Just for grins, I created a new spreadsheet with the independent student calculations. This assumes no spouse and no assets. The formula takes 50% of the student’s available income to determine the EFC. Here are the results:</p>
<p>Income (AGI) 50000
federal tax (assume 10%) 5000
state tax (assume 5%) 2500
FICA (7.65%) 3825
Income protection allowance 7000</p>
<p>Total allowances 18325</p>
<p>Available income 31675
Contribution from AI (50%) 15837</p>
<p>I think the message here is that anyone who thinks that being declared “independent” for financial aid will solve all his or her problems is probably in for an unwelcome surprise.</p>
<p>Well, it only makes sense that someone who is independent (no dependents) and has an income of about $50k can pay a lot towards the total cost of attendence… </p>
<p>Why shouldn’t such a person with a net income of - say - $35k, not have to put most/all towards college costs (housing, tuition, personal expenses, etc)</p>
<p>It’s no different that the dependent child that is given $30k (or more) from his grandparents to pay for college. All the money should go towards COA.</p>
<p>It is utterly different from a dependent student being given $30k by their grandparents. A dependent student is not generally paying their own rent, bills, food, medical bills etc. Most independent students are paying those things. Do you (and your spouse) have your entire income from 2008 still in the bank now in fall 2009? Usually an independent student has been self supporting and working and paying their own rent and bills and food while they were working. When they go back to school their EFC is based on their income from the year before they go to school. Even in the area where I live, a not expensive area at all, there are many people who make just enough to pay their rent and bills and food each month. That is why they want to go to school. If they have been earning minimum wage or close to and they are generally not going to be making that income while they are in school. Completely different from a dependent student whose parents make a reasonable income and will continue to make that income while the student is in school. Do you really think a truly independent student, however frugal, will have all the income from 2009 in their pocket when they start school in fall 2010? Where did they live that they have all that money left? In a cardboard box under a bridge? How did they pay their utilities? How did they eat? Not saying they shouldn’t contribute but I don’t see how anyone would think they should contribute their entire income.</p>
<p>Did the OP ever say they were an independent student? I cannot find where they said that.</p>