<p>Parent's income 2010: $1,000,000 (1 million). Then in the following year bought house, paid taxes, etc..
Assets: no money in bank. A big house.</p>
<p>This year's income: $25,000 combined. My question is, will Fafsa grant aid based on your total wealth or just that particular year's income?</p>
<p>Also if you're a Fafsa "Pro" pm me. We can work out a deal for this poor college student in need of "aid"</p>
<p>First of all the FAFSA will not give you any money because the FAFSA does not give money. There is no such thing as FAFSA money. The only thing that the FAFSA will do is qualify you for federal aid.</p>
<p>How does your parents income go from $1million in 2010 to 25k in 2011. Do your parents own a business?</p>
<p>FAFSA will look at your income and your assets, but NOT your house’s value. Sounds like your income is low, so now you need to look at your/your parent’s assets.</p>
<p>You need to print out the FAFSA formula, and then sit your parents down and have them work their way through it on paper. That way they will know which factors most affect your individual financial situation. Here is the link: <a href=“http://www.ifap.ed.gov/efcformulaguide/attachments/082511EFCFormulaGuide1213.pdf[/url]”>http://www.ifap.ed.gov/efcformulaguide/attachments/082511EFCFormulaGuide1213.pdf</a></p>
<p>Generally, FAFSA determines the Expected Family Contribution based on the income for the year previous to the school year and savings as of the end of the year previous to the school year. So, in your case, with 2011 income of $25,000 and no savings, it looks like the EFC will fall below the approximately $36,000 threshhold and therefore will be $0.
If your parents income for 2012 is $1,000,000 again, you will probably get no aid for the 2013-1014 school year.
And if your parents have a big house and no savings, woe is them as retirement approaches.</p>
<p>How would one pay the taxes and upkeep on a $1M home with no savings and only a $25K income…let alone support a family? Was this a lottery win?</p>
<p>And if the school requires a Profile or school form, it could very well look at the family assets including the house.</p>
<p>Some of the schools my kids applied to required us to send in TWO previous years of tax returns. Just saying.</p>
<p>If you are applying to schools that require ONLY the FAFSA, you will not get enough federal funds to pay for a four year residential college. If you received the full Pell grant and took the full Stafford loan, you would have $11,000 which would not fund most four year residential colleges.</p>
<p>Sell the house.</p>
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<p>The auto zero income for next year is $23k plus some other requirements.</p>
<p>In addition, the parents must meet the other condition for auto 0 … be eligible to file a 1040A or 1040EZ OR be a dislocated worker OR have someone in the home who received federal means-tested benefits within the past 24 months. The tax return is probably a 1040 … I am guessing at least one parent is self employed (due to income swing).</p>
<p>So the new income limit for auto-zero EFC is now $23,000? It looks to me like the College Board calculators haven’t been updated to reflect this change – is that right? We have AGI of $32000 (and my husband is a dislocated worker), so this is going to make a difference for us.</p>
<p>washmother, it sounds as if you’ll qualify for the other simplified EFC formula and should be Pell eligible (although it may not be full Pell) with assets excluded and an AGI of $32K.</p>
<p>Washmother, you may still have a 0 or very low EFC even though you don’t qualify for auto 0.</p>