<p>It's good that you are helping your brother, and it's very nice of you to give your time to help your step-niece this way. All of this can be very confusing the first time you go through it, and it sounds like your brother is pretty busy as an entrepeneur. </p>
<p>I hope you won't take this the wrong way, but it probably would be best if you could just try to be kind of neutral when you pass on the information, and let your brother and his wife decide how to act on it, perhaps without giving anyone else any specifics at all. </p>
<p>From what you said about how your parents are having a hard time with the idea of your brother having a high EFC for a step-child, it sounds like there is a potential for some well-intentioned "advice" from them that can end up creating a long-term rift in the family. While I can understand their concern for their natural grandchildren's future, your brother is probably feeling enough pressure right now without his parents adding more. (Though I could be reading this wrong, and he could be asking their advice, in which case I apologize).</p>
<p>One thing I want to add. It may seem to your parents that your brother's income is all "his" money, since his wife doesn't work outside the home. Although you haven't told us much about your sister-in-law, it's very rare that one spouse makes no economic contribution to a marriage, regardless of whether actual dollars and cents are attached to his or her name. Would your brother still be able to earn the same if she weren't caring for him, his possessions, and (I presume) his children? Especially with a small business involved, she may help in a thousand different ways that your brother doesn't write her a paycheck for, and perhaps may not be apparent to anyone but them...which is why evaluating the information about their EFC should be left up to them.</p>
<p>Very best of luck to you and your family. I hope you'll be pleasantly surprised by the EFC, and that you'll let us know how all of this works out.</p>