Question regarding EFC coming from an independant student

<p>Sorry if this is redundant...I posted this question a little while back w/out much feedback. I'm an independant student (24) applying to transfer as a junior for '08. I've had the luxory of not working and living w/ my parents the past year (I'd previously been on my own since I was 20), and am curious if having 0 income and 0 assests will all but guarantee me an EFC of 0. My EFC was 0 for this year (made about 5k on paper in '06), but I feel like my situation then made me look poor, while my current situation my raise some red flags (e.g., if I made nothing and have nothing, how am I affording an existence beyond homelessness). Is this concern at all relavent?</p>

<p>Thanks very much for any info anyone has...</p>

<p>If you were one of my students (and you perfectly fit the mold of my typical student), we would make you provide a copy of your tax transcript (to demonstrate that you had not filed a return) and a signed statement explaining how you lived on zero income, including any monies received from other people to pay your bills. Given that you reside with your parents, probably the only thing you would end up reporting on your FAFSA (worksheet B) is any money our parent(s) gave you.</p>

<p>So as long as you provided the necessary information, it wouldn't be a concern...unless you didn't have enough funding to cover your cost of tuition and had no outside source to cover the difference (such as funding from your parents).</p>

<p>"So as long as you provided the necessary information, it wouldn't be a concern...unless you didn't have enough funding to cover your cost of tuition and had no outside source to cover the difference (such as funding from your parents)."</p>

<ul>
<li>This is definately the case, as I don't have any money saved and my parents don't have any intention of paying my tuition. Is my parents' income once again going to come into play despite my turning 24? I was planning on getting a job this fall, would that alleviate this mess by having income to report? I'm completely freaked out right now, I spent 5 years away from school b/c while I was out on my own I was forced to report my parents income despite my independance, and now it seems like moving back home was the worst move I could have made...</li>
</ul>

<p>Thanks for the info though, I've been hard pressed to find any information relevant to my situation.</p>

<p>A light bulb just went off in my head...</p>

<p>I think I understand now. So I would be asked to report any funds given to me, which would probably be somewhere in the ball park of a few thousand dollars (car insurance, gas, cell phone). That money would then be counted as income, and factored into calculating my EFC. That said, my EFC would most likely still be zero. Does this sound about right? </p>

<p>Thanks again for your help.</p>

<p>That would be correct. Since you are 24, you would be considered independent and would not report parental income. But, as I said, you would have to report any funds your parents, or someone else, gave you in order for you to survive for 2006.</p>

<p>
[quote]
I think I understand now. So I would be asked to report any funds given to me, which would probably be somewhere in the ball park of a few thousand dollars (car insurance, gas, cell phone). That money would then be counted as income, and factored into calculating my EFC

[/quote]
I think it could get trickier than that. Being declared independent is a multi-pronged test. Even if you are older if you are dependent on someone else for the majority of the money you need to live on you may not be considered independent. I am not an expert but I believe if, for example, you earned $2000 and your parents gave you $5000, and you lived on this $7000 you would not be considered independent however old you are. I would have the same concern if the money came from another source ... grandparent, aunt, friend, etc.</p>

<p>NikkiiL, a few last questions if you don't mind. When reporting income, should I include things such as food purchased on my behalf, or only currency that was actually gifted to me? (Very little money was actually given to me, however I eat my parents' food, my car is insured on their policy, I use a cell phone on their plan, etc.) Also, despite not having to pay any, should I include a dollar value for rent, utilities, etc.?</p>

<p>Thanks again.</p>

<p>
[quote]
I think it could get trickier than that. Being declared independent is a multi-pronged test. Even if you are older if you are dependent on someone else for the majority of the money you need to live on you may not be considered independent. I am not an expert but I believe if, for example, you earned $2000 and your parents gave you $5000, and you lived on this $7000 you would not be considered independent however old you are

[/quote]

No - For FAFSA you are independent if you are 24 - no ifs, ands or buts about it. But if your AGI is zero then support is coming from somewhere - parents in the OPs case. In your example the $5000 would have to be reported as income which could possibly affect the EFC. By the way Nikkil is a finacial aid officer and is an expert.</p>

<p>Swimcatsmom is correct. The "acid test" for independent student status for college finaid purposes is VERY different than that for being a dependent for tax purposes...one has nothing to do with the other. E.g. DS is a dependent and we declare him on our taxes because we provide greater than 50% of his support. HOWEVER, he has a bachelor's degree so for finaid purposes he is considered an independent student and our financial information was NOT required on his FAFSA for this year.</p>

<p>cheesie,</p>

<p>In all honesty, that is really a gray area. Techincally, anything they provide for you to live would be considered support...but the FAFSA question reads: "Money received, or paid on your behalf (e.g. bills), not reported elsewhere on this form." </p>

<p>Techincally, money isn't received or paid on your behalf if you are "taking" food out of the cupboards or fridge...but, technically money is being paid by them to "replace" what you consume.</p>

<p>My professional and personal opinion is to report as honetly as you can the estimated amount provided by your parents. But it wouldn't necessary be fraudulent to only report cash received or directly paid for your bills. Again, this is a gray area.</p>

<p>I see. I apreciate your honesty on the matter, as well as your taking the time to answer my questions. All things considered, I do plan on disclosing as accurately as possible the support provided by my parents this year. I highly doubt doing so will make me less eligible for aid, as I've lived a very simple existance lately. I'm also aware of the moral and ethical qualms of misleading the institution providing thousands of dollars on my behalf.</p>

<p>Again, thanks for the help.</p>