Quick CSS Profile Question

Paying for College
1

<p>I'm curious as to how to honestly answer this question on the profile:</p>

<p>SR-160A:</p>

<p>Enter the amount your parents think they will be able to pay for your 2010-11 college expenses.</p>

<p>We have a 529 plan for our D and would like to divide the amount equally over 4 years. However, after completing the FAFSA our EFC is basically the same amount as the balance in the 529. This leads me to believe that schools will want the entire amount up front? I thought the EFC was really based more on income rather than assets. Our assets really only consist of savings and the 529.</p>

<p>How have others with more experience answered this, sorry for my ignorance, but I'm a newbie.</p>

2

<p>Your FAFSA EFC is based much more heavily on income than on assets. The maximum effect an asset will have on the FAFSA EFC is 5.6% of the value of the asset. And that is assets after some allowances, based on the number of parents and the age of the older, for protected assets. The effect income over the protected income allowances has on the EFC is between 22% and 47% of income (gets higher as income gets higher).</p>

<p>The fact that your EFC seems to be the same as your 529 account balance is sheer coincidence. Nothing more.</p>