Student Income Protection

Paying for College
1

<p>Is the $2650 that is protected by the government gross income or net income?</p>

2

<p>I don't have the answer (I was assuming it was gross income), but something else I was wondering is whether that level is going up. I thought I read somewhere that the protected income level was increasing to somewhere around the $3500 level. Is that true or did I dream that up??? Any financial aid gurus able to enlighten us?</p>

3

<p>I think it is your AGI on your tax return</p>

4

<p>Brainomatic: $3000</p>

<p><a href="http://www.fafsaonline.com/fafsa-blog/%5B/url%5D"&gt;www.fafsaonline.com/fafsa-blog/&lt;/a&gt;&lt;/p>

<p>Look at the May 4, 2006 blog above</p>

5

<p>gross or net???</p>

6

<p>I believe that FAFSA looks at your AGI (from federal tax return), then adds your untaxed income from worksheets, then subtracts both income protection allowance, and federal income tax and social security tax to determine the portion of the (EFC) from student’s income.</p>

7

<p>I'm sorry, once FAFSA adds AGI and untaxed income, then subtracts income protection allowance and taxes, then whatever is left is assessed at 50%, and if the student reports any of whatever is left as having not been spent and reports it as an asset (e.g., in a bank acct), whatever is in bank acct will be asssesed at 35%</p>