<p>Self-employed parents who own their own business are often at a disadvantage in the financial aid process. </p>
<p>Some of their expenses are added back into their AGI. (Adjusted Gross Income)
Expenses like vehicle expense or depreciation expense on large assets/equipment. </p>
<p>Buy “Paying for College Without Going Broke” Kalman Chany, Princeton Review. Get both the 2010 & 2011 Edition if possible. The 2011 Edition drops the EFC calculation for the IM (Institutional Methodology). Take your parents 2010 Tax Returns and do the worksheets in the back of the books with them. Be an educated consumer! </p>
<p>EFC= Expected Family Contribution </p>
<p>Also you could do the EFC calculations on the CollegeBoard website. Choose both IM & FM for the methodologies. Keep hitting “Save” so you can refer back to it. Print them out for reference. </p>
<p>Schools that use the CSS PROFILE for financial aid will ask about home equity (this is an asset). PROFILE schools may also ask about what vehicles your parents own or you own. </p>
<p>Best of luck in your college search!</p>