What is the Simplified Needs Test???

[susgeek]

<p>I see this referenced from time to time on different threads. All I can find online is that if you file a 1040A or 1040EZ, you are eligible for the SNT. Aren't there other criteria?</p>

<p>What if your gross is slightly over $50 grand, but the actual earned income is below (the difference being a pension)? Does that make a difference?</p>

[swimcatsmom]

<p>Simplified needs test means your assets are ignored in the EFC calculation. You must have an AGI under $50,000 (earned income or otherwise does not come into it, just the AGI). You must also meet one of the other criteria - 1040a/ez or dislocated worker or receive means tested benefits etc etc </p>

<p>It only makes a difference if your unprotected assets are above the asset protection limits.</p>

[sk8rmom]

<p>I think the actual name is “simplified EFC formula”. It’s a two-part qualification, both AGI under $50K and 1040a/EZ eligibility, dislocated worker, or participated in a federal means-tested program within the past 2 years. Here is the exact criteria:</p>

<p>

For the 2011-2012 Award Year, a dependent student qualifies for the simplified EFC formula if both (1) below and (2) on the next page are true:
(1) Anyone included in the parents’ household size (as defined on the FAFSA) received benefits during 2009 or 2010 from any of the designated means-tested Federal benefit programs: the Supplemental Security Income (SSI) Program, the Food Stamp Program1, the Free and Reduced Price School Lunch Program, the Temporary Assistance for Needy Families (TANF) Program2, and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC); OR
the student’s parents filed or were eligible to file a 2010 IRS Form 1040A or 1040EZ3, they filed a 2010 IRS Form 1040 but were not required to do so4, or the parents were not required to file any income tax return; OR
the student’s parent is a dislocated worker.
AND
(2) The 2010 income of the student’s parents is $49,999 or less.
• For tax filers, use the parents’ adjusted gross income from 2010 Form 1040A or 1040EZ5 to determine if income is $49,999 or less.
• For non-tax filers, use the income shown on the 2010 W-2 forms of both parents (plus any other earnings from work not included on the W-2s) to determine if income is $49,999 or less.

</p>

<p><a href=“http://www.ifap.ed.gov/efcformulaguide/attachments/101310EFCFormulaGuide1112.pdf[/url]”>http://www.ifap.ed.gov/efcformulaguide/attachments/101310EFCFormulaGuide1112.pdf&lt;/a&gt;&lt;/p&gt;