<p>All the private colleges I've been accepted at have calculated my EFC to be a little under 30k. Here's the thing. If I were to take my parent's gross income and remove all the tax money they have to pay and the EFC, we would be left with about 12k for food, mortgage, utilities, transportation, and other expenses for a family of four (including me). I was wondering if this was a common occurrence with EFC and if I would be able to successfully appeal a college for more aid if this wasn't. </p>
<p>Thank you for your help!</p>
<p>This is not unusual at all. The EFC is not based solely on current income. It takes into account assets and to some extent the expectation that a family has saved some money in anticipation of college.</p>
<p>Did they really calculate your ability to pay at 30K or were you gapped? There is a difference. </p>
<p>They may be adding back 401k deductions.</p>
<p>The EFC is calculated after income taxes are subtracted out of gross income. Yes, contributions that year to 401K and/or HSA plans aer added back. </p>
<p>So those with a heavy income tax load in a year, get that removed. </p>
<p>Take a good look at the formula and see how it is computed. </p>
<p>Also, does your family have a lot in assets, or you? That’s hit as well as income , 5.5% for your parents and 20% for you. Primary home equity not considered.</p>
<p>"my EFC to be a little under 30k. Here’s the thing. If I were to take my parent’s gross income and remove all the tax money they have to pay and the EFC, we would be left with about 12k for food, mortgage, utilities, transportation, and other expenses "</p>
<p>That doesn’t sound right unless your parents have a lot of assets and/or large retirement contributions. </p>
<p>What is the gross income? How much in taxes??</p>
<p>For your EFC to be that large, if they dont have a lot of assets, then their income must be around $115k </p>
<p>If so, once you subtract you EFC, then that’s about $85k…taxes wouldn’t be 60k…</p>
<p>So do they have a lot of assets?</p>
<p>I’m not really sure about much of the specifics, but I had looked at my mom’s paystub and over half of her income is taken out for taxes. Also I don’t believe they have much savings because they wiped it out when they bought our house (which I think is our main asset, but we still owe a huge debt on it). </p>
<p>I know my mom maxed out her retirement contribution, and I think my dad may have done the same.</p>
<p>That is how it works. I bring home less than half my gross earnings. I pay taxes, 401k, insurance, more taxes, pension, more insurances…and from what I bring home I pay the rent, buy food, gas, utilities…There is not a big pot of gold left.u </p>
<p>Your parents may deduct heavily from one check and bring home more of the other spouse. If your mother pays the insurances, her check might be a lot less than your father’s. </p>
<p>If your EFC (FAFSA) is $30k, and you don’t have a lot of assets, their combined gross income is probably $110k or more. You have to ask them, you can’t just assume that the FAFSA is incorrect.</p>
<p>The EFC is a FAFSA term. It should be viewed as the MINIMUM colleges will expect you to pay. The school likely didn’t compute your EFC to be any number. They awarded you need based aid, and it is up to your family to determine if they can pay the balance…Or not.</p>
<p>It sounds like you applied to private universities or OOS public universities. </p>
<p>What can your family pay annually? Did you apply to and get accepted to affordable schools?</p>
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I’m not really sure about much of the specifics, but I had looked at my mom’s paystub and over half of her income is taken out for taxes.
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<p>All those deductions may not be taxes…there may be insurance premiums, car payments to a company-related credit union, 401k contributions, etc.</p>
<p>Are all contributions to 401Ks put back in? I thought there was some amount that was excluded.</p>
<p>all of the past year’s employee’s contributions are added back in. so, if you contributed $5k in 2013, that would get added back in. </p>