If my parents’ combined income is $65,000 a year and they have $200,000 in assets, my EFC came out to be around $20,000. Does this seem right?
Is this the FAFSA EFC, or an institutional EFC?
Either way, yes. At least, in the ballpark.
Well…their assets alone would generate about $10,000 towards your EFC at 5.6% of the value…right.
Then your remaining $10,000 would be from income.
Did you enter the assets correctly? Are any of the assets in retirement accounts?
Do those assets also generate income or profits?
Does the $200,000 include the house you live in?
@Madison85 i dont think so i think its just saved up money?
@twoinanddone yeah
@mom2collegekids what?
Some assets…like rental properties, or inverstment accounts,actually also generate income. Rental properties, for example…the value of the property is an asset…but they also generate rents.
For investment accounts…there is a value to the account…but these also earn income each year or so,
That is what @mom2collegekids is asking.