<p>Last year, during the college/FA application process, we found that two different colleges changed the FAFSA at different times. One raised our EFC, then, another lowered it. I had input income, taxes, assets, etc, correctly on taxes and the FAFSA, so what gave the right for the college to make any changes without contacting me? I filled everything out and signed that it was all correct. My D signed with her pin as well. I understand schools finding mistakes and wanting to correct them, but shouldn't they have to give a specific reason and notify you in person? The schools that made changes weren't even the school she ended up attending - that was the most frustrating part! The changes were made before she even applied to her rolling admissions school, so we know that part for sure!</p>
<p>Did these schools have your verified tax forms?
We had a school change a FAFSA but that was because of some confusion over new information. They changed it back after they got it clarified.
It is funny that you had schools deciding that your EFC should be lower/higher.
I can see if they were doing that with PROFILE but not FAFSA.</p>
<p>I believe kels has said that they’re legally required to change them if they see something wrong.</p>
<p>Why the changes affected your EFC in two different directions, I don’t know. Hopefully kels will chime in.</p>
<p>Several things come to mind that people do/do not enter but should: Making Work Pay credit (2010), untaxed payments to pensions, mandatory retirement payments (should not be included in untaxed pyts to pension), etc. I can’t guess without seeing the tax returns & the FAFSA.</p>
<p>I will say that not all financial aid people are as well versed in verification as others, so some may miss things. It is always good to find out why an EFC change was made. I always noted the reason in the comments section of the student’s file … if someone called in to find out, even a student helper could read the reason to them.</p>
<p>We don’t have assets (less than $5000 in checking/savings, only a small amount into retirement each year, which was noted, and no properties, etc, besides our home with very little equity). The only thing to be changed was the amount of taxes paid, which I understood. That was the first change where the EFC went up. Then, the second that brought it lower I never figured out. My point is why can the schools make changes, when they aren’t even the schools your kid will be attending. Does each school see a clear reason for changes? My D is now at a U, so I don’t have this worry, but want to understand it for the second child. Figured others may need to understand how schools can do this without clear explanations, etc, as well.</p>
<p>Kels…what about a tax return check from the previous year? does that get added in? What I mean is, if a family received a tax return check in Spring 2011 (say for $2500 for overpaying taxes in 2010), does that get added in? If so, is that a common mistake people might make by not including that?</p>
<p>My point is why can the schools make changes, when they aren’t even the schools your kid will be attending.</p>
<p>Well, during the app process, people are sending FAFSA to all these different schools and the final choice isn’t known. The person finding the mistake is going to do the adjustment (which I think gets reported to the others), because that person doesn’t know where your child will end up going.</p>
<p>You mentioned that this happened last year with 2 different schools. What was the result?</p>
<p>Last year (d’s first year in college) the college she is going to changed our efc- lowered it- after she received her fin aid package. Nothing had changed in our situation or on our forms. I was thrilled thinking our package would change. There’s a whole thread about this on cc from last year and how officers use something called ’ professional discretion’ or something like that to manipulate the numbers. But nothing changed…the package stayed the same. I spoke to the fin aid officer and was told that our state and local taxes had been taken into account which lowered the efc. This was done in order justify some of their decisions about her package. What I also found out last year was that many people do not realize that payments to 401k and similar accounts are actually untaxed income and they neglect to add that back in. This can definitely change one’s efc.</p>
<p>Kels…what about a tax return check from the previous year? does that get added in? What I mean is, if a family received a tax return check in Spring 2011 (say for $2500 for overpaying taxes in 2010), does that get added in? If so, is that a common mistake people might make by not including that?</p>
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<p>The tax return check is money you overpaid the government during the year. It is not income.</p>
<p>State income tax refunds, however, get added in the next year when you report them as income on your 1040. They become part of AGI (and mean you cannot file a 1040A/EZ, much to some folks’ chagrin when it keeps them from getting simplified needs or auto 0 EFC formula).</p>
<p>State tax refunds only get added in the next year if you itemized the year before and only to the extent itemized deductions exceed the standard deduction. So yeah, if you file a 1040 and itemize, the next year you need to file a 1040 to add in the state refund even if you only claim the standard deduction. Most people though probably either itemize every year or take the standard deduction every year.</p>