<p>If the EFC calculation does not include as an asset the value of what is held in a pension plan, why does the Profile ask for the balances in the plans? I read (on CC, I think) Boston College does use this is in their formula, but have always otherwise heard it is not included as an asset in the calculations.</p>
<p>There is a lot of leeway for colleges when it comes to dispensing their own money. They make a lot of exceptions. If they see a family with millions in their pension plans, but living modestly on a small income, it makes no sense to disregard that much money. I believe everyone will see the sense of that. It's a matter of where to draw the line as to when the pension money needs to be tapped. Most colleges are reasonable about this, but it is something that they eyeball. They may not have formalized it into their formulas, but will throw it in there when they feel it is appropriate. FAFSA is rigid and consistent, but the other forms have a whole lot of stretch.</p>
<p>Profile schools are not bound by the IM EFC. See my discussion earlier today. </p>
<p>So, if for example you had an annual income <$50,000, and no investments, it might be relevant to your familiy's ability to pay that there is $2mil sitting in an IRA, 401K or pension plan. </p>
<p>I believe this question is new to Profile this year. In the past inquiries about retirement accounts were only asked in the customized Section Q questions, and not many schools opted to ask.</p>
<p>I believe that the question is also designed to allow some flexibility in EFC for parents approaching retirement age who do not have large retirement accounts. They can take that into account when determining how much the parents really do have available, and how much they're going to need to continue to save for themselves. If you've got $2 mil in retirement assets, your future looks very different than if you've got little to nothing, all other factors being the same.</p>
<p>Thanks to all of you for your replies. I was just curious. We have very modest amounts in retirement, so I guess I was being paranoid too. Hopefully this will be easier after he is at ONE school when we do financial aid next year. I breathed a sigh of relief when the last ap was done. I wasn't ready for this whirlwind of scholarship applications and financial aid info....(I know--lots of us in the same boat!)</p>