When I filled out the FAFSA & CSS Profile for this year my EFC was 0. My parents’ income was about 27k and my own income was 4k. However when I file FAFSA/CSS next year, I know my income will be at least 7k. I’m pretty sure this goes over the student income protection allowance and my EFC will no longer be 0. Will my financial aid decrease around the amount of my EFC or will it drastically decrease more than that? Should I stop working so that I don’t go over the allowance, or would it balance out in the end? I don’t know what to do and would appreciate any advice. Thanks!
I know if you do have a Pell Grant, it would be reduced dollar for dollar as your EFC increases. I can’t speak for any institutional aid you might have - this is a question for your school’s aid office. I would give them a call today.
For federal aid from fafsa, the income allowance for 2015-16 is $6310. If you had made $7k last year, 50% of $7k- $6310 or $345 would have been added to your EFC. The 2016-17 allowance may or may not be higher. If some of that income is from work-study or other need based employment though, there is a question on fafsa where you enter that amount and this is subtracted from your AGI in the fafsa formula so you aren’t penalized for need-based employment.
No one would be able to tell you the exact effect for state aid based on fafsa or institutional aid based on CSS
Congrats on making that much as a student.
Wouldn’t it also depend on whether the EFC of $0 was an automatic zero? If the parents qualify for automatic zero, is the student’s income even considered? I think an income of $27k is just about the cut off, isn’t it?
Each year’s aid packages are based on their own year’s information. Generally it is not a great idea to try to keep your income low. If you are able to afford more, the schools generally will expect you to pay more. But if your increased earnings are offset directly by compelling additional expenses, (for example, you are doing independent research in your field of study) the school will often take that into consideration. Having a conversation with them up front to establish a history of transparency may be helpful.
You don’t say which school you are talking about, whether or not they are a “full need” school, how they calculate need, etc.
A lot of kids have no income as a HS junior/senior, but then they do get income from work study as a freshman, so to some extent the info on the profile is expected to change some. Unless it changes a heck of a lot, I wouldn’t worry too much
$24k is the auto 0 cutoff.