<p>Hello. I just completed the FAFSA, and got a ridiculous estimated EFC of 27491.</p>
<p>Our total family income is at around $50,000. My mom and dad were legally separated a short while ago, and so my dad informally gives my mom a substantial amount of money for bills. There was no reason to get official child support, etc.</p>
<p>When working on the FAFSA, I used live help to ask what I should do about this money received from my dad. They said to put it under Child support in Worksheet B. So I put $24,000 in child support, which is roughly what my dad gives my mom.</p>
<p>This $24,000 as well as $6000 my mom is making from her job (she has certain problems that prevent her from working full time) is all of the income our family has. We've got no assets, and are probably are in debt about $120,000 on our house, $80,000 on credit cards / other loans partially because my dad completely messed up our finances and partially because we're living outside of our means.</p>
<p>Obviously, our family cannot support college costs of $27,491, so there must be a calculation problem somewhere.</p>
<p>My guess is that $24,000 in child support implies that my dad makes $200,000, which isn't true.</p>
<p>Please give some suggestions on what I should do to correct this.... Thank you very much.</p>
<p>Try doing a test by changing the debt numbers and see what happens.
Who pays the taxes on the support?
How do you get $50K in total family income?</p>
<p>FAFSA treats separated and divorced parents exactly the same. You include only the info on the "custodial parent," which is the parent you lived with the most during the last 12 months prior to filing FAFSA.</p>
<p>So in this case, only your Mom's income and assets would be included (and your income & assets, of course). Now, the income we're talking about is '06, while the assets are a snapshot on the day you complete the FAFSA.</p>
<p>So you'd include Mom's income from work, etc. for '06 ($6K, if I understand correctly) plus any income she received from your Dad. Did she receive $24K from your Dad in '06?</p>
<p>So her total income should be around $30K. No way that's going to give you an EFC of $27K-- there should be very little or no contribution to the EFC from parental income of that level.</p>
<ol>
<li><p>Check your numbers-- try the FinAid calculator-- it will show you where the EFC is coming from (how much from parental income, assets, and student income/assets).</p></li>
<li><p>If she is eligible to file 1040A or EZ, she might qualify for the simplified needs test, in which assets aren't counted at all.</p></li>
<li><p>Do you have significant assets in your (student's) name that's driving the EFC up? 100K in student assets would give you an EFC in that range-- but that would be very unusual.</p></li>
</ol>
<p>Don't send the FAFSA until you fix this. If sent, figure it out, and correct it pronto.</p>
<p>If your parents are legally separated and your Mom is the one supporting you then the income should be her income and the money in child support. FAFSA treats her the same way as a divorced parent.</p>
<p>
[quote]
If your parents are divorced (or separated - see below for more information), answer the questions about the parent you lived with more during the 12 months preceding the date you complete the FAFSA. If you did not live with one parent more than the other, give answers about the parent who provided more financial support during the 12 months preceding the date you complete the FAFSA, or during the most recent year that you actually received support from a parent. If this parent has remarried as of the date you fill out the FAFSA, answer the questions on the remaining sections of the FAFSA about that parent and the person he or she married (your stepparent).</p>
<p>If your parents are legally separated, the same rules that apply for a divorced couple are used to determine which parent's information must be reported.
[/quote]
</p>
<p>So if you are living with your Mom - on FAFSA you should not show your Dad's income. You started off saying the family income is around $50,000. Then you said your Mom earns $6000 and your Dad gives her $24,000 - I make that $30,000 - where does the number of $50,000 come from?</p>
<p>Wow a lot of people who must type much quicker than me posted while I was typing this</p>
<p>Yeah, I actually submitted the FAFSA, and that's the EFC fafsa.ed.gov gave me.</p>
<p>sblake - </p>
<p>I've got about $6000 in a CD, which I put in the student information section.</p>
<p>The worksheet title was "FAFSA Worksheet B?Report Annual Amounts" and the question was "Child support received for all children. Don't include foster care or adoption payments."</p>
<p>So unfortunately it wasn't just that I entered a monthly amount. However, its possible, though unlikely, that I slipped and added an extra "0"... I hope it is something trivial like that.</p>
<p>However, now I have to wait a few days till it processes before I can see any of my information again. Gah.</p>
<p>Swim-
My dad keeps $20k for his own expenses, etc. I meant "family" by my father and my mother's incomes together. Since I was supplying my mom's information, my FAFSA has an income that totals to $30,000.</p>
<p>It definitely sounds like you made a mistake somewhere on the FAFSA. If your Mom's total income is $30,000 and she has no assets and you have no income and your only asset is $6000 in a CD there is no way your EFC can be that high. Your $6000 CD would be penalized at a rate of 20% which is only $1200 plus whatever is taken from your Mom's income. With that income your Mom may also be eligible for the simplified needs test (just make sure she is eligible to file a 1040ez or 1040a) Iin which case your assets will not even be counted. You need to double check your figures as soon as you can. Good luck. Let us know how it works out.</p>
<p>You should be able to look at the figures you entered into FAFSA, if I'm not mistaken.</p>
<p>Mean time, do check out the calculator at FinAid-- punch in the numbers you think you used on FAFSA and see what it says. Make sue you click on Federal Methodology, and eligible for 1040A or EZ (if that's true).</p>
<p>FAFSA looks at four factors: parent(s) income, student income, parent(s) assets, student assets, subtracts some standardized deductions and then pumps out an EFC (estimated family contribution). </p>
<p>There are two exceptions to the FAFSA calculation (the automatic zero EFC, and the simplified needs test). First, when dealing with a dependent student, if the parent's (in this case your mom?s) AGI is under 50K, and the parents file a short federal tax return (1040EZ/1040A) or don?t file, then two of the factors (parents assets, students assets) will be excluded from the FAFSA calculation. This is called the simplified needs test. This test applies to federal aid programs like Pell grants, Stafford loans, etc. </p>
<p>The second exception, again for a dependent student, if the parent (your mom) files a short federal tax form (or doesn?t file) and the parent?s AGI is under 20K (for school year 2007/08), FAFSA will automatically set the EFC to 0 (the automatic zero). </p>
<p>FAFSA appears to be programmed to look first at your parent?s (mother?s) AGI. If anyone meets the automatic zero EFC or the simplified needs test after looking at your parents ( your mom's) AGI, FAFSA is apparently programmed to ignore other untaxable income and/or assets. </p>
<p>You state that the 24K is given informally. I assume that it?s not being considered as alimony and hence would not show up on a tax return. Although the 24K should be reported on FAFSA worksheet B, if your mom?s AGI for 2006 is 6K, then you should have received an automatic zero EFC. Something doesn?t make sense.</p>
<p>You are a bit quick with your submittal. A Slight change will make a difference in this year's s FAFSA. Suggest you get one of books on FA. It will be well spent.</p>