SteveMA

mom2collegekids--what I mean is that I used his "real" gross, before any deductions. Since we pay our health premiums pre-tax, his "real" gross is not the same as what shows up on the W-2 as his "gross". It's only about $5000 so nothing all that different. This was the FAFSA forecaster along with the NPC for this particular school--which is what they use for athletes for pre-reads.

sueinphilly

I BEG parents to run the EFC Fafsa forecaster NO LATER than when their kid is in 10th grade.

They ignore me and are AGHAST at the number (when they get around to it) and invariably say, is that for 1 year or all four years total.

mom2collegekids

mom2collegekids--what I mean is that I used his "real" gross, before any deductions. Since we pay our health premiums pre-tax, his "real" gross is not the same as what shows up on the W-2 as his "gross". It's only about $5000 so nothing all that different. This was the FAFSA forecaster along with the NPC for this particular school--which is what they use for athletes for pre-reads.


Are you saying that you use a Flexible Spending Acct to pay your health premiums?

I'm not sure that contributions to FSA accounts aren't part of AGI. anyone know?

happymomof1

Wouldn't an FSA that is taken out pre-tax, get added back in for the FAFSA?

mom2collegekids

That's possible, too. I just don't think the amount is kept completely off of FAFSA.

annoyingdad

Both FSA contributions and medical/dental premiums are pre-tax so they aren't part of AGI. Health care isn't considered optional like retirement savings are so neither is added back in.

notrichenough

The FAFSA instructions explicitly say to *not* add back in benefits from flexible spending arrangements.

thumper1

Remember, flexible spending accounts are use it or lose it accounts. Either you the money you put aside to pay for health related expenses OR you lose the money at the end of the contract year.

That FSA money is not added back as income.

emeraldkity4

Did it used to be added back in?
I seem to remember having money taken out for tutoring expenses for my D when she was in grade school, because the way it was explained to me when I set it up, that fell under child care.
But then I couldn't access the money in the account , and no one could explain to me where it went, I assume it went to the state.

CountingDown

FSA money (and 401(k) employee contributions) gets added back in for PROFILE schools. The methodology assumes one will reduce/forgo those things while you pare paying tuition. Fat chance for most of us, I know.

Emeraldkitty, unused FSA funds revert to the employer.

emeraldkity4

Ok that explains it, older D was applying to a PROFILE school.

SteveMA

No, not talking about FSA dollars just insurance premium dollars, the employee portion of our insurance premiums that we pay with pre-tax dollars, which is about $5000/year.

sueinphilly-we are on kids 3 and 4 through this process. We've done the NPC and the forecaster before, which is why I was wondering what was up with the results. The figures from the current kids' sophomore year, if we were looking at them, would be meaningless now because salaries change, etc. Also, this will be the first time we have 2 in college at the same time and I haven't been able to get a solid answer on how that effects our EFC.

Say your EFC is $40,000 for one child. If I run the forecaster with 2 in college the EFC shows $20,000, for example. Does that mean we still pay the $40,000 split $20K each or is our EFC total $20K split between the 2 of them?

It would be easier if they had some way for athletes to run the real FAFSA before the November signing date .

mom2collegekids

Say your EFC is $40,000 for one child. If I run the forecaster with 2 in college the EFC shows $20,000, for example. Does that mean we still pay the $40,000 split $20K each or is our EFC total $20K split between the 2 of them?


If FAFSA EFC shows $40k for one child, then FAFSA EFC for 2 kids would be about $20k PER CHILD...$40k total. There would be NO reason for it to be $20k split between the 2, that wouldn't make sense to pay LESS total when two are in college.

However, for CSS Profile schools the split isn't 50/50. If a CSS Profile school says that your "family contribution" is $40k for one child, then if a second child goes to college, the split would be 60/60....so you'd end up paying about $50k per year total for 2 kids in college (about $24k per child)

SteveMA

mom2collegekids--from other posts on this board, many people have said that when they had 2 in college their EFC is cut in half. Also, since you have to fill out a FAFSA for each child, the EFC shows at the bottom of that at whatever figure, so again, is that $20K/child or does the form sent over to the colleges say that the EFC is $20K but they have 2 in college or does that $20K mean $20K for kid A, $20K for kid B. Your example doesn't make sense--why would your EFC go UP for having 2 in college?? In other words....it's just plain confusing .

We have asked FA officers at several schools and THEY can't even answer this question .

cptofthehouse

YOUR (the parent) EFC will be the same regardless of how many kids in college. It is split in half for two kids. However, each kid will also have his/her own EFC based on his/her earnings (if over $6K?) and assets. So, yes, the total EFC can go up for having two kids in college because of the student part of the FAFSA. You can take care of that by making sure your kids reimburse you for their expenses that year and have zero in assets the day FAFSA is completed. A fund in a parent's name and SSN to be used for payment of their things would fall under the protection allowance and only be assessed 5.6% over that allowance for the parent. 20% of student assets immediately goes towards the student EFC.