baker101460

i would also like to see that link as well, ilovekermit.


now i am thoroughly confused!! what happens if you receive both SSI and SSDI? where do they go on next year's FAFSA?

BeOfService

Looks like the link to the EFC calculation document has moved. Here is the new link:
http://ifap.ed.gov/efcformulaguide/a...aGuide0910.pdf

swimcatsmom

Thank you! I have been looking for that.

sueinphilly

why, dear god, is the asset protection for a single parent only 40% that of a married couple. I really really want to know the mindthink behind that.

bluebayou

sue:

there are a lot of inequities in the finaid system.

Why should a family with twins have half the efc of a family with two kids spaced four years apart?

Why should workers covered by a defined benefit pension have those employer contributions excluded from income while at the same time a person with no DB pension has 401(k) money added back to income?

sueinphilly

I don't understand why employer contributions to a retirement plan should be considered income, no money in the retirement plan is part of fafsa.

I don't understand why every penny (albeit pretax income) I put into retirement is added back into the income for fafsa (would make sense to add in the amount of tax savings I realized on that income put into retirement).

I completely agree there are a lot of what the hecks when it comes to financial aid.

I just really want to know the reason for the asset protection difference for single and married parents. even 50% makes more sense than 40%.

Not logical, does not compute!

thumper1

>>Why should workers covered by a defined benefit pension have those employer contributions excluded from income while at the same time a person with no DB pension has 401(k) money added back to income?>>

Because choosing the 401K is just that...a choice. Folks with defined benefit packages have to contribute whether they want to....OR NOT.

bluebayou

^^well yes, and no.

It just so happens that the two types of 'retirement plans' are differentially treated by fafsa. If one works for the government say (or UAW), the retirement pension grows every day one is on the job. But, that "choice" is made through collective bargaining. The workers (collectively) CHOOSE have thier employer contribute to their retirement by taking a lower salary in the job. They could just as easily CHOOSE to vote for zero pension but more salary, or more health care dollars, or a car allowance, or whatever they could get in return for zeroing out a defined benefit pension plan; the employer is somewhat indifferent to these individual choices bcos its the total cost of the worker that matters to the bottom line.

thumper1

I am required to contribute to a retirement plan. I have no choice..not about the plan or the amount. My employer doesn't contribute a nickel.

bluebayou

as a teacher are you covered under collective bargaining? If so, your bargaining agent made the 'choice' for you.

But, more importantly, is your contribution pretax? Does it get added back to a fafsa like a similar contribution to a 401(k)?

SNM

My husband does temporary work and will be unemployed by the time we complete the FAFSA. It looks like we are supposed to contact the financial aid offices of the schools my S is applying to. Any experience with how that goes? Does it depend entirely on the school?

SaveMeWithABook

What does the following mean?:

"New for 2009-2010: The CCRAA extends the time that an individual who received benefits
from a means-tested Federal benefit program can qualify for a simplified EFC formula
calculation from 12 to 24 months."

It's in the EFC Formula for 2009-2010 in the PDF file - http://studentaid.ed.gov/students/at...1408Attach.pdf

thanks

baker101460

it means that in order to qualify for the simplified formula you would have to be getting those federal means benefits for 24 months by the time you apply for federal assistance. so if you have received the benefits for 23 months, you do not qualify for the simplified formula.

kelsmom

Actually, it means if one received a federal means-tested benefit ANYTIME during the past 24 months: http://www.ifap.ed.gov/sfahandbooks/...0809AVGCh3.pdf (page 36 of the PDF, bottom left of page). This link is for current year, so it's 12; next year is 24.

A federal means-tested benefit is TANF, WIC, food stamps, SSI, or free/reduced lunch.

SNM, the new FAFSA has a question regarding workers who have lost their jobs. I am not sure how individual schools will handle this ... our school hasn't even discussed it yet. There are a lot of changes for next year, and schools will have to make some changes, too.

SNM

Thanks Kelsmom. I didn't see that when I looked at the FAFSA.