Automatic 0 EFC

applicannot · 04-28-2009, 09:38 AM

My family and I qualify for an automatic 0 EFC (<$30,000 per year and files a 1040A). I know what EFC means in terms of colleges (not much), but what does it mean in terms of FAFSA? Do I still have to fill the whole thing out, or is it REALLY automatic (meaning I'd only have to fill out a part of it)? If a student makes $2200+ (30% of everything over $2200 for the student goes toward the EFC)D, does that money still count toward the EFC if the family has an automatic 0? Does anyone have any other information about the automatic 0? I searched the internet, but naturally, it was mostly federal government jargon.

swimcatsmom · 04-28-2009, 09:47 AM

Whether you have to fill the remaining information out depends on your State. For some reason (maybe to do with State based aid) some States require you to complete the full form and some do not. In our State for instance we still have to complete it all even though we qualify for the automatic 0 EFC. Despite having to supply all the information the EFC will stay at 0 if the income and tax return requirements are met.

Quote:

If a student makes $2200+ (30% of everything over $2200 for the student goes toward the EFC)

a. I don't know where you got these numbers from but they are completely wrong. If you found those numbers on the internet they are very out of date (several years at least). The student protected income allowance is @ $3800 (though it actually comes out a tad higher once other allowances such as for fICA are added) for 2009-2010. Over that 50% goes to the EFC - unless the parent income qualifies you for the automatic 0. If you qualify for the automatic 0 EFC then student assets and income are not considered at all and will have no affect on the EFC. .

applicannot · 04-28-2009, 10:53 AM

Quote:

If you qualify for the automatic 0 EFC then student assets and income are not considered at all and will have no affect on the EFC.

Thank you so much for this knowledge! What a relief. And thanks for the updated knowledge - those numbers were for when my sister filled at FAFSA five years ago.

sk8rmom · 04-28-2009, 08:54 PM

Here's a link to the current formula guide and tables:
http://ifap.ed.gov/efcformulaguide/a...aGuide0910.pdf

applicannot · 10-03-2009, 07:17 PM

I'm bringing this back up. My mom files a 1040 instead of a 1040A. Ugh. She doesn't qualify for the 1040A because she has itemized deductions (no idea what that is). The website for the Automatic 0 (linked above) says this:

Quote:

the student’s parents filed or are eligible to file a 2008 IRS Form 1040A or
1040EZ (they are not required to file a 2008 Form 1040)5,

Does that mean she still qualifies if she DOES file a 1040?

kelsmom · 10-03-2009, 07:29 PM

NO!!! Financial aid folks are not pleased with the fact that the FAFSA allows skipping asset questions if a family appears to quality for auto 0. The truth is, a lot of students SAY their parents "could" file a 1040A/1040EZ when they cannot (such as ... if they itemize). This means a delay in processing aid, because the financial aid officer then must collect asset data & process a change in the FAFSA. It also can mean a big difference in financial aid awards for students.

There are other ways to qualify, though. Did anyone in your family receive federal means tested benefits within the past 2 years? Free/reduced lunch, TANF, WIC, housing subsidies ...

applicannot · 10-03-2009, 07:31 PM

I got reduced lunch in 2008...

I. Am. So. Effed. So long FA.

kelsmom · 10-03-2009, 07:38 PM

If you received free/reduced lunch in 08, you are able to use that as a means tested benefit when you complete the 10-11 FAFSA (it would be within 2 years). After that, if there are no younger siblings with free lunch or no other federal benefits (I forgot to mention SSI, too) it may be a problem ... your mom may find that it is better to NOT itemize if it means a significant difference in aid. However, you could still have a 0 EFC even without it being automatic (depending on the family size, etc). It is always worth finding the latest regulations & plugging in numbers. Even if your EFC isn't 0, it will probably still be quite low - so you'd be eligible for Pell, ACG, SEOG, etc.

applicannot · 10-03-2009, 07:44 PM

Well, the thing is that when it asks "how much money did you receive from TANF?" (or something along those lines) I put in 0 because you don' really receive money from Reduced Lunch.

kelsmom · 10-03-2009, 07:55 PM

You only have to check "free/reduced lunch" - no need to put an amount anywhere.

applicannot · 10-03-2009, 08:00 PM

What about on the CSS/PROFILE? That's what I'm filling out now (which I know doesn't have an automatic 0).

thumper1 · 10-03-2009, 08:26 PM

I'm sure someone here will correct me if I'm wrong.

The 0 EFC applies to the FAFSA only and also applies only for the awarding of federal aid.

Schools that use the PROFILE will use all of your assets to compute financial aid regardless of your information on the FAFSA or the FAFSA EFC. So...on the Profile, just include all of the information as required (it won't get processed if you leave blanks). You will be required to list all assets, and provide all information. There is no exemption on the Profile.

There have been stories about families with VERY low incomes who had very significant assets (for a variety of reasons...be it a recent home sale, or an inheritance that is now sitting in their savings account...or whatever). If the schools require the Profile, these assets MUST be reported and will likely be assessed for use in paying college costs by the schools. Conventional wisdom for folks with a LOT of assets who would otherwise qualify for the auto zero...apply to FAFSA only schools where the mega assets will not need to be reported.

applicannot · 10-03-2009, 08:31 PM

Right, the 0 EFC applies to FAFSA, which I'll have to deal with in a couple of months. As I was filing out the CSS/PROFILE, I came across problems dealing with FAFSA... and I need an automatic 0 from FAFSA for a couple of reasons. We have no assets, so that was an easy portion of the PROFILE for me.

swimcatsmom · 10-03-2009, 09:38 PM

If you don't receive any of the need based things like free lunch etc in 2009 your Mom can make the choice to not itemize on her 2009 tax return (if itemizing is the only reason she is doing a 1040). No one has to itemize. It is a choice. It may cost her a little more in taxes but with an income below $30k it will not be much and may be more than made up for if you get the auto 0 EFC. She would need to look at the numbers and see which is more beneficial overall. We had always itemized before but chose to not do so when we realized the small amount of extra taxes we had to pay was much less than the financial aid my son and daughter were made eligible for with the 0 EFC. I had to really twist my husbands arm and show him the numbers to convince him to incur those extra taxes. In fact I did the tax returns myself for the 1st time that year!!

applicannot · 10-03-2009, 09:40 PM

My mom didn't even know that she was itemizing... she uses a service.