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Dramatically different EFC from one year to next

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Replies to: Dramatically different EFC from one year to next

  • thumper1thumper1 Registered User Posts: 74,453 Senior Member
    Do you take deductions for your business on your taxes? Some deductions for IRS tax purposes are not allowed for financial aid purposes...and those are added back in as income.

    When you start looking seriously for colleges for your child...keep in mind that the net price calculators are not particularly accurate for folks who own a business or are self employed...even partly.
  • FafsaQuestionsFafsaQuestions Registered User Posts: 8 New Member
    Yes, there were probably some business deductions there. Thanks for the heads up that the net price calculator won't necessarily give us an accurate representation.
  • joecolettajoecoletta Registered User Posts: 36 Junior Member
    edited February 8
    @thumper1

    Could you send this poster the worksheet with an explanation?


    Yes.

    @FafsaQuestions

    Please look for a PM from me.

    Joe

    Post edited by sybbie719 on
  • FafsaQuestionsFafsaQuestions Registered User Posts: 8 New Member
  • joecolettajoecoletta Registered User Posts: 36 Junior Member
    IMO, Option 1 is more user-friendly than Option 2, but that's me.
  • joecolettajoecoletta Registered User Posts: 36 Junior Member

    The FAFSA spreadsheet is intended for DEPENDENT STUDENTS and is probably not appropriate for your situation.


  • FafsaQuestionsFafsaQuestions Registered User Posts: 8 New Member
    Thanks for letting me know. My daughter will be going to college in 2020 so I'll be filling out the FAFSA for her in Oct. If you think it would be useful to me for that, I would still be interested. Thanks!
  • mommdcmommdc Registered User Posts: 10,969 Senior Member
    edited February 8
    @FafsaQuestions I don't think the EFC formula for 2020/21 has been published yet. But the 2019/20 EFC spreadsheet (based on the 2019/20 EFC formula) should give you an idea.
  • mommdcmommdc Registered User Posts: 10,969 Senior Member
    The Collegeboard EFC calculator will work for dependent and independent students
  • WantWhatsBestWantWhatsBest Registered User Posts: 109 Junior Member
    This might be a really naive question ... but is the EFC for ALL FOUR YEARS OF SCHOOL or only for that year? In other words, if you fill out FAFSA and have an EFC of $48,000 -- is it that you're expected to pay $48,000 a year or $48,000 as your contribution over the course of college?
  • austinmshauriaustinmshauri Registered User Posts: 8,074 Senior Member
    The EFC is for that year. Financial aid forms are submitted every year and a new EFC is calculated. I think in most cases the EFC is the minimum you can expect to pay.
  • brantlybrantly Registered User Posts: 3,534 Senior Member
    is it that you're expected to pay $48,000 a year or $48,000 as your contribution over the course of college?
    . The EFC represents one year, the year for which you are applying for financial aid. However, it is a mistake to think of it as the amount you are "expected" to pay. The number has no meaning in an absolute dollars sense. It indicates just two things: 1) whether you will qualify for a FEDERAL financial aid (Pell grant, subsidized loan, work-study, SEOG), and 2) it's an index that shows where you are on the scale of potential financial aid from each institution.

    I've been arguing for years that the result of your FAFSA should be an index number 1-10, with use of decimal points in between. A result of 1 is the greatest need, 10 is no need. So, for example, the federal government can set a cut-off of, say, 3.5 for a federal Pell grant, 2.0 for SEOG, 5.0 for subsidized loans, and 6.0 for work-study. An index system like this will eliminate the widespread confusion that the EFC is the exact amount of money that a student will pay.
  • bgbg4usbgbg4us Registered User Posts: 1,085 Senior Member
    That's a really good idea^^!
    i just sat through a sophomore/jr college planning sessions. EFC was briefly mentioned, but the questions included "so, is the EFC what i pay?" and "if the EFC isn't necessarily what i pay, who covers the rest?"
    I wish the presenter would have said how the etc basically just lets people know if they qualify for Pell grants/ subsidized loans; she seemed to skirt the whole concept.
  • brantlybrantly Registered User Posts: 3,534 Senior Member
    Sounds like that presenter didn’t really know.
  • mom2collegekidsmom2collegekids Forum Champion Financial Aid, Forum Champion Alabama Posts: 84,716 Forum Champion
    but is the EFC for ALL FOUR YEARS OF SCHOOL or only for that year? In other words, if you fill out FAFSA and have an EFC of $48,000 -- is it that you're expected to pay $48,000 a year or $48,000 as your contribution over the course of college?


    First of all, EFC does not mean what you’re expected to pay.
    Your EFC could be $20,000, but you may end up having to pay $40,000 per year

    Secondly, EFC is for one year

    07-14-2018 at 3:01 pm in Financial Aid & Scholarships
    DS heading to college this fall. We filled out the FAFSA last year. This year, we know he's going to a state school where he gets a tuition waiver from DH being faculty. He has a merit scholarship applied toward some room and board (not based on income/finances). So here's what we will pay each semester: room and board, fees, books, and supplies. I have a 529 fund I will use to cover these expenses, and I have saved enough to cover all four years of undergrad. I just saw the bill for fall, and I am certain we've got what we need in the 529. We don't have any loans we'll be taking out. We declined the federal Stafford loan. So my question is -- do I need to fill out the FAFSA every year if I know I don't need financial aid or loans? Is it just a prerequisite no matter what? Pros/cons to filling it out? It was tedious and hideous to fill out last time, so if I can avoid that headache, I'd like to. Also -- do you have to fill out the FAFSA for each child in college or do you fill it out just once? Thanks for any insight

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