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EFC Misrepresents My Family’s Finances

AnonAmissAnonAmiss Registered User Posts: 18 Junior Member
Recently, I found out about an issue with my EFC—though it should’ve been clear from the get go. My family’s annual income is 20k but my EFC is 15k. My household has 5 people and we have less than 500 (yes, 500) in our bank account.

After a recent discussion with a financial aid counselor at one of the schools I was accepted into, I found out that my family’s EFC is only so high because of a pension my family’s failed franchise has gotten in 2017 (50k, which only cushioned my parents’ financial deficit).

Problem is that my family is unlikely to even be able to get <i>any</i> private student loans given our financial situation, which I won’t go super in depth on. What should I do?

Replies to: EFC Misrepresents My Family’s Finances

  • mom2twogirlsmom2twogirls Registered User Posts: 2,022 Senior Member
    What can your family actually afford?
    I don’t understand why you wouldn’t get more aid anyway, maybe because Indont understand the pension (maybe someone else more knowledgeable will contribute). Am I understanding correctly that the family income then for 2017 would be more like 70k for 5 people? I would have though that would get a lower EFC than $15k.
    If you’ve tried an appeal and it hadn’t worked, can you wait a year? That might give you an opportunity to apply to schools that give more aid and have 2018 income used instead.
  • MYOS1634MYOS1634 Registered User Posts: 39,582 Senior Member
    Have you applied to schools that meet need? Run the NPC?
    What are your stats? It may make more sense to wait a year so that only your 20k income appears and you are eligible for Pell Grants (6k) plus whatever the college is giving you.
  • thumper1thumper1 Registered User Posts: 73,726 Senior Member
    edited February 12
    It appears you are a FL resident...is that right? Do you qualify for Bright Futures? How much? Can you commute to any FL college?

    When you say your “EFC” is $15,000 , do you mean your FAFSA EFC or the net costs the colleges are giving you with aid received? Have you received financial aid packages?

    In 2017, your parents owned a franchise? Did they take business deductions in relation to their business? Some of those deductions are allowed for IRS tax purposes, but are afford back as income for financial aid purposes.

    Something isn’t right. The EFC for a $70,000 income family of five wouldn’t be $15,000.

    Did your parent do a retirement rollover in 2017? Were the self employed in 2017?

    Do you have affordable options on your application list?

    Do your colleges guarantee to meet full need for all...because if they don’t, this could be the reason your net costs are higher than you expected them to be.

    YOU (the student) can take a $5500 Direct Loan in your name if your parents have filed a FAFSA. Do you have a job now?

    What colleges are we talking about here...because that might make a difference. And what are your stats.
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