Asset Conversion Rate

Paying for College
1

<p>How come the new FAFSA tables show an Asset Conversion Rate multiplier of .12? I though only about 5.6% of assets are counted against the contribution. What am I missing? Thanks for your help!</p>

2

<p>It gets multiplied by another factor (around 47%) and the end result is 5.6%. See Table A6: Parents’ Contribution from AAI in this document:</p>

<p><a href=“http://www.ifap.ed.gov/efcformulaguide/attachments/101310EFCFormulaGuide1112.pdf[/url]”>http://www.ifap.ed.gov/efcformulaguide/attachments/101310EFCFormulaGuide1112.pdf&lt;/a&gt;&lt;/p&gt;

3

<p>I get it now. Thanks!</p>