<p>Does anyone know how FAFSA uses the total of cash, savings and checking to calculate EFC? My bank account fluctuates a lot over the course of a month and I am just wondering if I should use the absolute lowest day or whether I should use an average day. How much of a difference is it liekly to make?</p>
<p>Depends how much you have in total assets. All assets (checking/savings/investments) are treated the same by the EFC formula. There is a certain amount of asset protection depending on the number of parents and the age of the older. The maximum amount of assets that go to the EFC is 5.6%. If your total assets exceed the protected allowance then reporting on the day the balances are at their lowest helps reduce the EFC. If your total reportable assets are below the protected allowance then it would make no difference.</p>
<p>For student assets 20% goes to the EFC and there is no asset allowance. So students should definitely file on a day when the balance is at it’s lowest.</p>