<p>Is EFC calculated the same way for most schools? I am not employed so my income comes from dividends and interest. It is somewhat unfair to count ordinary income and assets that used to produce the income for EFC. I am assuming this is just how it works everywhere. </p>
<p>Also what about step parent income and assets? Are all schools universal considering that student always has three parents for EFC calculation? What if custodial parent uses income/assets for support and step parent does not?</p>
<p>Thank you</p>
<p>For the FAFSA EFC -
yes it is calculated the same way for all schools. you enter the numbers into FAFSA and they are put through a formula that spits out the EFC.</p>
<p>
Unprotected Assets are used in the formula. If the assets are protected (retirement investments like IRAs/401ks or primary home) they are not considered. For instance my husband is retired so we are living on retirement funds. The assets in the 401k are not considered. The amount we withdraw from the 401k to live on is considered. We also have some dividend income from non IRA investments. Those investments are **not **protected so are considered as assets.The income from those investments is considered as income. </p>
<p>
FAFSA requires the financial information of the custodial parent and his/her spouse. The noncustodial parent is not required by FAFSA.</p>
<p>
All income and assets are considered as being equally available to the parental ‘unit’ - parent and step parent. There is no assigning by FAFSA of this income belongs to the biological parent and that to the step parent. It does not matter where the income comes from. Income and non protected assets of both the parent and the step parent are required to be reported.</p>
<p>For schools requiring css/profile the information of custodial parent and spouse plus non custodial parent and spouse is required. The EFC for federal aid will still be based on FAFSA. But the EFC for their institutional aid is based on CSS/profile. css/profile schools do not neccessarily calculate their EFCs the same way.</p>
<p>Thank you, swimcatsmom.
So if css/profile schools do not necessarily calculate their EFCs the same way are they allowed to exclude certain income/assets from step parent or allow for special circumstances? Is it possible for css/profile EFC be less than FAFSA EFC?</p>
<p>Funds dispersed by the federal and state governments (where the FAFSA is used to calculate eligibilty) have very strict rules regarding exceptions and special circumstances.</p>
<p>Funds that are awarded by the individual school (institutional grants) can be awarded in any way the school sees fit – so the answer is, yes, the school can make exceptions, exclusions and allow for special circumstances. It doesn’t necessarily mean that they will – it may depend on the size of the endowment, how generous the school is and how much the school wants your student.</p>
<p>It is possible for the Profile EFC to be less – but it isn’t likely. FAFSA does not take into account the non-custodial parent’s assets and income, nor does it take into account the value of the primary home. Profile does take those things into consideration, raising the EFC for many families.</p>