Effect of a raise on our EFC?

Paying for College
1

<p>Can anyone here tell me how much a $10000/year raise will increase our EFC? Currently, it’s just under $12000. </p>

<p>Thanks!</p>

2

<p>Just guessing but if everything else stays the same probably at least a thousand or two…If you want a more accurate picture run an EFC caculator with and without the $10,000 in income.</p>

3

<p>Subtract out the taxes you will pay on it, and take 47% of what is left.</p>

<p>So if you are in the 28% bracket for Federal, 5% state, and 7.65% FICA, that’s about 40%. Which leaves $6000, 47% of that is $2800 or so. So your EFC will go up by around $2800.</p>

<p>The 47% comes from a table in the FAFSA formula guide, once you get to a certain income level, the formula adds 47% of every dollar after taxes to your EFC. If your EFC is $12000 largely from your income, you are in the 47% bracket.</p>

<p>Here’s the formula guide: <a href=“http://ifap.ed.gov/efcformulaguide/attachments/010512EFCFormulaGuide1213.pdf[/url]”>http://ifap.ed.gov/efcformulaguide/attachments/010512EFCFormulaGuide1213.pdf&lt;/a&gt;&lt;/p&gt;