FAFSA tips with a lot of dependents

thumper1
Mon, 07 Oct 2019 20:11:13 +0000

@cptofthehouse

The asset protection allowance for parents has been very significantly reduced…very. It’s based on the age of the older parent but even with that…it’s quite low.

Big Decreases in Asset Protection Allowance

The asset protection allowance for a 65-year-old parent has decreased from $84,000 in 2009-2010 to $9,400 in 2020-2021. The $74,600 (88.8%) decrease is the equivalent of as much as a $4,207 cut in the student’s eligibility for need-based financial aid.

Age 48 is the median age of parents of college-age children. For these parents, the asset protection allowance has dropped from $52,400 in 2009-2010 to $6,000 in 2020-2021, a $46,400 decrease.

Huge drop!