Financial Aid and Home Sale/Purchase

Paying for College
8

<p>

This is based on the formulas used to calculate your EFC.</p>

<p>For assets:</p>

<p>1) count up all your assets. check under couch cushions for loose change.
2) subtract your asset protection allowance. This varies by age and number of parents
3) take 12% of what is left.</p>

<p>Assuming that number is positive, you add that to the number from the income side. Then you look up in a table what your EFC is. The concept is very similar to the tax rate tables for your income tax - as you make more, the rate goes up.</p>

<p>The top rate on the EFC table is 47% (and you get there very quickly).</p>

<p>So the most an asset will add to your EFC is 47% of 12%, or 5.64%.</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;