<p>Hello,</p>
<p>If I use form 8917 it lowers my income below $31000 qualifying us for 0 EFC and a Pell Grant of $5550. If I use Form 8863 instead our EFC becomes $2358 and Pell lowers to $3,200 but my IRS refund increases by $2,000.</p>
<p>It’s just about a wash but my question is does the 0 EFC open up more opportunity for grant money for my son?</p>
<p>Thanks for any help!</p>
<p>There is no definite answer. It might. Some schools use the 0 EFC as a criteria for the SEOG grant (and other limited aid such as Perkins loans WS). I know at my daughters school her first year with a 700 ish EFC she did not get SEOG. The next year with a 0 EFC she got $2000 SEOG. SEOG varies from school to school though. At my daughter’s school the max is $2,000 and at my son’s it was $100. In our case the EFC cut off for our $1000 state grant is 1300.</p>
<p>Is any of your income from work? Reducing your AGI below $31000 through an IRA contribution might be something to consider. (assuming you are otherwise eligible for the auto 0 - file a 1040A or meet one of the other criteria).</p>
<p>Thanks swimcatsmom,</p>
<p>Yes, my income is largely from work. I’ll try to contribute to a traditional IRA for 2011. I contributed the maximum to a Roth IRA this year so it’s too late for this year. But that’s definitely something to keep in mind for next year.</p>
<p>I’ll probably go for the bird in the bush theory this year.</p>
<p>Thanks again.</p>