How did FAFSA calculate my EFC of 81,789?

[BelknapPoint]

If your parents have savings, that is a death knell for need-based financial aid. Our EFC exceeds our annual take home pay after taxes. That doesn’t take into account the fact that out of that money we need to pay for clothing, food, shelter, transportation, and insurance. It is ludicrous to expect families to contribute more than their entire take home pay to college education, but that is probably why we have an entire generation saddled with college debt. We refuse to partake in that system so my daughter will go where she receives merit aid.

Well, it depends. If your annual take home pay after taxes is $60,000 but you have $1,000,000 in non-qualified retirement savings or investments, it’s not unreasonable that your EFC exceeds your annual take home pay after taxes. Context matters here. Students and parents generally aren’t expected to pay 100% of the EFC out of current earnings. Savings can and should play a part.