<li> When colleges consider Need Based scholarships, do they look at parents income for the current year or for the past few years?</li>
<li> Do they look at Gross income or Adjusted gross income?<br></li>
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<p>Thanks</p>
<p>They look at income, assets, number in household, and number in college. They do NOT look at debt.</p>
<p>FAFSA uses the year prior to the year for which you are applying for aid. For example, the 2009-10 aid year uses the 2008 income as a base year. Some schools also ask for info regarding other years (on the Profile or on their own forms). </p>
<p>They look at income from work, AGI, taxes paid, and other information from the 1040. In addition, some schools will examine the sources of income/losses claimed more carefully than others. They also collect info regarding untaxed income.</p>
<p>Like a lot of small business (LLC) owner in the housing or investment business, the bottom line on tax returns will be negative for the next several years due to the down turn. </p>
<p>How does EFC work with negative numbers?</p>
<p>[Federal</a> Student Aid - IFAP: iLibrary - EFC Formula Guide](<a href=“http://www.ifap.ed.gov/ifap/byAwardYear.jsp?type=efcformulaguide&awardyear=2009-2010]Federal”>http://www.ifap.ed.gov/ifap/byAwardYear.jsp?type=efcformulaguide&awardyear=2009-2010)</p>
<p>for FAFSA I think it becomes a $0</p>
<p>For negative numbers if you have business losses, you still have to pay something…
My mom has an estimated $109500 business loss, but we have a $540 dollar EFC. Most of it is from my assets, I think. (About 2000 in savings?)
Also for the CSS, having the business even though it is worth nothing took away the option of having it sent for free. I paid the 76 dollars with my Christmas money.</p>