Is there a double hit on students income

Paying for College
1

<p>This is part of numerous questions that I have in moving in the college selection path, but it is my major one right now.</p>

<p>Lets suppose that a student has $0.00 in their bank account at the beginning of the year. They have a very good part time job that between Jan 1 and Dec 31 they earn $4000 for the year. THey spend nothing and all goes into the bank.</p>

<p>Is this the hit that they will take on the FAFSA</p>

<li><p>They will have $4000 in a bank account- for which on the Fafsa will account for an $800 EFC (20%)</p></li>
<li><p>They had $4000 in income- for which $3000 is protected, and 50% of the remaining $1000 is for an EFC of $500</p></li>
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<p>So the total EFC from the students assets and income would be $800 + $500 or a total student EFC of $1300</p>

<p>If this is correct, this is totally nuts- Why should they be doubly hit on their income? I thought the government wanted people to save money? With this the case, why would any student want to work and make over $3000, and also why would they want to save any of it and not just use it for fun?</p>

2

<p>It is what it is. Write you Congressman if you want the law changed.</p>

<p>Instead using the $$ for fun, prepay next semester’s tuition so the money is no longer in your bank account when you complete fafsa.</p>