Life insurance question

sk8rmom
Tue, 04 Oct 2011 20:02:36 +0000

There is no income cutoff for Stafford loans. The FAFSA EFC only determines whether the loans she’ll be offered next year will be subsidized or unsubsidized. A student with a $99K EFC can still take unsubsidized loans.

Parents have an asset protection allowance for FAFSA, but it’s fairly low for single parents (generally under $20K). Assets including the primary residence, qualified retirement plans, life insurance policies, etc. are not reported for FAFSA. All other parental assets are reported and 5.6% of the balance per year, after the asset protection allowance, contributes to the FASFA EFC.