What my family is expected to contribute is 5 times more than our EFC. Any tips on writing the appeal email? Thank you.
You have to explain “special circumstances.” These can include:
– excessive medical expenses
–significantly lower income this past year or expected in the coming year compared to the 2016 income that was used to calculate your aid.
–recent home disaster (fire, flood, earthquake, etc.)
You can’t just say that your EFC is lower than what Penn is asking you to pay. The EFC is used to calculated just federal aid based on Fafsa. It doesn’t consider your assets, just income. Penn bases your aid on Fafsa AND CSS. Perhaps your family has assets that figured significantly in the calculation.
@brantly thank you. Would you think such a high tuition is due to our owning another house? It is rented out, but does not make that much per month.
Yes, the second house is an asset. The monies paid in rent , no matter how much is considered income. Unfortunately Penn is not going to give you additional monies to subsidize your family having a second income generating home (that is what they would be doing). Did your parents list the home and it’s incone as assets on the FAFSA
If you have spoken with your parents and Penn will not be doable ask to be released now so I hat you can get some RD applications in. You must now look at some financially feasible options since and schools where you can get merit. Schools similar to Penn schools that take the CSS profile will probably net you the same results.
The FAFSA EFC is not a reliable indicator for Penn because they also use the CSS profile and will take into account the second home etc. Did you use the NPC before applying?
If there are special circumstances as noted above you can explain them, but if the school is not affordable I would ask to be released and I would get in some apps to affordable schools.
Your second house equity is considered an ASSET…and the rents received are considered INCOME.
@twogirls that second home should have also been listed on the FAFSA…as an asset. And the rents as income.
Penn can assess second homes any way they choose to. Some colleges use the full value of these homes, as it is considered a choice to own them. Need based aid is not awarded so that families can own second homes.
Another thing…what about your primary home? I believe Penn uses some primary home equity as well…and that isn’t on the fafsa at all.
Are your parents self employed?
Ah ok… We did not fill out the FAFSA this year so I forgot.
A 2nd home could be sold or borrowed against, so I wouldn’t count on getting more aid from Penn. Did you apply to any financial safeties?
What is the equity in that rental property? How much do you get in rents?
Actually, the FAFSA EFC does in many cases take assets into consideration. I would say that’s probably the case here where a second, income property is owned. OP needs to understand that Penn has calculated its own EFC, separate from the FAFSA EFC, as a basis for distributing institutional money, and the Penn EFC almost certainly looks at things that FAFSA ignores (like equity in the primary home).
I recommend you get better informed for your situation…please Go to the College Board/Big Future Free EFC calculator (google it!) and enter the data from your FAFSA and CSS PROFILE. You will then see the EFC that UPenn is working with and better understand what your numbers are…make sure you check the box for BOTH federal (FAFSA) and institutional (PROFILE) formulas! Remember, UPenn only gives need-based aid, so IF the EFC is unaffordable for your family, you MUST find other top schools ASAP that give “merit” money and/or look at public schools with affordable sticker prices…
@BelknapPoint I stand corrected! I was thinking of the primary-home asset.
@birdsandoats What is the available equity in the rental home? Can your parents sell it to finance your college education?
Are your parents self-employed?
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My EFC was a bit over 5000 when I submitted FAFSA, but my family is expected to contribute around 25k per year. Is there any way I can appeal?
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Sounds like one/some/all of the following are the issue…
- some deductions may have been added back in.
- the primary home has equity (and fafsa doesn’t count it)
- the rental property has a higher value/equity than what was reported, so more equity is there.
- the family has a business/self-employed
@twogirls my dad calculated that we would be paying around 13k using the NPC
@mom2collegekids yes both my parents are self-employed
Self employed folks are allowed a number of deductions by the IRS which are NOT allowed for financial aid purposes. Profile schools look at deductions your self employed parents take VERY carefully! It is very, very possible that deductions your parents took on their tax return were added back in as income. Very possible.
In addition, do your parents own your residence…in addition to the rental properties? What is the value of THAT…because some schools do consider the equity in your primary residence when computing need based institutional aid.
What was your parent AGI? Adjusted gross income? Was it a total below $49,999 by any chance? Do you get free or reduced lunch or some other means tested benefit? I ask this because your FAFSA EFC might have been lower because your parent AGI was lower…and you qualified for a means tested benefit. If so…your parent assets would not have counted on the fafsa…but there is no provision for this simplifed needs test for the Profile. EVERYTHING counts.
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yes both my parents are self-employed
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What sort of business? Restaurant? Dry cleaners? What? Does their business have a building and/or any assets?
Likely their business is causing much of the issue.
Do you know if they have a lot of equity in their houses they own?
You can try to appeal but likely you’re not going to get much more if anything. Penn has likely seen this more times than they can count. Students with lowish FAFSA EFCs but much higher CSS Profile results because that captures a family’s real financial picture…lots of home equity, deductions that get added back in, etc.
Have you asked your parents how much they will pay each year for college? How much will they pay
I suggest putting together some information and appealing and doing it quickly. I’d be somewhat more optimistic than other posters - Penn WANTS all of its ED accepted students to attend Penn so I’d guess they will, at a minimum, take your situation seriously.
Having said that, families really can’t “protect” assets from college financial aid offices by investing money in a second home that is then rented out. (No I am not suggesting this was the intent.) . The cash value of that 2nd home matters just as much as if the money were invested in a CD or in a bank account.
Best of luck! As I tell my kids, if you don’t ask, the answer is always no!