<p>Is there somebody guess EFC?</p>
<p>annual family income $20,000</p>
<p>asset $130,000</p>
<p>liability $ 50,000</p>
<p>What is your asset? Is it your primary home or is it a bank account or is it a retirement account?</p>
<p>What do you mean by “liability”. Is it credit card debt? Is it a car loan? Is it the remainder on the mortgage to your primary residence?</p>
<p>Regardless…if your family income is REALLY under $20,000 AND your family completes a 1040A or 1040EZ, or is eligible for something like food stamps or free lunch, you would qualify for the simplified needs test. Your assets would not be considered at all. If that were the case, your EFC would be $0, I believe.</p>
<p>I’ve read all of your past posts. Some sound like a they are from a student and some from the parent. Which are you?</p>
<p>Are you a US citizen?</p>
<p>FAFSA or profile? Big difference. If it is FAFSA, run the numbers for yourself:</p>
<p>[2010-11</a> Expected Family Contribution (EFC) Formula Guide](<a href=“http://www.nasfaa.org/publications/2009/eaefcguide111709.html]2010-11”>http://www.nasfaa.org/publications/2009/eaefcguide111709.html)</p>
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<p>The above was posted by the OP (who sounds like it’s both the mom and the kiddo using the same screenname depending on the post)…so the kiddo sounds like he is a U.S. citizen but the mom is not.</p>
<p>Thumper, if they live abroad, and are not required to pay US income taxes, then that would mean the 1040EZ would not be possible? So, the assets would need to be declared. yes?</p>
<p>You know…I’m not sure how that simplified needs test works for those who live abroad and are not citizens…but their kids are. These kids are eligible to receive federally funded need based aid because they ARE U.S. citizens…and their family income does need to be reported on the FAFSA in U.S. dollars. BUT you are right…they would not need to file a U.S. tax return.</p>
<p>Perhaps one of the international finaid experts or someone else can pipe in on this one. </p>
<p>Good catch!!</p>
<p>The family would not be considered eligible to file a 1040A/EZ because they do not file a U.S. tax return. They would also not receive federal need-based benefits, as they do not live in the U.S. The only other way to qualify for Auto 0 EFC would be dislocated worker. </p>
<p>I am guessing the assets would be considered here. The EFC would still be really low, though, with a 20,000/year earned income. The asset protection allowance will cushion the blow from the assets. There is no place in the formula for liabilities in the sense of debt other than debt against a reportable asset (like a mortgage on a rental property).</p>
<p>*They would also not receive federal need-based benefits, as they do not live in the U.S. *</p>
<p>Interesting to know…</p>
<p>So, a very low EFC citizen who lives abroad can’t get Pell or Stafford loans if going to college in the US?</p>
<p>I think Kelsmom meant that they would not receive things like food stamps or free and reduced lunches which can be used to qualify for the ‘no assets considered’ financial aid formula</p>
<p>Oh…yes…that makes sense! </p>
<p>I misread that. :)</p>