Student income ...

swimcatsmom
Sun, 06 Nov 2011 13:46:04 +0000

If they qualify for the automatic 0, then the student income will have no effect on the EFC.



In that case, as long as the parents’ income (not family income, just parents’ income) is under $31K/year, they still get automatic zero EFC and his income still doesn’t count, right ?

Not necessarily. They must meet the income cut off ***and *** at least one of the other criteria. Other than food stamps (or other means tested benefits), the other criteria are that the parent must be eligible to file a 1040a or ez, or parent must be a dislocated worker. (I think the food stamps make you eligible, along with the income cut off, as long as you have received them in the past 2 years)

If the family is not eligible for the auto 0, 50% of student income over the protected allowance (plus allowances for any taxes, FICA etc) goes to the EFC.



For the 2011-2012 Award Year, a dependent student qualifies for the simplified EFC formula if
both (1) below and (2) on the next page are true:
(1) Anyone included in the parents’ household size (as defined on the FAFSA) received benefits during 2009 or 2010 from any of the designated means-tested Federal benefit programs: the Supplemental Security Income (SSI) Program, the Food Stamp Program, the Free and Reduced Price School Lunch Program, the Temporary Assistance for
Needy Families (TANF) Program2, and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC); OR the student’s parents filed or were eligible to file a 2010 IRS Form 1040A or 1040EZ, they filed a 2010 IRS Form 1040 but were not required to do, or the parents were not required to file any income tax return; OR
the student’s parent is a dislocated worker.
AND
(2) The 2010 income of the student’s parents is $31,000 or less.
• For tax filers, use the parents’ adjusted gross income from 2010 Form 1040A or 1040EZ to determine if income is $31,000 or less.
• For non-tax filers, use the income shown on the 2010 W-2 forms of both parents (plus any other earnings from work not included on the W-2s) to determine if income is $31,000 or less.



So for the 2012-2013 FAFSA I am guessing the food stamp eligibility would be met if food stamps were received during 2010 or 2011.

The income cut off has increased to $32,000 for the 2012-2013 FAFSA, and the student income protection is $6,000.