Assets may also be sheltered by the Simplified Needs Test. The FAFSA excludes certain assets, such as retirement plans, net home equity of the family home and small businesses owned and controlled by the family. The remaining assets are assessed on a bracketed scale which ranges up to 5. Increasing the number of children in college from one to two is almost like dividing the parent income in half.
Other significant changes will include: The new formula will not divide the parent contribution by the number of children in college. The parent and student income allowances will be higher. Students will not have to report certain types of untaxed income, including cash from grandparents, on the FAFSA.
More students will be eligible to receive the federal Pell Grant. The parents who claims a student on their tax return should file the FAFSA regardless of who the child lives with. California universities. Community colleges. Ivy League. Liberal Arts Colleges. College Costs. College Savings.
Financial aid. Student Loans. College rankings. Evaluating Schools. Course Login. Having an idea of what your EFC is can help you narrow down the schools that your family will be able to afford.
It takes into account a variety of factors. It also considers your family size and the number of family members who will go to college during that year. Rather, it is used in the formula for calculating your financial need. A lower EFC is more likely to get you more financial aid. So, a lower EFC is more beneficial.
Very wealthy families may receive an EFC that is greater than the cost of an expensive private university. You can find your EFC located on the top-right of your student aid report. Every school uses your EFC to determine the amount of aid you qualify for. An EFC number is the "expected family contribution", or the amount a family is expected to pay for their student's college education.
It short, the EFC has an effect on how much federal grant money you will be given for college expenses. Most parents misunderstand how an EFC number is used and it is generally assumed that a low EFC number is a better number. In general, a lower EFC number will result in a higher award from the government.
EFC numbers are calculated by schools using the same scale as does the government. Once your FAFSA form is received, the schools arrive at a number between 0 and that will result in a federal student aid grant for the following academic year. Any person with an EFC number at 0 will receive the maximum amount of student aid, while a number over will result in no aid at all.
The numbers, and the amount awarded, fluctuate annually. The closer you can get to zero, the more federal dollars you'll have to help pay for tuition and fees. However, if your family receives a low EFC number that is still higher than what is affordable, it is not a good EFC number.
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