FAFSA EFC

[Anonymous]

Just did my DD FAFSA today and they gave us an EFC of 096832. They are trying to say we can contribute $96,832 towards her college education which we surely cannot afford. Not sure how FAFSA calculated EFC but it is not reasonable.

[Anonymous]

I agree it's nuts! Talk to Congress about it. Does the FAFSA give you an instant EFC electronically? I hadn't bothered to check it out since net price calculators all say we don't qualify for need-based aid with an income of $175k (despite 3 kids!).

[Anonymous]

How much is your income? It is either that or your assets raising your EFC. If the issue is assets, transfer savings to retirement, pay off debt, or pay down the mortgage on your primary home. Kids should have almost no savings, though retirement savings, including ROTHs, are not counted against them when factoring in assets.

[Anonymous]

Anonymous wrote:Just did my DD FAFSA today and they gave us an EFC of 096832. They are trying to say we can contribute $96,832 towards her college education which we surely cannot afford. Not sure how FAFSA calculated EFC but it is not reasonable.

(Parent after tax income - about $32,000) + 12% of parental assets (not including primary house or retirement savings) = Parent Adjusted Available Income

Take the Parent Adjusted Available Income and look up the yearly EFC from Table A6:

Table A6: Parents’ Contribution from AAI
If the parents’ AAI is — Then the parents’ contribution from AAI is—
Less than -$3,409 -$750
$-3,409 to $17,000 22% of AAI
$17,001 to $21,400 $3,740 + 25% of AAI over $17,000
$21,401 to $25,700 $4,840 + 29% of AAI over $21,400
$25,701 to $30,100 $6,087 + 34% of AAI over $25,700
$30,101 to $34,500 $7,583 + 40% of AAI over $30,100
$34,501 or more $9,343 + 47% of AAI over $34,500

If your adjusted income is greater than $34,000 --- you are expected to be able to pay $9343 from the first $34,500 of your income and assets PLUS almost 50% of the rest of your income and assets.

[Anonymous]

Anonymous wrote:How much is your income? It is either that or your assets raising your EFC. If the issue is assets, transfer savings to retirement, pay off debt, or pay down the mortgage on your primary home. Kids should have almost no savings, though retirement savings, including ROTHs, are not counted against them when factoring in assets.

HHI around $350k but have 4 rental properties I had to list as with.

[Anonymous]

Per the suggestion of transferring assets to retirement, aren’t there annual limits on that for both 401ks and IRAs? If you’ve got like $200k in a stock market account, you can’t just transfer that to retirement accounts, can you?

[Anonymous]

Anonymous wrote:

Anonymous wrote:How much is your income? It is either that or your assets raising your EFC. If the issue is assets, transfer savings to retirement, pay off debt, or pay down the mortgage on your primary home. Kids should have almost no savings, though retirement savings, including ROTHs, are not counted against them when factoring in assets.

HHI around $350k but have 4 rental properties I had to list as with.

Oh jfc. You or your children are not the intended recipients of grants or subsidized loans. I can not believe you have the audacity to complain.

You'll pay, your kids will take out unsub loans (which you will likely pay off for them later bc you absolutely do have the money), you'll take loans out against your properties or other assets or do whatever it is that wealthy people do.

[Anonymous]

Anonymous wrote:Per the suggestion of transferring assets to retirement, aren’t there annual limits on that for both 401ks and IRAs? If you’ve got like $200k in a stock market account, you can’t just transfer that to retirement accounts, can you?

Yes. In addition if you are applying to private schools that ask for the CSS Profile, your parents' contributions that year to retirement accounts will count as income as well.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much is your income? It is either that or your assets raising your EFC. If the issue is assets, transfer savings to retirement, pay off debt, or pay down the mortgage on your primary home. Kids should have almost no savings, though retirement savings, including ROTHs, are not counted against them when factoring in assets.

HHI around $350k but have 4 rental properties I had to list as with.

Oh jfc. You or your children are not the intended recipients of grants or subsidized loans. I can not believe you have the audacity to complain.

You'll pay, your kids will take out unsub loans (which you will likely pay off for them later bc you absolutely do have the money), you'll take loans out against your properties or other assets or do whatever it is that wealthy people do.

LOL. “Can’t afford” it. Sell a rental property, dude.

[Anonymous]

Anonymous wrote:Just did my DD FAFSA today and they gave us an EFC of 096832. They are trying to say we can contribute $96,832 towards her college education which we surely cannot afford. Not sure how FAFSA calculated EFC but it is not reasonable.

This is why many upper middle class kids go to in state public colleges.

UMD Cost of Attendance $28,000/year

https://financialaid.umd.edu/resources-policies/cost-attendance

[Anonymous]

Anonymous wrote:

Anonymous wrote:Just did my DD FAFSA today and they gave us an EFC of 096832. They are trying to say we can contribute $96,832 towards her college education which we surely cannot afford. Not sure how FAFSA calculated EFC but it is not reasonable.

This is why many upper middle class kids go to in state public colleges.

UMD Cost of Attendance $28,000/year

https://financialaid.umd.edu/resources-policies/cost-attendance

[Anonymous]

Anonymous wrote:

Anonymous wrote:How much is your income? It is either that or your assets raising your EFC. If the issue is assets, transfer savings to retirement, pay off debt, or pay down the mortgage on your primary home. Kids should have almost no savings, though retirement savings, including ROTHs, are not counted against them when factoring in assets.

HHI around $350k but have 4 rental properties I had to list as with.

You must be trolling us! You have 4 rental properties PLUS a high salary and you can’t afford to pay for college? You should be able to pay at least $60k per year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much is your income? It is either that or your assets raising your EFC. If the issue is assets, transfer savings to retirement, pay off debt, or pay down the mortgage on your primary home. Kids should have almost no savings, though retirement savings, including ROTHs, are not counted against them when factoring in assets.

HHI around $350k but have 4 rental properties I had to list as with.

You must be trolling us! You have 4 rental properties PLUS a high salary and you can’t afford to pay for college? You should be able to pay at least $60k per year.

I also have two other kids currently in college and two younger kids I am paying daycare for.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much is your income? It is either that or your assets raising your EFC. If the issue is assets, transfer savings to retirement, pay off debt, or pay down the mortgage on your primary home. Kids should have almost no savings, though retirement savings, including ROTHs, are not counted against them when factoring in assets.

HHI around $350k but have 4 rental properties I had to list as with.

You must be trolling us! You have 4 rental properties PLUS a high salary and you can’t afford to pay for college? You should be able to pay at least $60k per year.

I also have two other kids currently in college and two younger kids I am paying daycare for.

Choices have consequences. You have 5 children. You make a top 10% income combined. Have your kid go to community college- thats always an option touted on this forum as a great financial move.

Also you sound like you are expecting a subsidy so that you can keep your rental properties which generate wealth for you. Seriously stop. Sell your properties if you insist on paying for your kids college. If you cant, then have them take out loans like everyone else. You and your family actually have choices. If the interest is too high on the public or private loans then look into other loan products leveraged against your rental properties. Furthermore, in unsubsidized loans the interest starts to accrue immediately. So you have choices outside of that. Most kids dont.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much is your income? It is either that or your assets raising your EFC. If the issue is assets, transfer savings to retirement, pay off debt, or pay down the mortgage on your primary home. Kids should have almost no savings, though retirement savings, including ROTHs, are not counted against them when factoring in assets.

HHI around $350k but have 4 rental properties I had to list as with.

You must be trolling us! You have 4 rental properties PLUS a high salary and you can’t afford to pay for college? You should be able to pay at least $60k per year.

I also have two other kids currently in college and two younger kids I am paying daycare for.

So if the EFC of approx. $100K for all 3 kids in college? You need to consider selling 1 or 2 rental properties. Curious, did you factor in college costs before deciding to have 5 kids? Also, are you remarried and have young kids from a new relationship? Just curious why people have 3+ kids nowadays considering the high cost of living and college costs.