High EFC -- not sure I did the FAFSA correctly

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here:

AGI from 1040: $217,019
Assets: $1,275,000
EFC: 139894

It’s the assets.

After some allowance tied to parental age, the EFC formula is, 5.64% assets + (22-47%)+ income. So OP's EFC would be 119650 at minimum. Looks correct.

[Anonymous]

OP here: "Oldest" parent is 54, if that makes a difference. Did not include any retirement accounts or house.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous[b wrote:]If your gross income is $450,000, is it even worth completing the FAFSA?

Only if the college requires it for e.g. merit aid. Before anyone jumps at me for not knowing the difference between merit and need based, some colleges want to make sure that any aid that can be classified as need based is reported as such, so they want you to fill out FAFSA just in case.

[/b]


You fill it out because most colleges (my kids' did) require it to be filled out before financial aid will even talk to you. It's required also as a prereqisite for some merit scholarships. Also, once you fill it out, no matter what your EFC, your children then get access to the unsubsidized federal loans, which both of my kids took out, which amounts to about $26,000 over the four years.

Is it really true you need to fill it out for merit? We are not getting any aid, AGI probably 250 but more assets than OP, I’d rather not bother but we wouldn’t turn out Nose up at merit aid..

We didn’t fill it out and kid has been offered lots of merit. Nobody has said we need to do it.

it is not always the case. but if a student is eligible for a pell grant, than the school wants to know.

[Anonymous]

I’m still confused. If we make 250k AGI and have 1.5 million in assets (outside of retirement accounts and home) we aren’t getting financial aid right? I’m certainly not expecting it, even at schools that are 85k/year. Am I missing something though??

[Anonymous]

Anonymous wrote:I like how Purdue does things: merit scholarships exist, but every kid largely pays the same tuition no matter how rich or poor their parents just so happen to be. Every kid should have some skin in the game.

So you think poor folks don't have any skin in the game? Or they are posing as poor to scam?

[Anonymous]

Anonymous wrote:OP here: "Oldest" parent is 54, if that makes a difference. Did not include any retirement accounts or house.

that's young in our house.

[Anonymous]

Anonymous wrote:I’m still confused. If we make 250k AGI and have 1.5 million in assets (outside of retirement accounts and home) we aren’t getting financial aid right? I’m certainly not expecting it, even at schools that are 85k/year. Am I missing something though??

Yep. You are not getting anything.

[Anonymous]

Anonymous wrote:I like how Purdue does things: merit scholarships exist, but every kid largely pays the same tuition no matter how rich or poor their parents just so happen to be. Every kid should have some skin in the game.

Purdue is a public school snd beautifully run by Mitch Daniels

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here:

AGI from 1040: $217,019
Assets: $1,275,000
EFC: 139894

It is the asset, for us

AGI from 1040: $300,000
Assets: $2,000,000
EFC: $233,000

I feel it is not fair to older parents close to retirement with limited future income.

So because I had the sense to have kids on time I should cross subsidize you, a person with the money to pay but not the desire to pay? Mmmm no thanks.

[Anonymous]

Anonymous wrote:I’m still confused. If we make 250k AGI and have 1.5 million in assets (outside of retirement accounts and home) we aren’t getting financial aid right? I’m certainly not expecting it, even at schools that are 85k/year. Am I missing something though??

You are not getting any financial aid.

[Anonymous]

Anonymous wrote:I’m still confused. If we make 250k AGI and have 1.5 million in assets (outside of retirement accounts and home) we aren’t getting financial aid right? I’m certainly not expecting it, even at schools that are 85k/year. Am I missing something though??

You are not missing anything. You are not eligible for need-based aid.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP here:

AGI from 1040: $217,019
Assets: $1,275,000
EFC: 139894

It is the asset, for us

AGI from 1040: $300,000
Assets: $2,000,000
EFC: $233,000

I feel it is not fair to older parents close to retirement with limited future income.

So because I had the sense to have kids on time I should cross subsidize you, a person with the money to pay but not the desire to pay? Mmmm no thanks.

I am just stating the fact that net worth has to do with age, 2 million net worth at 45 is a much better financial position than net worth of 2 million at 65

[Anonymous]

Anonymous wrote:I like how Purdue does things: merit scholarships exist, but every kid largely pays the same tuition no matter how rich or poor their parents just so happen to be. Every kid should have some skin in the game.

So they somehow prevent parents from paying? So every kid graduates with crippling debt? Do they prevent parents from paying loans too?

[Anonymous]

Anonymous wrote:I’m still confused. If we make 250k AGI and have 1.5 million in assets (outside of retirement accounts and home) we aren’t getting financial aid right? I’m certainly not expecting it, even at schools that are 85k/year. Am I missing something though??

Simple math
For the assets part alone they take 5.64% for EFC
1.5 million * 5.64% = $ 84,600

That’s $84,600 EFC before even taking the 250k income into account

[Anonymous]

Anonymous wrote:OP here:

AGI from 1040: $217,019
Assets: $1,275,000
EFC: 139894

Lol yeah your income and assets have screwed you. No 2 ways about it