Reply to Good explanation of where the Expected Family Contribution (EFC) comes from

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[quote=Anonymous]I'm a single parent, and the NYT piece is disturbing. I'm already panicking about sending my DD to school in 2015 with a far-too-little-funded 529.

"As with income, there is an “asset protection allowance” for parents. It does takes age into account — a little. A two-parent family in which the older parent is 30 has $9,100 that can’t be touched. If the older parent is 60, the allowance is $45,500.

Now, here’s the weirdest part of the formula: Single parents are allowed a far, far smaller allowance than married parents. A 60-year-old single parent can cordon off only $10,200. This is apparently because the formula is based on very outdated assumptions.

Nowadays, it’s well known that a two-person household does not cost twice as much as a single-person household, so it’s doubtful that two people would need to save twice as much as one — much less four times more. Or put another way, a single person nearing retirement needs to save almost as much as a couple. But the formula forces single parents to cough up more for tuition."[/quote]

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