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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]So income factors into this highly, but what about expenses? Lets say your income is substantial, your house is worth 1 mil or more, but you have little equity in the house and a high mortgage payment. You also have car payments for expensive, newer model cars. And a lake or beach house (also mortgaged).  Compare that to a family with the same income with a modest house that is paid off, so no mortgage payment, and no car payments, either, because they have older cars that are also paid off.  The first family demonstrates more need on paper so likely has less EFC but lives much "larger" by choice than family #2.   [/quote]

[b]Just look at the FAFSA formulas, it does not ask about monthly expenses, so, no.[/b]  For CSS the questions re real estate are purchase price and date, current value, monthly payment.  How the school processes that is their prerogative.  Some schools don’t use it, some have extra info they collect.

My favorite is schools with a supplemental form, “What do you expect to pay?”  One DC got one of these from Smith, the other from Macalester.[/quote]

This is correct.  People who choose to "live large" in having large monthly expenses do NOT benefit under the FAFSA in the calculation of their EFC. [/quote]

They don't have savings that they are then expected to liquidate [/quote]

Spending 6% of savings is not liquidating.  The point is 47% of current income will be added to EFC no matter how they typically squander it. [/quote]

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