FAFSA EFC--ridiculous amount?

Question

I filled out a FAFSA and just received my student aid report. My EFC is a whopping $11,000 !!! Can that be right? Is it possible I made a major mistake? My parent's combined income was about $40,000 last year. They have no assets, nor do they have a ton of money in the bank. My dad retired last year. My mom is currently unemployed. Income is expected to go down considerably. I also have unusual family circumstances. My parents have spent $10,000+ on lawyer fees for my sister. They have also supported her financially. Will the school adjust my EFC to reflect this significant change from last to this year?

Answer 1

Talk to your financial aid officer about your current situation. Many schools can do a "Professional Judgement" To make a correction to your EFC, however they will not openly offer it to you because it is a lot of extra time and paperwork. If they consider you for this process you need to be ready to prove everything and submitting a lot of data to your officer. The two of you will become good friends throughout the process!

Answer 2

That EFC does sound accurate based on a household income of $40,000. EFCs are largely based on a family's annual income and, then, to a lesser extent, on assets. Relatively-speaking, $11,000 isn't a very high EFC; there are plenty of schools that would still view a student with this level of support as fairly needy. In fact, if you attend a private college that costs upwards of $40,000, an $11,000 EFC still leaves you with $30,000 in need -- and most schools understand what a burden a $30K gap can be for a middle-income family.

Now, you say that your income is "expected to go down considerably." Keep in mind that your FAFSA contains information about your current financial situation (technically, last year's tax data). It cannot make allowances for future events. If your situation changes this year, the decreased income will appear on next year's FAFSA.

I would recommend writing your school a letter explaining about the recent job loss and the issue with your sister's legal fees. Some of that might be able to be taken into consideration when your school determines your financial aid for the upcoming year. It's unlikely that they'll make any changes based on your father's retirement, though.

Answer 3

Yeah that sounds totally wrong. With my parents combined income of $47,000 approximately, the EFC came out to be 2251. I think something might be wrong but just know that its just an approximation and the financial aid offices at the schools you are applying for will look over your application. I don't actually think they'll look over your circumstances and still make you pay $11,000 because that just sounds ridiculous. Maybe you can call the customer service at fafsa and ask if this is right.

Answer 4

That sounds about accurate to me. They strictly take into account the information provided on the FAFSA. You will still be eligible for financial aid: possibly grants and for sure student loans. Generally your EFC is 25-35% of the combined income. It sucks, but that's how it goes.