UMass Lowell Financial Aid Office EFC Calculation

1. UMass LowellFinancial Aid OfficeEFC Calculation 2013-2014 Award Year

2. EFC • The EFC is a number used to determine a student’s eligibility for federal student aid. • Results from the information reported on the FAFSA. • Methodology is found in Part F of the Title IV of the Higher Education Act of 1965, as amended. • Updated tables used in the computation of the 2013-2014 EFC published in Federal Register

3. EFC Formulas • A – Dependent Student • B – Independent w/o dependents other than spouse • C – Independent with dependents other than a spouse

4. Types of Analysis • Full Needs • Asset info used to determine EFC • Simplified Needs • Asset info not used • Auto Zero

5. ISIR Formula Number • Each student’s ISIR numerically indicates which formula was used to generate the EFC • 1 = Full Needs: Dependent • 2 = Full Needs: Independent w/o Dependents • 3 = Full Needs: Independent with Dependents • 4 = Simplified Needs: Dependent • 5 = Simplified Needs: Independent w/o Dependents • 6 = Simplified Needs: Independent with Dependents

6. Asset Net Worth Threshold Question • Added to FOTW for 11-12 aid year • IND students & parents of DEP students that meet criteria are presented with the asset threshold question to determine if asset net worth must be reported and used in the EFC calculation • Question presented: • As of today, does the total amount of your mother’s current assets exceed $______? • If no, asset questions are skipped. • ISIR noted “Asset Threshold Exceeded” • Blank, Yes, No

7. Simplified Needs Analysis Dependent • Parent AGI less than $50,000 - AND - • Parents not required to file 1040 - OR - • One parent is dislocated worker - OR - • Anyone in the household receives federal needs-tested benefits • SSI • Food Stamps • School Lunch • SNAP • TANF • WIC

8. Simplified Needs Analysis Independent • Student AGI less than $50,000 - AND - • Student not required to file 1040 - OR - • Student or spouse is dislocated worker - OR - • Anyone in the household receives federal needs-tested benefits • SSI • Food Stamps • School Lunch • SNAP • TANF • WIC

9. Auto Zero EFC Dependent • Auto-Zero EFC (Dependent ) • Parental combined AGI is $24,000 or less • Parents not required to file 1040 - OR - • One parent is dislocated worker - OR - • Anyone in the household receives federal needs-tested benefits • SSI • Food Stamps • School Lunch • SNAP • TANF • WIC

10. Auto Zero EFC Independent with Dependents other than Spouse • Student AGI less than $24,000 - AND - • Student not required to file 1040 - OR - • Student or spouse is dislocated worker - OR - • Anyone in the household receives federal needs-tested benefits • SSI • Food Stamps • School Lunch • SNAP • TANF • WIC

11. Auto Zero EFC Independent with no Dependents other than Spouse • Not eligible for Auto Zero • Always full needs or simplified needs

12. Assumptions • Why might a manual EFC calculation vary from the EFC on the SAR? • CPS makes assumptions to resolve the inconsistent information; assumed values are then used • All calculations are carried to three decimal places • Calculations rounded to nearest whole numbers Round upward for results of .500 to .999 Round down for results of .001 to .499 • Rounding performed so intermediate value that is the result of each step does not have any decimal digits

13. Applying What You’ve Learned • Alan • Independent • Not married, no kids • AGI = 16,000 • Cory • Independent • DINK • AGI = 45,000 • Filed 1040 • SNAP • Betsy • Independent • Married, no kids • AGI = 78,000 • Filed 1040 • Daniel • Independent • DINK • AGI = 22,000 • Filed 1040A

14. Applying What You’ve Learned • Edward • Dependent • Parent doesn’t file • Has income of $8,500 • S-AGI = $48,000 • Files 1040 • George • Dependent • P-AGI = $42,000 • Filed 1040 • SNAP • Francis • Dependent • P-AGI = $82,000 • Filed 1040 • S-AGI = $4,500 • Helen • Dependent • P-AGI = $22,000 • Filed 1040A • S-AGI = $7,500