1 / 30

Chuck Moore, CCFC, CAMC, CAFC Louisville, Kentucky 502-721-8646 ▪ tuition2@insightbb

Chuck Moore, CCFC, CAMC, CAFC Louisville, Kentucky 502-721-8646 ▪ tuition2@insightbb.com www.collegeliteracyacademy.com www.gearuped.com. How The EFC Is Calculated. What Is College Financial Aid.

morse
Download Presentation

Chuck Moore, CCFC, CAMC, CAFC Louisville, Kentucky 502-721-8646 ▪ tuition2@insightbb

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chuck Moore, CCFC, CAMC, CAFC Louisville, Kentucky 502-721-8646 ▪ tuition2@insightbb.com www.collegeliteracyacademy.com www.gearuped.com

  2. How The EFC Is Calculated

  3. What Is College Financial Aid Student financial aid refers to funding intended to help students pay educational expenses including tuition and fees, room and board, and books/supplies, and miscellanious costs, for education at a college, university, or private school. Financial aid may be classified into two types, merit-based or need-based.

  4. Where Does Most College Financial Aid Come Form Most student aid is provided by the federal government. Students received more than $109 billion in federal aid during the school year of 2011–2012. Most federal student aid is awarded as grants and low-interest loans.

  5. The Financial Aid Process FAFSA and CSS Profile

  6. The FAFSA cannot be filed until after January 1 of the student’s senior year of high school. Furthermore, it must be filed each year the student is seeking financial assistance while in college. • The Federal Methodology Formula that calculates the family’s EFC is based mainly on the parents’ and student’s income and assets minus certain deductions and allowances.

  7. Completing The FAFSA • Simple To Complete • Complicated To Understand

  8. FAFSA Formula Similar To Tax Formula • Income Protection Allowance • Asset Protection Allowance • Employment Allowance • Deductions For Certain Taxes Paid

  9. Income Protection Allowance

  10. Income Protection Allowance Example Number In Household 4 Number In College 1 AGI: $85,000 Income Protection Allowance $26,290 Available Income $58,710

  11. Asset Protection Allowance

  12. Asset Protection Allowance Example Oldest Parent 46 Allowance $37,100 Exposed Assets $50,000

  13. Asset Protection Allowance Example Oldest Parent 46 Exposed Assets $50,000 Allowance (minus)$37,100 $12,900 $12,900 X 5.65% Adjusted Available Assets $729 ($729 Is Added Into Your Adjusted Available Income)

  14. Employment Allowance Example Number Of Parents Working 2 Lowest Earner Amount $26,000 Employment Allowance % 35% Maximum Allowance $3,500 (Single Wage Earners Do Not Get An Employment Allowance)

  15. Employment Allowance Example Number Of Parents Working 2 Lowest Earner Amount $26,000 Employment Allowance % X 35% $9,100 Maximum Allowance $3,500 (Single Wage Earners Do Not Get An Employment Allowance)

  16. Employment Allowance Example Number Of Parents Working 2 Lowest Earner Amount $7,000 Employment Allowance % X 35% $2,450 Maximum Allowance $2,450 (Single Wage Earners Do Not Get An Employment Allowance)

  17. Tax Allowance Example Federal Taxes $ 5,250 Social Security Taxes $ 6,120 State Taxes 4% $ 3,200 Total Tax Allowance $14,570

  18. Total Allowance Income Allowance $26,290 Asset Allowance $ 729 Employment Allowance $ 3,500 Tax Allowance $14,570 Total Allowances $45,089

  19. Adjusted Available Income Of Parents Total Income $85,000 Total Allowances -$45,089 Adjusted Available Income $39,911

  20. Adjusted Available Income Of Parents

  21. Adjusted Available Income Of Parents Available Income $39,911 Adjustment Factor - 30,901 Adjustment Factor Left $ 9,010

  22. Adjusted Available Income Of Parents First $30,901 Assessed $8,358 Second $9,010 Assessed 47% +4,235 EFC Of Parents $12,593

  23. Student’s EFC First $6,130 - $0 (50% thereafter minus taxes) Assets 20% (No Asset Protection Allowance)

  24. Student’s EFC Student’s Income $ 3,850 Student’s Assets $10,000

  25. Student’s EFC Student’s Assessment From Income $3,850 - $6,130 = $0 Student’s Assets $10,000 X 20% = $2,000 Students EFC = $2,000

  26. Total Family’s EFC Parents’ EFC $12,593 Student’s EFC + 2,000 Family’s EFC $14,593

  27. Student’s Financial Need Total Cost Of Attending $18,000 EFC Of Family - 14,593 Financial Need $ 3,407

  28. Student’s Attends Private University Total Cost Of Attending $38,000 EFC Of Family - 14,593 Financial Need $23,407

  29. BIG PROBLEM How Is This Family Going To Pay Their Expected Family Contribution Of $14,593 This is14%of Gross Income or; 17%of Net Income After Taxes

  30. Chuck Moore, CCFC, CAMC, CAFC Louisville, Kentucky 502-721-8646 ▪ tuition2@insightbb.com www.collegeliteracyacademy.com www.gearuped.com

More Related