This is the first in a two part presentation on how to file your financial aid forms, in particular your FAFSA. The slides cover questions like, "What is your expected family contribution" and "What documents will I need to file my FAFSA?"

1. Understanding
Financial Aid

2. What Is Need Based Aid?
Need-based aid is determined by your EFC.
EFC stands for Expected Family Contribution, and it
is the amount of money the schools expect you to pay
each year for your daughter’s education.
EFC is determined when you submit your FAFSA,
PROFILE, and/or institutional form.
Need is the difference between the COA (Cost of
Attendance) and your EFC.

3. How Is EFC Determined?
Four Basic components:
Parent Income
Parent Assets
Student Income
Student Assets
What are assets?
Anything that is not in a retirement account.
Do they consider home equity?
Sometimes. Private schools that require the
PROFILE do look at home equity.

4. EFC: Example 1
Parents EFC Worksheet
1. Family Members 4 9. Parent 2 Income $100,000.00
2. Students in College 1 10. Deductible IRA, KEOGH, -
and 401(k) payments
3. Age of Older Parent 45 made by parents.
4. Number of Parents 2 11. Federal Taxes Paid 50,000
in Household
12. Parent Assets -
5. Number of Parents 2
working 13. Students Adjusted 6,300
Gross Income
6. Business and Commercial -
Farm Net Worth 14. Student's Taxes Paid -
7. Parent 1 Income $ 150,000 15. Student's Assets -
8. Adjusted Gross Income $ 250,000 16. Parent's Home Equity -
9. Is the business a family $ - 17. State of Residence CT
business with <100 employees?
Approximate FM EFC 56,834

5. EFC Example 2
Parents EFC Worksheet
1. Family Members 4 9. Parent 2 Income $ 70,000.00
2. Students in College 1 10. Deductible IRA, KEOGH, -
and 401(k) payments
3. Age of Older Parent 45 made by parents.
4. Number of Parents 2 11. Federal Taxes Paid 30,000
in Household
12. Parent Assets -
5. Number of Parents 2
working 13. Students Adjusted 6,300
6. Business and Commercial -
Farm Net Worth 14. Student's Taxes Paid -
7. Parent 1 Income $ 80,000 15. Student's Assets -
8. Adjusted Gross Income $ 150,000 16. Parent's Home Equity -
9. Is the business a family $ - 17. State of Residence CT
business with <100 employees?
Approximate FM EFC 25,158

6. EFC Example 3
Parents EFC Worksheet
1. Family Members 4 9. Parent 2 Income $ 70,000.00
2. Students in College 1 10. Deductible IRA, KEOGH, -
and 401(k) payments
3. Age of Older Parent 45 made by parents.
4. Number of Parents 2 11. Federal Taxes Paid 30,000
in Household
12. Parent Assets 150,000
5. Number of Parents 2
working 13. Students Adjusted 6,300
Gross Income
6. Business and Commercial -
Farm Net Worth 14. Student's Taxes Paid -
7. Parent 1 Income $ 80,000 15. Student's Assets -
8. Adjusted Gross Income $ 150,000 16. Parent's Home Equity -
9. Is the business a family $ - 17. State of Residence CT
business with <100 employees?
Approximate FM EFC 32,027

7. EFC Example 4
Parents EFC Worksheet
1. Family Members 4 9. Parent 2 Income $ 70,000.00
2. Students in College 1 10. Deductible IRA, KEOGH, -
and 401(k) payments
3. Age of Older Parent 45 made by parents.
4. Number of Parents 2 11. Federal Taxes Paid 30,000
in Household
12. Parent Assets 50,000
5. Number of Parents 2
working 13. Students Adjusted 6,300
Gross Income
6. Business and Commercial -
Farm Net Worth 14. Student's Taxes Paid -
7. Parent 1 Income $ 80,000 15. Student's Assets -
8. Adjusted Gross Income $ 150,000 16. Parent's Home Equity -
9. Is the business a family $ - 17. State of Residence CT
business with <100 employees?
Approximate FM EFC 26,387

8. What Are Assets?
Cash, Savings, Checking (reported separately)
Stocks, Bonds, Mutual Funds, Investment Real Estate,
anything that is not in a retirement fund
529 Plans are considered parent assets, if they are
owned by the parents, and excluded from the formula
if they are owned by grandparents. That is, for the
Federal Methodology

9. What Are NOT Assets?
Primary Residence
IRA, SEP, 401K, Annuity, Cash Value of Whole Life
Sometimes the CSS PROFILE will ask questions about
those assets and some schools do include them in the
formula

10. How Are Assets Assessed?
Parent’s assets are assessed at a maximum of 5.6%
above an Asset Protection Allowance
Student’s assets are assessed at 20% and they have no
Asset Protection Allowance
Assets in a business are given higher protection limits

11. What You Need to File Your FAFSA
Parent 2013 (2014 when done) 1040 and w’2’s
Student income information
Parent and student social security numbers
Parent and student dates of birth
Parent and student email addresses*
List of the colleges where the student is applying to
school
Your PIN number (if you already have one)
Summary of your asset information

12. Extra Information

13. Potential Questions
My income in 2014 is significantly different than 2013,
what do I do?
The student’s parents are divorced or separated, who
files?
What do I do when my taxes are completed?
What if my child applied to more than 10 schools?

14. If a Family is Not Eligible for Aid, Should
They Still File the FAFSA?
Yes, if they:
Want to Receive a Stafford Loan
Want to Receive the TEACH Grant
If the school requires it for consideration for Merit
Scholarships

15. Verification

16. Verification

17. • James Maroney
jmaroney@firstchoicecollege.com
75 New Haven Avenue, Milford, CT 06460
www.firstchoicecollege.com
(800) 575-0950
@1stChoiceColleg
Facebook.com/FirstChoiceCollegePlacement