Calculating the EFC - wasfaa.org · –Nine-month calculation always used for Federal Pell Grant award. EFC 101 Nine-Month EFC ... EFC Case Study Sheet –EFC Worksheet A, pg. 20-21

4/15/2018

Calculating the EFC

© 2018 Cheryl Hunt. All rights reserved.2018 WASFAA Conference

EFC 101– What is the EFC?

9 month

Alternate

Federal Methodology Formulas– Regular, Simplified and Auto-Zero EFC

– Primary and Secondary EFCs

Case Study

Resources

Agenda

© 2018 Cheryl Hunt. All rights reserved.

An objective means of measuring the strength

of a family’s resources and its ability to pay for

college costs.

Cost of Attendance

– Expected Family Contribution

= Financial Need

Need Analysis

© 2018 Cheryl Hunt. All rights reserved.Handout – p. 1

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EFC found on SAR and ISIR is always based on ninemonths.– Nine-month calculation always used for Federal Pell Grant award.

EFC 101Nine-Month EFC

© 2018 Cheryl Hunt. All rights reserved. Handout – p. 2

Alternate

EFCs

Dependent Students:– Periods of enrollment for less than nine months.

– Periods of enrollment for greater than nine months.

Independent Students:– Periods of enrollment for less than nine months.

EFC 101Alternate EFCs



9 month

Alternate



Case Study

Resources

Agenda


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Independent student without dependents

(other than spouse)B

Regular

Simplified

Version

Regular

Simplified

Auto Zero EFC

Independent student with dependents

(other than spouse)C

Regular

Simplified

Auto Zero EFC

Student Status Formula

Dependent student A

Federal Methodology Formulas


Federal Methodology FormulasCriteria for Simplified and Automatic Zero EFC Calculation

© 2018 Cheryl Hunt. All rights reserved.Handout – p. 3 and 17

Federal Methodology FormulasCriteria for Simplified and Automatic Zero EFC Calculation


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Federal Methodology FormulasPrimary and Secondary EFCs


Federal Methodology FormulasPrimary and Secondary EFCs



9 month

Alternate



Case Study

Resources

Agenda


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Case StudyJack

Calculate an 2018-2019 EFC forJack using the following documents:– FAFSA Information, pg. 19 EFC Case Study Sheet

– EFC Worksheet A, pg. 20-21

– EFC Formula ‘A’ Tables, pg. 22-25

© 2018 Cheryl Hunt. All rights reserved.Handout – p. 19-25

Case StudyFormula A: Jack

Your best guess of Jack’s EFC:

(12/10/1950)*

Case Study Sheet, p. 19© 2018 Cheryl Hunt. All rights reserved.

Intermediate Value

Case StudyParent: Income in 2016

2016


TI

Case Study Sheet p. 19 and EFC Worksheet ‘A’- p. 20

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Case StudyParent: Allowances Against Income

2016

© 2018 Cheryl Hunt. All rights reserved.Case Study Sheet p. 19 and EFC Worksheet ‘A’- p. 20


4% 3%

4% 3%

9% 8%

6% 5%

3% 2%

4% 3%

4% 3%

Table A1 - p. 22 and EFC Worksheet ‘A’ - p. 20© 2018 Cheryl Hunt. All rights reserved.

Table A1

_______ (line 7) x 5%


2016


STX


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20162016

2016


Table A2_______ (line 2a) x 7.65%_______ (line 2b) x 7.65%


2016




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Table A33 in household, 1 in college


2016

IPA

Case Study Sheet p. 19 and EFC Worksheet ‘A’- p. 20© 2018 Cheryl Hunt. All rights reserved.

Lesser of:_______ x 35% = _______

or, $4,000


2016

EA

ATI

Case Study Sheet p. 19 and EFC Worksheet ‘A’- p. 20© 2018 Cheryl Hunt. All rights reserved.

Case StudyParent: Available Income


AI

EFC Worksheet ‘A’- p. 20

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Case StudyParent: Contribution from Assets


Case StudyParent: Contribution from Assets

Business/Farm Net Worth (line 18):

Adj. Business/Farm Net Worth (line 19)

175,000

- 130,000

= 45,000

x 50%

= 22,500

+ 52,000

= 74,500


Case StudyParents: Contribution from Assets

NW


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© 2018 Cheryl Hunt. All rights reserved.Table A5 - p. 24 and EFC Worksheet ‘A’ - p. 20

Table A5Parent 1, ___Parent 2, ___


NW

DNW

PCA

APA


Case StudyParent: Contribution


AAI

AI

AI 45767

EFC Worksheet ‘A’- p. 20

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Adjusted Available Income (line 25):

Total parents’ contrib. from AAI (line 26)

52,409

- 33,100

= 19,309

x 47%

= 9,075

+ 8,959

= 18,034


Table A6(______ x __%) + ______


1


TPC

AAI

PC

AI


Case StudyStudent: Income in 2016

2016


STI


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Case StudyStudent: Allowances Against Income

2016

6,570



4%

6%

3%

2%

4%



Table A7______ (line 35) x __%

2016

6,570


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20162016

2016



Table A2______ (line 30) x 7.65%

Parents’ Negative AAIIf line 25 is zero or a positive

number, enter zero.

2016

6,570


SATI


Case StudyStudent: Contribution from Income


SIC


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Case StudyStudent: Contribution from Assets


SDNW

SCA


Case StudyExpected Family Contribution

Your best guess of Jack’s EFC:


SIC

TPC

SCA

EFC Worksheet ‘A’- p. 21 and 22


9 month

Alternate



Case Study

Resources

Agenda


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Resources


Cheryl [email protected]


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2018-2019 ISIR Example

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Criteria for 2018-2019 Simplified Needs Formulas and Automatic Zero EFC Calculation

The following criteria is used to determine if students qualify to have their EFCs calculated using a simplified formula.

Simplified (assets not considered) Automatic Zero EFC

Formula A Dependent student

Parents had a 2016 AGI of $49,999 or less (fortax filers), or if non-filers, income earnedfrom work in 2016 is $49,999 or less; and

Either- Parents filed or are eligible to file 2016 IRS

Form 1040A or 1040EZ (or not required to file any income tax return) or

- Anyone in the parents’ household size (asdefined on the FAFSA) received anydesignated means-tested federal benefits*during 2016 or 2017, or

- Parent is a dislocated worker.

Parents had a 2016 AGI of $25,000 or less (fortax filers), or if non-filers, income earnedfrom work in 2016 is $25,000 or less; and

Either- Parents filed or are eligible to file 2016 IRS

Form 1040A or 1040EZ (or not required to file any income tax return) or

- Anyone in the parents’ household size (asdefined on the FAFSA) received anydesignated means-tested federal benefits*during 2016 or 2017, or

- Parent is a dislocated worker.

Formula B Independent student without dependents (other than a spouse)

Student (and spouse, if any) had a 2016 AGIof $49,999 or less (for tax filers), or if non-filers, income earned from work in 2016 is$49,999 or less; and

Either- Student (and spouse, if any) filed or are

eligible to file 2016 IRS Form 1040A or1040EZ (or not required to file any incometax return) or

- Anyone in the student’s household size (asdefined on the FAFSA) received anydesignated means-tested federal benefits*during 2016 or 2017, or

- Student (or spouse, if any) is a dislocatedworker.

Not applicable.

Formula C Independent student

with dependents (other than a spouse)











*Benefits include: Medicaid, Supplemental Security Income (SSI), Supplemental Nutrition Assistance (SNAP), Free or Reduced Price School Lunch,Temporary Assistance for Needy Families (TANF), and Special Supplemental Nutrition Program for Women, Infants and Children (WIC).

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References, Resources and Websites – Calculating the EFC U.S. Department of Education

2018-2019 EFC Formula Guide Worksheets and Tables https://ifap.ed.gov/efcformulaguide/attachments/071017EFCFormulaGuide1819.pdf

2018-2019 ISIR Guide https://ifap.ed.gov/isirguide/attachments/1819ISIRGuide.pdf

2017-2018 Federal Student Aid Handbook Application and Verification Guide Chapter 2: Filling Out the FAFSA Chapter 3: Expected Family Contribution (EFC) https://ifap.ed.gov/fsahandbook/1819FSAHbkAVG.html

2018-2019 Free Application for Federal Student Aid https://fafsa.gov/fotw1819/pdf/PdfFafsa18-19.pdf

Completing the FAFSASM 2018-2019 https://studentaid.ed.gov/sa/sites/default/files/2018-19-completing-fafsa.pdf

Program Integrity Q&A – Verification https://www2.ed.gov/policy/highered/reg/hearulemaking/2009/verification.html

Federal Student Aid Glossary and Acronymshttps://ifap.ed.gov/fsahandbook/attachments/1718FSAHbkAppendixA.pdf

Other Resources

EFC Calculator https://bigfuture.collegeboard.org/pay-for-college/paying-your-share/expected-family-contribution-calculator

Social Security and Medicare Tax for 2016 (Society for Human Resource Management) https://www.shrm.org/ResourcesAndTools/hr-topics/compensation/Pages/fica-social-security-tax-2016.aspx

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https://ifap.ed.gov/efcformulaguide/attachments/071017EFCFormulaGuide1819.pdf

https://ifap.ed.gov/isirguide/attachments/1819ISIRGuide.pdf

https://ifap.ed.gov/fsahandbook/1819FSAHbkAVG.html

https://fafsa.gov/fotw1819/pdf/PdfFafsa18-19.pdf

https://studentaid.ed.gov/sa/sites/default/files/2018-19-completing-fafsa.pdf

https://www2.ed.gov/policy/highered/reg/hearulemaking/2009/verification.html

https://studentaid.ed.gov/sa/glossary

https://bigfuture.collegeboard.org/pay-for-college/paying-your-share/expected-family-contribution-calculator

https://www.shrm.org/ResourcesAndTools/hr-topics/compensation/Pages/fica-social-security-tax-2016.aspx

Calculating the EFC - wasfaa.org · –Nine-month calculation always used for Federal Pell Grant award. EFC 101 Nine-Month EFC ... EFC Case Study Sheet –EFC Worksheet A, pg. 20-21

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