Upload
lamkhue
View
230
Download
0
Embed Size (px)
Citation preview
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
1
4/15/2018
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
© 2018 Cheryl Hunt. All rights reserved.Handout – p. 2
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.Handout – p. 2
2
4/15/2018
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
© 2018 Cheryl Hunt. All rights reserved.Handout – p. 3
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
© 2018 Cheryl Hunt. All rights reserved.Handout – p. 3
3
4/15/2018
Federal Methodology FormulasPrimary and Secondary EFCs
© 2018 Cheryl Hunt. All rights reserved.Handout – p. 4
Federal Methodology FormulasPrimary and Secondary EFCs
© 2018 Cheryl Hunt. All rights reserved.Handout – p. 4
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.
4
4/15/2018
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
© 2018 Cheryl Hunt. All rights reserved.
TI
Case Study Sheet p. 19 and EFC Worksheet ‘A’- p. 20
5
4/15/2018
Case StudyParent: Allowances Against Income
2016
© 2018 Cheryl Hunt. All rights reserved.Case Study Sheet p. 19 and EFC Worksheet ‘A’- p. 20
Case StudyParent: Allowances Against Income
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%
Case StudyParent: Allowances Against Income
2016
© 2018 Cheryl Hunt. All rights reserved.
STX
Case Study Sheet p. 19 and EFC Worksheet ‘A’- p. 20
6
4/15/2018
Case StudyParent: Allowances Against Income
20162016
2016
Table A2 - p. 22 and EFC Worksheet ‘A’ - p. 20© 2018 Cheryl Hunt. All rights reserved.
Table A2_______ (line 2a) x 7.65%_______ (line 2b) x 7.65%
Case StudyParent: Allowances Against Income
2016
© 2018 Cheryl Hunt. All rights reserved.Case Study Sheet p. 19 and EFC Worksheet ‘A’- p. 20
Case StudyParent: Allowances Against Income
Table A3 - p. 23 and EFC Worksheet ‘A’ - p. 20© 2018 Cheryl Hunt. All rights reserved.
7
4/15/2018
Table A33 in household, 1 in college
Case StudyParent: Allowances Against Income
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
Case StudyParent: Allowances Against Income
2016
EA
ATI
Case Study Sheet p. 19 and EFC Worksheet ‘A’- p. 20© 2018 Cheryl Hunt. All rights reserved.
Case StudyParent: Available Income
© 2018 Cheryl Hunt. All rights reserved.
AI
EFC Worksheet ‘A’- p. 20
8
4/15/2018
Case StudyParent: Contribution from Assets
Case Study Sheet p. 19 and EFC Worksheet ‘A’- p. 20
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
Table A4 - p. 23 and EFC Worksheet ‘A’ - p. 20© 2018 Cheryl Hunt. All rights reserved.
Case StudyParents: Contribution from Assets
NW
Case Study Sheet p. 19 and EFC Worksheet ‘A’- p. 20
9
4/15/2018
Case StudyParents: Contribution from Assets
© 2018 Cheryl Hunt. All rights reserved.Table A5 - p. 24 and EFC Worksheet ‘A’ - p. 20
Table A5Parent 1, ___Parent 2, ___
Case StudyParents: Contribution from Assets
NW
DNW
PCA
APA
Case Study Sheet p. 19 and EFC Worksheet ‘A’- p. 20
Case StudyParent: Contribution
© 2018 Cheryl Hunt. All rights reserved.
AAI
AI
AI 45767
EFC Worksheet ‘A’- p. 20
10
4/15/2018
Case StudyParent: Contribution
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
© 2018 Cheryl Hunt. All rights reserved.Table A6 - p. 24 and EFC Worksheet ‘A’ - p. 20
Table A6(______ x __%) + ______
Case StudyParent: Contribution
1
© 2018 Cheryl Hunt. All rights reserved.
TPC
AAI
PC
AI
Case Study Sheet p. 19 and EFC Worksheet ‘A’- p. 20
Case StudyStudent: Income in 2016
2016
© 2018 Cheryl Hunt. All rights reserved.
STI
Case Study Sheet p. 19 and EFC Worksheet ‘A’- p. 21
11
4/15/2018
Case StudyStudent: Allowances Against Income
2016
6,570
© 2018 Cheryl Hunt. All rights reserved.Case Study Sheet p. 19 and EFC Worksheet ‘A’- p. 21
Case StudyStudent: Allowances Against Income
4%
6%
3%
2%
4%
© 2018 Cheryl Hunt. All rights reserved.Table A7 - p. 24 and EFC Worksheet ‘A’ - p. 21
Case StudyStudent: Allowances Against Income
Table A7______ (line 35) x __%
2016
6,570
© 2018 Cheryl Hunt. All rights reserved.Case Study Sheet p. 19 and EFC Worksheet ‘A’- p. 21
12
4/15/2018
Case StudyStudent: Allowances Against Income
20162016
2016
© 2018 Cheryl Hunt. All rights reserved.Table A2 - p. 23 and EFC Worksheet ‘A’ - p. 21
Case StudyStudent: Allowances Against Income
Table A2______ (line 30) x 7.65%
Parents’ Negative AAIIf line 25 is zero or a positive
number, enter zero.
2016
6,570
© 2018 Cheryl Hunt. All rights reserved.
SATI
Case Study Sheet p. 19 and EFC Worksheet ‘A’- p. 21
Case StudyStudent: Contribution from Income
© 2018 Cheryl Hunt. All rights reserved.
SIC
Case Study Sheet p. 19 and EFC Worksheet ‘A’- p. 21
13
4/15/2018
Case StudyStudent: Contribution from Assets
© 2018 Cheryl Hunt. All rights reserved.
SDNW
SCA
Case Study Sheet p. 19 and EFC Worksheet ‘A’- p. 21
Case StudyExpected Family Contribution
Your best guess of Jack’s EFC:
© 2018 Cheryl Hunt. All rights reserved.
SIC
TPC
SCA
EFC Worksheet ‘A’- p. 21 and 22
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.
14
4/15/2018
Resources
© 2018 Cheryl Hunt. All rights reserved.Handout – p. 18
Cheryl [email protected]
© 2018 Cheryl Hunt. All rights reserved.
15
2018-2019 ISIR Example
16
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)
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.
Student (and spouse, if any) had a 2016 AGIof $25,000 or less (for tax filers), or if non-filers, income earned from work in 2016 is$25,000 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.
*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).
17
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
18