Expected Family Contribution (EFC): FAFSA vs CSS Calculations

Source: https://ifap.ed.gov/efcformulaguide/attachments/1920EFCFormulaGuide.pdf

What you’re left with is your “net available income.” Multiply it by 0.47 to get the amount you’re probably going to be expected to spend on college next year. If that’s, say, $40,000, then the aid formulas will anticipate that you can spend $18,800.Second, the formula will look at your parents’ assets. The FAFSA isn’t interested in their retirement accounts. It also doesn’t look at home equity or the assets of small businesses with fewer than 100 employees. But it does want to know what your parents have in savings, checking, and taxable investment accounts.Get a total for this number and subtract the savings and asset protection allowance (see table for 2019–20) — most likely this will be somewhere between $10,000 and $15,000 if your parents are living together. Then multiply by 0.0564 to determine how much of these assets are expected to be available for college spending. Add this to the number from the first step.

Source: https://ifap.ed.gov/efcformulaguide/attachments/1920EFCFormulaGuide.pdf

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