1. EFC Formula –
2009 College Access Training

2. Stacy Seim & Becca Dobry
EFC Formula
Presented by:
Stacy Seim & Becca Dobry
EducationQuest Foundation & UNK Office of Financial Aid
Through a permanent endowment, we fund:
Free college planning services
Need-based scholarship programs
Grants that help high schools increase their college-going rate
Outreach services for community agencies

3. What is the EFC? Expected Family Contribution
Determines students’ eligibility for federal student aid
Calculated using financial information provided on the FAFSA
Colleges subtract EFC from students’ cost of attendance to determine their need for:
Pell Grants
Subsidized Stafford Loans
Supplemental Educational Opportunity Grants
Perkins Loans
Work-Study

4. Simplified EFC (Assets not considered)
Who qualifies? (DEPENDENT students)
Students from a household where anyone received:
SSI, SNAP, Free and Reduced Price Lunch, TANF, or WIC OR
Student’s parents:
Eligible to file 2015 IRS Form 1040A or 1040EZ
Filed 2015 IRS Form 1040, but were not required to do so
Were not required to file any tax return
Student’s parent is a dislocated worker
AND
Combined 2015 income of student’s parents is $49,999 or less

5. Simplified EFC (Assets not considered)
Who qualifies? (INDEPENDENT students)
Students from a household where anyone received:
SSI, SNAP, Free and Reduced Price Lunch, TANF, or WIC OR
Student and student’s spouse (if married) both:
Eligible to file 2015 IRS Form 1040A or 1040EZ
Filed 2015 IRS Form 1040, but were not required to do so
Were not required to file any tax return
Student or student’s spouse is a dislocated worker
AND
Combined 2015 income of student (and spouse) is $49,999 or less

6. Who qualifies for automatic zero EFC calculation?
Same as “simplified,” except:
Income threshold for parents of dependent students and for independent students and their spouses is $25,000 or less instead of $49,000 or less
For independent students, those without dependents other than a spouse cannot receive an automatic zero EFC

7. Why worksheet EFC calculations may differ from EFC on student’s SAR
If it appears an applicant reported inconsistent data, CPS may make certain assumptions to resolve the inconsistency
Therefore, the EFC produced by worksheets may differ from the EFC produced by the CPS if assumed values are not used
In addition, to help reconcile EFC worksheet calculations with those of CPS, carry all calculations to three decimal places and then round to the nearest whole number
Round upward for results of .500 to .999, round downward for results of .001 to .499

8. Dependent Student Regular Formula

9. Table A1: State and Other Tax Allowance for EFC Formula A Worksheet (parents only)

10. Table A1: State and Other Tax Allowance for EFC Formula A Worksheet (parents only)

11. To calculate state and other tax allowance…
Multiply Parents’ Total Income (EFC Formula A Worksheet, line 7) by appropriate rate from previous table to get “State and Other Tax Allowance” (EFC Formula A Worksheet, line 9)
Use parents’ State of Legal Residence (FAFSA/SAR #70)
If this item is blank or invalid, use student’s State of Legal Residence (FAFSA/SAR #18).
If both items are blank or invalid, use the State in the Student’s Mailing Address (FAFSA/SAR #6).
If all three items are blank or invalid, use the rate for a blank or invalid state shown in the chart.

12. Table A2: Social Security Tax

13. Table A3: Income Protection Allowance

14. Table A4: Business/Farm Net Worth Adjustment for EFC Formula A Worksheet (parents only)

15. Table A5: Parents’ Education Savings and Asset Protection Allowance for EFC Formula A Worksheet (parents only)
*Determine age of older parent listed in FAFSA/SAR #64 and #68 as of 12/31/ If no parent DOB is provided, use age 45.
**Use two parent allowance when the Parents’ Marital Status listed in FAFSA/SAR #59 is “married or remarried or “unmarried and both parents are living together.”

16. Table A6: Parents’ Contribution from AAI

17. Table A7: State and Other Tax Allowance for EFC Formula A Worksheet (student only)

18. Table A7: State and Other Tax Allowance for EFC Formula A Worksheet (student only)

19. To calculate state and other tax allowance…
Multiply Student’s Total Income (EFC Formula A Worksheet, line 35) by appropriate rate from table on previous slides to get the “State and Other Tax Allowance”
(EFC Formula A Worksheet, line 37)
Use Student’s State of Legal Residence (FAFSA/SAR #18)
If this item is blank or invalid, use the state in student’s mailing address (FAFSA/SAR #6)
If both items are blank or invalid, use the Parents’ State of Legal Residence (FAFSA/SAR #70)
If all three items are blank or invalid, use the rate for a blank or invalid state shown in the chart

20. Independent Student Without Dependents Other Than a Spouse

21. Table B1: State and Other Tax Allowance

22. Table B1: State and Other Tax Allowance

23. To calculate state and other tax allowance…
Multiply total income of student and spouse (EFC Formula B Worksheet, line 7) by appropriate rate from table on previous slides to get the “State and Other Tax Allowance” (EFC Formula B Worksheet, line 9)
Use Student’s State of Legal Residence (FAFSA/SAR #18)
If this item is blank or invalid, use the state in student’s mailing address (FAFSA/SAR #6).
If both items are blank or invalid, use the rate for a blank or invalid state shown in the chart.

24. Table B2: State and Other Tax Allowance
Table B3: Business/Farm Net Worth Adjustment

25. Table B4: Asset Protection Allowance
*Determine student’s age as of 12/31/2016 from student’s DOB (FAFSA/SAR #9)

26. Independent Students With Dependent Other Than a Spouse

27. Table C1: State and Other Tax Allowance

28. Table C1: State and Other Tax Allowance

29. To calculate state and other tax allowance…
Multiply total income of student and spouse (EFC Formula C Worksheet, line 7) by appropriate rate from table on previous slides to get the “State and Other Tax Allowance” (EFC Formula C Worksheet, line 9)
Use Student’s State of Legal Residence (FAFSA/SAR #18)
If this item is blank or invalid, use the state in student’s mailing address (FAFSA/SAR #6).
If both items are blank or invalid, use the rate for a blank or invalid state shown in the chart.

30. Table C2: Social Security Tax

31. Table C3: Income Protection Allowance

32. Table C5: Asset Protection Allowance

33. Table C6: Student’s Contribution from AAI

34. Questions? stacys@educationquest.org
Stacy Seim, EducationQuest Foundation,
Becca Dobry, UNK Financial Aid Office,