1. Let’s Calculate an Expected Family Contribution
Presenters: JD Gibbs
Spring Conference April 9 – 11, 2018

2. What we’ll do
Calculate an Expected Family Contribution (EFC) for a dependent student using EFC Formula
Review our work and discuss the results
Be glad that we have computer systems that do this for us!

3. Nanette Cooper (NC for short!)
Dependent student
2 parents, married to each other and living together
Both parents work outside the home
4 children
2 of the children, including Nanette, are in college
The older parent is 51
Nanette and her parents are North Carolina residents
Parents filed a joint federal income tax return for the calendar year of
Nanette filed a 1040EZ federal income tax return for the calendar year of 2016

4. Parents’ Financial Information for 2016
Parents’ AGI was $60,000
Parent 1 income earned was $25,000
Parent 2 income earned was $30,000
Parents’ other taxable income was $5,000
Parents had a total of $2,000 in untaxed income that had to be reported on the FAFSA
Parents’ federal income tax paid was $5,900
Parents’ cash, savings, & checking account value is $10,000. This is their only asset.

5. Nanette’s Financial Information for 2016
Nanette’s AGI was $6,000
Nanette earned $6,000 from work (same as her AGI)
Nanette has $1,000 in untaxed income that was reported on the FAFSA
Nanette paid $264 in federal income tax
Nanette has $1,000 in cash, savings, and checking. This is her only asset to be reported on the FAFSA

6. Let’s calculate Nanette’s EFC!

7. Let’s review the answers
60,000
25,000
30,000
55,000
2,000

8. 62,000

9. 5,900
2,480
1,913
2,295
35,740
Notes –
9. Use 4% - the parents are NC residents and their income is $15,000 or more
10. And 11 – multiply each parent’s Income earned from work – not the AGI
$25,000 X 0.765
$30,000 X 0.765
12. There are 6 family members and 2 are in college

10. 4,000
52,328
62,000
9,672

11. 10,000
22,900
-12,900
21. The older parent is 51 and there are 2 parents

12. 9,672
2,128 2
1,064
26. Use 22% of the Available Income because it is between $-3,409 and $16,400

13. 6,000
1,000
7,000

14. 264
210
459
7,503

15. 7,000
7503
-503
200
1,000
1,000

16. 1,064
200
1,264

17. References
The EFC Formula, available at

18. Questions?

19. Please visit them and let them know how much you appreciate it.
NCASFAA would like to thank our Professional Affiliates for their support.
Please visit them and let them know how much you appreciate it.
Spring Conference April 9 – 11, 2018