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Chuck Moore, CCFC, CAMC, CAFC Louisville, Kentucky 502-721-8646 ▪ [email protected] www.collegeliteracyacademy.com www.gearuped.com. How The EFC Is Calculated. What Is College Financial Aid.

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Chuck Moore, CCFC, CAMC, CAFC Louisville, Kentucky 502-721-8646 ▪ [email protected]

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Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

Chuck Moore, CCFC, CAMC, CAFC

Louisville, Kentucky

502-721-8646 ▪ [email protected]

www.collegeliteracyacademy.com

www.gearuped.com


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

How The EFC Is Calculated


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

What Is College Financial Aid

Student financial aid refers to funding intended to help students pay educational expenses including tuition and fees, room and board, and books/supplies, and miscellanious costs, for education at a college, university, or private school.

Financial aid may be classified into two types, merit-based or need-based.


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

Where Does Most College Financial Aid Come Form

Most student aid is provided by the federal government. Students received more than $109 billion in federal aid during the school year of 2011–2012. Most federal student aid is awarded as grants and low-interest loans.


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

The Financial Aid Process

FAFSA and CSS Profile


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

  • The FAFSA cannot be filed until after January 1 of the student’s senior year of high school. Furthermore, it must be filed each year the student is seeking financial assistance while in college.

  • The Federal Methodology Formula that calculates the family’s EFC is based mainly on the parents’ and student’s income and assets minus certain deductions and allowances.


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

  • Completing The FAFSA

  • Simple To Complete

  • Complicated To Understand


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

  • FAFSA Formula Similar To Tax Formula

  • Income Protection Allowance

  • Asset Protection Allowance

  • Employment Allowance

  • Deductions For Certain Taxes Paid


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

Income Protection Allowance


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

Income Protection Allowance Example

Number In Household4

Number In College1

AGI:$85,000

Income Protection Allowance$26,290

Available Income$58,710


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

Asset Protection Allowance


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

Asset Protection Allowance Example

Oldest Parent46

Allowance$37,100

Exposed Assets$50,000


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

Asset Protection Allowance Example

Oldest Parent46

Exposed Assets $50,000

Allowance (minus)$37,100

$12,900

$12,900 X 5.65%

Adjusted Available Assets$729

($729 Is Added Into Your Adjusted Available Income)


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

Employment Allowance Example

Number Of Parents Working 2

Lowest Earner Amount$26,000

Employment Allowance %35%

Maximum Allowance$3,500

(Single Wage Earners Do Not Get An Employment Allowance)


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

Employment Allowance Example

Number Of Parents Working 2

Lowest Earner Amount$26,000

Employment Allowance %X 35%

$9,100

Maximum Allowance$3,500

(Single Wage Earners Do Not Get An Employment Allowance)


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

Employment Allowance Example

Number Of Parents Working 2

Lowest Earner Amount$7,000

Employment Allowance %X 35%

$2,450

Maximum Allowance$2,450

(Single Wage Earners Do Not Get An Employment Allowance)


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

Tax Allowance Example

Federal Taxes $ 5,250

Social Security Taxes$ 6,120

State Taxes 4%$ 3,200

Total Tax Allowance$14,570


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

Total Allowance

Income Allowance $26,290

Asset Allowance $ 729

Employment Allowance$ 3,500

Tax Allowance$14,570

Total Allowances$45,089


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

Adjusted Available Income Of Parents

Total Income $85,000

Total Allowances-$45,089

Adjusted Available Income $39,911


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

Adjusted Available Income Of Parents


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

Adjusted Available Income Of Parents

Available Income$39,911

Adjustment Factor- 30,901

Adjustment Factor Left$ 9,010


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

Adjusted Available Income Of Parents

First $30,901 Assessed$8,358

Second $9,010 Assessed 47%+4,235

EFC Of Parents$12,593


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

Student’s EFC

First $6,130 - $0 (50% thereafter minus taxes)

Assets 20% (No Asset Protection Allowance)


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

Student’s EFC

Student’s Income $ 3,850

Student’s Assets$10,000


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

Student’s EFC

Student’s Assessment From Income $3,850 - $6,130 = $0

Student’s Assets $10,000 X 20% = $2,000

Students EFC = $2,000


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

Total Family’s EFC

Parents’ EFC$12,593

Student’s EFC+ 2,000

Family’s EFC$14,593


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

Student’s Financial Need

Total Cost Of Attending$18,000

EFC Of Family- 14,593

Financial Need$ 3,407


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

Student’s Attends Private University

Total Cost Of Attending$38,000

EFC Of Family- 14,593

Financial Need$23,407


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

BIG PROBLEM

How Is This Family Going To Pay Their Expected Family Contribution Of

$14,593

This is14%of Gross Income or;

17%of Net Income After Taxes


Chuck moore ccfc camc cafc louisville kentucky 502 721 8646 tuition2 insightbb

Chuck Moore, CCFC, CAMC, CAFC

Louisville, Kentucky

502-721-8646 ▪ [email protected]

www.collegeliteracyacademy.com

www.gearuped.com


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