If a married couple has 150 000 in agi but has no assets their efc is already 29 265. Edvisors wittily says you should always apply for financial aid unless your parents earn more than 350 000 a year have more than 1 million in reportable net assets have only one child in college and that child is enrolled at a public college only then would submitting the fafsa do almost no good because the 15 000 a year for state school would seem like nothing.
The efc for the average american household with an agi of 55 000 will often range from 3 000 to 4 000.
How much money can you make to get financial aid. As you can see in the chart income has the largest impact on the amount of financial aid. For parents the allowance depends on the number of people in the household and the number of students in college. If you need more financial support accept the earned money.
Families with adjusted gross incomes agi of 25 000 or less have an automatic efc of 0. This is your work study. You won t have to pay back this money either but you will have to work for it.
In other words it s possible to receive a financial aid package that covers everything you need to pay for college although that s not the most likely outcome for most students. The same goes if you as an independent student and your spouse earn no more than 26 000 annually. An efc of zero means that the financial aid formula has determined that the family cannot afford to pay anything towards college.
There is no stated maximum income to qualify for financial aid. The financial aid amount you can receive from filing your fafsa is equal to your college s cost of attendance which includes tuition room and board books and other necessary expenses. Plus after that only 50 percent of your non work study income will count against your eligibility to receive federal student funding there are also other types of income that do not have to be counted as income in this calculation.
Based on data from the national postsecondary student aid study npsas more than 94 of federal pell grant recipients in 2015 16 had an adjusted gross income agi under 60 000 and 99 9 had an agi under 100 000. For example if tuition room and board is 25 000 for suny albany that means they would receive no financial aid. For the 2020 2021 cycle if you re a dependent student and your family has a combined income of 26 000 or less your expected contribution to college costs would automatically be zero.
The student income allowance is 6 660 for 2019 2020. The odds of receiving a federal pell grant decrease with increasing income as shown in this chart. You won t have to pay any of this money back but there might be stipulations to receiving this aid continuously such as maintaining a certain gpa.
For 2019 2020 the income protection allowance for a married couple with two children in college is 25 400. Every college student is encouraged to apply for federal aid through the fafsa and your parents income level will have no bearing on some available aid. Fortunately thinking that your parents make too much money for financial aid is misguided.
Currently the fafsa protects dependent student income up to 6 660. Other common sources of uncounted income include.