College Financial Aid Changes for 2010-2011
As the government has come to assist in many industries and programs, college assistance has not been forgotten either. The Department of Education has recently announced several adjustments to the Federal Need Analysis Formula.
The Federal Need Analysis Formula is the calculation that takes information form the Free Application for Federal Student Aid (FAFSA) and from that determines the amount the family should pay, often called the expected family contribution or EFC. Colleges use this EFC to award federal need based financial aid.
For the years 2010-2011, the Income Protection Allowance, the Adjusted Net Worth of a Business or Farm, the Education Savings and Asset Protection Allowances, the Assessment Schedules and Rates, and the Employment Expense Allowance have all been modified.
For example, the Income Protection Allowance for a dependent student has jumped from $3750 (for 2009-2010) to $4500 (for 2010-2011). This is the amount of income a dependent student may have in the 2009 calendar year before the excess income impacts the EFC. Also, parents of a dependent student are permitted an income protection allowance based on the family size and the number of dependents in college.
(Credit to Tax and Business Alert, September 2009 for information contained in this article)
As the government has come to assist in many industries and programs, college assistance has not been forgotten either. The Department of Education has recently announced several adjustments to the Federal Need Analysis Formula.
The Federal Need Analysis Formula is the calculation that takes information form the Free Application for Federal Student Aid (FAFSA) and from that determines the amount the family should pay, often called the expected family contribution or EFC. Colleges use this EFC to award federal need based financial aid.
For the years 2010-2011, the Income Protection Allowance, the Adjusted Net Worth of a Business or Farm, the Education Savings and Asset Protection Allowances, the Assessment Schedules and Rates, and the Employment Expense Allowance have all been modified.
For example, the Income Protection Allowance for a dependent student has jumped from $3750 (for 2009-2010) to $4500 (for 2010-2011). This is the amount of income a dependent student may have in the 2009 calendar year before the excess income impacts the EFC. Also, parents of a dependent student are permitted an income protection allowance based on the family size and the number of dependents in college.
(Credit to Tax and Business Alert, September 2009 for information contained in this article)