UMass Lowell Financial Aid Office EFC Calculation 2013-2014 Award Year

EFC The EFC is a number used to determine a student’s eligibility for federal student aid. Results from the information reported on the FAFSA. Methodology is found in Part F of the Title IV of the Higher Education Act of 1965, as amended. Updated tables used in the computation of the 2013-2014 EFC published in Federal Register

EFC Formulas A – Dependent Student B – Independent w/o dependents other than spouse C – Independent with dependents other than a spouse

Types of Analysis Full Needs Simplified Needs Auto Zero Asset info used to determine EFC Simplified Needs Asset info not used Auto Zero

ISIR Formula Number Each student’s ISIR numerically indicates which formula was used to generate the EFC 1 = Full Needs: Dependent 2 = Full Needs: Independent w/o Dependents 3 = Full Needs: Independent with Dependents 4 = Simplified Needs: Dependent 5 = Simplified Needs: Independent w/o Dependents 6 = Simplified Needs: Independent with Dependents

Asset Net Worth Threshold Question Added to FOTW for 11-12 aid year IND students & parents of DEP students that meet criteria are presented with the asset threshold question to determine if asset net worth must be reported and used in the EFC calculation Question presented: As of today, does the total amount of your mother’s current assets exceed $______? If no, asset questions are skipped. ISIR noted “Asset Threshold Exceeded” Blank, Yes, No

Simplified Needs Analysis Dependent Parent AGI less than $50,000 - AND - Parents not required to file 1040 - OR - One parent is dislocated worker - OR - Anyone in the household receives federal needs-tested benefits SSI Food Stamps School Lunch SNAP TANF WIC

Simplified Needs Analysis Independent Student AGI less than $50,000 - AND - Student not required to file 1040 - OR - Student or spouse is dislocated worker - OR - Anyone in the household receives federal needs-tested benefits SSI Food Stamps School Lunch SNAP TANF WIC

Auto Zero EFC Dependent Parental combined AGI is $24,000 or less Parents not required to file 1040 - OR - One parent is dislocated worker - OR - Anyone in the household receives federal needs-tested benefits SSI Food Stamps School Lunch SNAP TANF WIC

Auto Zero EFC Independent with Dependents other than Spouse Student AGI less than $24,000 - AND - Student not required to file 1040 - OR - Student or spouse is dislocated worker - OR - Anyone in the household receives federal needs-tested benefits SSI Food Stamps School Lunch SNAP TANF WIC

Auto Zero EFC Independent with no Dependents other than Spouse Not eligible for Auto Zero Always full needs or simplified needs

Assumptions Why might a manual EFC calculation vary from the EFC on the SAR? CPS makes assumptions to resolve the inconsistent information; assumed values are then used All calculations are carried to three decimal places Calculations rounded to nearest whole numbers Round upward for results of .500 to .999 Round down for results of .001 to .499 Rounding performed so intermediate value that is the result of each step does not have any decimal digits

Applying What You’ve Learned Alan Independent Not married, no kids AGI = 16,000 Cory DINK AGI = 45,000 Filed 1040 SNAP Betsy Independent Married, no kids AGI = 78,000 Filed 1040 Daniel DINK AGI = 22,000 Filed 1040A

Applying What You’ve Learned Edward Dependent Parent doesn’t file Has income of $8,500 S-AGI = $48,000 Files 1040 George P-AGI = $42,000 Filed 1040 SNAP Francis Dependent P-AGI = $82,000 Filed 1040 S-AGI = $4,500 Helen P-AGI = $22,000 Filed 1040A S-AGI = $7,500