1. UMass Lowell Financial Aid Office EFC Calculation
Award Year

2. 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 EFC published in Federal Register

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

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

5. 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

6. Asset Net Worth Threshold Question
Added to FOTW for 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

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

8. Simplified Needs Analysis Independent
Student AGI less than $50,000 - AND -
Student not required to file 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

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

10. Auto Zero EFC Independent with Dependents other than Spouse
Student AGI less than $24,000 - AND -
Student not required to file 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

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

12. 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

13. 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

14. 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