How to Reduce Your Expected Family Contribution (EFC) – Reduction Tip #1


20120422-141321.jpg

There are plenty of factors that go into the final Expected Family Contribution (EFC), so getting the number down as low as possible is often a game of changing the inputs. Here’s a quick EFC reduction tip…more after the jump

Reduce Student Assets – when a student is classified as a dependent, its important to keep in mind that assets (cash, savings, bonds) that belong to the student are taxed at 20%, as opposed to independent and parents which are tasted at less than 6%. So getting the assets down is important. Remember that the FAFSA asks for the assets you have on hand the DAY YOU FILE IT! So get those assets down, by moving assets away from students by giving them to other non-household family members. Clear out student bank accounts, cash out savings bonds, and ditch every dime you can get away with. The EFC is the number that makes all the difference, so use every tool in the arsenal to ensure it is low as possible.

Advertisements

Ask a Question!

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s