filing-the-fafsa-2015-2016-edition

Filing the FAFSA 127
Tweaking Demographic Information
Number in College
The number of children in college at the same time can have a big impact on the expected family
contribution (EFC), since the parent contribution portion of the EFC is divided by the number of children
in college. (The CSS/Financial Aid PROFILE form uses a different adjustment to the parental contribution
when there are multiple children in college.) For example, twins, triplets and other multiples may qualify
for more need-based financial aid than children who do not overlap in college. While it may be too late
to implement such a family planning strategy, the impact on eligibility for need-based financial aid may
influence the parents’ thinking about whether to allow a child to skip a grade or take a gap year between
high school and college.
Parents do not normally count in the number in college, ever since Congress changed the rules in 1992.
However, if the parents are continuing their education at the same time as their children, they can appeal
to the college financial aid administrator for a professional judgment review. The college financial aid
administrator will generally want to see a list of the types and amounts of expenses, such as tuition,
fees, books, supplies and equiment, with copies of paid bills and receipts. Some colleges will adjust the
number in college or subtract the amount the family paid for the parent’s education from the parents’
income (minus employer-paid tuition assistance or other reimbursements of college costs), if they can
verify that the parent is genuinely pursuing a college education.
It is also important to recognize that the number of children in college may change from one year to the
next, affecting financial aid eligibility. For example, suppose a family has two children separated in age
by one year. When the eldest child enrolls in college, the family will have just one child in college. The
next year, they will have two children in college at the same time, potentially increasing the amount of
financial aid for each of the children. When the youngest is a senior in college, however, the family will
be back down to one child in college, increasing the family’s EFC and, thereby, reducing the amount of
financial aid.
Note that an increase in the number in college will not reduce the EFC when the parent contribution is
less than about $1,000. While the parent contribution is divided by the number of children in college, the
income protection allowance will decrease with each additional child in college. This yields an increase in
available income that may offset the impact of splitting the parent contribution among multiple children
when the parent contribution is already low.
Household Size
Household size also affects eligibility for need-based financial aid, but to a much lesser extent. However,
families sometimes forget to count all members of their household. The most common errors include
failing to count the student in the household size, failing to count an unborn child in household size,
failing to count an adopted child and failing to count children who don’t live in the home but who receive
more than half their support from the parents. Do not, however, count foster children. Do not count
other relatives or strangers who receive more than half their support from the parents but do not live in
the home Also, while the family may regard a pet as a member of the family, pets cannot be counted in
household size.