2018-2019 FAFSA Formula is Here

Wondering about income and asset protection allowances for the coming FAFSA? The FAFSA EFC Formula Guide for 2018-2019 is available here.

Unlike the past few years, the changes this year are pretty modest. The income and asset protection allowance for parents went up nominally. For example, the income protection allowance for a family of 4 with 2 college students is $25,040 for 2018-2019 vs $24,480 last year; the student income protection allowance went up to $6,570. The asset protection allowance for a 2-parent household in which the older parent is 50 increased to $22,300, from $21,200.

More important than the allowance numbers, though, is understanding how the formula works. The biggest component of the formula is parents’ income. If you have a high income, you must save for college, because there is no way that most of us could come up with our EFC from cash flow alone.

Leave a Reply

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