If you've completed the FAFSA and are available back with an EFC of 00000, you may think there is a mistake. After all, everyone's EFC is sky-high, right?
On another hand, you might be celebrating in a major way. Doesn't an EFC of zero imply that you will not have to pay anything for school?
Let's decelerate. Some people do get a 0 EFC, but it does not mean you receive a free ride. Here's how to understand that number!
Why Can you Come with an EFC of 00000?
There are a handful of different reasons a FAFSA EFC could be zero.
If the adjusted gross income from the student’s parents is low enough, you automatically get 0.
For 2023-2024, time is $29,000 or below on your 2023 income tax return.
If your income is below $49,999, your family qualifies for a simplified needs test. What this means is both the parent's and student's assets are not counted in the EFC calculation, and could result in a 00000 EFC result.
A student will also have a 0 EFC if they're considered independent using their parents. There is a large list of methods to be eligible for a independence.
Here are a couple of them:
- The student is 24 or older
- The student is married or separated (but not divorced)
- At the beginning of the current school year, a student is going to be enrolled in a master's or doctoral degree program
- The student happens to be on active duty or perhaps a veteran of active duty service who had been released for a reason other than dishonorable discharge
- The student has a number of children who'll receive over fifty percent of the support from him or her
- The student is definitely an orphan, emancipated minor, or is a dependent ward from the court
A student by having an EFC of zero is recognized as a “full-need student.”
What Does it Mean with an EFC of 00000?
Being a full-need student implies that you're going to get more the help of schools than someone with a higher EFC, however it does not always mean that all of the financial need will be met.
There are very few schools that meet full need. Many of these schools their very own need-determination system, using the CSS profile or any other similar form.
This can result in an EFC higher than zero, although it can always be low.
If you would like your student to possess full need met, it's important to position them properly. Make certain they focus on schools where their academic and test answers are within the upper tiers for incoming freshmen.
This can help result in the school thinking about ensuring your student attends, leading to more aid.
Unfortunately, a zero EFC does not mean school is free. Furthermore many schools leave you to pay for a portion of your own need, you may find that a few of the aid requires you to definitely take out loans.
Aid Packages for Full-Need Students
A full-need student will have access to some additional funding not available to other people. Probably the most important is federal Pell Grants, which do not have to be repaid.
You may also find work-study and Federal Direct Subsidized and Unsubsidized Loans within the aid package.
Pell Grants
A school must be eligible for Title IV to be able to include these grants in an aid package. Most schools are, just a few aren't. Keep that in mind while you compare options!
Pell Grants are awarded according to financial need, EFC, enrollment status, and cost of attendance. The maximum for any Pell Grant in 2023-23 is $6,895, and also the award can't be higher than the price of attendance.
Perkins Loans
Unfortunately, Perkins Loans expired on September 30, 2023. These low-interest loans were a good tool for folks by having an EFC of 00000, and there is currently no program to replace it.
Other Aid Sources
Work-study and Federal Direct loans work just like they'd for any other student. You don't have to accept these options if you like to not or don't have to.
Keep in mind that loans have to be repaid just like other student debt options, to allow them to cause a financial burden discover wise together.
Also, even with all the aid offered, you might still have a funding gap.
Remember, many schools don't cover 100% of need!
Getting probably the most Aid Possible for Your Full-Need Student
Having a full-need student gives you some advantages, however, you still have to carefully select colleges to pay attention to.
You should also apply as soon as you are able to each year, so that your student will be first in line for aid.
Need help finding which schools are most generous for your full-need student? Let us help.
Check out our College Insights tool today!