Does the "Number of college students in household" really affect financial aid?

Question

I completed my FAFSA and entered 1 (myself). Now my wife is going to attend, so her FAFSA was answered 2. Her FAFSA says that there's a "conflict" in that answer (probably related to my FAFSA). Should I change my FAFSA? I'm affraid to rock the boat and make changes to mine now that I'm attending school. Would ansering "2" actually make my Expected Family Contribution less?

Answer 1

no

Answer 2

I love people who just throw out these answers and they have no idea what they are talking about.

The answer that you provide to the FAFSA question about household size impacts the calculation of the EFC significantly.

To start, "household" size determines which of the FAFSA  worksheets and formulas are used to calculate the EFC.

I'm assuming that you and your wife are not receiving disability benefits and that you have no other unusual circumstances that you didn't mention - so the appropriate EFC worksheet for your situation is "Regular Worksheet B", for "independent students without dependent(s) other than spouse".

On the non-married student worksheet, you would have been allowed an automatic "income protection allowance" of $3080 (this amount is subtracted from the income that you reported)

On the married student worksheet, you are entitled to an automatic "income protection allowance" of $6620 if your wife is enrolled more than 1/2 time and $9970 if she is enrolled less than 1/2 time.

EVEN MORE IMPORTANTLY - when you get to the final lines of the EFC worksheet, where the actual EFC is calculated, the formula looks like this:

(Contribution from available income PLUS Contribution from Assets) DIVIDED BY number in college in 2008-2009 EQUALS Estimated Family Contribution.

Now can you imagine a bigger effect than that?

Forget about "rocking the boat". If you want the greatest possible financial assistance, you should update and correct your FAFSA submission right away.

(shame on whoever told you it didn't matter)

I hope that helps.